Question 1

Most of the LDCs find it difficult to accumulate capital goods because

Accepted Answer

LDCs often face the challenge of balancing investment in capital goods production and consumption. It can be difficult for individuals and governments to restrict consumption in order to allocate resources towards the production of capital goods. This results in a lack of accumulation of capital goods, hindering economic growth and development. The other options listed are not the primary obstacles to capital goods accumulation in LDCs.

Question 2

Which statement is true?

Accepted Answer

According to OECD data, Americans work an average of 1,779 hours per year, which is more than the average for most Western European countries.

Question 3

Edward Denison identified which of the following as the main source of productivity growth in the United States between 1929 and 1982?

Accepted Answer

Edward Denison identified advances in knowledge obtained through research and development as the main source of productivity growth in the United States between 1929 and 1982. Other factors, such as added labor and capital and the increased education and training of labor, also contributed to productivity growth, but were not the main source. The improved quality of corporate management was not mentioned as a factor contributing to productivity growth.

Question 4

According to the Reverend Thomas Malthus

Accepted Answer

According to Malthus' theory of population, population tends to grow exponentially while food production can only grow at a linear rate. This means that population growth will eventually outstrip the ability of the environment to produce enough food, leading to famine and death. This idea is commonly referred to as the Malthusian catastrophe.

Question 5

The nation whose workers work less hours per year than any other industrial nation is

Accepted Answer

Germany has shorter working hours per year compared to other industrial nations, largely due to its strong labor laws, a culture that values work-life balance, and widespread adoption of part-time work and flexible working arrangements.

Question 6

Since the mid 1990s the welfare roles have been __________ and the crime rate has _________.

Accepted Answer

Since the mid-1990s, welfare rolls have decreased due to reforms aimed at reducing dependency on government assistance, and the crime rate has also decreased, continuing a trend that began in the early 1990s.

Question 7

The major problem with the transportation system in the United States is the lack of

Accepted Answer

While all of these factors could be seen as contributing to problems with transportation in the US, the lack of a viable railroad and train system is arguably the most significant issue. Compared to other developed countries, the US relies heavily on trucks to transport goods and people, which can lead to congestion, higher pollution levels, and safety concerns. Developing a better rail system could help alleviate some of these issues and provide a more sustainable, efficient means of transportation.

Question 8

During the recent past,production and income have grown faster than population in highly developed economies because

Accepted Answer

Rapid technological advancements have enabled highly developed economies to increase production and income faster than population growth. This is due to increased efficiency, automation, and innovation in various industries. Option A is incorrect because the availability of birth control devices, whether effective or not, does not directly affect production and income growth. Option C is incorrect because accumulation of physical and human capital is vital for economic growth and cannot slow down without adversely affecting the economy. Option D is incorrect because famine, war, and pestilence are major humanitarian crises that harm the population and hinder economic growth.

Question 9

Historically our rate of economic growth has been about ______% a year.

Accepted Answer

The historical rate of economic growth for the United States has been around 3.5% per year. This is the best approximation of the average annual growth rate of Gross Domestic Product (GDP) from 1947 to the present day.

Question 10

Between 1973 and 1995,productivity in the United States had

Accepted Answer

This is based on the information given in the text that productivity growth slowed down after 1973, which is consistent with choice B, that it was rising at a slower rate than before 1973.

Question 11

Statement I: If we could raise our savings rate to the level of the Chinese rate,our growth rate would also rise to the level of the Chinese rate.
Statement II: Our economy did not grow between 1985 and 1994.

Accepted Answer

The answer of Statement I: If we could raise our...

Question 12

The intellectual ability of 18 year olds graduating from high school can best be described as follows:

Accepted Answer

18 year old high school graduates in the United States generally rank in the middle of the pack compared to graduates from other industrialized countries in terms of intellectual ability. While some may excel academically, there are also many who struggle with basic skills like arithmetic. While technical jobs can be well-paying, it is not accurate to say that all high school graduates are well-trained for these positions. Therefore, option B is the best choice.

Question 13

What form of production predominates in less developed countries?

Accepted Answer

Less developed countries typically have economies dominated by agriculture, as they often lack the infrastructure and resources necessary for industrialized or service-based production. Agriculture also tends to be a primary source of employment and income for people living in rural areas.

Question 14

Leaders in underdeveloped countries can enhance development by

Accepted Answer

Implementing improved technology can increase productivity and efficiency in underdeveloped countries, leading to economic growth and development. Increasing population growth without sufficient resources to support them can lead to overpopulation and further strain on the economy. Reducing capital per worker can also lead to decreased productivity and economic growth. Creating new natural resources is not feasible.

Question 15

Which statement is true?

Accepted Answer

The information phase of the Industrial Revolution, often referred to as the Digital Revolution or the Third Industrial Revolution, is characterized by the shift from traditional industry that the Industrial Revolution brought through industrialization, to an economy based on information computerization. This phase indeed took off in the 1990s with the rise of the internet and digital communication technologies.

Question 16

Which statement is FALSE?

Accepted Answer

According to the text, it is false that American workers get more vacation time than workers in other industrialized nations.

Question 17

High military spending during the 2000's has _____ the economic growth of the United States.

Accepted Answer

High military spending during the 2000's has slowed the economic growth of the United States. Military spending diverts resources from other sectors of the economy and does not generate the same level of economic activity as investments in other areas like infrastructure, healthcare, or education. Additionally, the cost of wars in Iraq and Afghanistan added to the national debt, reducing the amount of resources available for domestic investment and contributing to slower economic growth.

Question 18

Leaders in the lower level underdeveloped countries can enhance per capita income by

Accepted Answer

Encouraging smaller families helps in reducing population growth and providing more resources to each member of the family, thereby increasing per capita income. Providing better health care and implementing a social security program may improve the quality of life, but they may not necessarily increase per capita income. Encouraging citizens to leave the cities and enter agricultural production may increase the production of food and resources, but it may not be the only solution to increase per capita income.

Question 19

Over the last ten years,the ____ quality of our labor force has been a factor in ____ our rate of economic growth.

Accepted Answer

The answer of Over the last ten years,the ____ quality...

Question 20

The performance of the children of immigrants graduating from high schools in the United States compared to nonimmigrant children is as follows:

Accepted Answer

This option states that 60% of the top math and science graduates have immigrant parents, which implies that the performance of children of immigrants can be higher than that of nonimmigrant children in certain areas. Option A suggests that a significant proportion of students with deficient skills are from immigrant parents, but it does not give any information on the performance of nonimmigrant children. Option C is a specific example and cannot be generalized to the overall performance of children of immigrants. Option D makes a blanket statement without providing any specific evidence to support it.

Quiz 16: Economic Growth and Productivity

Most of the LDCs find it difficult to accumulate capital goods because

Which statement is true?

Edward Denison identified which of the following as the main source of productivity growth in the United States between 1929 and 1982?

According to the Reverend Thomas Malthus

The nation whose workers work less hours per year than any other industrial nation is

Since the mid 1990s the welfare roles have been __ and the crime rate has _.

The major problem with the transportation system in the United States is the lack of

During the recent past,production and income have grown faster than population in highly developed economies because

Historically our rate of economic growth has been about ______% a year.

Between 1973 and 1995,productivity in the United States had

Statement I: If we could raise our savings rate to the level of the Chinese rate,our growth rate would also rise to the level of the Chinese rate. Statement II: Our economy did not grow between 1985 and 1994.

The intellectual ability of 18 year olds graduating from high school can best be described as follows:

What form of production predominates in less developed countries?

Leaders in underdeveloped countries can enhance development by

Which statement is true?

Which statement is FALSE?

High military spending during the 2000's has _____ the economic growth of the United States.

Leaders in the lower level underdeveloped countries can enhance per capita income by

Over the last ten years,the quality of our labor force has been a factor in our rate of economic growth.

The performance of the children of immigrants graduating from high schools in the United States compared to nonimmigrant children is as follows: