Question 1

A legal system that helps raise a nation's productivity is one that:

Accepted Answer

A)   makes it easy for people to engage in contracts and to establish property rights.
B)   has a lot of regulations and procedures for people and businesses to follow.
C)   allows people and businesses to act freely and to do just about everything they want.
D)   protects domestic producers from foreign competition.E) B) and D)
F) A) and B)

Question 2

Which is NOT a factor of production?

Accepted Answer

A)   incentives
B)   human capital
C)   physical capital
D)   technological knowledgeE) C) and D)
F) All of the above

Question 3

Use the following to answer questions 
Figure: Economic Growth in Major World Regions 
-(Figure: Economic Growth in Major World Regions) Refer to the figure,which shows real GDP per capita over time in different regions of the world.The chart shows that:

Accepted Answer

A)   all regions of the world eventually achieved significant growth.
B)   some regions of the world have always experienced growth.
C)   significant growth has occurred in some regions only since 1950.
D)   all regions of the world remain poor today.E) A) and C)
F) None of the above

Question 4

For most of recorded human history,people were poor and there was no economic growth.

Accepted Answer

A) True 
 B)False

Question 5

Good institutions:

Accepted Answer

A)   reward those who create value and increase efficiency with higher profits.
B)   distribute wealth evenly across the economy.
C)   result in growth rates approximately equal to those in countries with poor institutions.
D)   matter only if the country has a large amount of both physical and human capital.E) A) and D)
F) All of the above

Question 6

When an economic system changes from using a collective property rights system to something closer to private property rights,the immediate effect is:

Accepted Answer

A)   less efficient organization of resources.
B)   to increase regulation,resulting in less market activities.
C)   to decrease investment,work effort,and productivity.
D)   to increase investment,work effort,and productivity.E) A) and B)
F) A) and C)

Question 7

Under communal property,effort is:

Accepted Answer

A)   divorced from payment,so there is great incentive to work.
B)   divorced from payment,so there is little incentive to work.
C)   rewarded with payment,so there is great incentive to work.
D)   rewarded with payment,so there is little incentive to work.E) A) and C)
F) B) and C)

Question 8

GDP per capita does not vary much among nations.

Accepted Answer

A) True 
 B)False

Question 9

According to the rule of 70,a country with an annual growth rate of 7% will double its GDP per capita in:

Accepted Answer

A)   70 years.
B)   10 years.
C)   7 years.
D)   less than 1 year.E) All of the above
F) A) and B)

Question 10

A country increases its human capital by engaging in:

Accepted Answer

A)   research and development.
B)   education and training.
C)   programs that improve workers' health.
D)   investment in physical capital.E) B) and C)
F) B) and D)

Question 11

Figure: Growth Miracles and Growth Disasters  According to the information in the figure,Argentina had a higher real GDP per capita in 2000 than it did in 1900.Explain how it can still be considered a growth disaster.Also,discuss what other aspects of Argentina you would study to gain a complete understanding of its economic growth.

Accepted Answer

As indicated in the figure,Argentina has...

Question 12

Why did so many Chinese farmers and workers starve under "The Great Leap Forward"?

Accepted Answer

A)   The number of workers on communes was reduced.
B)   The Chinese people did not know how to farm in certain geographic areas.
C)   The incentive to work hard was low since the rewards were so minimal.
D)   A long,severe drought drastically decreased agricultural production.E) None of the above
F) B) and D)

Question 13

China's experiment with communal farming caused agricultural production to plummet and millions starved to death as a result.

Accepted Answer

A) True 
 B)False

Question 14

Incentives are important in structuring the institutions in a country.

Accepted Answer

A) True 
 B)False

Question 15

Landlocked countries tend to grow faster than countries that have access to water.

Accepted Answer

A) True 
 B)False

Question 16

Countries with a high GDP per capita have a lot of physical and human capital organized by means of the best technological knowledge available.

Accepted Answer

A) True 
 B)False

Question 17

Slow economic growth sustained over long periods produces:

Accepted Answer

A)   small changes in per capita GDP.
B)   large changes in per capita GDP.
C)   no changes in per capita GDP.
D)   unpredictable changes in GDP.E) A) and D)
F) A) and C)

Question 18

List the institutions that are important for economic growth as discussed in this chapter.

Accepted Answer

(1)property rights, (2)honest ...

Question 19

One of the best explanations for why some countries are rich and others are poor is that:

Accepted Answer

A)   technological knowledge is more advanced in rich countries than in poor countries.
B)   rich countries organize their factors of production more efficiently than poor countries.
C)   rich countries may have simply gotten lucky and poor countries remain unlucky.
D)   rich countries have far greater natural resources than poor countries.E) A) and B)
F) B) and C)

Question 20

Countries that use markets to organize production tend to have higher growth rates.

Accepted Answer

A) True 
 B)False

Exam 7: The Wealth of Nations and Economic Growth

Use the following to answer questions Figure: Economic Growth in Major World Regions -(Figure: Economic Growth in Major World Regions) Refer to the figure,which shows real GDP per capita over time in different regions of the world.The chart shows that:

Correct Answer
verified

Landlocked countries tend to grow faster than countries that have access to water.

Correct Answer
verified

Countries with a high GDP per capita have a lot of physical and human capital organized by means of the best technological knowledge available.

Correct Answer
verified

Why did so many Chinese farmers and workers starve under "The Great Leap Forward"?

Correct Answer
verified

For most of recorded human history,people were poor and there was no economic growth.

Correct Answer
verified

Under communal property,effort is:

Correct Answer
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A country increases its human capital by engaging in:

Correct Answer
verified

Slow economic growth sustained over long periods produces:

Correct Answer
verified

According to the rule of 70,a country with an annual growth rate of 7% will double its GDP per capita in:

Correct Answer
verified

Good institutions:

Correct Answer
verified

One of the best explanations for why some countries are rich and others are poor is that:

Correct Answer
verified

Incentives are important in structuring the institutions in a country.

Correct Answer
verified

When an economic system changes from using a collective property rights system to something closer to private property rights,the immediate effect is:

Correct Answer
verified

GDP per capita does not vary much among nations.

Correct Answer
verified

Which is NOT a factor of production?

Correct Answer
verified

Correct Answer
verified
As indicated in the figure,Argentina has...
View Answer

China's experiment with communal farming caused agricultural production to plummet and millions starved to death as a result.

Correct Answer
verified

List the institutions that are important for economic growth as discussed in this chapter.

Correct Answer
verified
(1)property rights, (2)honest ...
View Answer

Countries that use markets to organize production tend to have higher growth rates.

Correct Answer
verified

A legal system that helps raise a nation's productivity is one that:

Correct Answer
verified

Exam 7: The Wealth of Nations and Economic Growth

Use the following to answer questions Figure: Economic Growth in Major World Regions -(Figure: Economic Growth in Major World Regions) Refer to the figure,which shows real GDP per capita over time in different regions of the world.The chart shows that:

Correct AnswerverifiedShow Answer

Landlocked countries tend to grow faster than countries that have access to water.

Correct AnswerverifiedShow Answer

Countries with a high GDP per capita have a lot of physical and human capital organized by means of the best technological knowledge available.

Correct AnswerverifiedShow Answer

Why did so many Chinese farmers and workers starve under "The Great Leap Forward"?

Correct AnswerverifiedShow Answer

For most of recorded human history,people were poor and there was no economic growth.

Correct AnswerverifiedShow Answer

Under communal property,effort is:

Correct AnswerverifiedShow Answer

A country increases its human capital by engaging in:

Correct AnswerverifiedShow Answer

Slow economic growth sustained over long periods produces:

Correct AnswerverifiedShow Answer

According to the rule of 70,a country with an annual growth rate of 7% will double its GDP per capita in:

Correct AnswerverifiedShow Answer

Good institutions:

Correct AnswerverifiedShow Answer

One of the best explanations for why some countries are rich and others are poor is that:

Correct AnswerverifiedShow Answer

Incentives are important in structuring the institutions in a country.

Correct AnswerverifiedShow Answer

When an economic system changes from using a collective property rights system to something closer to private property rights,the immediate effect is:

Correct AnswerverifiedShow Answer

GDP per capita does not vary much among nations.

Correct AnswerverifiedShow Answer

Which is NOT a factor of production?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedAs indicated in the figure,Argentina has...View AnswerShow Answer

China's experiment with communal farming caused agricultural production to plummet and millions starved to death as a result.

Correct AnswerverifiedShow Answer

List the institutions that are important for economic growth as discussed in this chapter.

Correct Answerverified(1)property rights, (2)honest ...View AnswerShow Answer

Countries that use markets to organize production tend to have higher growth rates.

Correct AnswerverifiedShow Answer

A legal system that helps raise a nation's productivity is one that:

Correct AnswerverifiedShow Answer

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As indicated in the figure,Argentina has...
View Answer

Correct Answer
verified

Correct Answer
verified
(1)property rights, (2)honest ...
View Answer

Correct Answer
verified

Correct Answer
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