Question 1

Which of the following economic regions has experienced the most growth in real GDP per capita since 1820?

Accepted Answer

The United States has experienced the most growth in real GDP per capita since 1820. This is because the US has been a leader in technological innovations, entrepreneurship, and a favorable business environment. Additionally, natural resources, high rates of immigration, and a large domestic market have fueled economic growth in the US over the years. While Japan, Western Europe, and Latin America have also experienced significant economic growth, the US has consistently been the global leader in GDP per capita since the 19th century.

Question 2

Which of the following is not a supply factor in economic growth?

Accepted Answer

Aggregate expenditures of households, businesses, and government are a demand factor, not a supply factor, in economic growth. The other choices are all supply factors, as the stock of capital, technological advance, and the size and quality of the labor force all contribute to increasing the economy's potential output.

Question 3

Which of the following institutional structures is most likely to promote growth?

Accepted Answer

A well-enforced system of patents and copyrights encourages innovation and the creation of new ideas, which can lead to economic growth. Tight regulations and protectionist trade barriers can actually limit growth by creating barriers to entry for new companies and limiting competition.

Question 4

Strong property rights are important for modern economic growth because

Accepted Answer

Strong property rights provide security for investors, ensuring that they can reap the benefits of their investments without the risk of expropriation, thus encouraging more investment and fostering economic growth.

Question 5

Which of the following economic regions has experienced the least growth in real GDP per capita since 1820?

Accepted Answer

According to historical data, Africa has experienced the least growth in real GDP per capita since 1820. This is due to factors such as colonialism, lack of infrastructure, and political instability. Meanwhile, Western Europe has experienced the most growth in real GDP per capita since 1820.

Question 6

Economic growth rates in follower countries

Accepted Answer

Follower countries are able to adopt and adapt technologies developed by leader countries at a lower cost, giving them an advantage in terms of economic growth rates. However, this does not necessarily mean that follower countries will reach the same level of economic development as leader countries. The average growth rate in follower countries is difficult to generalize but may fall around 2 percent per year.

Question 7

Economic growth can be portrayed as

Accepted Answer

Economic growth is represented by an outward shift of the production possibilities curve, indicating an increase in an economy's capacity to produce goods and services.

Question 8

The achievement of full employment through time will

Accepted Answer

Full employment means that there is no cyclical unemployment, which can lead to an increase in the productivity of labor due to a higher utilization of resources. This increased productivity can lead to an increase in the realized rate of economic growth. Option A is incorrect because full employment can lead to an increase in labor productivity, not diminish it. Option B is incorrect because an increase in full employment can lead to an increase in investment due to a decrease in uncertainty and an increase in demand for goods and services. Option D is incorrect because an increase in full employment can lead to an increase in economic growth.

Question 9

Which of the following institutional arrangements is most likely to promote growth?

Accepted Answer

Unrestricted trade between nations promotes growth by allowing for specialization and the efficient allocation of resources based on comparative advantage. Patents and copyrights that expire quickly and are loosely enforced may promote innovation, but they also limit competition and could hinder growth. Strong government control over resource allocation decisions can lead to inefficiencies and corruption, stifling growth.

Question 10

Increases in the quantity and quality of human resources.Use the accompanying list to answer the following question.As distinct from the supply factors and demand factor of economic growth, the efficiency factor(s) of economic growth is (are)

Accepted Answer

The answer of Increases in the quantity and quality of...

Question 11

Based on the annual number of hours worked per capita, labor supply in the United States exceeds that of France by about percent.

Accepted Answer

The answer of Based on the annual number of hours...

Question 12

Increases in the quantity and quality of human resources.Which set of items in the accompanying list would shift an economy's production possibilities curve outward?

Accepted Answer

Increases in the quantity and quality of human resources, such as education and training (items 1 and 2), along with technological advancements and capital goods (items 5 and 6), can shift an economy's production possibilities curve outward.

Question 13

Real GDP per capita in the United States (as of 2010) exceeds that of France primarily because

Accepted Answer

The United States has a higher labor force participation rate and longer average working hours, contributing to higher real GDP per capita compared to France.

Question 14

Increases in the quantity and quality of human resources.Use the accompanying list to answer the following question.As distinct from the supply factors and demand factor of economic growth, the efficiency factor(s) of economic growth is (are)

Accepted Answer

The efficiency factor of economic growth refers to how well an economy can convert inputs into outputs, which is related to productivity improvements, not just the quantity and quality of human resources.

Question 15

A competitive market system

Accepted Answer

A competitive market system encourages growth by allowing producers to make profitable investment decisions based on market signals, which leads to efficient resource allocation and innovation.

Question 16

Increases in the quantity and quality of human resources.Use the accompanying list to answer the following question.As distinct from the demand and efficiency factors of economic growth, the supply factors of economic growth are

Accepted Answer

Supply factors of economic growth include increases in the quantity and quality of human resources (1), natural resources (2), capital goods (5), and technology (6).

Question 17

In 1998, living standards in the United States were nearly times higher than those in Africa.

Accepted Answer

The answer of In 1998, living standards in the United...

Question 18

Free trade

Accepted Answer

Free trade encourages growth by allowing for the rapid spread of new inventions and innovations, as it facilitates the exchange of goods, services, and ideas across borders, enhancing competition and efficiency.

Question 19

Which of the following statements is most accurate about the prospects for poorer ("follower") countries catching up with richer ("leader") countries?

Accepted Answer

This statement is supported by empirical evidence that suggests that poorer countries tend to experience higher levels of growth due to the availability of abundant resources and the potential for technological catch-up. Additionally, there have been historical examples of countries such as Japan and South Korea that have successfully caught up with richer countries through extensive investment in education, infrastructure, and technology. Therefore, catching up is possible but may require significant policy changes and investment in human and physical capital.

Question 20

Increases in the quantity and quality of human resources.Which set of items in the accompanying list would move an economy from a point inside its production possibilities curve to a point on its production possibilities curve?

Accepted Answer

The answer of Increases in the quantity and quality of...

Quiz 28: Economic Growth

Which of the following economic regions has experienced the most growth in real GDP per capita since 1820?

Which of the following is not a supply factor in economic growth?

Which of the following institutional structures is most likely to promote growth?

Strong property rights are important for modern economic growth because

Which of the following economic regions has experienced the least growth in real GDP per capita since 1820?

Economic growth rates in follower countries

Economic growth can be portrayed as

The achievement of full employment through time will

Which of the following institutional arrangements is most likely to promote growth?

Increases in the quantity and quality of human resources.Use the accompanying list to answer the following question.As distinct from the supply factors and demand factor of economic growth, the efficiency factor(s) of economic growth is (are)

Based on the annual number of hours worked per capita, labor supply in the United States exceeds that of France by about percent.

Increases in the quantity and quality of human resources.Which set of items in the accompanying list would shift an economy's production possibilities curve outward?

Real GDP per capita in the United States (as of 2010) exceeds that of France primarily because

Increases in the quantity and quality of human resources.Use the accompanying list to answer the following question.As distinct from the supply factors and demand factor of economic growth, the efficiency factor(s) of economic growth is (are)

A competitive market system

Increases in the quantity and quality of human resources.Use the accompanying list to answer the following question.As distinct from the demand and efficiency factors of economic growth, the supply factors of economic growth are

In 1998, living standards in the United States were nearly times higher than those in Africa.

Free trade

Which of the following statements is most accurate about the prospects for poorer ("follower") countries catching up with richer ("leader") countries?

Increases in the quantity and quality of human resources.Which set of items in the accompanying list would move an economy from a point inside its production possibilities curve to a point on its production possibilities curve?