Question 1

In 1950,residents in Liberia were wealthier than those in Taiwan.Today,per capita gross domestic product (GDP)  in Taiwan is more than 20 times that of Liberia.Which of the following best explains why Taiwan is now so much wealthier than Liberia?

Accepted Answer

A)   Taiwan is a very large country with lots of resources, while Liberia is very small.
B)   Liberia lacks the sort of institutions that promote growth that Taiwan has.
C)   Taxes in Liberia are very high and prevent the economy from growing.
D)   All production in Taiwan is managed by the government, while in Liberia, the free market allocates resources.
E)   Liberia does not trade with other countries, while Taiwan has many trading partners.F) A) and C)
G) B) and D)

Question 2

Steve owns a bike shop.He wants to increase the number of bikes he sells each month,so he knows he needs to acquire more resources.Which of the following actions would represent an increase in the human capital resource at his bike shop?

Accepted Answer

A)   purchasing more bikes for his showroom
B)   stocking more helmets and tire pumps
C)   increasing the number of shop employees
D)   increasing the size of his shop
E)   buying more bike-repair equipmentF) B) and C)
G) B) and D)

Question 3

Many police officers in Mexico have been found to be working for drug traffickers,providing them with protection and warning them of raids.As a result,crime in Mexico is very high and drug gangs compete for territory,leading to a great loss of life.How would this situation affect Mexico's economic growth?

Accepted Answer

A)   Economic growth would benefit from the increased international trade in drugs.
B)   Economic growth would be harmed by the loss of efficient taxes.
C)   Economic growth would benefit from the competition among drug gangs.
D)   Economic growth would be harmed because the rule of law no longer applies.
E)   Economic growth would be unaffected, as long as Mexico has plenty of resources.F) C) and D)
G) A) and E)

Question 4

Which of the following factors is positively correlated with economic growth?

Accepted Answer

A)   collectively owned resources
B)   high barriers to international trade
C)   restrictions on immigration
D)   political stability and the rule of law
E)   high rates of inflationF) D) and E)
G) A) and C)

Question 5

From 2006 to 2010,per capita real gross domestic product (GDP)  in the Philippines grew an average of 3.16% per year.At that rate,according to the Rule of 70,in roughly how many years will the Filipino economy double in size?

Accepted Answer

A)   21 years
B)   12 years
C)   22 years
D)   45 years
E)   33 yearsF) A) and D)
G) C) and D)

Question 6

Krista owns a hair salon.She wants to increase the number of clients she serves each month,and she wants to use a technological advance to do so.______________ would represent a technological advance at her hair salon.

Accepted Answer

A)   More scissors, combs, and mirrors
B)   Better training for her staff
C)   Increasing the number of employees
D)   Installing a new hair dryer that can dry hair in half the time, with less damage to the hair
E)   A larger hair salon with more chairsF) A) and D)
G) A) and E)

Question 7

In 2010,real gross domestic product (GDP)  in the United States was roughly $14.6 trillion.In 2011,real GDP in the United States was roughly $15.1 trillion.Therefore,between 2010 and 2011,real GDP grew by:

Accepted Answer

A)   4.3%.
B)   3.4%.
C)   3.3%.
D)   4.5%.
E)   0.5%.F) B) and E)
G) A) and C)

Question 8

Why would an increase in capital resources lead to an increase in worker productivity?

Accepted Answer

A)   More capital means that fewer workers are needed, increasing output.
B)   More capital leads to a decrease in wages, leading employees to work harder.
C)   More capital means that workers have better tools and equipment and can produce more.
D)   More capital means that the owners of a company reap all of the benefits of labor.
E)   More capital causes decreasing returns to scale.F) B) and D)
G) B) and C)

Question 9

Recently,Greece underwent an economic crisis.While there are numerous factors that contributed to the crisis,one problem is Greece's tax system,which is very complicated.As a result,numerous Greeks simply choose not to pay their taxes.How would this situation affect Greece's economic growth?

Accepted Answer

A)   Greece's economy would be harmed by a lack of an efficient tax system.
B)   Greece's economy would not be affected by its tax system.
C)   Greece's economy would be harmed by a lack of productive resources.
D)   Greece's economy would be harmed by a lack of international trade.
E)   Greece's economy would benefit from high levels of tax revenue.F) A) and B)
G) A) and C)

Question 10

Average income in Western Europe in 1600 was roughly:

Accepted Answer

A)   $1,400.
B)   $1,555.
C)   $1,200.
D)   $4,100.
E)   $1,368.F) A) and E)
G) None of the above

Question 11

The two factors that must be added to the percent change in per capita real gross domestic product (GDP)  to yield the percent change in nominal GDP are:

Accepted Answer

A)   the percent change in prices and the rate of investment.
B)   the rate of investment and the rate of savings.
C)   the percent change in prices and the rate of population growth.
D)   the rate of population growth and the rate of savings.
E)   the rate of investment and the rate of population growth.F) C) and D)
G) A) and E)

Question 12

Which of the following would be classified as human capital?

Accepted Answer

A)   obtaining a college degree
B)   a factory
C)   coal
D)   a loaf of bread
E)   wireless networking equipmentF) B) and E)
G) B) and C)

Question 13

An increase in ________________ would lead to an increase in long-run economic growth.

Accepted Answer

A)   consumer spending and borrowing
B)   government taxes and fees
C)   resources and technology
D)   imports and exports
E)   prices and interest ratesF) D) and E)
G) None of the above

Question 14

From 2006 to 2010,per capita real gross domestic product (GDP)  in Croatia grew an average of 1.08% per year.At that rate,according to the Rule of 70,in roughly how many years will the Croatian economy double in size?

Accepted Answer

A)   65 years
B)   29 years
C)   69 years
D)   51 years
E)   34 yearsF) B) and C)
G) A) and B)

Question 15

The nation of Singapore has no natural resources to speak of,must import its water,and is very small in land mass.However,it has a very high real per capita gross domestic product (GDP)  and a literacy rate of over 95%.How can such a small country with no resources be so prosperous?

Accepted Answer

A)   Singapore has no taxes at all.
B)   Singapore is rich in other resources, like human capital.
C)   All property in Singapore is owned by the government.
D)   Singapore does not trade with any other country.
E)   Singapore has the world's largest military.F) A) and D)
G) A) and E)

Question 16

As they relate to economic growth,institutions are:

Accepted Answer

A)   resources, like labor and capital, for example.
B)   wealth, income, and prices.
C)   different levels of government: federal, state, and local.
D)   personal relationships between members of a society.
E)   significant practices, relationships, or organizations in society.F) A) and C)
G) B) and E)

Question 17

In 2007,per capita real gross domestic product (GDP)  in Brazil was $9,893.92.By 2008,it had increased to $10,525.58.At what rate did Brazil's economy grow in that time?

Accepted Answer

A)   6.00%
B)   5.38%
C)   6.38%
D)   7.27%
E)   2.34%F) A) and E)
G) A) and C)

Question 18

In economics,technology is defined as:

Accepted Answer

A)   the knowledge available for use in production.
B)   things like computers and wireless networks.
C)   advanced equipment and machinery.
D)   equally available for all firms.
E)   being constant and unchanging.F) A) and C)
G) A) and B)

Question 19

Liberia,a very poor nation in West Africa,is relatively abundant in resources such as mahogany and rubber tree forests,iron-ore deposits,and diamonds.If Liberia is so rich in valuable resources,why is it still so impoverished?

Accepted Answer

A)   Liberians are content with a low standard of living.
B)   Natural resources are not as important as other types of resources.
C)   Taxes in Liberia are too high and discourage investment.
D)   The population of Liberia is too small to use those resources.
E)   Liberia lacks the institutions necessary to make productive use of those resources.F) A) and B)
G) None of the above

Question 20

Which of the following would be classified as a natural resource?

Accepted Answer

A)   obtaining a college degree
B)   a factory
C)   coal
D)   a loaf of bread
E)   wireless networking equipmentF) A) and C)
G) A) and B)

Exam 11: Economic Growth and the Wealth of Nations

Why would an increase in capital resources lead to an increase in worker productivity?

Correct Answer
verified

Steve owns a bike shop.He wants to increase the number of bikes he sells each month,so he knows he needs to acquire more resources.Which of the following actions would represent an increase in the human capital resource at his bike shop?

Correct Answer
verified

Liberia,a very poor nation in West Africa,is relatively abundant in resources such as mahogany and rubber tree forests,iron-ore deposits,and diamonds.If Liberia is so rich in valuable resources,why is it still so impoverished?

Correct Answer
verified

The nation of Singapore has no natural resources to speak of,must import its water,and is very small in land mass.However,it has a very high real per capita gross domestic product (GDP) and a literacy rate of over 95%.How can such a small country with no resources be so prosperous?

Correct Answer
verified

The two factors that must be added to the percent change in per capita real gross domestic product (GDP) to yield the percent change in nominal GDP are:

Correct Answer
verified

Which of the following factors is positively correlated with economic growth?

Correct Answer
verified

Which of the following would be classified as a natural resource?

Correct Answer
verified

Which of the following would be classified as human capital?

Correct Answer
verified

In economics,technology is defined as:

Correct Answer
verified

In 2010,real gross domestic product (GDP) in the United States was roughly $14.6 trillion.In 2011,real GDP in the United States was roughly $15.1 trillion.Therefore,between 2010 and 2011,real GDP grew by:

Correct Answer
verified

From 2006 to 2010,per capita real gross domestic product (GDP) in Croatia grew an average of 1.08% per year.At that rate,according to the Rule of 70,in roughly how many years will the Croatian economy double in size?

Correct Answer
verified

In 2007,per capita real gross domestic product (GDP) in Brazil was $9,893.92.By 2008,it had increased to $10,525.58.At what rate did Brazil's economy grow in that time?

Correct Answer
verified

Correct Answer
verified

From 2006 to 2010,per capita real gross domestic product (GDP) in the Philippines grew an average of 3.16% per year.At that rate,according to the Rule of 70,in roughly how many years will the Filipino economy double in size?

Correct Answer
verified

Krista owns a hair salon.She wants to increase the number of clients she serves each month,and she wants to use a technological advance to do so.______________ would represent a technological advance at her hair salon.

Correct Answer
verified

Recently,Greece underwent an economic crisis.While there are numerous factors that contributed to the crisis,one problem is Greece's tax system,which is very complicated.As a result,numerous Greeks simply choose not to pay their taxes.How would this situation affect Greece's economic growth?

Correct Answer
verified

An increase in ________________ would lead to an increase in long-run economic growth.

Correct Answer
verified

In 1950,residents in Liberia were wealthier than those in Taiwan.Today,per capita gross domestic product (GDP) in Taiwan is more than 20 times that of Liberia.Which of the following best explains why Taiwan is now so much wealthier than Liberia?

Correct Answer
verified

As they relate to economic growth,institutions are:

Correct Answer
verified

Average income in Western Europe in 1600 was roughly:

Correct Answer
verified

Exam 11: Economic Growth and the Wealth of Nations

Why would an increase in capital resources lead to an increase in worker productivity?

Correct AnswerverifiedShow Answer

Steve owns a bike shop.He wants to increase the number of bikes he sells each month,so he knows he needs to acquire more resources.Which of the following actions would represent an increase in the human capital resource at his bike shop?

Correct AnswerverifiedShow Answer

Liberia,a very poor nation in West Africa,is relatively abundant in resources such as mahogany and rubber tree forests,iron-ore deposits,and diamonds.If Liberia is so rich in valuable resources,why is it still so impoverished?

Correct AnswerverifiedShow Answer

The nation of Singapore has no natural resources to speak of,must import its water,and is very small in land mass.However,it has a very high real per capita gross domestic product (GDP) and a literacy rate of over 95%.How can such a small country with no resources be so prosperous?

Correct AnswerverifiedShow Answer

The two factors that must be added to the percent change in per capita real gross domestic product (GDP) to yield the percent change in nominal GDP are:

Correct AnswerverifiedShow Answer

Which of the following factors is positively correlated with economic growth?

Correct AnswerverifiedShow Answer

Which of the following would be classified as a natural resource?

Correct AnswerverifiedShow Answer

Which of the following would be classified as human capital?

Correct AnswerverifiedShow Answer

In economics,technology is defined as:

Correct AnswerverifiedShow Answer

In 2010,real gross domestic product (GDP) in the United States was roughly $14.6 trillion.In 2011,real GDP in the United States was roughly $15.1 trillion.Therefore,between 2010 and 2011,real GDP grew by:

Correct AnswerverifiedShow Answer

From 2006 to 2010,per capita real gross domestic product (GDP) in Croatia grew an average of 1.08% per year.At that rate,according to the Rule of 70,in roughly how many years will the Croatian economy double in size?

Correct AnswerverifiedShow Answer

In 2007,per capita real gross domestic product (GDP) in Brazil was $9,893.92.By 2008,it had increased to $10,525.58.At what rate did Brazil's economy grow in that time?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

From 2006 to 2010,per capita real gross domestic product (GDP) in the Philippines grew an average of 3.16% per year.At that rate,according to the Rule of 70,in roughly how many years will the Filipino economy double in size?

Correct AnswerverifiedShow Answer

Krista owns a hair salon.She wants to increase the number of clients she serves each month,and she wants to use a technological advance to do so.______________ would represent a technological advance at her hair salon.

Correct AnswerverifiedShow Answer

Recently,Greece underwent an economic crisis.While there are numerous factors that contributed to the crisis,one problem is Greece's tax system,which is very complicated.As a result,numerous Greeks simply choose not to pay their taxes.How would this situation affect Greece's economic growth?

Correct AnswerverifiedShow Answer

An increase in ________________ would lead to an increase in long-run economic growth.

Correct AnswerverifiedShow Answer

In 1950,residents in Liberia were wealthier than those in Taiwan.Today,per capita gross domestic product (GDP) in Taiwan is more than 20 times that of Liberia.Which of the following best explains why Taiwan is now so much wealthier than Liberia?

Correct AnswerverifiedShow Answer

As they relate to economic growth,institutions are:

Correct AnswerverifiedShow Answer

Average income in Western Europe in 1600 was roughly:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified