Question 1

Foreign investment can give a low-income country

Accepted Answer

A) access to funds for investment and access to technology. 
B) the means to slow down growth. 
C) a path to dependency and low growth. 
D) no hope to break the vicious cycle of poverty.

Question 2

Which of the following describes the Soviet Union's economy through most of the second half of the 20th century?

Accepted Answer

A) The Soviet economy grew rapidly in the latter half of the 20th century. 
B) The Soviet economy increased capital per worker very slowly from 1950 through 1980. 
C) The Soviet economy grew slowly because of the slow rate of technological change. 
D) The Soviet economy grew because it added labor through immigration policy in the 1950s.

Question 3

In a small European country,it is estimated that changing the level of capital from $8 million to $10 million will increase real GDP from $2 million to $3 million.If the number of hours worked in the labor force does not change,what does this information tell you about the slope of the per-worker production function in this range?

Accepted Answer

A) The slope is -2. 
B) The slope is 1/2. 
C) The slope is 2. 
D) The slope is 4.

Question 4

Which of the following countries had the highest GDP per capita in 2014?

Accepted Answer

A) Qatar 
B) United States 
C) Japan 
D) Norway

Question 5

When additions of input to a fixed quantity of another input lead to progressively smaller increases in output,we say we are facing

Accepted Answer

A) diminishing returns. 
B) negative returns. 
C) accelerating returns. 
D) decreasing production.

Question 6

Which of the following policies would not help promote economic growth?

Accepted Answer

A) a law requiring that the funds in an individual retirement account be taxed 
B) a law restricting elected officials from accepting expensive gifts and trips from private individuals 
C) a law that funds prenatal care for all expectant mothers 
D) a law that subsidizes research in nanotechnology

Question 7

An economy can improve its standard of living by

Accepted Answer

A) organizing production so that the quantity of goods produced per hour will decrease. 
B) reducing the amount of human capital workers have. 
C) increasing the amount of capital available per hour worked. 
D) all of the above

Question 8

How can freedom of the press promote economic growth?

Accepted Answer

A) A free press can act as a watchdog for corruption,increasing chances for economic growth. 
B) A free press can be more easily swayed to report only one side of any issue. 
C) A free press reduces the likelihood that judges will protect private property rights. 
D) A free press does not promote economic growth.

Question 9

The rate of growth of productivity in the United States was positive during the 20th century.

Accepted Answer

A) True 
 B)False

Question 10

The Industrial Revolution

Accepted Answer

A) marked the beginning of significant economic growth in the world. 
B) started in France around the year 1750. 
C) produced goods exclusively using human or animal power. 
D) had no impact on standards of living in the world.

Question 11

Figure 11-4 
-Refer to Figure 11-4.Within a country,the impact of wars and revolutions and their subsequent destruction of capital is reflected in the per-worker production function in the figure above by a movement from

Accepted Answer

A) A to C. 
B) B to C. 
C) B to A. 
D) E to B.

Question 12

Compared to the previous 20 years,productivity growth in the United States increased between 1996 and 2014.

Accepted Answer

A) True 
 B)False

Question 13

A copyright grants the creator of a book,film,or piece of software exclusive legal rights to use the creation for how long?

Accepted Answer

A) 10 years 
B) 20 years 
C) 50 years 
D) the creator's lifetime plus 70 years for the creator's heirs

Question 14

High-income countries are also referred to as

Accepted Answer

A) developing countries. 
B) industrial countries. 
C) growing countries. 
D) agrarian countries.

Question 15

Would you expect to see higher or lower growth rates for countries that start out with a relatively low level of real GDP per capita? Explain using the concept of "catch-up" and support your answer with a graph.

Accepted Answer

The answer of Would you expect to see higher or...

Question 16

Figure 11-4 
-Refer to Figure 11-4.Many countries in Africa strongly discouraged and prohibited foreign direct investment in the 1950s and 1960s.By doing so,these countries were essentially preventing a moment from

Accepted Answer

A) B to A. 
B) E to B. 
C) A to E. 
D) D to B.

Question 17

An economy that grows too slowly fails to raise living standards.

Accepted Answer

A) True 
 B)False

Question 18

Increasing the growth rate of GDP per capita and sustaining this growth rate in an economy can

Accepted Answer

A) increase infant mortality. 
B) increase standards of living. 
C) increase the level of poverty. 
D) lower life expectancy.

Question 19

If the Commerce Department adjusts the growth rate of GDP downward for the first quarter of 2016,and the Bureau of Labor Statistics adjusts the number of hours worked upward for the first quarter of 2016,what will the Bureau of Labor Statistics do in terms of revising the figures on the growth rate of labor productivity for the first quarter of 2016?

Accepted Answer

A) The BLS will adjust the growth rate downwards. 
B) The BLS will adjust the growth rate upwards. 
C) The BLS will not change the growth rate of productivity. 
D) The BLS will adjust the level of labor productivity upward and the growth rate downward.

Question 20

Draw a graph of "catch-up" that shows where you would expect to see a country with low saving rates and low levels of health and education.How would you expect real GDP per capita to grow in a country like this? Explain.

Accepted Answer

The answer of Draw a graph of "catch-up" that shows...

Exam 11: Long-Run Economic Growth: Sources and Policies

Foreign investment can give a low-income country

Which of the following describes the Soviet Union's economy through most of the second half of the 20th century?

Which of the following countries had the highest GDP per capita in 2014?

When additions of input to a fixed quantity of another input lead to progressively smaller increases in output,we say we are facing

Which of the following policies would not help promote economic growth?

An economy can improve its standard of living by

How can freedom of the press promote economic growth?

The rate of growth of productivity in the United States was positive during the 20th century.

The Industrial Revolution

Figure 11-4 -Refer to Figure 11-4.Within a country,the impact of wars and revolutions and their subsequent destruction of capital is reflected in the per-worker production function in the figure above by a movement from

Compared to the previous 20 years,productivity growth in the United States increased between 1996 and 2014.

A copyright grants the creator of a book,film,or piece of software exclusive legal rights to use the creation for how long?

High-income countries are also referred to as

Would you expect to see higher or lower growth rates for countries that start out with a relatively low level of real GDP per capita? Explain using the concept of "catch-up" and support your answer with a graph.

Figure 11-4 -Refer to Figure 11-4.Many countries in Africa strongly discouraged and prohibited foreign direct investment in the 1950s and 1960s.By doing so,these countries were essentially preventing a moment from

An economy that grows too slowly fails to raise living standards.

Increasing the growth rate of GDP per capita and sustaining this growth rate in an economy can

Draw a graph of "catch-up" that shows where you would expect to see a country with low saving rates and low levels of health and education.How would you expect real GDP per capita to grow in a country like this? Explain.