Question 1

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 equipment

Question 2

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 years

Question 3

Resources are:

Accepted Answer

A)   the output that firms produce.
B)   inputs used to produce goods and services.
C)   the technology that firms use to make things.
D)   the institutions that encourage efficiency.
E)   the cost of producing goods and services. B

Question 4

In 2012,U.S.gross domestic product (GDP) was roughly:

Accepted Answer

A)   $15.6 trillion.
B)   $1.56 trillion.
C)   $156 trillion.
D)   $156 billion.
E)   $156 million.

Question 5

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.

Question 6

Explain how a technological advance can contribute to economic growth.

Accepted Answer

A technological advance can contribute t...

Question 7

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

Accepted Answer

A)   stable money and prices
B)   private-property rights
C)   collectively owned resources
D)   competitive markets
E)   political stability

Question 8

Why do institutions such as private-property rights promote economic growth?

Accepted Answer

A)   Private-property rights guarantee that the economy is stable in the short run, which encourages investment.
B)   Private-property rights are usually forced on a country, whereas collective ownership is voluntarily adopted.
C)   Private-property rights create an incentive to maximize the value of one's property, which is not true when property is collectively owned.
D)   Private-property rights guarantee that everyone will have equal amounts of property.
E)   Private-property rights are not established by governments but by private individuals.

Question 9

Average world income began to increase rapidly during the:

Accepted Answer

A)   Enlightenment.
B)   Dark Ages.
C)   Second World War.
D)   War of the Ring.
E)   Industrial Revolution.

Question 10

From 2009 to 2010,nominal gross domestic product (GDP) in the United States grew by 3.8%.Given that prices increased by 1% and the population grew by 1%,we know that per capita real GDP grew by:

Accepted Answer

A)   3.8%.
B)   1.8%.
C)   2.8%.
D)   4.8%.
E)   5.8%.

Question 11

Krista owns a hair salon.She wants to increase the number of clients she serves each month,so she knows she needs to acquire more resources.Which of the following actions would represent an increase in the human capital resource at her hair salon?

Accepted Answer

A)   buying more chairs and hair dryers
B)   hiring more stylists
C)   moving into a larger salon
D)   purchasing better-quality shampoo
E)   buying more scissors and combs

Question 12

From 2009 to 2010 per capita real gross domestic product (GDP) in the United States grew by 1.8%.At that rate,according to the Rule of 70,in roughly how many years will per capita real GDP double?

Accepted Answer

A)   29 years
B)   68 years
C)   72 years
D)   39 years
E)   18 years D

Question 13

Competitive markets contribute significantly to economic growth because:

Accepted Answer

A)   they encourage firms to exploit consumers via high prices.
B)   people who want to participate do not face barriers to entry.
C)   they employ high levels of government regulations.
D)   they prevent foreign firms (with better ideas)  from entering markets.
E)   they create an incentive for firms to differentiate their products.

Question 14

The island of Hispaniola,located in the Caribbean,is divided roughly in half by the two countries that occupy it.The western half is the country of Haiti,and the eastern half is the country of the Dominican Republic.In 2011,per capita real gross domestic product (GDP) in Haiti was roughly $740.In the Dominican Republic,it was almost $9,300.What most likely explains this difference?

Accepted Answer

A)   The Dominican Republic has a better climate than Haiti.
B)   In the Dominican Republic, all property is collectively owned.
C)   Haiti is farther away from major trading partners like the United States.
D)   Taxes in Haiti are too low, compared to those in the Dominican Republic.
E)   Haiti lacks the type of growth-positive institutions that the Dominican Republic has.

Question 15

Technological advances:

Accepted Answer

A)   rarely result in an increase in productivity.
B)   always involve buying lots of expensive equipment.
C)   introduce new techniques or methods so that firms can produce more with less.
D)   are equally common across all firms.
E)   are always the result of private-sector innovation.

Question 16

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.

Question 17

Access to lifesaving medicine is very limited in parts of Africa; as a result,over 10% of children do not reach the age of five.What effect would an increase in medical aid to African children have on overall economic growth for the continent?

Accepted Answer

A)   Economic growth would not be affected; medical aid does not contribute to gross domestic product (GDP) .
B)   Economic growth would decrease because there would be more people to feed but no additional resources.
C)   Economic growth would not be affected because children do not contribute to economic growth.
D)   Economic growth would increase because the health and productivity of the labor supply would increase.
E)   Economic growth would increase because more children would survive, which represents a technological advance.

Question 18

You are an economics consultant and have been contacted by an official from a developing country.She tells you that her country's economy is currently growing at 2% per year.She asks you how long it will take for her country's economy to double in size; you tell her it will take 35 years.She then asks you what the government can do to shorten the time necessary to double the size of the country's economy.What should you tell her?

Accepted Answer

A)   Cut taxes and government spending.
B)   Encourage the development of growth-positive institutions.
C)   Increase barriers to international trade.
D)   Immediately halt all immigration.
E)   Suspend the rule of law. B

Question 19

Is having abundant resources an absolute guarantee of economic growth and prosperity?

Accepted Answer

A)   Yes; as long as a country has a large number of resources, it will prosper.
B)   No; countries also need an aggressive military.
C)   Yes; there are no prosperous countries without a large amount of resources.
D)   No; other factors like institutions and technological advances are relevant too.
E)   No; many countries thrive under collective ownership of property.

Question 20

In 1800,the average income of U.S.citizens was roughly:

Accepted Answer

A)   $100.
B)   $1,400.
C)   $19,600.
D)   $2,000.
E)   $1,750.

Exam 13: Economic Growth and the Wealth of Nations

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

Correct Answer
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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

Resources are:

Correct Answer
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B

In 2012,U.S.gross domestic product (GDP) was roughly:

Correct Answer
verified

In economics,technology is defined as:

Correct Answer
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Explain how a technological advance can contribute to economic growth.

Correct Answer
verified
A technological advance can contribute t...
View Answer

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

Correct Answer
verified

Why do institutions such as private-property rights promote economic growth?

Correct Answer
verified

Average world income began to increase rapidly during the:

Correct Answer
verified

From 2009 to 2010,nominal gross domestic product (GDP) in the United States grew by 3.8%.Given that prices increased by 1% and the population grew by 1%,we know that per capita real GDP grew by:

Correct Answer
verified

Krista owns a hair salon.She wants to increase the number of clients she serves each month,so she knows she needs to acquire more resources.Which of the following actions would represent an increase in the human capital resource at her hair salon?

Correct Answer
verified

From 2009 to 2010 per capita real gross domestic product (GDP) in the United States grew by 1.8%.At that rate,according to the Rule of 70,in roughly how many years will per capita real GDP double?

Correct Answer
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D

Competitive markets contribute significantly to economic growth because:

Correct Answer
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Correct Answer
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Technological advances:

Correct Answer
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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

Access to lifesaving medicine is very limited in parts of Africa; as a result,over 10% of children do not reach the age of five.What effect would an increase in medical aid to African children have on overall economic growth for the continent?

Correct Answer
verified

Correct Answer
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B

Is having abundant resources an absolute guarantee of economic growth and prosperity?

Correct Answer
verified

In 1800,the average income of U.S.citizens was roughly:

Correct Answer
verified

Exam 13: Economic Growth and the Wealth of Nations

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

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

Resources are:

Correct AnswerverifiedB

In 2012,U.S.gross domestic product (GDP) was roughly:

Correct AnswerverifiedShow Answer

In economics,technology is defined as:

Correct AnswerverifiedShow Answer

Explain how a technological advance can contribute to economic growth.

Correct AnswerverifiedA technological advance can contribute t...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Why do institutions such as private-property rights promote economic growth?

Correct AnswerverifiedShow Answer

Average world income began to increase rapidly during the:

Correct AnswerverifiedShow Answer

From 2009 to 2010,nominal gross domestic product (GDP) in the United States grew by 3.8%.Given that prices increased by 1% and the population grew by 1%,we know that per capita real GDP grew by:

Correct AnswerverifiedShow Answer

Krista owns a hair salon.She wants to increase the number of clients she serves each month,so she knows she needs to acquire more resources.Which of the following actions would represent an increase in the human capital resource at her hair salon?

Correct AnswerverifiedShow Answer

From 2009 to 2010 per capita real gross domestic product (GDP) in the United States grew by 1.8%.At that rate,according to the Rule of 70,in roughly how many years will per capita real GDP double?

Correct AnswerverifiedD

Competitive markets contribute significantly to economic growth because:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Technological advances:

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

Access to lifesaving medicine is very limited in parts of Africa; as a result,over 10% of children do not reach the age of five.What effect would an increase in medical aid to African children have on overall economic growth for the continent?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedB

Is having abundant resources an absolute guarantee of economic growth and prosperity?

Correct AnswerverifiedShow Answer

In 1800,the average income of U.S.citizens was roughly:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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B

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A technological advance can contribute t...
View Answer

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D

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B

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