Question 1

According to the text, Ethiopia probably has a low per capita real Gross Domestic Product (GDP) because

Accepted Answer

A)  it has too many resources.
B)  it has a corrupt government.
C)  it has a low rate of saving.
D)  there are too many skilled workers in the country.E) A) and D)
F) B) and C)

Question 2

What is the economic role of a patent?

Accepted Answer

A patent grants the inventor the exclusi...

Question 3

Countries are concerned about small changes in their average annual growth rates in per capita income because

Accepted Answer

A)  growth rates tend to decline over time.
B)  the power of compounding means small changes have large effects over time.
C)  the faster a country grows today, the less it will be able to consume in the future.
D)  growth rates are a factor in U.N. participation.E) A) and D)
F) C) and D) B

Question 4

All of the following are listed in the text as being keys to economic development EXCEPT

Accepted Answer

A)  a system of property rights.
B)  an educated population.
C)  an open economy.
D)  a higher level of protectionism.E) All of the above
F) A) and B)

Question 5

Which of the following does free trade encourage?

Accepted Answer

A)  more rapid spread of technology
B)  higher rates of economic growth
C)  domestic industries' access to larger markets
D)  all of the aboveE) B) and C)
F) A) and D)

Question 6

A government grant that gives an inventor the exclusive right or privilege to make, use, or sell his or her invention is known as

Accepted Answer

A)  a positive externality.
B)  a negative externality.
C)  a protectionism clause.
D)  a patent.E) A) and B)
F) B) and D)

Question 7

Of the following, which best explains why Thomas Malthus was incorrect in his prediction that population would outstrip food supplies?

Accepted Answer

A)  Malthus failed to realize that that human population would increase considerably.
B)  Malthus failed to recognize that economic growth is accompanied by smaller family sizes.
C)  Malthus incorrectly believed that economic growth would reduce birthrates.
D)  Malthus incorrectly predicted that modernization would increase the demand for children.E) B) and C)
F) A) and B)

Question 8

An outward shift of the production possibilities curve represents

Accepted Answer

A)  economic contraction.
B)  economic growth.
C)  economic recession.
D)  economic inflation.E) A) and B)
F) B) and C)

Question 9

What did Malthus say about population growth?

Accepted Answer

A)  Population growth is the key to a nation's economic growth.
B)  Population growth is not a problem if food production keeps up, and Malthus predicted that it would.
C)  Population growth is a huge problem if housing and medical care don't also increase.
D)  The population would grow faster than food supplies, which would be a recipe for disaster.E) A) and B)
F) A) and C)

Question 10

The three stages of economic development include

Accepted Answer

A)  the agriculture stage, the manufacturing stage, and the service sector stage.
B)  the computerized stage, the agriculture stage, and the manufacturing stage.
C)  the feudal stage, the agriculture stage, and the totalitarian stage.
D)  the agriculture stage, the manufacturing stage, and the socialist stage.E) A) and B)
F) A) and C) A

Question 11

Whenever average output produced per worker during a specific time-period increases, then

Accepted Answer

A)  leisure time increases.
B)  nominal GDP decreases.
C)  labor productivity increases.
D)  the standard of living goes down.E) A) and D)
F) B) and C)

Question 12

When economic growth is compared between countries, the best measure to use is

Accepted Answer

A)  nominal GDP.
B)  real GDP.
C)  chain-weighted GDP.
D)  real GDP per capita.E) B) and C)
F) None of the above

Question 13

Patents stimulate technological advance by

Accepted Answer

A)  making capital more productive.
B)  enabling the government to determine which potential technological advances firms should pursue.
C)  providing information about the status of technical knowledge in the economy.
D)  allowing inventors to capture the economic rewards of their inventions.E) None of the above
F) A) and B)

Question 14

Other things being equal, a higher saving rate

Accepted Answer

A)  leads to higher interest rates.
B)  means higher standards of living in the future.
C)  means higher standards of living today.
D)  is associated with a decline in the rate of growth of the population.E) A) and B)
F) B) and C)

Question 15

Economic growth can be defined as a percentage increase in

Accepted Answer

A)  per capita real GDP.
B)  real GDP.
C)  nominal GDP.
D)  consumption by households.E) B) and C)
F) A) and C)

Question 16

New growth theory argues that

Accepted Answer

A)  growth is due to the proper government policies concerning interest rates.
B)  growth relies on maintaining lower growth rates of population, especially in less developed countries.
C)  technology cannot be looked at as an outside factor without an explanation of what drives it.
D)  technology is the key factor that explains growth but technology is beyond economic explanation itself.E) None of the above
F) A) and B)

Question 17

Economic growth depends on

Accepted Answer

A)  low tax rates.
B)  high government spending.
C)  high rates of consumption.
D)  increases in the capital stock as a result of saving.E) B) and C)
F) A) and C)

Question 18

Which one of the following is TRUE?

Accepted Answer

A)  As a country becomes more prosperous, it experiences a higher birth rate.
B)  Over the past century, the supply of food has grown more quickly than has the demand for food.
C)  Over the past century, the real price of food has risen, reflecting the pressure of population growth on food supplies.
D)  Over the next half-century, it is expected that population growth in industrially advanced nations will outpace population growth in developing countries.E) None of the above
F) B) and D) B

Question 19

All of the following unambiguously contribute to economic growth EXCEPT

Accepted Answer

A)  increase in human capital.
B)  increase in technology.
C)  increase in labor productivity.
D)  increase in government spending.E) All of the above
F) A) and D)

Question 20

Why are economic growth and saving related?

Accepted Answer

To consume more in the future ...

Exam 8: Global Economic Growth and Development

According to the text, Ethiopia probably has a low per capita real Gross Domestic Product (GDP) because

Correct AnswerverifiedShow Answer

What is the economic role of a patent?

Correct AnswerverifiedA patent grants the inventor the exclusi...View AnswerShow Answer

Countries are concerned about small changes in their average annual growth rates in per capita income because

Correct AnswerverifiedB

All of the following are listed in the text as being keys to economic development EXCEPT

Correct AnswerverifiedShow Answer

Which of the following does free trade encourage?

Correct AnswerverifiedShow Answer

A government grant that gives an inventor the exclusive right or privilege to make, use, or sell his or her invention is known as

Correct AnswerverifiedShow Answer

Of the following, which best explains why Thomas Malthus was incorrect in his prediction that population would outstrip food supplies?

Correct AnswerverifiedShow Answer

An outward shift of the production possibilities curve represents

Correct AnswerverifiedShow Answer

What did Malthus say about population growth?

Correct AnswerverifiedShow Answer

The three stages of economic development include

Correct AnswerverifiedA

Whenever average output produced per worker during a specific time-period increases, then

Correct AnswerverifiedShow Answer

When economic growth is compared between countries, the best measure to use is

Correct AnswerverifiedShow Answer

Patents stimulate technological advance by

Correct AnswerverifiedShow Answer

Other things being equal, a higher saving rate

Correct AnswerverifiedShow Answer

Economic growth can be defined as a percentage increase in

Correct AnswerverifiedShow Answer

New growth theory argues that

Correct AnswerverifiedShow Answer

Economic growth depends on

Correct AnswerverifiedShow Answer

Which one of the following is TRUE?

Correct AnswerverifiedB

All of the following unambiguously contribute to economic growth EXCEPT

Correct AnswerverifiedShow Answer

Why are economic growth and saving related?

Correct AnswerverifiedTo consume more in the future ...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified
A patent grants the inventor the exclusi...
View Answer

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified
To consume more in the future ...
View Answer