Question 1

An example of a nonrenewable resource would be:

Accepted Answer

A)   trees.
B)   rivers.
C)   an oil deposit.
D)   All of these are examples of nonrenewable resources.E) B) and C)
F) A) and B)

Question 2

Suppose that a nation has a GDP of 1.0 trillion dollars in 2000. If a country grows at an average rate of 3.0 % per year over a fifteen year period, then its compounded GDP at the end of the 15 year period should be:

Accepted Answer

A)   1.47 Tr.
B)   2.00 Tr.
C)   1.33 Tr.
D)   1.56 Tr.E) None of the above
F) All of the above

Question 3

If a nation has a higher level of technology than another nation it can produce:

Accepted Answer

A)   more outputs with the same level of physical capital.
B)   less with the same amount of physical capital.
C)   more with no use of human capital.
D)   the same output with the same level of inputs.E) A) and B)
F) None of the above

Question 4

Foreign direct investment is:

Accepted Answer

A)   investment that occurs when a firm runs part of its operation abroad or invests in another company abroad.
B)   investment that occurs when a firm runs its operation domestically, and sells its product abroad.
C)   when foreign companies buy physical capital from the United States.
D)   when foreign companies buy and operate physical capital within the United States.E) None of the above
F) A) and B)

Question 5

Which of the following is not an example of a natural resource?

Accepted Answer

A)   River
B)   Forest
C)   Coal deposit
D)   Piece of machineryE) B) and D)
F) A) and D)

Question 6

Savings that pay for capital investment can come from:

Accepted Answer

A)   within a country.
B)   outside a country.
C)   domestic savings.
D)   All of these are true.E) B) and D)
F) B) and C)

Question 7

FDI stands for:

Accepted Answer

A)   foreign direct investment.
B)   foreign domestic income.
C)   foreign direct income.
D)   foreign domestic investment.E) All of the above
F) B) and C)

Question 8

An example of physical capital is a:

Accepted Answer

A)   plow.
B)   bank loan.
C)   seeds.
D)   tree.E) All of the above
F) A) and D)

Question 9

What types of capital can improve the productivity of workers?

Accepted Answer

A)   Technological and human
B)   Human and physical
C)   Physical and technological
D)   Human, technological, and physical capital are all determinants of productivityE) None of the above
F) All of the above

Question 10

Governments can do which of the following to increase productivity?

Accepted Answer

A)   use tax revenues to invest in physical capital.
B)   will defund underlying infrastructure.
C)   creating new taxes for investing in physical capital.
D)   reduce spending on higher education.E) All of the above
F) B) and C)

Question 11

An example of human capital would be:

Accepted Answer

A)   an office chair.
B)   a training session on Excel.
C)   Excel software.
D)   All of these are examples of human capital.E) B) and D)
F) B) and C)

Question 12

The investment trade-off:

Accepted Answer

A)   is a reduction in current consumption to pay for the investment in capital intended to increase future production.
B)   is why countries don't devote all their resources to capital investment.
C)   defines the opportunity cost of capital investment.
D)   All of these are true.E) None of the above
F) B) and D)

Question 13

Which of the following is an example of human capital?

Accepted Answer

A)   The Internet
B)   The Google search engine on the Internet
C)   Your ability to use Google
D)   None of these is an example of human capital.E) B) and C)
F) A) and D)

Question 14

An example of physical capital is:

Accepted Answer

A)   a construction worker's strength.
B)   a scientist's knowledge of cellular biology.
C)   Both of these are examples of physical capital.
D)   Neither of these is an example of physical capital.E) B) and D)
F) A) and D)

Question 15

When looking at real world data, we see that the convergence theory:

Accepted Answer

A)   holds nearly universally.
B)   holds for some countries, but not others.
C)   does not hold empirically.
D)   was proved false.E) None of the above
F) A) and B)

Question 16

The poorer a country is the:

Accepted Answer

A)   more difficult it is to pay for things that will bring it out of poverty.
B)   less they have to give up for the basic things that will bring them out of poverty.
C)   easier it is to pay for things that will bring it out of poverty.
D)   more they can invest in all the components of productivity at once.E) None of the above
F) B) and C)

Question 17

If a country has a high level of income, it:

Accepted Answer

A)   must be rapidly increasing its income each year.
B)   has large amounts of physical and human capital.
C)   must be maintaining all natural resources.
D)   must be increasing all its natural resources.E) A) and B)
F) None of the above

Question 18

Which of the following is not considered a renewable resource:

Accepted Answer

A)   wind.
B)   sunlight.
C)   oil.
D)   All of these are renewable resources.E) None of the above
F) All of the above

Question 19

Some people attribute the rapid growth of the East Asian economies in the 1980s and 1990s to the:

Accepted Answer

A)   success of their "industrial policies."
B)   governments picking industries to support with investments and favorable tax and trade policies.
C)   governments planning for growth by investing in certain industries.
D)   All of these are true.E) None of the above
F) C) and D)

Question 20

Natural resources:

Accepted Answer

A)   are production inputs that come from the earth.
B)   include lakes, mineral deposits, forests, and so on.
C)   can be split into two categories: renewable or nonrenewable.
D)   All of these are true statements.E) B) and D)
F) A) and D)

Exam 10: Economic Growth

Which of the following is an example of human capital?

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When looking at real world data, we see that the convergence theory:

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If a nation has a higher level of technology than another nation it can produce:

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If a country has a high level of income, it:

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The poorer a country is the:

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Some people attribute the rapid growth of the East Asian economies in the 1980s and 1990s to the:

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An example of physical capital is:

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Natural resources:

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Suppose that a nation has a GDP of 1.0 trillion dollars in 2000. If a country grows at an average rate of 3.0 % per year over a fifteen year period, then its compounded GDP at the end of the 15 year period should be:

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Which of the following is not considered a renewable resource:

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FDI stands for:

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Which of the following is not an example of a natural resource?

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Foreign direct investment is:

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The investment trade-off:

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An example of a nonrenewable resource would be:

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An example of physical capital is a:

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An example of human capital would be:

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Governments can do which of the following to increase productivity?

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Savings that pay for capital investment can come from:

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What types of capital can improve the productivity of workers?

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