Question 1

Table 22-5
 
-Refer to Table 22-5. Consider the statistics in the table above in describing the industrialized countries. Are these consistent with the economic growth model? Briefly explain.

Accepted Answer

The answer of Table 22-5
 
-Refer to Table 22-5. Consider...

Question 2

The developing countries have been catching up to the lower-income industrial countries in terms of real GDP per capita.

Accepted Answer

The answer of The developing countries have been catching up...

Question 3

The U.S. economy has seen a faster increase in productivity since the mid-1990s as compared to the economies of many Western European countries. Which of the following explains this?
A) U.S. unions impose stricter work rules as compared to unions in Western European countries.
B) U.S. government regulations impose stricter work rules as compared to government regulations in Western Europe.
C) The United States has a higher rate of job mobility than do many Western European countries.
D) U.S. workers can obtain unemployment insurance for a longer period of time as compared to workers in most Western European countries.

Accepted Answer

The higher rate of job mobility in the United States has led to greater competition among workers and companies, which has encouraged innovation and improvements in productivity. Factors A, B, and D do not provide a clear explanation for the difference in productivity between the United States and Western Europe.

Question 4

Of all industrialized nations, real GDP per capita was the highest in Japan in 2016.

Accepted Answer

According to the World Bank, as of 2016, real GDP per capita was highest in Luxembourg among industrialized nations, followed by Switzerland and the United States. Japan ranked fourth in terms of real GDP per capita among industrialized nations.

Question 5

The catch-up prediction of economic growth models predicts that ________ across countries will converge over time.
A) income levels
B) GDP per capita
C) foreign direct investment rates
D) growth rates

Accepted Answer

The answer of The catch-up prediction of economic growth models...

Question 6

Explain the meaning of the word "convergence" in the context of economic growth and standards of living.

Accepted Answer

The answer of Explain the meaning of the word "convergence"...

Question 7

Which of the following reasons has been suggested for Mexico's slow economic growth?
A) Mexico's Spanish colonial background
B) Mexico's long-ruling PRI political party
C) Mexico's legal restrictions on the financial sector
D) all of the above

Accepted Answer

Mexico's slow economic growth has been attributed to multiple factors, including its Spanish colonial background, the long-ruling PRI political party, and legal restrictions on the financial sector.

Question 8

The lower-income industrial countries are catching up to the higher-income industrial countries in terms of real GDP per capita.

Accepted Answer

This statement is generally true as many lower-income countries, particularly in Asia, have experienced rapid economic growth and development in recent years, closing the gap with higher-income countries. However, there may still be significant disparities in overall economic development and living standards between different lower-income and higher-income countries.

Question 9

Of the following countries, which had the highest level of GDP per capita in 2016?
A) Japan
B) France
C) Italy
D) the United States

Accepted Answer

According to World Bank data, the United States had the highest level of GDP per capita in 2016, at $57,466. Japan had a GDP per capita of $38,894, France had $38,476, and Italy had $29,317.

Question 10

By offering less generous unemployment insurance programs, the United States can expect
A) citizens to pay more in taxes than citizens pay in Europe.
B) workers to be slow in gaining new skills in response to fluctuations in the labor market.
C) shorter periods of unemployment for their workers.
D) longer periods of unemployment for their workers.

Accepted Answer

By offering less generous unemployment insurance programs, workers will have less financial cushion and incentive to quickly find new employment, resulting in shorter periods of unemployment. This is because they have less financial support and are motivated to seek new employment quickly to prevent financial hardship.

Question 11

Foreign investment can give a low-income country
A) access to funds for investment and access to technology.
B) the means to slow down growth.
C) a path to dependency and low growth.
D) no hope to break the vicious cycle of poverty.

Accepted Answer

Foreign investment can bring in funds for investment, which the low-income country can use to develop its infrastructure, education system, and health care. Foreign investment can also bring in technology, which can help the low-income country to develop its industries and improve its productivity. This can lead to economic growth and eventually help the country to break the vicious cycle of poverty.

Question 12

The purchase of stocks and bonds issued in another country is known as foreign direct investment.

Accepted Answer

The purchase of stocks and bonds issued in another country is not considered foreign direct investment. Foreign direct investment refers to an investment made by a company in one country into a company in another country, typically involving a long-term relationship and significant ownership stake.

Question 13

Globalization is defined as the process of countries becoming ________ open to foreign trade and ________ open to foreign investment.
A) more; less
B) more; more
C) less; more
D) less; less

Accepted Answer

Globalization involves countries becoming more open to both foreign trade and foreign investment. This allows for greater economic integration and interconnectedness between nations.

Question 14

One reason why many low-income countries experience low rates of growth is because of poor public education and health.

Accepted Answer

Poor public education and health can lead to a lack of human capital, which is necessary for economic development and growth. Without adequate education, individuals may lack the skills necessary for higher-paying jobs, entrepreneurship, and innovation. Without access to basic healthcare, individuals may struggle with illness and disease, leading to decreased productivity and increased healthcare costs for the government. Improved education and health can lead to increased productivity, higher incomes, and ultimately, economic growth.

Question 15

Unemployment insurance is usually available to workers in ________ for a shorter period of time than it is in ________.
A) the United States; Canada
B) Canada and some Western European countries; the United States
C) Canada; the United States
D) some Western European countries; the United States

Accepted Answer

In the United States, unemployment insurance typically covers a shorter period compared to Canada, where the benefits may extend for a longer duration.

Question 16

As predicted by the catch-up prediction in economic growth models, countries that start with lower levels of GDP per capita always grow faster than countries that start with higher levels of GDP per capita.

Accepted Answer

The catch-up effect, also known as convergence theory, suggests that poorer economies tend to grow at a faster rate than wealthier economies and thus catch up in terms of GDP per capita. However, this is not always the case due to factors such as differences in technology adoption, education levels, institutional quality, and investment rates among countries. Some countries may not experience rapid growth despite starting with lower levels of GDP per capita due to these and other barriers.

Question 17

Globalization is positively associated with
A) poverty.
B) declining rates of investment.
C) declining standards of living.
D) economic growth.

Accepted Answer

Globalization is positively associated with economic growth as it facilitates the free flow of goods, capital, and technology across borders, creating new opportunities for businesses to expand and increasing the efficiency of international trade. While some argue that globalization can lead to negative consequences such as job displacement and income inequality, overall it has been shown to promote economic growth and development.

Question 18

To what do economists attribute the rapid growth of labor productivity in the United States relative to other countries?
A) the flexibility of U.S. labor markets and the efficiency of the U.S. financial system
B) the strict government rules in the United States that regulate a firm's ability to hire and fire workers
C) the low rate of job mobility in the United States
D) the high level of unemployment benefits the United States pays relative to other countries like Canada

Accepted Answer

Economists attribute the rapid growth of labor productivity in the United States relative to other countries to several factors, including the flexibility of U.S. labor markets and the efficiency of the U.S. financial system. The U.S. labor market is characterized by relatively low levels of regulation compared to many other countries, which allows firms to adjust to changing conditions quickly and efficiently. The U.S. financial system is highly developed and efficient, allowing firms to access capital and invest in new technology and innovation, which boosts productivity.

Question 19

One reason why many low-income countries experience low rates of growth is because of low rates of saving and investment in those countries.

Accepted Answer

Low rates of saving and investment lead to limited resources available for economic growth and development, making it harder for low-income countries to achieve high rates of growth.

Question 20

List two ways the labor force experience is different between workers in Europe and in the United States. How do these differences influence productivity?

Accepted Answer

The answer of List two ways the labor force experience...

Quiz 22: Long-Run Economic Growth: Sources and Policies

Table 22-5 -Refer to Table 22-5. Consider the statistics in the table above in describing the industrialized countries. Are these consistent with the economic growth model? Briefly explain.

The developing countries have been catching up to the lower-income industrial countries in terms of real GDP per capita.

The U.S. economy has seen a faster increase in productivity since the mid-1990s as compared to the economies of many Western European countries. Which of the following explains this?

Of all industrialized nations, real GDP per capita was the highest in Japan in 2016.

The catch-up prediction of economic growth models predicts that ________ across countries will converge over time.

Explain the meaning of the word "convergence" in the context of economic growth and standards of living.

Which of the following reasons has been suggested for Mexico's slow economic growth?

The lower-income industrial countries are catching up to the higher-income industrial countries in terms of real GDP per capita.

Of the following countries, which had the highest level of GDP per capita in 2016?

By offering less generous unemployment insurance programs, the United States can expect

Foreign investment can give a low-income country

The purchase of stocks and bonds issued in another country is known as foreign direct investment.

Globalization is defined as the process of countries becoming open to foreign trade and open to foreign investment.

One reason why many low-income countries experience low rates of growth is because of poor public education and health.

Unemployment insurance is usually available to workers in for a shorter period of time than it is in .

As predicted by the catch-up prediction in economic growth models, countries that start with lower levels of GDP per capita always grow faster than countries that start with higher levels of GDP per capita.

Globalization is positively associated with

To what do economists attribute the rapid growth of labor productivity in the United States relative to other countries?

One reason why many low-income countries experience low rates of growth is because of low rates of saving and investment in those countries.

List two ways the labor force experience is different between workers in Europe and in the United States. How do these differences influence productivity?