Question 1

Lauren owns a bakery.She wants to increase her daily production of baked goods,so she knows she needs to acquire more resources.Which of the following actions would represent an increase in the human capital resource at her bakery?

Accepted Answer

A)   repairing a broken delivery van
B)   increasing employee training
C)   purchasing ingredients in bulk
D)   buying better-quality ingredients
E)   moving into a larger spaceF) All of the above
G) B) and C)

Question 2

Which of the following are the three major categories of resources?

Accepted Answer

A)   physical capital,technology,institutions
B)   land,labor,technology
C)   institutions,human capital,land
D)   natural resources,physical capital,human capital
E)   labor,physical capital,technologyF) A) and D)
G) B) and C)

Question 3

Between 2006 and 2010,per capita real gross domestic product (GDP) in China grew at an average rate of 10.62 percent per year.In contrast,its economy only grew by an average rate of 0.25 percent from 1961 to 1965.Which of the following factors would have contributed most to this rapid escalation in growth?

Accepted Answer

A)   rapid population growth
B)   the establishment of pro-growth institutions
C)   large increases in average prices
D)   dramatic reductions in tax rates
E)   restrictions on imports and exportsF) B) and E)
G) None of the above

Question 4

Why do institutions such as private property rights promote economic growth?

Accepted Answer

A)   Private property rights guarantee that the economy is stable in the short run,which encourages investment.
B)   Private property rights are usually forced on a country,whereas collective ownership is voluntarily adopted.
C)   Private property rights create an incentive to maximize the value of one's property,which is not true when property is collectively owned.
D)   Private property rights guarantee that everyone will have equal amounts of property.
E)   Private property rights are not established by governments but rather by private individuals.F) A) and D)
G) A) and B)

Question 5

What is the definition of "private property rights"?

Accepted Answer

A)   the rights of nongovernment entities to own property and the resulting output
B)   the rights of corporations to own property and the resulting output
C)   the rights of individuals to own property
D)   the rights of individuals to own property and to use it in production
E)   the rights of individuals to own property,to use it in production,and to own the resulting outputF) B) and E)
G) A) and B)

Question 6

Recently,Greece underwent an economic crisis.Although there are numerous factors that contributed to the crisis,one problem is Greece's tax system,which is very complicated.As a result,numerous Greeks simply choose not to pay their taxes.How does this situation affect Greece's economic growth?

Accepted Answer

A)   Greece's economy is harmed by a lack of an efficient tax system.
B)   Greece's economy is not affected by its tax system.
C)   Greece's economy is harmed by a lack of productive resources.
D)   Greece's economy is harmed by a lack of international trade.
E)   Greece's economy benefits from high levels of tax revenue.F) All of the above
G) A) and C)

Question 7

Nathan owns a coffee shop.He wants to increase the weekly number of coffee drinks he sells,and he wants to use a technological advance to do so.________ would represent a technological advance at his coffee shop.

Accepted Answer

A)   An increase in the number of employees
B)   An improvement in the quality of coffee drinks he serves
C)   An increase in the number of tables and chairs for his customers
D)   Acquiring a new espresso machine that can prepare coffee drinks faster than his current model
E)   A larger buildingF) A) and B)
G) C) and D)

Question 8

A(n) ________ in the amount of resources will tend to ________ economic growth.

Accepted Answer

A)   increase; increase
B)   increase; have no effect on
C)   decrease; have no effect on
D)   increase; decrease
E)   decrease; increaseF) A) and E)
G) C) and D)

Question 9

In 1998,per capita real gross domestic product (GDP) in Thailand was $4,444.19.By 1999,it had increased to $4,695.22.At what rate did Thailand's economy grow in that time?

Accepted Answer

A)   12.2 percent
B)   5.6 percent
C)   5.4 percent
D)   7.9 percent
E)   4.9 percentF) B) and D)
G) D) and E)

Question 10

Lauren owns a bakery.She wants to increase her daily production of baked goods,so she knows she needs to acquire more resources.Which of the following actions would represent an increase in the human capital resource at her bakery?

Accepted Answer

A)   buying additional ovens
B)   repairing a broken delivery van
C)   hiring more employees
D)   buying better-quality ingredients
E)   moving into a larger spaceF) A) and E)
G) B) and E)

Question 11

Krista owns a hair salon.She wants to increase the number of clients she serves each month,so she knows she needs to acquire more resources.Which of the following actions would represent an increase in the human capital resource at her hair salon?

Accepted Answer

A)   buying more chairs and hair dryers
B)   hiring more stylists
C)   moving into a larger salon
D)   purchasing better-quality shampoo
E)   buying more scissors and combsF) A) and C)
G) B) and E)

Question 12

What is the reason for having the Federal Reserve administer U.S.monetary policy?

Accepted Answer

A)   The Federal Reserve is part of the government and carries out monetary policy dictated by the president.
B)   The Federal Reserve is designed to reduce the incentive for politically motivated and unpredictable monetary policy.
C)   The Federal Reserve bases the monetary policy on a poll from top business leaders,which ensures that economic growth is prioritized.
D)   The Federal Reserve is part of the government and carries out the monetary policy dictated by Congress.
E)   The Federal Reserve is an NGO that bases monetary policy on international trade levels and input from global leaders.F) A) and E)
G) C) and E)

Question 13

Why would an increase in capital resources lead to an increase in worker productivity?

Accepted Answer

A)   More capital means that fewer workers are needed,increasing output.
B)   More capital leads to a decrease in wages,leading employees to work harder.
C)   More capital means that workers have better tools and equipment and can produce more.
D)   More capital means that the owners of a company reap all of the benefits of labor.
E)   More capital causes decreasing returns to scale.F) B) and D)
G) A) and B)

Question 14

Saudi Arabia is an oil-rich country in the Middle East.Much of the country is covered by desert,meaning that the nation's food production is very low.Much of its food must be imported from other countries.Does this mean that Saudi Arabia has a very small endowment of natural resources?

Accepted Answer

A)   No,because Saudi Arabia has lots of petroleum,a fossil fuel,which is also considered a natural resource.
B)   No,because very few people live in Saudi Arabia,so they have no use for large amounts of food production.
C)   Yes,because it has very little land for growing food.
D)   Yes,because it also lacks forests and rivers.
E)   No,because Saudi Arabia irrigates much of its desert land for food production.F) A) and E)
G) B) and C)

Question 15

Krista owns a hair salon.She wants to increase the number of clients she serves each month,so she knows she needs to acquire more resources.Which of the following actions would represent an increase in the human capital resource at her hair salon?

Accepted Answer

A)   buying more chairs and hair dryers
B)   moving into a larger salon
C)   increasing the amount of training for her stylists
D)   purchasing better-quality shampoo
E)   buying more scissors and combsF) C) and E)
G) B) and C)

Question 16

Define "economic growth," and explain what it means in terms of standards of living.

Accepted Answer

Economic growth measures the growth rate...

Question 17

Economic growth is defined as the percent change of

Accepted Answer

A)   gross domestic product (GDP) .
B)   real gross domestic product (GDP) .
C)   real per capita gross domestic product (GDP) .
D)   per capita gross domestic product (GDP) .
E)   population.F) A) and B)
G) A) and E)

Question 18

How did institutions promote economic growth during the Industrial Revolution?

Accepted Answer

Private property rights gave people an i...

Question 19

What is the primary benefit of taxes with regard to economic growth?

Accepted Answer

A)   Taxes make the economy fairer by redistributing income from the rich to the poor.
B)   Taxes improve the efficiency of markets by changing producer decisions.
C)   Taxes increase worker productivity by increasing the amount of work one needs to do.
D)   Taxes provide the revenue to pay for government services.
E)   Taxes create stable price levels,which incentivizes investment.F) A) and B)
G) A) and C)

Question 20

Between 1950 and 2000,the economic growth rate in the United States was

Accepted Answer

A)   1.05 percent.
B)   2.12 percent.
C)   4.50 percent.
D)   8.76 percent.
E)   11.98 percent.F) C) and D)
G) B) and E)

Exam 24: Economic Growth and the Wealth of Nations

What is the primary benefit of taxes with regard to economic growth?

Correct Answer
verified

A(n) in the amount of resources will tend to economic growth.

Correct Answer
verified

Nathan owns a coffee shop.He wants to increase the weekly number of coffee drinks he sells,and he wants to use a technological advance to do so.________ would represent a technological advance at his coffee shop.

Correct Answer
verified

Krista owns a hair salon.She wants to increase the number of clients she serves each month,so she knows she needs to acquire more resources.Which of the following actions would represent an increase in the human capital resource at her hair salon?

Correct Answer
verified

Define "economic growth," and explain what it means in terms of standards of living.

Correct Answer
verified
Economic growth measures the growth rate...
View Answer

Saudi Arabia is an oil-rich country in the Middle East.Much of the country is covered by desert,meaning that the nation's food production is very low.Much of its food must be imported from other countries.Does this mean that Saudi Arabia has a very small endowment of natural resources?

Correct Answer
verified

Lauren owns a bakery.She wants to increase her daily production of baked goods,so she knows she needs to acquire more resources.Which of the following actions would represent an increase in the human capital resource at her bakery?

Correct Answer
verified

In 1998,per capita real gross domestic product (GDP) in Thailand was $4,444.19.By 1999,it had increased to $4,695.22.At what rate did Thailand's economy grow in that time?

Correct Answer
verified

Why do institutions such as private property rights promote economic growth?

Correct Answer
verified

Economic growth is defined as the percent change of

Correct Answer
verified

Krista owns a hair salon.She wants to increase the number of clients she serves each month,so she knows she needs to acquire more resources.Which of the following actions would represent an increase in the human capital resource at her hair salon?

Correct Answer
verified

Correct Answer
verified

Between 1950 and 2000,the economic growth rate in the United States was

Correct Answer
verified

What is the definition of "private property rights"?

Correct Answer
verified

Lauren owns a bakery.She wants to increase her daily production of baked goods,so she knows she needs to acquire more resources.Which of the following actions would represent an increase in the human capital resource at her bakery?

Correct Answer
verified

What is the reason for having the Federal Reserve administer U.S.monetary policy?

Correct Answer
verified

Which of the following are the three major categories of resources?

Correct Answer
verified

How did institutions promote economic growth during the Industrial Revolution?

Correct Answer
verified
Private property rights gave people an i...
View Answer

Recently,Greece underwent an economic crisis.Although there are numerous factors that contributed to the crisis,one problem is Greece's tax system,which is very complicated.As a result,numerous Greeks simply choose not to pay their taxes.How does this situation affect Greece's economic growth?

Correct Answer
verified

Why would an increase in capital resources lead to an increase in worker productivity?

Correct Answer
verified

Exam 24: Economic Growth and the Wealth of Nations

What is the primary benefit of taxes with regard to economic growth?

Correct AnswerverifiedShow Answer

A(n) ________ in the amount of resources will tend to ________ economic growth.

Correct AnswerverifiedShow Answer

Nathan owns a coffee shop.He wants to increase the weekly number of coffee drinks he sells,and he wants to use a technological advance to do so.________ would represent a technological advance at his coffee shop.

Correct AnswerverifiedShow Answer

Krista owns a hair salon.She wants to increase the number of clients she serves each month,so she knows she needs to acquire more resources.Which of the following actions would represent an increase in the human capital resource at her hair salon?

Correct AnswerverifiedShow Answer

Define "economic growth," and explain what it means in terms of standards of living.

Correct AnswerverifiedEconomic growth measures the growth rate...View AnswerShow Answer

Saudi Arabia is an oil-rich country in the Middle East.Much of the country is covered by desert,meaning that the nation's food production is very low.Much of its food must be imported from other countries.Does this mean that Saudi Arabia has a very small endowment of natural resources?

Correct AnswerverifiedShow Answer

Lauren owns a bakery.She wants to increase her daily production of baked goods,so she knows she needs to acquire more resources.Which of the following actions would represent an increase in the human capital resource at her bakery?

Correct AnswerverifiedShow Answer

In 1998,per capita real gross domestic product (GDP) in Thailand was $4,444.19.By 1999,it had increased to $4,695.22.At what rate did Thailand's economy grow in that time?

Correct AnswerverifiedShow Answer

Why do institutions such as private property rights promote economic growth?

Correct AnswerverifiedShow Answer

Economic growth is defined as the percent change of

Correct AnswerverifiedShow Answer

Krista owns a hair salon.She wants to increase the number of clients she serves each month,so she knows she needs to acquire more resources.Which of the following actions would represent an increase in the human capital resource at her hair salon?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Between 1950 and 2000,the economic growth rate in the United States was

Correct AnswerverifiedShow Answer

What is the definition of "private property rights"?

Correct AnswerverifiedShow Answer

Lauren owns a bakery.She wants to increase her daily production of baked goods,so she knows she needs to acquire more resources.Which of the following actions would represent an increase in the human capital resource at her bakery?

Correct AnswerverifiedShow Answer

What is the reason for having the Federal Reserve administer U.S.monetary policy?

Correct AnswerverifiedShow Answer

Which of the following are the three major categories of resources?

Correct AnswerverifiedShow Answer

How did institutions promote economic growth during the Industrial Revolution?

Correct AnswerverifiedPrivate property rights gave people an i...View AnswerShow Answer

Recently,Greece underwent an economic crisis.Although there are numerous factors that contributed to the crisis,one problem is Greece's tax system,which is very complicated.As a result,numerous Greeks simply choose not to pay their taxes.How does this situation affect Greece's economic growth?

Correct AnswerverifiedShow Answer

Why would an increase in capital resources lead to an increase in worker productivity?

Correct AnswerverifiedShow Answer

Correct Answer
verified

A(n) in the amount of resources will tend to economic growth.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Economic growth measures the growth rate...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Private property rights gave people an i...
View Answer

Correct Answer
verified

Correct Answer
verified