Question 1

The purchase or building by a corporation of a facility in a foreign country is called

Accepted Answer

A)  foreign direct investment.
B)  foreign portfolio investment.
C)  foreign capital depreciation.
D)  globally-directed investment.E) A) and B)
F) B) and C)

Question 2

Robert Lucas argues that there are ________ returns to human capital,and these productivity increases are not completely captured by individuals as they decide how much education to purchase.As a result,the market produces ________ education and training.

Accepted Answer

A)  increasing;too much
B)  decreasing;too much
C)  increasing;too little
D)  decreasing;too littleE) B) and C)
F) All of the above

Question 3

Compared to the previous 20 years,productivity growth in the United States increased between 1996 and 2014.

Accepted Answer

A) True 
 B)False

Question 4

According to Joseph Schumpeter,which of the factors of production is central to economic growth?

Accepted Answer

A)  land
B)  labor
C)  natural resources
D)  the entrepreneurE) A) and D)
F) All of the above

Question 5

Significant economic growth did not begin in the world until

Accepted Answer

A)  1000 A.D.
B)  1750 A.D.
C)  1820 A.D.
D)  the 20th century A.D.E) None of the above
F) A) and B)

Question 6

According to Nobel laureate Douglass North,one reason why the Industrial Revolution occurred in England before many other countries was because the king in England consistently maintained control over the court system and the government.

Accepted Answer

A) True 
 B)False

Question 7

GDP in a country grew from $10 billion to $14 billion over the span of 5 years.The average annual growth rate of GDP was

Accepted Answer

A)  4%.
B)  7%.
C)  10%.
D)  40%.E) B) and C)
F) B) and D)

Question 8

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.E) B) and C)
F) All of the above

Question 9

Small differences in economic growth rates result in small differences in living standards.

Accepted Answer

A) True 
 B)False

Question 10

Explain the meaning of the word "convergence" in the context of economic growth and standards of living.

Accepted Answer

Convergence is a term that describes a p...

Question 11

By offering less generous unemployment insurance programs,the United States can expect

Accepted Answer

A)  citizens to pay more in taxes than citizens pay in Europe.
B)  workers to be slow in gaining new skills in response to fluctuations in the labor market.
C)  shorter periods of unemployment for their workers.
D)  longer periods of unemployment for their workers.E) B) and C)
F) All of the above

Question 12

In a small Asian country,it is estimated that changing the level of capital from $8 million to $12 million will increase real GDP from $4 million to $6 million.What level of GDP would you expect the economy to be able to reach if spending on capital continued to rise to $16 million,assuming no technological change and no change in the hours of work?

Accepted Answer

A)  GDP would increase further,but by less than $2 million.
B)  GDP would increase further by exactly $2 million.
C)  GDP would increase further by more than $2 million
D)  GDP would increase further by exactly $8 million.E) None of the above
F) B) and D)

Question 13

Most economic growth in the world occurred between 1,000,000 B.C.and 1300 A.D.

Accepted Answer

A) True 
 B)False

Question 14

Recent rapid economic growth in India and China has reduced the amount of "brain drain" in those countries.

Accepted Answer

A) True 
 B)False

Question 15

To what do economists attribute the rapid growth of labor productivity in the United States relative to other countries?

Accepted Answer

A)  the flexibility of U.S.labor markets and the efficiency of the U.S.financial system
B)  the strict government rules in the United States that regulate a firm's ability to hire and fire workers
C)  the low rate of job mobility in the United States
D)  the high level of unemployment benefits the United States pays relative to other countries like CanadaE) B) and C)
F) C) and D)

Question 16

According to the World Bank,in 2006,China's GDP was approximately $2.7 trillion (or $2,700 billion) .That same year,India's GDP was approximately $906.3 billion.With which of the following populations would China's standard of living have been considered higher than India's that year?

Accepted Answer

A)  China's population = 1.3 billion;India's population = 1.1 billion
B)  China's population = 8.3 billion;India's population = 1.1 billion
C)  China's population = 500 million;India's population = 125 million
D)  China's population = 3.5 billion;India's population = 1.1 billionE) None of the above
F) C) and D)

Question 17

The easiest way for a country to obtain access to technology is through

Accepted Answer

A)  subsidizing education and training.
B)  promoting foreign direct investment.
C)  promoting policies to enhance saving.
D)  enacting policies to promote property rights.E) A) and B)
F) A) and C)

Question 18

According to Douglass North,the Industrial Revolution occurred in England because

Accepted Answer

A)  the British Parliament took control of the government and could credibly commit to upholding property rights.
B)  the British monarchy took control of the government and pledged not to raise taxes arbitrarily.
C)  the British courts became tied to the king and began to refuse to enforce property rights.
D)  the British Parliament instituted a command economy structure and implemented a planned economy.E) B) and C)
F) None of the above

Question 19

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 capita 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.E) A) and B)
F) B) and D)

Question 20

Figure 22-1 
-Refer to Figure 22-1.Suppose the per-worker production function in the figure above represents the production function for the U.S.economy.If the United States decided to double its support of university research,this would cause a movement from

Accepted Answer

A)  A to B.
B)  B to C.
C)  B to A.
D)  D to C.E) A) and B)
F) A) and C)

Exam 22: Long-Run Economic Growth: Sources and Policies

The easiest way for a country to obtain access to technology is through

Correct Answer
verified

Significant economic growth did not begin in the world until

Correct Answer
verified

Explain the meaning of the word "convergence" in the context of economic growth and standards of living.

Correct Answer
verified
Convergence is a term that describes a p...
View Answer

GDP in a country grew from $10 billion to $14 billion over the span of 5 years.The average annual growth rate of GDP was

Correct Answer
verified

Figure 22-1 -Refer to Figure 22-1.Suppose the per-worker production function in the figure above represents the production function for the U.S.economy.If the United States decided to double its support of university research,this would cause a movement from

Correct Answer
verified

To what do economists attribute the rapid growth of labor productivity in the United States relative to other countries?

Correct Answer
verified

Correct Answer
verified

According to Joseph Schumpeter,which of the factors of production is central to economic growth?

Correct Answer
verified

Compared to the previous 20 years,productivity growth in the United States increased between 1996 and 2014.

Correct Answer
verified

Recent rapid economic growth in India and China has reduced the amount of "brain drain" in those countries.

Correct Answer
verified

Most economic growth in the world occurred between 1,000,000 B.C.and 1300 A.D.

Correct Answer
verified

Robert Lucas argues that there are returns to human capital,and these productivity increases are not completely captured by individuals as they decide how much education to purchase.As a result,the market produces education and training.

Correct Answer
verified

According to Douglass North,the Industrial Revolution occurred in England because

Correct Answer
verified

Correct Answer
verified

According to the World Bank,in 2006,China's GDP was approximately $2.7 trillion (or $2,700 billion) .That same year,India's GDP was approximately $906.3 billion.With which of the following populations would China's standard of living have been considered higher than India's that year?

Correct Answer
verified

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

Correct Answer
verified

Small differences in economic growth rates result in small differences in living standards.

Correct Answer
verified

By offering less generous unemployment insurance programs,the United States can expect

Correct Answer
verified

The purchase or building by a corporation of a facility in a foreign country is called

Correct Answer
verified

According to Nobel laureate Douglass North,one reason why the Industrial Revolution occurred in England before many other countries was because the king in England consistently maintained control over the court system and the government.

Correct Answer
verified

Exam 22: Long-Run Economic Growth: Sources and Policies

The easiest way for a country to obtain access to technology is through

Correct AnswerverifiedShow Answer

Significant economic growth did not begin in the world until

Correct AnswerverifiedShow Answer

Explain the meaning of the word "convergence" in the context of economic growth and standards of living.

Correct AnswerverifiedConvergence is a term that describes a p...View AnswerShow Answer

GDP in a country grew from $10 billion to $14 billion over the span of 5 years.The average annual growth rate of GDP was

Correct AnswerverifiedShow Answer

Figure 22-1 -Refer to Figure 22-1.Suppose the per-worker production function in the figure above represents the production function for the U.S.economy.If the United States decided to double its support of university research,this would cause a movement from

Correct AnswerverifiedShow Answer

To what do economists attribute the rapid growth of labor productivity in the United States relative to other countries?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

According to Joseph Schumpeter,which of the factors of production is central to economic growth?

Correct AnswerverifiedShow Answer

Compared to the previous 20 years,productivity growth in the United States increased between 1996 and 2014.

Correct AnswerverifiedShow Answer

Recent rapid economic growth in India and China has reduced the amount of "brain drain" in those countries.

Correct AnswerverifiedShow Answer

Most economic growth in the world occurred between 1,000,000 B.C.and 1300 A.D.

Correct AnswerverifiedShow Answer

Robert Lucas argues that there are ________ returns to human capital,and these productivity increases are not completely captured by individuals as they decide how much education to purchase.As a result,the market produces ________ education and training.

Correct AnswerverifiedShow Answer

According to Douglass North,the Industrial Revolution occurred in England because

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

According to the World Bank,in 2006,China's GDP was approximately $2.7 trillion (or $2,700 billion) .That same year,India's GDP was approximately $906.3 billion.With which of the following populations would China's standard of living have been considered higher than India's that year?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Small differences in economic growth rates result in small differences in living standards.

Correct AnswerverifiedShow Answer

By offering less generous unemployment insurance programs,the United States can expect

Correct AnswerverifiedShow Answer

The purchase or building by a corporation of a facility in a foreign country is called

Correct AnswerverifiedShow Answer

According to Nobel laureate Douglass North,one reason why the Industrial Revolution occurred in England before many other countries was because the king in England consistently maintained control over the court system and the government.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Convergence is a term that describes a p...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Robert Lucas argues that there are returns to human capital,and these productivity increases are not completely captured by individuals as they decide how much education to purchase.As a result,the market produces education and training.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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