Question 1

The developing countries have been catching up to the lower-income industrial countries in terms of economic growth.

Accepted Answer

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

Question 2

Productivity gains in the United States since 1990 have been ________ productivity gains in other leading industrial nations.

Accepted Answer

According to the sentence, productivity gains in the United States since 1990 have been higher than in other leading industrial nations.

Question 3

The lower-income industrial countries are catching up to the higher-income industrial countries in terms of economic growth.

Accepted Answer

This is generally true, as many lower-income industrial countries have experienced significant economic growth in recent years, such as China, India, and Brazil. However, there are still disparities between different countries and regions within these categories.

Question 4

The term "brain drain" refers to

Accepted Answer

Brain drain refers to the phenomenon of highly educated and skilled individuals leaving their home country to pursue better opportunities and higher pay in developed countries. This can have negative consequences for the developing country as it loses its skilled workforce, or "brain power", hindering its economic growth and development.

Question 5

Would you expect to see higher or lower growth rates for countries that start out with a relatively low level of real GDP per capita? Explain using the concept of "catch-up" and support your answer with a graph.

Accepted Answer

The answer of Would you expect to see higher or...

Question 6

Foreign direct investment declined worldwide during the recession of 2007-2009.The decline in foreign direct investment in developing countries can make it more difficult for these countries to break out of the vicious cycle of low economic growth and

Accepted Answer

Foreign direct investment is a critical source of external financing for developing countries, and a decline in such investment can exacerbate their problems of low economic growth and low savings and investment levels, making it more difficult for them to break out of the vicious cycle.

Question 7

Disease,poor nutrition,and substandard health care in developing nations can reduce growth in an economy by

Accepted Answer

Disease, poor nutrition, and substandard health care can lead to reduced health and lower educational attainment, which in turn can weaken human capital in a developing nation. This can negatively impact economic growth as individuals with poor health and limited education may have reduced productivity and may not be able to take advantage of new opportunities for technological innovation or entrepreneurship.

Question 8

Relative to productivity growth in the United States,which of the following countries experienced the largest decline in productivity growth from 1990 to 2010?

Accepted Answer

According to data from the OECD, Japan experienced the largest decline in productivity growth from 1990 to 2010 among the given options, with annual productivity growth dropping from 4.5% in the 1990s to 0.5% in the 2000s. Canada, Germany, and the United Kingdom also experienced declines in productivity growth, but not as steep as Japan's.

Question 9

From 1990-2010,productivity growth in the United States was ________ the growth rates of other high-income countries.

Accepted Answer

The answer of From 1990-2010,productivity growth in the United States...

Question 10

Foreign direct investment in the United States declined 42 percent in the first quarter of 2009.This means that

Accepted Answer

Foreign direct investment refers to the building of facilities or purchases of facilities in other countries. Therefore, the correct option is C, which states that people or firms in other countries reduced their building of facilities or purchases of facilities in the United States by 42 percent in the first quarter of 2009. Option A refers to portfolio investment, which is different from foreign direct investment. Option B and D refer to domestic investment, which is also different from foreign direct investment.

Question 11

Between 1990 and 2010,which of these leading industrial countries of the world had the highest average annual growth rate in GDP per capita?

Accepted Answer

According to data from the World Bank, between 1990 and 2010, the United States had the highest average annual growth rate in GDP per capita among these leading industrial countries, with a rate of 1.8%. Germany had an average growth rate of 1.5%, Japan had an average growth rate of 0.7%, and Canada had an average growth rate of 1.1%.

Question 12

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 can lead to limited resources for businesses to expand and create jobs, as well as limited infrastructure development, both of which can hinder economic growth.

Question 13

Draw a graph of "catch-up" that shows where you would expect to see a country with low saving rates and low levels of health and education.How would you expect real GDP per capita to grow in a country like this? Explain.

Accepted Answer

The answer of Draw a graph of "catch-up" that shows...

Question 14

Enforcing property rights in an economy will

Accepted Answer

Enforcing property rights creates a more stable economic environment that encourages investment. When individuals and businesses can be sure that their property is safe from theft or seizure, they are more likely to make long-term investments in businesses, real estate, and other assets. This increased investment can drive economic growth and stimulate job creation.

Question 15

Which of the following best explains why productivity growth in the United States has been faster than in other leading industrialized nations?

Accepted Answer

The fewer government regulations in the United States regarding the way firms can hire and fire workers have allowed for a more flexible labor market, which has contributed to higher productivity growth.

Question 16

Which of the following is an example of the way the financial markets in the United States can encourage technological progress more efficiently than other countries?

Accepted Answer

The availability of venture capital funding in the United States encourages entrepreneurs to invest in technological projects that may be too risky for traditional bank loans. This can lead to more technological progress and innovation in the country.

Question 17

All of the following policies are ways for a country to promote long-run economic growth except

Accepted Answer

Imposing stricter regulations to limit foreign direct investment can hinder a country's ability to expand and improve its economy. All other options promote economic growth by increasing public health, reducing corruption, and protecting property rights.

Question 18

By offering more generous unemployment insurance programs,European countries can expect

Accepted Answer

More generous unemployment insurance programs can lead to longer periods of unemployment for workers because they reduce the urgency for unemployed individuals to find new jobs quickly. This is because the financial support provided allows them to take more time in searching for a job that better matches their skills or preferences.

Question 19

The opportunity cost of being unemployed tends to be the highest in which of the following countries?

Accepted Answer

The opportunity cost of being unemployed is generally highest in the United States due to its relatively limited social welfare benefits compared to countries like Canada, France, and the United Kingdom, which have more comprehensive social safety nets. This means that the loss of income from not working is not as mitigated by government support, making unemployment more costly in the U.S.

Question 20

Table 22-2
 
-Refer to Table 22-2.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 22-2
 
-Refer to Table 22-2.Consider the...

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