Question 1

In Canada real GDP per person is over $40,000, while in poor countries real GDP per person may be less than $5000.

Accepted Answer

A) True 
 B)False

Question 2

What is the source of most technological progress?

Accepted Answer

A)  private research by firms and individual inventors 
B)  private research by firms and government 
C)  government research 
D)  government-sponsored research by universities 
A)  private research by firms and individual inventors 
B)  private research by firms and government 
C)  government research 
D)  government-sponsored research by universities

Question 3

Which statement best defines the catch-up effect?

Accepted Answer

A)  It is the idea that saving will always "catch up" with investment spending. 
B)  It is the idea that it is easier for a country to grow fast and "catch up" with richer countries if it starts out relatively poor. 
C)  It is the idea that rich countries aid relatively poor countries so as to help them "catch up." 
D)  It is the idea that if investment spending is low, increased saving will help investment to "catch up." 
A)  It is the idea that saving will always "catch up" with investment spending. 
B)  It is the idea that it is easier for a country to grow fast and "catch up" with richer countries if it starts out relatively poor. 
C)  It is the idea that rich countries aid relatively poor countries so as to help them "catch up." 
D)  It is the idea that if investment spending is low, increased saving will help investment to "catch up."

Question 4

How large was the growth rate of Japan over the period 1890-2010?

Accepted Answer

A)  1.5 percent 
B)  1.75 percent 
C)  2.40 percent 
D)  2.65 percent 
A)  1.5 percent 
B)  1.75 percent 
C)  2.40 percent 
D)  2.65 percent

Question 5

International data on the history of real GDP growth rates show that the rich countries get richer and the poor countries get poorer.

Accepted Answer

A) True 
 B)False

Question 6

Other things the same, if a country increased its saving rate what would that country likely have in 40 years?

Accepted Answer

A)  higher productivity and a higher growth rate of real GDP 
B)  higher productivity but not a higher growth rate of real GDP 
C)  the same productivity and growth of real GDP it began with 
D)  higher productivity growth rate and higher real GDP 
A)  higher productivity and a higher growth rate of real GDP 
B)  higher productivity but not a higher growth rate of real GDP 
C)  the same productivity and growth of real GDP it began with 
D)  higher productivity growth rate and higher real GDP

Question 7

What is a valid policy to use for increasing the rate of economic growth?

Accepted Answer

A)  reduce reliance on market forces because they allocate goods and services in an unfair manner 
B)  encourage trade with neighbouring countries 
C)  increase the fraction of GDP devoted to consumption 
D)  restrict investment in domestic industries by foreigners because they take some of the profits out of the country 
A)  reduce reliance on market forces because they allocate goods and services in an unfair manner 
B)  encourage trade with neighbouring countries 
C)  increase the fraction of GDP devoted to consumption 
D)  restrict investment in domestic industries by foreigners because they take some of the profits out of the country

Question 8

Which statement best defines proprietary technology?

Accepted Answer

A)  It is knowledge that is known but no longer relevant in a market. 
B)  It is knowledge that is known, but has only recently been discovered. 
C)  It is knowledge that is known widely by those in a profession. 
D)  It is knowledge that is known only by the company that discovers it. 
A)  It is knowledge that is known but no longer relevant in a market. 
B)  It is knowledge that is known, but has only recently been discovered. 
C)  It is knowledge that is known widely by those in a profession. 
D)  It is knowledge that is known only by the company that discovers it.

Question 9

Suppose Mexico increases its saving rate. What will happen in the long run?

Accepted Answer

A)  The growth rates of productivity and real GDP per person will increase. 
B)  Productivity and real GDP per person will increase. 
C)  The growth rate of productivity will increase, and real GDP per person will increase. 
D)  Productivity will increase, and the growth rate of real GDP per person will increase. 
A)  The growth rates of productivity and real GDP per person will increase. 
B)  Productivity and real GDP per person will increase. 
C)  The growth rate of productivity will increase, and real GDP per person will increase. 
D)  Productivity will increase, and the growth rate of real GDP per person will increase.

Question 10

In a market economy, what does the real, or inflation-adjusted, price of a resource measure?

Accepted Answer

A)  contribution to revenue 
B)  relative scarcity 
C)  relative importance 
D)  contribution to efficiency 
A)  contribution to revenue 
B)  relative scarcity 
C)  relative importance 
D)  contribution to efficiency

Question 11

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 12

Suppose that over the past ten years productivity grew faster in Oceania than in Landia and the population of both countries was unchanged. What can we conclude?

Accepted Answer

A)  Real GDP per person must be higher in Oceania than in Landia. 
B)  Real GDP per person grew faster in Oceania than in Landia. 
C)  The standard of living must be higher in Oceania than in Landia. 
D)  Oceania must have had a greater capital stock than Landia. 
A)  Real GDP per person must be higher in Oceania than in Landia. 
B)  Real GDP per person grew faster in Oceania than in Landia. 
C)  The standard of living must be higher in Oceania than in Landia. 
D)  Oceania must have had a greater capital stock than Landia.

Question 13

Suppose Canadian-based Bombardier builds and operates a new factory in Mexico. What would the future production from such an investment do?

Accepted Answer

A)  increase Mexico's GDP more than it would increase Mexico's GNP 
B)  increase Mexico's GNP more than it would increase Mexico's GDP 
C)  not affect Mexico's GNP, but it would increase Mexico's GDP 
D)  not affect Mexico's GDP, but it would increase Mexico's GNP 
A)  increase Mexico's GDP more than it would increase Mexico's GNP 
B)  increase Mexico's GNP more than it would increase Mexico's GDP 
C)  not affect Mexico's GNP, but it would increase Mexico's GDP 
D)  not affect Mexico's GDP, but it would increase Mexico's GNP

Question 14

Which statement best explains the importance of real GDP per person?

Accepted Answer

A)  It is a useful measure of economic growth. 
B)  It is a useful measure of the health of citizens. 
C)  It is a useful measure of the cost of living. 
D)  It is a useful measure of well-being. 
A)  It is a useful measure of economic growth. 
B)  It is a useful measure of the health of citizens. 
C)  It is a useful measure of the cost of living. 
D)  It is a useful measure of well-being.

Question 15

What factor did economic historian Robert Fogel focus on as one determinant of long-run economic growth?

Accepted Answer

A)  education 
B)  national defence 
C)  nutrition 
D)  trade restrictions 
A)  education 
B)  national defence 
C)  nutrition 
D)  trade restrictions

Question 16

Which of the following is considered human capital?

Accepted Answer

A)  breakfasts served in a company's cafeteria 
B)  shovels used by a tree planting business 
C)  an apprentice mechanic working in an auto repair shop 
D)  the average number of holiday days per year 
A)  breakfasts served in a company's cafeteria 
B)  shovels used by a tree planting business 
C)  an apprentice mechanic working in an auto repair shop 
D)  the average number of holiday days per year

Question 17

How do inward-oriented policies affect a nation's growth

Accepted Answer

Most economists believe that poor nation

Question 18

In the traditional view, which production process is considered when studying economic growth?

Accepted Answer

A)  constant returns 
B)  increasing returns 
C)  diminishing returns 
D)  diminishing returns for low levels of capital, and increasing returns for high levels of capital 
A)  constant returns 
B)  increasing returns 
C)  diminishing returns 
D)  diminishing returns for low levels of capital, and increasing returns for high levels of capital

Question 19

Which of the following is considered human capital?

Accepted Answer

A)  the number of computers available in schools and universities 
B)  the average percentage of income people give to charity 
C)  the number of persons in the labour force 
D)  knowledge acquired from an apprenticeship program 
A)  the number of computers available in schools and universities 
B)  the average percentage of income people give to charity 
C)  the number of persons in the labour force 
D)  knowledge acquired from an apprenticeship program

Question 20

What is the effect of a higher saving rate in the long run?

Accepted Answer

A)  It decreases the capital stock. 
B)  People must consume less in the future. 
C)  It increases productivity. 
D)  It leads to higher growth in real GDP. 
A)  It decreases the capital stock. 
B)  People must consume less in the future. 
C)  It increases productivity. 
D)  It leads to higher growth in real GDP.

In Canada real GDP per person is over $40,000, while in poor countries real GDP per person may be less than $5000.

What is the source of most technological progress?

Which statement best defines the catch-up effect?

How large was the growth rate of Japan over the period 1890-2010?

International data on the history of real GDP growth rates show that the rich countries get richer and the poor countries get poorer.

Other things the same, if a country increased its saving rate what would that country likely have in 40 years?

What is a valid policy to use for increasing the rate of economic growth?

Which statement best defines proprietary technology?

Suppose Mexico increases its saving rate. What will happen in the long run?

In a market economy, what does the real, or inflation-adjusted, price of a resource measure?

Suppose that over the past ten years productivity grew faster in Oceania than in Landia and the population of both countries was unchanged. What can we conclude?

Suppose Canadian-based Bombardier builds and operates a new factory in Mexico. What would the future production from such an investment do?

Which statement best explains the importance of real GDP per person?

What factor did economic historian Robert Fogel focus on as one determinant of long-run economic growth?

Which of the following is considered human capital?

How do inward-oriented policies affect a nation's growth

In the traditional view, which production process is considered when studying economic growth?

Which of the following is considered human capital?

What is the effect of a higher saving rate in the long run?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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Exam 7: Production and Growth

In Canada real GDP per person is over $40,000, while in poor countries real GDP per person may be less than $5000.

What is the source of most technological progress?

Which statement best defines the catch-up effect?

How large was the growth rate of Japan over the period 1890-2010?

International data on the history of real GDP growth rates show that the rich countries get richer and the poor countries get poorer.

Other things the same, if a country increased its saving rate what would that country likely have in 40 years?

What is a valid policy to use for increasing the rate of economic growth?

Which statement best defines proprietary technology?

Suppose Mexico increases its saving rate. What will happen in the long run?

In a market economy, what does the real, or inflation-adjusted, price of a resource measure?

Suppose that over the past ten years productivity grew faster in Oceania than in Landia and the population of both countries was unchanged. What can we conclude?

Suppose Canadian-based Bombardier builds and operates a new factory in Mexico. What would the future production from such an investment do?

Which statement best explains the importance of real GDP per person?

What factor did economic historian Robert Fogel focus on as one determinant of long-run economic growth?

Which of the following is considered human capital?

How do inward-oriented policies affect a nation's growth

In the traditional view, which production process is considered when studying economic growth?

Which of the following is considered human capital?

What is the effect of a higher saving rate in the long run?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

Filters