Question 1

The middle class in China:

Accepted Answer

A)   outnumbers the entire population of the United States.
B)   is almost equal in size to the entire population of the California.
C)   is about half the size of the population of the Germany.
D)   None of these is true.E) A) and B)
F) All of the above

Question 2

The rule of 70 estimates how long it will take a country to double its real GDP per capita by:

Accepted Answer

A)   dividing the average growth rate by 70.
B)   dividing 70 by the average growth rate.
C)   dividing the current real GDP per capita by 70.
D)   multiplying the average growth rate by 70 percent.E) None of the above
F) A) and B)

Question 3

Human capital contributes to growth because it helps workers in the economy:

Accepted Answer

A)   produce more with the same amount of physical capital.
B)   work smarter.
C)   be more productive with their time.
D)   All of these are true.E) A) and C)
F) None of the above

Question 4

Which of the following would probably not result in acquiring human capital?

Accepted Answer

A)   Taking an economics course.
B)   Learning how to make chicken parmigiana.
C)   Playing varsity soccer.
D)   Purchasing a new piece of machinery.E) B) and C)
F) A) and B)

Question 5

Factories owned by U.S. firms on the Mexican side of the U.S.-Mexico border are:

Accepted Answer

A)   an important source of foreign direct investment in Mexico.
B)   not an example of foreign direct investment in Mexico.
C)   troubling for the Mexican government.
D)   harmful to Mexico's efforts to increase their economic growth.E) A) and B)
F) None of the above

Question 6

Total changes in GDP over time are:

Accepted Answer

A)   bigger than the annual growth rate due to compounding.
B)   smaller than the annual growth rate due to compounding.
C)   smaller than the annual growth rate due to backsliding.
D)   bigger than the annual growth rate due to population growth.E) B) and D)
F) B) and C)

Question 7

The value of human capital can decrease when:

Accepted Answer

A)   someone forgets how to do something that was valuable in his work.
B)   the skills someone possesses are no longer needed.
C)   machines can be taught to do what people used to have to do.
D)   All of these are examples of a decrease in human capital.E) A) and B)
F) A) and C)

Question 8

Economic growth means:

Accepted Answer

A)   more production of goods and services.
B)   people maintain their standard of living.
C)   all of a nation's citizens must be better-educated.
D)   in general tax revenues are lower.E) A) and B)
F) A) and C)

Question 9

Household savings rates:

Accepted Answer

A)   vary enormously across countries.
B)   are remarkably similar across countries.
C)   seem to be similar for countries within the same continent.
D)   are impossible to compare across countries.E) B) and C)
F) B) and D)

Question 10

An example of physical capital is:

Accepted Answer

A)   a factory.
B)   a computer.
C)   a pen.
D)   All of the items are examples of physical capital.E) A) and D)
F) B) and C)

Question 11

Which of the following is considered a nonrenewable resource?

Accepted Answer

A)   Natural gas
B)   Sunlight
C)   Rivers
D)   WindE) A) and B)
F) A) and C)

Question 12

If a country's income level is high:

Accepted Answer

A)   it must have a high level of growth.
B)   it usually has a high level of GDP per capita.
C)   it must be well-endowed with natural resources.
D)   All of these are true.E) A) and B)
F) All of the above

Question 13

Using public policy to promote health can contribute to growth because:

Accepted Answer

A)   workers who are in good health will be more productive and less likely to miss work days.
B)   workers who get free health care are more likely to be careless.
C)   workers who are in good health take more vacation days and are less likely to work.
D)   it allows the importation of more goods and services.E) A) and D)
F) B) and C)

Question 14

According to convergence theory, countries that start out poor should initially grow:

Accepted Answer

A)   faster than ones that start out rich, but will eventually slow to the same growth rate.
B)   slower than ones that start out rich, but will eventually grow to the same growth rate.
C)   faster than ones that start out rich, and will eventually surpass their level of income.
D)   slower than ones that start out rich, and therefore will never reach a similar growth rate.E) A) and D)
F) B) and C)

Exam 10: Economic Growth

Which of the following is considered a nonrenewable resource?

Correct Answer
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Which of the following would probably not result in acquiring human capital?

Correct Answer
verified

An example of physical capital is:

Correct Answer
verified

Factories owned by U.S. firms on the Mexican side of the U.S.-Mexico border are:

Correct Answer
verified

The rule of 70 estimates how long it will take a country to double its real GDP per capita by:

Correct Answer
verified

Household savings rates:

Correct Answer
verified

Total changes in GDP over time are:

Correct Answer
verified

If a country's income level is high:

Correct Answer
verified

The middle class in China:

Correct Answer
verified

Using public policy to promote health can contribute to growth because:

Correct Answer
verified

Human capital contributes to growth because it helps workers in the economy:

Correct Answer
verified

Economic growth means:

Correct Answer
verified

According to convergence theory, countries that start out poor should initially grow:

Correct Answer
verified

The value of human capital can decrease when:

Correct Answer
verified

Exam 10: Economic Growth

Which of the following is considered a nonrenewable resource?

Correct AnswerverifiedShow Answer

Which of the following would probably not result in acquiring human capital?

Correct AnswerverifiedShow Answer

An example of physical capital is:

Correct AnswerverifiedShow Answer

Factories owned by U.S. firms on the Mexican side of the U.S.-Mexico border are:

Correct AnswerverifiedShow Answer

The rule of 70 estimates how long it will take a country to double its real GDP per capita by:

Correct AnswerverifiedShow Answer

Household savings rates:

Correct AnswerverifiedShow Answer

Total changes in GDP over time are:

Correct AnswerverifiedShow Answer

If a country's income level is high:

Correct AnswerverifiedShow Answer

The middle class in China:

Correct AnswerverifiedShow Answer

Using public policy to promote health can contribute to growth because:

Correct AnswerverifiedShow Answer

Human capital contributes to growth because it helps workers in the economy:

Correct AnswerverifiedShow Answer

Economic growth means:

Correct AnswerverifiedShow Answer

According to convergence theory, countries that start out poor should initially grow:

Correct AnswerverifiedShow Answer

The value of human capital can decrease when:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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