Question 1

An example of a natural resource is:

Accepted Answer

A)  Michael Jordan's athletic ability.
B)  Farmer Joe's farm fields.
C)  Bill Gates' revolutionary iPod.
D)  All of these are examples of natural resources.

Question 2

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.

Question 3

According to the rule of 70,a country will double its real GDP per capita in 10 years if it:

Accepted Answer

A)  experiences 7 percent growth rate in GDP.
B)  has inflation of 7 percent.
C)  has a population growth rate of 7 percent.
D)  None of these is true.

Question 4

The convergence theory suggests:

Accepted Answer

A)  that poorer countries will grow faster than rich ones.
B)  all countries eventually will experience the same rate of growth.
C)  countries may have the same rate of growth but differing levels of income.
D)  All of these are true.

Question 5

Human capital refers to:

Accepted Answer

A)  the skills that determine the productivity of workers.
B)  the work experience that determines the productivity of workers.
C)  the natural talent that determines the productivity of workers.
D)  All of these describe a facet of human capital.

Question 6

Total changes in GDP over time:

Accepted Answer

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

Question 7

Increases in productivity per person lead to:

Accepted Answer

A)  increases in per capita income.
B)  economic growth.
C)  increases in GDP per capita.
D)  All of these are true.

Question 8

If a country has a high level of growth in income,it:

Accepted Answer

A)  must be rapidly increasing its GDP per capita.
B)  must have a high level of income.
C)  must have an equitable distribution of wealth.
D)  All of these are true.

Question 9

An example of a natural resources is:

Accepted Answer

A)  a river.
B)  a forest.
C)  a coal deposit.
D)  All of these are examples of natural resources.

Question 10

A country's income is:

Accepted Answer

A)  dependent upon how productive its worker are.
B)  difficult to measure given current macroeconomic data.
C)  likely to increase if the country experiences high rates of inflation.
D)  None of these is true.

Question 11

Natural resources can be:

Accepted Answer

A)  renewable.
B)  nonrenewable.
C)  Both of these are true.
D)  Neither of these is true.

Question 12

We can calculate how long a country will take to double its real GDP per capita using:

Accepted Answer

A)  its average growth rate.
B)  its GDP deflator.
C)  the CPI indexation factor.
D)  the GDP growth estimator.

Question 13

Over the last 100 years or so,the U.S.economy has grown an average of:

Accepted Answer

A)  1 percent annually.
B)  2 percent annually.
C)  3 percent annually.
D)  4 percent annually.

Question 14

The enforcement of contracts by the government:

Accepted Answer

A)  encourages economic growth.
B)  allows people to enter into long-term investments more easily.
C)  can increase physical capital investment.
D)  All of these are true.

Question 15

An example of a renewable resource would be:

Accepted Answer

A)  a river.
B)  coal.
C)  natural gas.
D)  All of these are examples of renewable resources.

Question 16

Increases in productivity per person:

Accepted Answer

A)  is highly desirable,as it leads to economic growth.
B)  is unavoidable,and macroeconomists work to prevent it.
C)  can harm an economy if misallocated.
D)  is highly undesirable,as it leads to increases in GDP per capita.

Question 17

Which of the following would not be considered physical capital?

Accepted Answer

A)  An optical lens
B)  A trained physicist
C)  A spotlight
D)  A clipboard

Question 18

When a person is educated,they become:

Accepted Answer

A)  more productive to society,because they have more skills to apply to a job.
B)  less productive to society,because they stop working while in school.
C)  less productive to society,because they require higher pay per hour.
D)  more productive to society,because they learn how to be more productive in all jobs.

Question 19

Which of the following is not an example of human capital investment?

Accepted Answer

A)  A leadership training course
B)  A bachelor's degree
C)  Software with spell-check included
D)  All of these are examples of human capital investment.

Question 20

Having more technology means:

Accepted Answer

A)  that the same inputs will produce more outputs.
B)  countries will be able to produce more with the same amount of physical capital.
C)  countries will be able to produce more with the same amount of human capital.
D)  All of these are true.

Exam 26: Economic Growth

We can calculate how long a country will take to double its real GDP per capita using:

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Which of the following is not an example of human capital investment?

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Over the last 100 years or so,the U.S.economy has grown an average of:

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Human capital refers to:

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

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Total changes in GDP over time:

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Natural resources can be:

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Increases in productivity per person lead to:

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An example of a natural resource is:

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The convergence theory suggests:

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According to the rule of 70,a country will double its real GDP per capita in 10 years if it:

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An example of a natural resources is:

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If a country has a high level of growth in income,it:

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An example of a renewable resource would be:

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When a person is educated,they become:

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Which of the following would not be considered physical capital?

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Increases in productivity per person:

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Having more technology means:

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The enforcement of contracts by the government:

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A country's income is:

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