Question 1

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

Accepted Answer

This trend, often referred to as economic convergence, has been observed in recent decades as lower-income countries experience faster economic growth than higher-income countries. As a result, the gap in real GDP per capita between these two groups of countries has been narrowing. However, there is still a significant disparity between the richest and poorest countries, and not all lower-income countries are catching up at the same pace.

Question 2

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 are incentivized to find new employment faster and not rely on government support for longer periods. This means shorter periods of unemployment for workers.

Question 3

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 4

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...

Question 5

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 6

Table 11-5
 
-Refer to Table 11-5.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 11-5
 
-Refer to Table 11-5.Consider the...

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 a combination of factors including its Spanish colonial history, the long-ruling PRI political party, and legal restrictions on the financial sector.

Question 8

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 allows workers to move to more productive industries or firms, which contributes to overall productivity growth. The other options (A, B, D) do not have a significant impact on productivity growth.

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

The United States had the highest level of GDP per capita in 2016 among the given options. According to the World Bank data, the GDP per capita of the United States in 2016 was $57,638, which was higher than Japan ($38,893), France ($38,476), and Italy ($30,992).

Question 10

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 result in a poorly educated and unhealthy workforce, which can hinder economic development and productivity. Additionally, investments in education and health can lead to human capital development, which is known to be a key driver of economic growth.

Question 11

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 12

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 allows businesses to expand their markets and access resources in different countries, leading to increased production and trade. However, globalization can also have negative effects such as job losses, inequality and environmental degradation, which can lead to poverty and declining standards of living. Declining rates of investment are not typically associated with globalization.

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 foreign trade and investment in order to increase economic interdependence and facilitate the flow of goods, services, and capital across borders. Therefore, choice B - more open to both foreign trade and investment - is the correct answer.

Question 14

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, it is known as portfolio investment. Foreign direct investment refers to owning or controlling a business in another country.

Question 15

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 in low-income countries can limit the availability of capital necessary for investment in infrastructure, education, and entrepreneurial activities, which are crucial for economic growth. Without sufficient investment, these countries may struggle to create jobs, increase productivity, and improve living standards.

Question 16

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 provide a low-income country with access to funds that are necessary for investment in infrastructure, development, and access to technology. This can help boost economic growth and development in the long term.

Question 17

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 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 a combination of factors, including the flexibility of U.S. labor markets, which allow for efficient allocation of resources and quicker adoption of new technologies, and the efficiency of the U.S. financial system, which provides abundant capital for investment and innovation.

Question 19

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

Accepted Answer

According to World Bank data, in 2016, the United States had the highest real GDP per capita among industrialized nations, followed closely by Germany, Switzerland, and Norway. Japan ranked fifth.

Question 20

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...

Quiz 11: Long-Run Economic Growth: Sources and Policies

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

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

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

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

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.

Table 11-5 -Refer to Table 11-5.Consider the statistics in the table above in describing the industrialized countries.Are these consistent with the economic growth model? Briefly explain.

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

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

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

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

Globalization is positively associated with

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

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

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

Foreign investment can give a low-income country

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

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

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.