Question 1

Which of the following government policies is least likely to increase growth in Africa?

Accepted Answer

A) Increase expenditures on public education. 
B) Eliminate civil war. 
C) All of these answers would increase growth. 
D) Reduce restrictions on foreign capital investment. 
E) Increase restrictions on the importing of European tractors and electronics. 
A) Increase expenditures on public education. 
B) Eliminate civil war. 
C) All of these answers would increase growth. 
D) Reduce restrictions on foreign capital investment. 
E) Increase restrictions on the importing of European tractors and electronics. E

Question 2

Thomas Malthus's predictions turned out to be wrong due to

Accepted Answer

A) technological advances such as those during the Industrial Revolution. 
B) smaller populations now than in the time of Malthus. 
C) the effects of brain-drain. 
D) unlimited natural resources. 
A) technological advances such as those during the Industrial Revolution. 
B) smaller populations now than in the time of Malthus. 
C) the effects of brain-drain. 
D) unlimited natural resources. A

Question 3

For a given level of technology, we should expect an increase in productivity within a nation when there is an increase in each of the following except

Accepted Answer

A) labour. 
B) physical capital/worker. 
C) human capital/worker. 
D) natural resources/worker. 
A) labour. 
B) physical capital/worker. 
C) human capital/worker. 
D) natural resources/worker. A

Question 4

Labour productivity, measuring the output per worker,

Accepted Answer

A) increases with increases in technology. 
B) decreases with increases in technology. 
C) increases with increases in capital stock. 
D) is impossible to measure since so many workers are involved in the service sector. 
A) increases with increases in technology. 
B) decreases with increases in technology. 
C) increases with increases in capital stock. 
D) is impossible to measure since so many workers are involved in the service sector.

Question 5

The catch-up effect says that countries with low income can grow faster than countries with higher income.However, in statistical studies that include many diverse countries we do not observe the catch-up-effect unless we control for other variables that affect productivity.Considering the determinants of productivity, list and explain some things that would tend to prohibit or limit a poor country's ability to catch up with the rich ones.

Accepted Answer

The argument that poor countries will te

Question 6

Which of the following would decrease the likelihood that foreign business firms will invest in a country?

Accepted Answer

A) A low corporate profit tax rate 
B) Political stability 
C) A well-established legal system 
D) Political instability 
A) A low corporate profit tax rate 
B) Political stability 
C) A well-established legal system 
D) Political instability

Question 7

Data on growth rates and investment suggest that

Accepted Answer

A) there is no correlation between investment and economic growth. 
B) high investment leads to more rapid economic growth. 
C) high growth countries invest less than slower growing countries. 
D) growth rates are constant over time. 
A) there is no correlation between investment and economic growth. 
B) high investment leads to more rapid economic growth. 
C) high growth countries invest less than slower growing countries. 
D) growth rates are constant over time.

Question 8

Countries like South Korea and Singapore have shown tremendous growth rates in recent years because

Accepted Answer

A) of diminishing returns. 
B) of the catch-up effect. 
C) of lower levels of domestic investment in recent years. 
D) they have limited international trade. 
A) of diminishing returns. 
B) of the catch-up effect. 
C) of lower levels of domestic investment in recent years. 
D) they have limited international trade.

Question 9

To increase growth, governments should do all of the following except

Accepted Answer

A) encourage foreigners to invest in your country. 
B) encourage saving and investment. 
C) nationalize major industries. 
D) encourage research and development. 
E) promote free trade. 
A) encourage foreigners to invest in your country. 
B) encourage saving and investment. 
C) nationalize major industries. 
D) encourage research and development. 
E) promote free trade.

Question 10

An increase in capital should cause the growth rate of a relatively poor country to increase more than that of a rich country.

Accepted Answer

A) True 
 B)False

Question 11

A reasonable measure of the standard of living in a country is

Accepted Answer

A) real GDP per capita. 
B) nominal GDP per person. 
C) real GDP. 
D) the growth rate of nominal GDP per person. 
E) nominal GDP. 
A) real GDP per capita. 
B) nominal GDP per person. 
C) real GDP. 
D) the growth rate of nominal GDP per person. 
E) nominal GDP.

Question 12

The only factor of production that is not "produced" is natural resources.

Accepted Answer

A) True 
 B)False

Question 13

A key benefit of foreign direct investment to poorer countries is

Accepted Answer

A) they gain all the returns on such investment. 
B) that such investment is very reliable. 
C) they avoid the need to have their own stock market. 
D) they gain state-of-the-art technological knowledge. 
A) they gain all the returns on such investment. 
B) that such investment is very reliable. 
C) they avoid the need to have their own stock market. 
D) they gain state-of-the-art technological knowledge.

Question 14

Suppose in SA, real GDP/person in 2001 was r₁8 073 and real GDP/person in 2002 was r₁8 635, what was the growth rate of real output per person over this period?

Accepted Answer

A) 2.0 per cent 
B) 3.1 per cent 
C) 18.0 per cent 
D) 18.6 percent 
E) 5.62 per cent 
A) 2.0 per cent 
B) 3.1 per cent 
C) 18.0 per cent 
D) 18.6 percent 
E) 5.62 per cent

Question 15

If the capital stock increases faster than employment, then we would expect

Accepted Answer

A) both output and labour productivity to rise. 
B) output to rise but labour productivity to fall. 
C) both output and labour productivity to fall. 
D) output to fall but labour productivity to rise. 
A) both output and labour productivity to rise. 
B) output to rise but labour productivity to fall. 
C) both output and labour productivity to fall. 
D) output to fall but labour productivity to rise.

Question 16

The rate of economic growth is probably underestimated.

Accepted Answer

A) True 
 B)False

Question 17

Copper is an example of

Accepted Answer

A) a renewable natural resource. 
B) human capital. 
C) physical capital. 
D) technology. 
E) a non-renewable natural resource. 
A) a renewable natural resource. 
B) human capital. 
C) physical capital. 
D) technology. 
E) a non-renewable natural resource.

Question 18

Which of the following is an example of foreign portfolio investment?

Accepted Answer

A) Toyota builds a new plant in the north of South Africa. 
B) The Bank of England buys shares in ESKOM. 
C) Deutsche Bank of Germany buys some new software from a SA supplier. 
D) SASOL builds a new oil refinery plant near Durban. 
E) None of these answers. 
A) Toyota builds a new plant in the north of South Africa. 
B) The Bank of England buys shares in ESKOM. 
C) Deutsche Bank of Germany buys some new software from a SA supplier. 
D) SASOL builds a new oil refinery plant near Durban. 
E) None of these answers.

Question 19

Poor countries are poor for all of the following reasons except

Accepted Answer

A) their technology is less than modern. 
B) their labour productivity is low. 
C) foreign investment funds are difficult to attract. 
D) their labour force is too small. 
A) their technology is less than modern. 
B) their labour productivity is low. 
C) foreign investment funds are difficult to attract. 
D) their labour force is too small.

Question 20

What is the difference between human capital and technology?

Accepted Answer

Technology is society's understanding of

Which of the following government policies is least likely to increase growth in Africa?

Thomas Malthus's predictions turned out to be wrong due to

For a given level of technology, we should expect an increase in productivity within a nation when there is an increase in each of the following except

Labour productivity, measuring the output per worker,

Which of the following would decrease the likelihood that foreign business firms will invest in a country?

Data on growth rates and investment suggest that

Countries like South Korea and Singapore have shown tremendous growth rates in recent years because

To increase growth, governments should do all of the following except

An increase in capital should cause the growth rate of a relatively poor country to increase more than that of a rich country.

A reasonable measure of the standard of living in a country is

The only factor of production that is not "produced" is natural resources.

A key benefit of foreign direct investment to poorer countries is

Suppose in SA, real GDP/person in 2001 was r₁8 073 and real GDP/person in 2002 was r₁8 635, what was the growth rate of real output per person over this period?

If the capital stock increases faster than employment, then we would expect

The rate of economic growth is probably underestimated.

Copper is an example of

Which of the following is an example of foreign portfolio investment?

Poor countries are poor for all of the following reasons except

What is the difference between human capital and technology?

What Is Economics

Thinking Like an Economist

Measuring a Nations Well-Being

Measuring the Cost of Living

Unemployment

Saving, Investment and the Financial System

The Basic Tools of Finance

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Business Cycles

Keynesian Economics and the Is-Lm Analysis

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short Run Trade-Off Between Inflation and Unemployment

Supply Side Policies

The Financial Crisis and Sovereign Debt

Common Currency Areas and European Monetary Union

Filters

Exam 5: Production and Growth

Which of the following government policies is least likely to increase growth in Africa?

Thomas Malthus's predictions turned out to be wrong due to

For a given level of technology, we should expect an increase in productivity within a nation when there is an increase in each of the following except

Labour productivity, measuring the output per worker,

Which of the following would decrease the likelihood that foreign business firms will invest in a country?

Data on growth rates and investment suggest that

Countries like South Korea and Singapore have shown tremendous growth rates in recent years because

To increase growth, governments should do all of the following except

An increase in capital should cause the growth rate of a relatively poor country to increase more than that of a rich country.

A reasonable measure of the standard of living in a country is

The only factor of production that is not "produced" is natural resources.

A key benefit of foreign direct investment to poorer countries is

Suppose in SA, real GDP/person in 2001 was r₁8 073 and real GDP/person in 2002 was r₁8 635, what was the growth rate of real output per person over this period?

If the capital stock increases faster than employment, then we would expect

The rate of economic growth is probably underestimated.

Copper is an example of

Which of the following is an example of foreign portfolio investment?

Poor countries are poor for all of the following reasons except

What is the difference between human capital and technology?

What Is Economics

Thinking Like an Economist

Measuring a Nations Well-Being

Measuring the Cost of Living

Unemployment

Saving, Investment and the Financial System

The Basic Tools of Finance

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Business Cycles

Keynesian Economics and the Is-Lm Analysis

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short Run Trade-Off Between Inflation and Unemployment

Supply Side Policies

The Financial Crisis and Sovereign Debt

Common Currency Areas and European Monetary Union

Filters