Question 1

The reversal of fortune can primarily be attributed to ________.

Accepted Answer

A)  the geography of a nation 
B)  the type of culture in a nation 
C)  the religious practices of a nation 
D)  the type of institutions in a nation 
A)  the geography of a nation 
B)  the type of culture in a nation 
C)  the religious practices of a nation 
D)  the type of institutions in a nation D

Question 2

Geographical conditions,such as good climate,availability of natural resources,and fertile soil,are examples of ________.

Accepted Answer

A)  implicit causes of prosperity 
B)  explicit causes of prosperity 
C)  proximate causes of prosperity 
D)  fundamental causes of prosperity 
A)  implicit causes of prosperity 
B)  explicit causes of prosperity 
C)  proximate causes of prosperity 
D)  fundamental causes of prosperity D

Question 3

Trends in the economic growth of South Korea have been significantly different from those of North Korea.This is primarily because ________.

Accepted Answer

A)  the quality of agricultural land is better in North Korea than in South Korea 
B)  the quality of agricultural land is better in South Korea than in North Korea 
C)  North Korea has inclusive institutions, while South Korea has extractive institutions 
D)  South Korea has inclusive institutions, while North Korea has extractive institutions 
A)  the quality of agricultural land is better in North Korea than in South Korea 
B)  the quality of agricultural land is better in South Korea than in North Korea 
C)  North Korea has inclusive institutions, while South Korea has extractive institutions 
D)  South Korea has inclusive institutions, while North Korea has extractive institutions D

Question 4

Consider two countries: Country A and Country B.Both countries are identical in all aspects except one.In Country B,it is possible for entrepreneurs to borrow money from banks and financial markets,while in Country A,no loans are given for entrepreneurship.Given this information,which of the following statements is likely to be true?

Accepted Answer

A)  Country A is likely to grow faster than Country B. 
B)  Country B is likely to grow faster than Country A. 
C)  Both countries are likely to grow at the same rate. 
D)  Resources are likely to be overconsumed in Country A and underconsumed in Country B. 
A)  Country A is likely to grow faster than Country B. 
B)  Country B is likely to grow faster than Country A. 
C)  Both countries are likely to grow at the same rate. 
D)  Resources are likely to be overconsumed in Country A and underconsumed in Country B.

Question 5

According to Max Weber,the Protestant world view that encouraged hard work and saving was crucial to industrialization and the development of capitalism.Which hypothesis is this view based on?

Accepted Answer

A)  The culture hypothesis 
B)  The geography hypothesis 
C)  The institutions hypothesis 
D)  The location hypothesis 
A)  The culture hypothesis 
B)  The geography hypothesis 
C)  The institutions hypothesis 
D)  The location hypothesis

Question 6

Consider two economies: Economy A and Economy B.Economy A is a command economy,while Economy B is a market economy.Given this information,which of the following statements is likely to be true?

Accepted Answer

A)  Institutions in Economy A are likely to be more inclusive than institutions in Economy B. 
B)  Institutions in Economy B are likely to be more inclusive than institutions in Economy A. 
C)  Both economies are likely to grow at the same rate. 
D)  Both economies are likely to stagnate without any increase in GDP. 
A)  Institutions in Economy A are likely to be more inclusive than institutions in Economy B. 
B)  Institutions in Economy B are likely to be more inclusive than institutions in Economy A. 
C)  Both economies are likely to grow at the same rate. 
D)  Both economies are likely to stagnate without any increase in GDP.

Question 7

What are institutions? What is the institutions hypothesis of economic growth?

Accepted Answer

Institutions are the formal and informal

Question 8

Differences in the stock of technology between nations are an example of a(n)________.

Accepted Answer

A)  implicit cause of prosperity 
B)  explicit cause of prosperity 
C)  proximate cause of prosperity 
D)  fundamental cause of prosperity 
A)  implicit cause of prosperity 
B)  explicit cause of prosperity 
C)  proximate cause of prosperity 
D)  fundamental cause of prosperity

Question 9

What was the main cause for the reversal of fortune of many countries?

Accepted Answer

The reversal of fortune can be attribute

Question 10

The process in which economic growth destabilizes existing regimes and reduces the political power of rulers and monarchs is referred to as ________.

Accepted Answer

A)  polarization 
B)  division of powers 
C)  institutional destruction 
D)  political creative destruction 
A)  polarization 
B)  division of powers 
C)  institutional destruction 
D)  political creative destruction

Question 11

Which of the following statements is true?

Accepted Answer

A)  The government plays absolutely no role in economies characterized by communism. 
B)  The government plays absolutely no role in economies characterized by market economies. 
C)  Competition among firms is likely to be higher in communist economies than in market economies. 
D)  Competition among firms is likely to be higher in market economies than in communist economies. 
A)  The government plays absolutely no role in economies characterized by communism. 
B)  The government plays absolutely no role in economies characterized by market economies. 
C)  Competition among firms is likely to be higher in communist economies than in market economies. 
D)  Competition among firms is likely to be higher in market economies than in communist economies.

Question 12

Which of the following statements is true?

Accepted Answer

A)  All market economies have inclusive institutions. 
B)  Inclusive institutions privilege a few at the expense of many. 
C)  Countries with extractive institutions encourage entrepreneurship and private ownership of property. 
D)  The economic institutions of a country are interlinked with the political institutions in that country. 
A)  All market economies have inclusive institutions. 
B)  Inclusive institutions privilege a few at the expense of many. 
C)  Countries with extractive institutions encourage entrepreneurship and private ownership of property. 
D)  The economic institutions of a country are interlinked with the political institutions in that country.

Question 13

Which of the following statements is true of Europeans during the period of colonization?

Accepted Answer

A)  Europeans set up relatively extractive economic institutions in areas that had higher population densities. 
B)  Europeans set up relatively inclusive economic institutions in areas that had higher population densities. 
C)  Europeans set up extractive economic institutions in all areas. 
D)  Europeans set up inclusive economic institutions in all areas. 
A)  Europeans set up relatively extractive economic institutions in areas that had higher population densities. 
B)  Europeans set up relatively inclusive economic institutions in areas that had higher population densities. 
C)  Europeans set up extractive economic institutions in all areas. 
D)  Europeans set up inclusive economic institutions in all areas.

Question 14

The presence of navigable rivers and fertile soil is seen as a source of economic prosperity under the ________.

Accepted Answer

A)  geography hypothesis 
B)  culture hypothesis 
C)  institutions hypothesis 
D)  location hypothesis 
A)  geography hypothesis 
B)  culture hypothesis 
C)  institutions hypothesis 
D)  location hypothesis

Question 15

The cultural hypothesis of economic growth claims that ________.

Accepted Answer

A)  most ancient cultures of the world have been almost forgotten post-globalization 
B)  a common global culture is automatically created through liberal trade practices 
C)  different values and cultural beliefs cause differences in prosperity around the world 
D)  values and cultural beliefs are proximate causes for differences in prosperity around the world 
A)  most ancient cultures of the world have been almost forgotten post-globalization 
B)  a common global culture is automatically created through liberal trade practices 
C)  different values and cultural beliefs cause differences in prosperity around the world 
D)  values and cultural beliefs are proximate causes for differences in prosperity around the world

Question 16

Which of the following statements is true of the process of colonization?

Accepted Answer

A)  Europeans set up similar institutions around the world. 
B)  It was characterized by the absence of slavery. 
C)  Institutions in North America were set up by Europeans. 
D)  Residents in all colonies had similar property rights. 
A)  Europeans set up similar institutions around the world. 
B)  It was characterized by the absence of slavery. 
C)  Institutions in North America were set up by Europeans. 
D)  Residents in all colonies had similar property rights.

Question 17

Private property rights mean that ________.

Accepted Answer

A)  individuals can own businesses and assets, and their ownership is secure 
B)  individuals have a right to elect their representatives in the government 
C)  the government does not own any resources used in production in an economy 
D)  individuals cannot be excluded from the consumption of goods and services regardless of whether they pay for them 
A)  individuals can own businesses and assets, and their ownership is secure 
B)  individuals have a right to elect their representatives in the government 
C)  the government does not own any resources used in production in an economy 
D)  individuals cannot be excluded from the consumption of goods and services regardless of whether they pay for them

Question 18

Which of the following statements is true?

Accepted Answer

A)  Output is likely to be lower in a market economy than in a command economy. 
B)  Output is likely to be the same in a command economy and in a market economy. 
C)  Output is likely to be lower in an economy with extractive institutions than in an economy with inclusive institutions. 
D)  Output is likely to be the same in an economy with extractive institutions and in an economy with inclusive institutions. 
A)  Output is likely to be lower in a market economy than in a command economy. 
B)  Output is likely to be the same in a command economy and in a market economy. 
C)  Output is likely to be lower in an economy with extractive institutions than in an economy with inclusive institutions. 
D)  Output is likely to be the same in an economy with extractive institutions and in an economy with inclusive institutions.

Question 19

Comment on how extractive institutions affect
a)The return-to-entrepreneurship schedule
b)The opportunity cost of entrepreneurship schedule

Accepted Answer

a)By creating insecure property rights a

Question 20

Which of the following is a characteristic of an institution?

Accepted Answer

A)  Institutions are determined by individual opinions without considering the government's preferences. 
B)  Institutions place constraints on the behavior of economic agents. 
C)  Institutions have very little influence on a nation's economic prosperity. 
D)  The institutions of a nation are permanent and cannot be changed over time. 
A)  Institutions are determined by individual opinions without considering the government's preferences. 
B)  Institutions place constraints on the behavior of economic agents. 
C)  Institutions have very little influence on a nation's economic prosperity. 
D)  The institutions of a nation are permanent and cannot be changed over time.

The reversal of fortune can primarily be attributed to ________.

Geographical conditions,such as good climate,availability of natural resources,and fertile soil,are examples of ________.

Trends in the economic growth of South Korea have been significantly different from those of North Korea.This is primarily because ________.

According to Max Weber,the Protestant world view that encouraged hard work and saving was crucial to industrialization and the development of capitalism.Which hypothesis is this view based on?

Consider two economies: Economy A and Economy B.Economy A is a command economy,while Economy B is a market economy.Given this information,which of the following statements is likely to be true?

What are institutions? What is the institutions hypothesis of economic growth?

Differences in the stock of technology between nations are an example of a(n)________.

What was the main cause for the reversal of fortune of many countries?

The process in which economic growth destabilizes existing regimes and reduces the political power of rulers and monarchs is referred to as ________.

Which of the following statements is true?

Which of the following statements is true?

Which of the following statements is true of Europeans during the period of colonization?

The presence of navigable rivers and fertile soil is seen as a source of economic prosperity under the ________.

The cultural hypothesis of economic growth claims that ________.

Which of the following statements is true of the process of colonization?

Private property rights mean that ________.

Which of the following statements is true?

Comment on how extractive institutions affect a)The return-to-entrepreneurship schedule b)The opportunity cost of entrepreneurship schedule

Which of the following is a characteristic of an institution?

The Principles and Practice of Economics

Economic Methods and Economic Questions

Optimization: Doing the Best You Can

Demand, Supply, and Equilibrium

The Wealth of Nations: Defining and Measuring Macroeconomic Aggregates

Aggregate Incomes

Economic Growth

Employment and Unemployment

Credit Markets

The Monetary System

Short-Run Fluctuations

Countercyclical Macroeconomic Policy

Macroeconomics and International Trade

Open Economy Macroeconomics

Filters

Exam 8: Why Isn't the Whole World Developed?

The reversal of fortune can primarily be attributed to ________.

Geographical conditions,such as good climate,availability of natural resources,and fertile soil,are examples of ________.

Trends in the economic growth of South Korea have been significantly different from those of North Korea.This is primarily because ________.

According to Max Weber,the Protestant world view that encouraged hard work and saving was crucial to industrialization and the development of capitalism.Which hypothesis is this view based on?

Consider two economies: Economy A and Economy B.Economy A is a command economy,while Economy B is a market economy.Given this information,which of the following statements is likely to be true?

What are institutions? What is the institutions hypothesis of economic growth?

Differences in the stock of technology between nations are an example of a(n)________.

What was the main cause for the reversal of fortune of many countries?

The process in which economic growth destabilizes existing regimes and reduces the political power of rulers and monarchs is referred to as ________.

Which of the following statements is true?

Which of the following statements is true?

Which of the following statements is true of Europeans during the period of colonization?

The presence of navigable rivers and fertile soil is seen as a source of economic prosperity under the ________.

The cultural hypothesis of economic growth claims that ________.

Which of the following statements is true of the process of colonization?

Private property rights mean that ________.

Which of the following statements is true?

Comment on how extractive institutions affect a)The return-to-entrepreneurship schedule b)The opportunity cost of entrepreneurship schedule

Which of the following is a characteristic of an institution?

The Principles and Practice of Economics

Economic Methods and Economic Questions

Optimization: Doing the Best You Can

Demand, Supply, and Equilibrium

The Wealth of Nations: Defining and Measuring Macroeconomic Aggregates

Aggregate Incomes

Economic Growth

Employment and Unemployment

Credit Markets

The Monetary System

Short-Run Fluctuations

Countercyclical Macroeconomic Policy

Macroeconomics and International Trade

Open Economy Macroeconomics

Filters