Question 1

Economic growth will

Accepted Answer

A)  reduce the future real GDP of an economy. 
B)  expand the production possibilities of an economy. 
C)  increase an economy's nominal income, but not its real income. 
D)  increase real output, but the real income level of the country will decline. 
A)  reduce the future real GDP of an economy. 
B)  expand the production possibilities of an economy. 
C)  increase an economy's nominal income, but not its real income. 
D)  increase real output, but the real income level of the country will decline.

Question 2

When institutions and policies provide secure property rights, a fair and balanced judicial system, monetary stability, and effective limits on the power of government, which of the following is most likely to be encouraged?

Accepted Answer

A)  Rent-seeking. 
B)  Actions that reduce the value of resources. 
C)  Productive activities. 
D)  Destructive activities. 
A)  Rent-seeking. 
B)  Actions that reduce the value of resources. 
C)  Productive activities. 
D)  Destructive activities.

Question 3

Private ownership and competitive markets are important for economic growth because they provide individuals with a strong incentive to

Accepted Answer

A)  care for resources and use them beneficially. 
B)  innovate and introduce new products that are highly valued relative to their cost. 
C)  produce goods efficiently. 
D)  all of the above are correct. 
A)  care for resources and use them beneficially. 
B)  innovate and introduce new products that are highly valued relative to their cost. 
C)  produce goods efficiently. 
D)  all of the above are correct.

Question 4

The "rule of 70" is a simple rule

Accepted Answer

A)  (70 divided by the growth rate) that approximates the number of years it will take for income to double at various growth rates. 
B)  (70 multiplied by the growth rate) that approximates the number of years it will take for income to double at various growth rates. 
C)  (70 divided by the percentage of population over age 70) that can be used to approximate a nation's growth of real GDP. 
D)  (70 multiplied by the percentage of population over age 70) that can be used to approximate a nation's growth of real GDP. 
A)  (70 divided by the growth rate) that approximates the number of years it will take for income to double at various growth rates. 
B)  (70 multiplied by the growth rate) that approximates the number of years it will take for income to double at various growth rates. 
C)  (70 divided by the percentage of population over age 70) that can be used to approximate a nation's growth of real GDP. 
D)  (70 multiplied by the percentage of population over age 70) that can be used to approximate a nation's growth of real GDP.

Question 5

Which of the following would be most likely to improve the standard of living of the residents of a less-developed country?

Accepted Answer

A)  the development of strong labor unions 
B)  a sharp increase in the legal minimum wage 
C)  an increase in expenditures on education and capital investment 
D)  rapid growth rate of the money supply 
A)  the development of strong labor unions 
B)  a sharp increase in the legal minimum wage 
C)  an increase in expenditures on education and capital investment 
D)  rapid growth rate of the money supply

Economic growth will

When institutions and policies provide secure property rights, a fair and balanced judicial system, monetary stability, and effective limits on the power of government, which of the following is most likely to be encouraged?

Private ownership and competitive markets are important for economic growth because they provide individuals with a strong incentive to

The "rule of 70" is a simple rule

Which of the following would be most likely to improve the standard of living of the residents of a less-developed country?

The Economic Approach

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Taking the Nations Economic Pulse

Economic Fluctuations, Unemployment, and Inflation

An Introduction to Basic Macroeconomic Markets

Dynamic Change, Economic Fluctuations, and the Ad--As Model

Fiscal Policy: The Keynesian View and the Historical Development of Macroeconomics

Fiscal Policy: Incentives, and Secondary Effects

Money and the Banking System

Modern Macroeconomics and Monetary Policy

Stabilization Policy, Output, and Employment

Institutions, Policies, and Cross-Country Differences in Income and Growth

Gaining From International Trade

International Finance and the Foreign Exchange Market

Special Topics

Filters

Exam 16: Creating an Environment for Growth and Prosperity

Economic growth will

When institutions and policies provide secure property rights, a fair and balanced judicial system, monetary stability, and effective limits on the power of government, which of the following is most likely to be encouraged?

Private ownership and competitive markets are important for economic growth because they provide individuals with a strong incentive to

The "rule of 70" is a simple rule

Which of the following would be most likely to improve the standard of living of the residents of a less-developed country?

The Economic Approach

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

Difficult Cases for the Market, and the Role of Government

The Economics of Political Action

Taking the Nations Economic Pulse

Economic Fluctuations, Unemployment, and Inflation

An Introduction to Basic Macroeconomic Markets

Dynamic Change, Economic Fluctuations, and the Ad--As Model

Fiscal Policy: The Keynesian View and the Historical Development of Macroeconomics

Fiscal Policy: Incentives, and Secondary Effects

Money and the Banking System

Modern Macroeconomics and Monetary Policy

Stabilization Policy, Output, and Employment

Institutions, Policies, and Cross-Country Differences in Income and Growth

Gaining From International Trade

International Finance and the Foreign Exchange Market

Special Topics

Filters