Question 1

________ is considered a high-income country,________ a developing country,and ________ a newly industrializing country.

Accepted Answer

A)  Japan; Hong Kong; South Korea
B)  The United States; Somalia; Taiwan
C)  Canada; France; Singapore
D)  Honduras; New Zealand; South Korea
E)  India; Russia; CanadaF) B) and D)
G) C) and D)

Question 2

Figure 7.4  Alt text for Figure 7.4: In figure 7.4,a graph representing per-worker production functions.
Long description for Figure 7.4: The x-axis is labelled,capital per hour worked,K/L.The y-axis is labelled,real GDP per hour worked,Y/L.3 concave curves originating from 0 at the vertex are shown.5 points A ($50000,$15000) ,B ($60000,$16000) ,C ($70000,$16400) ,D ($60000,$17000) ,and E ($60000,$15000) are plotted.The curve labelled,Production function 1,passes through point E.The curve labelled,Production function 2,passes through points A,B,and C.The curve labelled,Production function 3,passes through point D.These 5 points are connected to their respective coordinates on the x-axis and y-axis with dotted lines.
-Refer to Figure 7.4.The movement from A to B to C illustrates

Accepted Answer

A)  an improvement in technology.
B)  a decline in capital per worker.
C)  diminishing returns to capital.
D)  diminishing returns to labour.
E)  rising labour force participation.F) A) and B)
G) C) and D)

Question 3

Use production functions from the economic growth model to explain why Canada grew at a much faster rate than the former Soviet Union in the latter half of the 20th century.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> Alt text for Question 100: For question...

Question 4

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

Accepted Answer

A)  The Soviet economy grew rapidly in the later 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 labour through its immigration policy in the 1950s.
E)  The Soviet economy grew because it was able to develop new technology faster than most others.F) A) and D)
G) B) and D)

Question 5

According to Joseph Schumpeter,economic growth is achieved through

Accepted Answer

A)  focusing only on making old products better rather than inventing new ones.
B)  centralizing economic production.
C)  a process termed "creative destruction."
D)  removing the entrepreneur from the production function.
E)  protection of existing firms.F) C) and D)
G) A) and B)

Question 6

Which of the following is an example of foreign portfolio investment?

Accepted Answer

A)  the purchase of a Canadian stock by a Canadian citizen
B)  the purchase of a Canadian government bond by a German citizen
C)  the purchase of a Canadian mutual fund by a Canadian citizen
D)  the purchase of a Japanese factory by a Korean citizen
E)  the purchase of a Canadian vacation home by a Chinese citizenF) All of the above
G) C) and E)

Question 7

The U.S.economy has seen a faster increase in productivity since the mid-1990s as compared to the economies of Canada and many Western European countries.Which of the following explains this?

Accepted Answer

A)  U.S.unions impose stricter work rules as compared to unions in Canada and many Western European countries.
B)  U.S.government regulations impose stricter work rules as compared to government regulations in Canada and Western Europe.
C)  The United States has a higher rate of job mobility than do Canada and many Western European countries.
D)  U.S.workers can obtain unemployment insurance for a longer period of time as compared to workers in Canada and most Western European countries.
E)  Western European countries have more regulations concerning technological improvement.F) B) and C)
G) A) and B)

Question 8

The best measure of a country's standard of living is

Accepted Answer

A)  GDP per labour hour.
B)  GDP per unit of capital.
C)  GDP per capita.
D)  total nominal GDP.
E)  the employment population ratio.F) A) and E)
G) C) and D)

Question 9

If real GDP per capita in Canada is $8,000 in 2018,and if real GDP per capita is $12,000 in 2028,what is the total percent change in the growth rate of GDP per capita between 2018 and 2028?

Accepted Answer

A)  3.33%
B)  5%
C)  15%
D)  33%
E)  50%F) A) and B)
G) None of the above

Question 10

A patent grants an inventor exclusive rights to a product for how long?

Accepted Answer

A)  14 years
B)  17 years
C)  20 years
D)  50 years
E)  the lifetime of the productF) A) and D)
G) A) and E)

Question 11

How do economic growth rates affect a nation's standard of living?

Accepted Answer

The speed at which an economy grows dete...

Question 12

The lower-income industrial countries are catching up to the higher-income industrial countries in terms of economic growth.

Accepted Answer

A) True 
 B)False

Question 13

Table 7.2
 
-Refer to Table 7.2.Calculate the GDP per capita for each country in the table.Which country has the highest standard of living? Why?

Accepted Answer

GDP per capita = GDP / Population. GDP p...

Question 14

Under the Soviet system of communism,

Accepted Answer

A)  managerial pay was determined by the extent to which managers could lower the per-unit costs of production.
B)  technological progress was slow because managers had little incentive to develop new technologies.
C)  competitive pressures in the Soviet Union allowed the country's technological progress to keep pace with the rest of the world.
D)  the per-worker production function in the Soviet Union shifted up more rapidly than production functions in other countries.
E)  worker's incentives exert effort were too strong,ultimately leading to a reduction in productivity.F) B) and E)
G) A) and C)

Question 15

In the long run,________ differences in economic growth rates result in ________ differences in GDP per capita.

Accepted Answer

A)  large; small
B)  large; no
C)  small; large
D)  small; noE) B) and C)
F) All of the above

Question 16

According to Joseph Schumpeter which of the following would be an indicator of on-going economic growth?

Accepted Answer

A)  new products displacing older ones
B)  growing concentration of wealth
C)  a more equal distribution of wealth
D)  growing government deficits
E)  consolidation of firms in key industriesF) All of the above
G) A) and E)

Question 17

Most economic growth in the world occurred between 1,000,000 BCE and 1300 CE.

Accepted Answer

A) True 
 B)False

Question 18

Until recently,many developing countries

Accepted Answer

A)  were quite open to foreign investment.
B)  encouraged foreign direct investment but discouraged foreign portfolio investment.
C)  sealed themselves off from foreign investment.
D)  encouraged foreign portfolio investment but discouraged foreign direct investment.
E)  allowed their citizens to freely invest in other countries.F) C) and E)
G) A) and C)

Question 19

The current low interest rates are seen as an indicator of secular stagnation because

Accepted Answer

A)  the high savings rates of baby boomers.
B)  insufficient demand for investment spending.
C)  increases in government borrowing.
D)  increases in consumer debt.
E)  increasing net exports.F) A) and D)
G) None of the above

Question 20

The per-worker production function has a ________ slope,indicating that increases in capital per hour worked ________ real GDP.

Accepted Answer

A)  negative; increase
B)  positive; increase
C)  negative; decrease
D)  positive; decreaseE) B) and C)
F) All of the above

Exam 7: Long-Run Economic Growth: Sources and Policies

The current low interest rates are seen as an indicator of secular stagnation because

Correct Answer
verified

The U.S.economy has seen a faster increase in productivity since the mid-1990s as compared to the economies of Canada and many Western European countries.Which of the following explains this?

Correct Answer
verified

The per-worker production function has a slope,indicating that increases in capital per hour worked real GDP.

Correct Answer
verified

According to Joseph Schumpeter,economic growth is achieved through

Correct Answer
verified

is considered a high-income country, a developing country,and a newly industrializing country.

Correct Answer
verified

Until recently,many developing countries

Correct Answer
verified

Correct Answer
verified

The lower-income industrial countries are catching up to the higher-income industrial countries in terms of economic growth.

Correct Answer
verified

How do economic growth rates affect a nation's standard of living?

Correct Answer
verified
The speed at which an economy grows dete...
View Answer

Use production functions from the economic growth model to explain why Canada grew at a much faster rate than the former Soviet Union in the latter half of the 20th century.

Correct Answer
verified
Alt text for Question 100: For question...
View Answer

Under the Soviet system of communism,

Correct Answer
verified

If real GDP per capita in Canada is $8,000 in 2018,and if real GDP per capita is $12,000 in 2028,what is the total percent change in the growth rate of GDP per capita between 2018 and 2028?

Correct Answer
verified

The best measure of a country's standard of living is

Correct Answer
verified

In the long run, differences in economic growth rates result in differences in GDP per capita.

Correct Answer
verified

According to Joseph Schumpeter which of the following would be an indicator of on-going economic growth?

Correct Answer
verified

Most economic growth in the world occurred between 1,000,000 BCE and 1300 CE.

Correct Answer
verified

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

Correct Answer
verified

A patent grants an inventor exclusive rights to a product for how long?

Correct Answer
verified

Table 7.2 -Refer to Table 7.2.Calculate the GDP per capita for each country in the table.Which country has the highest standard of living? Why?

Correct Answer
verified
GDP per capita = GDP / Population. GDP p...
View Answer

Which of the following is an example of foreign portfolio investment?

Correct Answer
verified

Exam 7: Long-Run Economic Growth: Sources and Policies

The current low interest rates are seen as an indicator of secular stagnation because

Correct AnswerverifiedShow Answer

The U.S.economy has seen a faster increase in productivity since the mid-1990s as compared to the economies of Canada and many Western European countries.Which of the following explains this?

Correct AnswerverifiedShow Answer

The per-worker production function has a ________ slope,indicating that increases in capital per hour worked ________ real GDP.

Correct AnswerverifiedShow Answer

According to Joseph Schumpeter,economic growth is achieved through

Correct AnswerverifiedShow Answer

________ is considered a high-income country,________ a developing country,and ________ a newly industrializing country.

Correct AnswerverifiedShow Answer

Until recently,many developing countries

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The lower-income industrial countries are catching up to the higher-income industrial countries in terms of economic growth.

Correct AnswerverifiedShow Answer

How do economic growth rates affect a nation's standard of living?

Correct AnswerverifiedThe speed at which an economy grows dete...View AnswerShow Answer

Use production functions from the economic growth model to explain why Canada grew at a much faster rate than the former Soviet Union in the latter half of the 20th century.

Correct Answerverified Alt text for Question 100: For question...View AnswerShow Answer

Under the Soviet system of communism,

Correct AnswerverifiedShow Answer

If real GDP per capita in Canada is $8,000 in 2018,and if real GDP per capita is $12,000 in 2028,what is the total percent change in the growth rate of GDP per capita between 2018 and 2028?

Correct AnswerverifiedShow Answer

The best measure of a country's standard of living is

Correct AnswerverifiedShow Answer

In the long run,________ differences in economic growth rates result in ________ differences in GDP per capita.

Correct AnswerverifiedShow Answer

According to Joseph Schumpeter which of the following would be an indicator of on-going economic growth?

Correct AnswerverifiedShow Answer

Most economic growth in the world occurred between 1,000,000 BCE and 1300 CE.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A patent grants an inventor exclusive rights to a product for how long?

Correct AnswerverifiedShow Answer

Table 7.2 -Refer to Table 7.2.Calculate the GDP per capita for each country in the table.Which country has the highest standard of living? Why?

Correct AnswerverifiedGDP per capita = GDP / Population. GDP p...View AnswerShow Answer

Which of the following is an example of foreign portfolio investment?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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The per-worker production function has a slope,indicating that increases in capital per hour worked real GDP.

Correct Answer
verified

Correct Answer
verified

is considered a high-income country, a developing country,and a newly industrializing country.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The speed at which an economy grows dete...
View Answer

Correct Answer
verified
Alt text for Question 100: For question...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

In the long run, differences in economic growth rates result in differences in GDP per capita.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
GDP per capita = GDP / Population. GDP p...
View Answer

Correct Answer
verified