Question 1

For the world as a whole, the level of per capita GDP is a poor predictor of a country's economic growth.

Accepted Answer

A) True 
 B)False  True

Question 2

Data from the most advanced economies support the catch-up theory.

Accepted Answer

A) True 
 B)False  True

Question 3

HIV-AIDS has killed about 3 billion people in Africa.

Accepted Answer

A) True 
 B)False  False

Question 4

The Millennium Challenge Corporation (MCC) was created in 2003 by the U.S. Congress, and its stated mission goal is to reduce poverty by promoting economic growth.

Accepted Answer

A) True 
 B)False

Question 5

The rate of population growth and the level of productivity are inversely related, all else the same.

Accepted Answer

A) True 
 B)False

Question 6

All else equal, regions with high capital per worker ratios should exhibit slower rates of growth than regions with low capital per worker ratios.

Accepted Answer

A) True 
 B)False

Question 7

Many of today's developing countries lack

Accepted Answer

A)  the government leadership necessary to escape poverty. 
B)  the necessary scientific knowledge to escape poverty. 
C)  an adequate supply of natural resources. 
D)  a sufficient amount of government regulation necessary to escape poverty. 
E)  individual property rights. 
A)  the government leadership necessary to escape poverty. 
B)  the necessary scientific knowledge to escape poverty. 
C)  an adequate supply of natural resources. 
D)  a sufficient amount of government regulation necessary to escape poverty. 
E)  individual property rights.

Question 8

The emergence of informal sectors in developing economies is due to

Accepted Answer

A)  the low income of the population. 
B)  heavy restrictions on businesses. 
C)  the emergence of a service economy. 
D)  the lack of an industrial base. 
E)  the drug trade. 
A)  the low income of the population. 
B)  heavy restrictions on businesses. 
C)  the emergence of a service economy. 
D)  the lack of an industrial base. 
E)  the drug trade.

Question 9

According to Karl Marx,

Accepted Answer

A)  the development of science was the key to economic growth. 
B)  Malthus's predictions were coming true. 
C)  the bourgeois class inhibited growth. 
D)  the creation of the bourgeois class was the key to economic growth. 
E)  economic growth cannot occur under capitalism. 
A)  the development of science was the key to economic growth. 
B)  Malthus's predictions were coming true. 
C)  the bourgeois class inhibited growth. 
D)  the creation of the bourgeois class was the key to economic growth. 
E)  economic growth cannot occur under capitalism.

Question 10

An emerging market is a country that

Accepted Answer

A)  became a country after World War II. 
B)  was once poor but has since grown rapidly. 
C)  is at a stage of development ahead of an advanced economy. 
D)  has experienced no economic development. 
E)  has always depended on the growth of other countries. 
A)  became a country after World War II. 
B)  was once poor but has since grown rapidly. 
C)  is at a stage of development ahead of an advanced economy. 
D)  has experienced no economic development. 
E)  has always depended on the growth of other countries.

Question 11

A country located on the lower-right-hand corner of the catch-up line is

Accepted Answer

A)  Not enough information is given. 
B)  a rich country experiencing slow growth rates. 
C)  a poor country experiencing slow growth rates. 
D)  a poor country experiencing rapid growth rates. 
E)  a rich country enjoying rapid growth rates. 
A)  Not enough information is given. 
B)  a rich country experiencing slow growth rates. 
C)  a poor country experiencing slow growth rates. 
D)  a poor country experiencing rapid growth rates. 
E)  a rich country enjoying rapid growth rates.

Question 12

All of the following are part of the "Emerging Africa" except

Accepted Answer

A)  Tanzania. 
B)  South Africa. 
C)  Ghana. 
D)  Zambia. 
E)  Zimbawe. 
A)  Tanzania. 
B)  South Africa. 
C)  Ghana. 
D)  Zambia. 
E)  Zimbawe.

Question 13

One of the 16 indicators used by the Millennium Challenge Corporation (MCC) to determine which countries obtain American foreign aid is Open Trade Policy, which refers to the accessibility of work visas that the country offers to foreigners.

Accepted Answer

A) True 
 B)False

Question 14

Suppose that per capita income in country A, a developed country, is $30,000 per year, and per capita income in country B, a developing country, is $5,000 per year.
(A)Why does economic theory predict that country B will eventually catch up with country A?
(B)Suppose country B's income per capita grows at 5 percent and country A's income per capita grows at 1 percent. Using the rule of 72, plot the growth path of income per capita relative to time for each country. Based on this graph, do you think country B will catch up with country A?
(C)Do you think country B will continue to grow at 5 percent?

Accepted Answer

(A)The investment opportunities will be

Question 15

One drawback of globalization is that

Accepted Answer

A)  economic fluctuations in one country will have an effect on other countries. 
B)  more countries will carry a national debt. 
C)  some countries can more easily exploit other countries. 
D)  one country can gain only if another country loses. 
E)  some countries will lose because of competition from foreign producers. 
A)  economic fluctuations in one country will have an effect on other countries. 
B)  more countries will carry a national debt. 
C)  some countries can more easily exploit other countries. 
D)  one country can gain only if another country loses. 
E)  some countries will lose because of competition from foreign producers.

Question 16

The catch-up line

Accepted Answer

A)  is vertical. 
B)  is horizontal. 
C)  is downward sloping. 
D)  is upward sloping. 
E)  has a V-shape. 
A)  is vertical. 
B)  is horizontal. 
C)  is downward sloping. 
D)  is upward sloping. 
E)  has a V-shape.

Question 17

Which of the following was missing in countries that missed out on the Industrial Revolution?

Accepted Answer

A)  Strong government leadership 
B)  The more advanced state of scientific knowledge 
C)  Colonialism and slavery 
D)  A larger stock of key natural resources 
E)  Individual property rights 
A)  Strong government leadership 
B)  The more advanced state of scientific knowledge 
C)  Colonialism and slavery 
D)  A larger stock of key natural resources 
E)  Individual property rights

Question 18

Which of the following is true about the World Bank and the International Monetary Fund (IMF)?

Accepted Answer

A)  The World Bank and the IMF were created after World War II as part of a major reform of the international monetary system. 
B)  These institutions make loans to developing countries. 
C)  They serve as intermediaries, channeling funds from industrialized countries to developing ones. 
D)  All of the above are true. 
E)  None of the above are true. 
A)  The World Bank and the IMF were created after World War II as part of a major reform of the international monetary system. 
B)  These institutions make loans to developing countries. 
C)  They serve as intermediaries, channeling funds from industrialized countries to developing ones. 
D)  All of the above are true. 
E)  None of the above are true.

Question 19

Which of the following is considered a developing country?

Accepted Answer

A)  United States 
B)  Japan 
C)  China 
D)  Canada 
E)  Korea 
A)  United States 
B)  Japan 
C)  China 
D)  Canada 
E)  Korea

Question 20

What are some of the benefits of allowing and encouraging foreign investment in a country?

Accepted Answer

Within a country, S = I + X. If the econ

Exam 17: Economic Growth and Globalization

For the world as a whole, the level of per capita GDP is a poor predictor of a country's economic growth.

Data from the most advanced economies support the catch-up theory.

HIV-AIDS has killed about 3 billion people in Africa.

The Millennium Challenge Corporation (MCC) was created in 2003 by the U.S. Congress, and its stated mission goal is to reduce poverty by promoting economic growth.

The rate of population growth and the level of productivity are inversely related, all else the same.

All else equal, regions with high capital per worker ratios should exhibit slower rates of growth than regions with low capital per worker ratios.

Many of today's developing countries lack

The emergence of informal sectors in developing economies is due to

According to Karl Marx,

An emerging market is a country that

A country located on the lower-right-hand corner of the catch-up line is

All of the following are part of the "Emerging Africa" except

One of the 16 indicators used by the Millennium Challenge Corporation (MCC) to determine which countries obtain American foreign aid is Open Trade Policy, which refers to the accessibility of work visas that the country offers to foreigners.

One drawback of globalization is that

The catch-up line

Which of the following was missing in countries that missed out on the Industrial Revolution?

Which of the following is true about the World Bank and the International Monetary Fund (IMF)?

Which of the following is considered a developing country?

What are some of the benefits of allowing and encouraging foreign investment in a country?

The Central Idea

Observing and Explaining the Economy

The Supply and Demand Model

Subtleties of the Supply and Demand Model: Price Floors, Price Ceilings, and Elasticity

Macroeconomics: the Big Picture

Measuring the Production, Income, and Spending of Nations

The Spending Allocation Model

Unemployment and Employment

Productivity and Economic Growth

Money and Inflation

The Nature and Causes of Economic Fluctuations

Deriving the Formula for the Keynesian Multiplier and the Forward-Looking Consumption Model

The Economic Fluctuations Model

Using the Economic Fluctuations Model

Fiscal Policy

Monetary Policy

Capital and Financial Markets

International Trade

International Finance

Reading, Understanding, and Creating Graphs

the Miracle of Compound Growth

Present Discounted Value

Deriving the Growth Accounting Formula

Filters