Question 1

According to the text, productivity is driven by all of the following EXCEPT:

Accepted Answer

A)  physical capital.
B)  human capital.
C)  technological progress.
D)  natural resources.

Question 2

If an economy has a real GDP per capita growth rate of 2%, it will take 14 years for GDP per capita to double.

Accepted Answer

A) True 
 B)False

Question 3

Based on historical economic growth, economists have noted that the estimated aggregate production function:

Accepted Answer

A)  exhibits constant returns to physical capital.
B)  shows that when holding the amount of human capital and the state of technology fixed, successive increases in the amount of physical capital per worker lead to smaller increases in productivity.
C)  depends primarily on physical capital and technology advances.
D)  shows the negative relationship between physical capital and productivity.

Question 4

According to the rule of 70, if a country's real GDP per capita grows at an annual rate of 2% instead of 3%, it will take _____ additional years for that country to double its level of real GDP per capita.

Accepted Answer

A)  35
B)  11.67
C)  23.3
D)  30

Question 5

Latin American growth since the 1920s has been relatively slow because of all of the following EXCEPT:

Accepted Answer

A)  a lack of savings to finance investment.
B)  a lack of a solid education system.
C)  a lack of political stability.
D)  U.S. intervention.

Question 6

The key factor explaining the poor growth performance in Africa is probably:

Accepted Answer

A)  lack of domestic political stability.
B)  lack of natural resources.
C)  overpopulation.
D)  the prevalence of military conflicts among neighboring countries.

Question 7

The fundamental argument in the Essay on the Principle of Population was that improvements in technology or increases in physical capital would lead to only temporary improvements in productivity because they would always be offset by:

Accepted Answer

A)  rising human capital demands.
B)  falling land values.
C)  the pressure of rising population and more workers on the supply of land.
D)  falling birthrates.

Question 8

The aggregate production function exhibits _____ returns to _____ capital.

Accepted Answer

A)  increasing; physical
B)  decreasing; physical
C)  constant; physical
D)  increasing; financial

Question 9

Economies with high growth rates tend to be those that increase their:

Accepted Answer

A)  government regulation.
B)  human capital.
C)  consumption.
D)  resources.

Question 10

If real GDP in country A is $500 billion one year and is $540 billion the following year, this means the growth rate for this country between the two years is:

Accepted Answer

A)  4%.
B)  8%.
C)  0.8%.
D)  10%.

Question 11

The biggest global environment issue is:

Accepted Answer

A)  the impact of fossil-fuel consumption on the world's climate.
B)  the availability of coal.
C)  how to determine who has the property rights to wind power.
D)  how to extract oil from Canadian tar sands.

Question 12

If real GDP per capita grows at 5% per year consistently over time, how many years will it take for it to double?

Accepted Answer

A)  5
B)  10
C)  14
D)  70

Question 13

Historically, development of a new technology often:

Accepted Answer

A)  results in immediate increases in productivity.
B)  leads to increases in productivity only once firms learn how to use it.
C)  requires a complementary increase in physical and human capital.
D)  has had no impact on changes in productivity.

Question 14

A country's growth rate strongly depends on how it has invested in its physical capital. Generally, countries that have used _____ as a source of their capital investment have exhibited the highest growth rate.

Accepted Answer

A)  foreign direct investment
B)  domestic saving
C)  foreign portfolio investment
D)  contracted globalization

Question 15

Sustainable long-run economic growth can continue in the face of the limited supplies of natural resources and the impact of growth on the environment.

Accepted Answer

A) True 
 B)False

Question 16

The rule of 70 tells us that:

Accepted Answer

A)  it takes most countries 70 years to increase real GDP growth.
B)  the number of years it takes for a variable to double is equal to 70 divided by the annual growth rate of the variable.
C)  the number of years for real GDP per capita to double is the current growth rate plus 70.
D)  only 70 countries can have real GDP growth at any given time.

Exam 9: Long-Run Economic Growth

If real GDP per capita grows at 5% per year consistently over time, how many years will it take for it to double?

Correct Answer
verified

The biggest global environment issue is:

Correct Answer
verified

According to the rule of 70, if a country's real GDP per capita grows at an annual rate of 2% instead of 3%, it will take _____ additional years for that country to double its level of real GDP per capita.

Correct Answer
verified

Latin American growth since the 1920s has been relatively slow because of all of the following EXCEPT:

Correct Answer
verified

The rule of 70 tells us that:

Correct Answer
verified

Economies with high growth rates tend to be those that increase their:

Correct Answer
verified

If real GDP in country A is $500 billion one year and is $540 billion the following year, this means the growth rate for this country between the two years is:

Correct Answer
verified

The fundamental argument in the Essay on the Principle of Population was that improvements in technology or increases in physical capital would lead to only temporary improvements in productivity because they would always be offset by:

Correct Answer
verified

Based on historical economic growth, economists have noted that the estimated aggregate production function:

Correct Answer
verified

Historically, development of a new technology often:

Correct Answer
verified

The key factor explaining the poor growth performance in Africa is probably:

Correct Answer
verified

A country's growth rate strongly depends on how it has invested in its physical capital. Generally, countries that have used _____ as a source of their capital investment have exhibited the highest growth rate.

Correct Answer
verified

The aggregate production function exhibits _ returns to _ capital.

Correct Answer
verified

Sustainable long-run economic growth can continue in the face of the limited supplies of natural resources and the impact of growth on the environment.

Correct Answer
verified

According to the text, productivity is driven by all of the following EXCEPT:

Correct Answer
verified

If an economy has a real GDP per capita growth rate of 2%, it will take 14 years for GDP per capita to double.

Correct Answer
verified

Exam 9: Long-Run Economic Growth

If real GDP per capita grows at 5% per year consistently over time, how many years will it take for it to double?

Correct AnswerverifiedShow Answer

The biggest global environment issue is:

Correct AnswerverifiedShow Answer

According to the rule of 70, if a country's real GDP per capita grows at an annual rate of 2% instead of 3%, it will take _____ additional years for that country to double its level of real GDP per capita.

Correct AnswerverifiedShow Answer

Latin American growth since the 1920s has been relatively slow because of all of the following EXCEPT:

Correct AnswerverifiedShow Answer

The rule of 70 tells us that:

Correct AnswerverifiedShow Answer

Economies with high growth rates tend to be those that increase their:

Correct AnswerverifiedShow Answer

If real GDP in country A is $500 billion one year and is $540 billion the following year, this means the growth rate for this country between the two years is:

Correct AnswerverifiedShow Answer

The fundamental argument in the Essay on the Principle of Population was that improvements in technology or increases in physical capital would lead to only temporary improvements in productivity because they would always be offset by:

Correct AnswerverifiedShow Answer

Based on historical economic growth, economists have noted that the estimated aggregate production function:

Correct AnswerverifiedShow Answer

Historically, development of a new technology often:

Correct AnswerverifiedShow Answer

The key factor explaining the poor growth performance in Africa is probably:

Correct AnswerverifiedShow Answer

A country's growth rate strongly depends on how it has invested in its physical capital. Generally, countries that have used _____ as a source of their capital investment have exhibited the highest growth rate.

Correct AnswerverifiedShow Answer

The aggregate production function exhibits _____ returns to _____ capital.

Correct AnswerverifiedShow Answer

Sustainable long-run economic growth can continue in the face of the limited supplies of natural resources and the impact of growth on the environment.

Correct AnswerverifiedShow Answer

According to the text, productivity is driven by all of the following EXCEPT:

Correct AnswerverifiedShow Answer

If an economy has a real GDP per capita growth rate of 2%, it will take 14 years for GDP per capita to double.

Correct AnswerverifiedShow Answer

Correct Answer
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The aggregate production function exhibits _ returns to _ capital.

Correct Answer
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Correct Answer
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Correct Answer
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