Question 1

Between 1990 and 2010,which of these leading industrial countries of the world had the highest average annual growth rate in GDP per capita?

Accepted Answer

A)   the United States
B)   Germany
C)   Japan
D)   Canada

Question 2

Foreign portfolio investment occurs when an individual or firm buys stock or bonds issued in another country.

Accepted Answer

A) True 
 B)False

Question 3

The term "brain drain" refers to

Accepted Answer

A)   highly educated individuals who leave developing countries for high-income countries.
B)   the diminishing returns to studying for an exam.
C)   the negative impact on brain function of an individual's overinvestment in human capital.
D)   the decreased quality of the college-educated workforce.

Question 4

The Industrial Revolution began in

Accepted Answer

A)   England around 1750.
B)   the United States around 1820.
C)   France around 1680.
D)   Germany around 1780.

Question 5

All of the following policies are ways for a country to promote long-run economic growth except

Accepted Answer

A)   increasing vaccinations against infectious diseases.
B)   undergoing political reform to decrease corruption.
C)   enacting stronger laws to protect property rights.
D)   imposing stricter regulations to limit foreign direct investment.

Question 6

According to new growth theory,

Accepted Answer

A)   technological change is influenced by economic incentives.
B)   centrally-planned economies are the most efficient.
C)   growth in real GDP per capita occurs only if there are increasing returns.
D)   economic growth is determined by forces outside the control of the market system.

Question 7

Which of the following explains the ability of the U.S.economy to avoid diminishing marginal returns and experience accelerating growth in the early to mid-20th century?

Accepted Answer

A)   continuing technological change
B)   immigration
C)   additions of a greater amount of capital of the same quality
D)   a decrease in the quality of labor

Question 8

Table 22-1
 
-Refer to Table 22-1.In the table above,which countries are consistent with the predictions of the economic growth model?

Accepted Answer

A)   Botswana and Thailand
B)   Japan and Guatemala
C)   only Japan
D)   all four countries

Question 9

If real GDP in the United States is growing at an annual rate of 3.2% per capita and Bolivia's real GDP per capita is growing at a rate of 1.3%,which of the following would we expect in the long run? Assume real GDP per capita in the United States begins at a level above that of real GDP per capita in Bolivia.

Accepted Answer

A)   Real GDP per capita in the United States will always be 1.9% higher than real GDP per capital in Bolivia.
B)   The difference between the level of real GDP per capita in the United States and real GDP per capita in Bolivia will shrink over time.
C)   The difference between the level of real GDP per capita in the United States and real GDP per capita in Bolivia will increase over time.
D)   The difference between the level of real GDP per capita in the United States and real GDP per capita in Bolivia will always be $1.9 trillion.

Question 10

What are some of the reasons used to explain improvements in health,education,democracy,and political stability in many low-income countries?

Accepted Answer

Reasons include increases in technology ...

Question 11

If real GDP per capita in the United States is $8,000 in 2011,and if real GDP per capita is $12,000 in 2021,what is the total percent change in the growth rate of GDP per capita between 2011 and 2021?

Accepted Answer

A)   3.33%
B)   5%
C)   33%
D)   50%

Question 12

Relative to productivity growth in the United States,which of the following countries experienced the largest decline in productivity growth from 1990 to 2010?

Accepted Answer

A)   Canada
B)   Japan
C)   Germany
D)   the United Kingdom

Question 13

Robert Lucas,a Nobel laureate in economics,argues that there are ________ returns to human capital.

Accepted Answer

A)   increasing
B)   decreasing
C)   constant
D)   negative

Question 14

Which of the following is a true statement regarding the economic growth model's predictions and how it actually affects the real world?

Accepted Answer

A)   The growth model predicts that poor countries should catch up with rich countries, but developing countries are not catching up to lower-income industrialized countries as a group.
B)   The growth model predicts that poor countries will never catch up with rich countries, but lower-income industrialized countries are catching up to higher-income industrialized countries as a group.
C)   The growth model predicts that poor countries will catch up with rich countries, but lower-income industrialized countries are not catching up to higher-income industrialized countries as a group.
D)   The growth model predicts that poor countries will catch up with rich countries, and this is what we observe across all developmental categories of countries.

Question 15

Which of the following government policies would most likely result in an increase in economic growth?

Accepted Answer

A)   a decrease in the life of a patent from 20 years to 15 years
B)   a decrease in the interest rate at which the government provides student loans
C)   a decrease in government spending on grants issued through the National Institutes of Health
D)   decreased copyright protection on music and movies

Question 16

The rapid growth of the Chinese economy should

Accepted Answer

A)   benefit U.S. consumers as they have access to less expensive consumer goods.
B)   make it more difficult for citizens of the United States to find a job.
C)   not affect the mix of jobs available to citizens of the United States.
D)   A and B

Question 17

If the Commerce Department adjusts the growth rate of GDP downward for the first quarter of 2011,and the Bureau of Labor Statistics adjusts the number of hours worked upward for the first quarter of 2011,what will the Bureau of Labor Statistics do in terms of revising the figures on the growth rate of labor productivity for the first quarter of 2011?

Accepted Answer

A)   The BLS will adjust the growth rate downwards.
B)   The BLS will adjust the growth rate upwards.
C)   The BLS will not change the growth rate of productivity.
D)   The BLS will adjust the level of labor productivity upward and the growth rate downward.

Question 18

The period of time from 1,000,000 B.C.to 1300 A.D.was a period of

Accepted Answer

A)   no sustained economic growth.
B)   slow and steady economic growth.
C)   moderate economic growth.
D)   rapid and sustained economic growth.

Question 19

Figure 22-1
 
-Refer to Figure 22-1.Diminishing marginal returns is illustrated in the per-worker production function in the figure above by a movement from

Accepted Answer

A)   A to C.
B)   B to C.
C)   C to D.
D)   D to C.

Question 20

Figure 22-1
 
-Refer to Figure 22-1.Using the per-worker production function in the figure above,the largest changes in an economy's standard of living would be achieved by a movement from

Accepted Answer

A)   A to B to C.
B)   B to C to D.
C)   C to B to A.
D)   D to C to B.

Exam 11: Long-Run Economic Growth: Sources and Policies

Which of the following is a true statement regarding the economic growth model's predictions and how it actually affects the real world?

Correct Answer
verified

Foreign portfolio investment occurs when an individual or firm buys stock or bonds issued in another country.

Correct Answer
verified

Which of the following government policies would most likely result in an increase in economic growth?

Correct Answer
verified

Figure 22-1 -Refer to Figure 22-1.Using the per-worker production function in the figure above,the largest changes in an economy's standard of living would be achieved by a movement from

Correct Answer
verified

Correct Answer
verified

The Industrial Revolution began in

Correct Answer
verified

Which of the following explains the ability of the U.S.economy to avoid diminishing marginal returns and experience accelerating growth in the early to mid-20th century?

Correct Answer
verified

The rapid growth of the Chinese economy should

Correct Answer
verified

Table 22-1 -Refer to Table 22-1.In the table above,which countries are consistent with the predictions of the economic growth model?

Correct Answer
verified

The period of time from 1,000,000 B.C.to 1300 A.D.was a period of

Correct Answer
verified

The term "brain drain" refers to

Correct Answer
verified

What are some of the reasons used to explain improvements in health,education,democracy,and political stability in many low-income countries?

Correct Answer
verified
Reasons include increases in technology ...
View Answer

According to new growth theory,

Correct Answer
verified

Robert Lucas,a Nobel laureate in economics,argues that there are ________ returns to human capital.

Correct Answer
verified

Relative to productivity growth in the United States,which of the following countries experienced the largest decline in productivity growth from 1990 to 2010?

Correct Answer
verified

Between 1990 and 2010,which of these leading industrial countries of the world had the highest average annual growth rate in GDP per capita?

Correct Answer
verified

Figure 22-1 -Refer to Figure 22-1.Diminishing marginal returns is illustrated in the per-worker production function in the figure above by a movement from

Correct Answer
verified

All of the following policies are ways for a country to promote long-run economic growth except

Correct Answer
verified

If real GDP per capita in the United States is $8,000 in 2011,and if real GDP per capita is $12,000 in 2021,what is the total percent change in the growth rate of GDP per capita between 2011 and 2021?

Correct Answer
verified

Correct Answer
verified

Exam 11: Long-Run Economic Growth: Sources and Policies

Which of the following is a true statement regarding the economic growth model's predictions and how it actually affects the real world?

Correct AnswerverifiedShow Answer

Foreign portfolio investment occurs when an individual or firm buys stock or bonds issued in another country.

Correct AnswerverifiedShow Answer

Which of the following government policies would most likely result in an increase in economic growth?

Correct AnswerverifiedShow Answer

Figure 22-1 -Refer to Figure 22-1.Using the per-worker production function in the figure above,the largest changes in an economy's standard of living would be achieved by a movement from

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The Industrial Revolution began in

Correct AnswerverifiedShow Answer

Which of the following explains the ability of the U.S.economy to avoid diminishing marginal returns and experience accelerating growth in the early to mid-20th century?

Correct AnswerverifiedShow Answer

The rapid growth of the Chinese economy should

Correct AnswerverifiedShow Answer

Table 22-1 -Refer to Table 22-1.In the table above,which countries are consistent with the predictions of the economic growth model?

Correct AnswerverifiedShow Answer

The period of time from 1,000,000 B.C.to 1300 A.D.was a period of

Correct AnswerverifiedShow Answer

The term "brain drain" refers to

Correct AnswerverifiedShow Answer

What are some of the reasons used to explain improvements in health,education,democracy,and political stability in many low-income countries?

Correct AnswerverifiedReasons include increases in technology ...View AnswerShow Answer

According to new growth theory,

Correct AnswerverifiedShow Answer

Robert Lucas,a Nobel laureate in economics,argues that there are ________ returns to human capital.

Correct AnswerverifiedShow Answer

Relative to productivity growth in the United States,which of the following countries experienced the largest decline in productivity growth from 1990 to 2010?

Correct AnswerverifiedShow Answer

Between 1990 and 2010,which of these leading industrial countries of the world had the highest average annual growth rate in GDP per capita?

Correct AnswerverifiedShow Answer

Figure 22-1 -Refer to Figure 22-1.Diminishing marginal returns is illustrated in the per-worker production function in the figure above by a movement from

Correct AnswerverifiedShow Answer

All of the following policies are ways for a country to promote long-run economic growth except

Correct AnswerverifiedShow Answer

If real GDP per capita in the United States is $8,000 in 2011,and if real GDP per capita is $12,000 in 2021,what is the total percent change in the growth rate of GDP per capita between 2011 and 2021?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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Reasons include increases in technology ...
View Answer

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Correct Answer
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