ECON EXAM SOLUTIONS
Test Bank: I Topic: Accounting for Growth
Empirical studies suggest that
A. labor productivity has declined throughout U.S. history.
B. technological advances account for about 40 percentof U.S. productivity growth.
achieving economies of scale is the most importantfactor in U.S. economic growth.
all U.S. economic growth from between 2001 and 2007 can be attributed to increases in the quantityof labor.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-04 Describe growth accounting and the specificfactors accounting for economic growth in the United States.
Test Bank: I Topic: Accounting for Growth
Between 2015 and 2026, productivity growth is expected to account for about percent of the growth of real GDP in the United States.
62
40
92
D. 88
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-04 Describe growth accounting and the specificfactors accounting for economic growth in the United States.
Test Bank: I Topic: Accounting for Growth
The largest contributor to increases in the productivity of American labor is
the reallocation of labor from agriculture to manufacturing.
improvements in labor quality.
increases in the quantity of capital.
D. technological advance.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-04 Describe growth accounting and the specificfactors accounting for economic growth in the United States.
Test Bank: I Topic: Accounting for Growth
Which of the following statements is correct?
The U.S. population has increased more rapidly than real GDPin recent decades.
Improved education and training of labor is the most importantsource of U.S. productivity growth.
The average American factory worker has about 16 years of formal education.
D. The amount of real capital used per worker has increased historically in the United States.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-04 Describe growth accounting and the specificfactors accounting for economic growth in the United States.
Test Bank: I Topic: Accounting for Growth
The historical reallocation of labor from agriculture to manufacturing in the United States has
been inflationary.
had no effect on the average productivity of labor.
C. increased the average productivity of labor.
D. reduced the average productivity of labor.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-04 Describe growth accounting and the specificfactors accounting for economic growth in the United States.
Test Bank: I Topic: Accounting for Growth
More than half the growth of real GDP in the UnitedStates is caused by
a falling price level.
the reallocation of labor from manufacturing to agriculture.
C. increases in the productivity of labor.
D. the use of fewer inputsof labor.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-04 Describe growth accounting and the specificfactors accounting for economic growth in the United States.
Test Bank: I Topic: Accounting for Growth
Which of the following is the largest contributor to the growth of labor productivity in the UnitedStates?
A. technological advance
education and training of labor
economies of scale
improved resource allocation
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-04 Describe growth accounting and the specificfactors accounting for economic growth in the United States.
Test Bank: I Topic: Accounting for Growth
A nation's infrastructure refers to
its ability to realize economies of scale.
its stock of technological knowledge.
C. public capital goods such as highwaysand sanitation systems.
D. the productivity of its labor force.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-04 Describe growth accounting and the specificfactors accounting for economic growth in the United States.
Test Bank: I Topic: Accounting for Growth
Economies of scale refersto
the idea that proprietorships are less bureaucratic and therefore more efficient than corporations.
public investments in highways, schools, utilities, and such.
C. the fact that large producers may be able to use more efficienttechnologies than smallerproducers.
D. the reallocation of labor from less-productive to more-productive uses.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-04 Describe growth accounting and the specificfactors accounting for economic growth in the United States.
Test Bank: I Topic: Accounting for Growth
Other things equal, if a full-employment economyreallocated a substantial quantity of its resourcesto capital goods, we would expect
present consumption to rise.
future consumption to fall.
a lower rate of growth of real GDP.
D. labor productivity to rise.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-04 Describe growth accounting and the specificfactors accounting for economic growth in the United States.
Test Bank: I Topic: Accounting for Growth
Other things equal, which of the following would increase labor productivity the most?
A. The stock of real capitaland inputs of labor increase proportionately.
B. The increase in the stock of real capital exceeds the increase in inputs of labor.
The increase in inputs of labor exceeds the increaseinthe stock of real capital.
Inputs of labor increase and the stock of real capital remains constant.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-04 Describe growth accounting and the specificfactors accounting for economic growth in the United States.
Test Bank: I Topic: Accounting for Growth
Human capital refers to
A. the skills and knowledge that enable a worker to be productive.
machinery used by labor in production.
the accumulated financial wealth of households.
physical capital owned by households rather than businesses.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-04 Describe growth accounting and the specificfactors accounting for economic growth in the United States.
Test Bank: I Topic: Accounting for Growth
What percentage of the U.S. adult population has at least a high school education (as of 2015)?
31 percent
41 percent
C. 88 percent
D. 95 percent
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-04 Describe growth accounting and the specificfactors accounting for economic growth in the United States.
Test Bank: I Topic: Accounting for Growth
What percentage of the U.S. adult population has a collegeor post-college education(as of 2015)?
A. 8 percent
B. 33 percent
41 percent
88 percent
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-04 Describe growth accounting and the specificfactors accounting for economic growth in the United States.
Test Bank: I Topic: Accounting for Growth
The percentage of U.S. adults with a high schooleducation has
remained constant since the 1960s.
risen from 8 percentin 1960 to 33 percentin 2015.
risen to over 90 percent in the 21st century.
D. risen from 41 percent in 1960 to 88 percent in 2015.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-04 Describe growth accounting and the specificfactors accounting for economic growth in the United States.
Test Bank: I Topic: Accounting for Growth
Globally, on average test scores of eighth-grade math and science students, the U.S. ranks (as of 2011)
5th and 7th, respectively.
1st and 1st, respectively.
C. 9th and 10th, respectively.
D. 8th and 6th, respectively.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-04 Describe growth accounting and the specificfactors accounting for economic growth in the United States.
Test Bank: I Topic: Accounting for Growth
If the growth trend of labor productivity is 3 percentper year, the number ofyears that it will take for the standardof living to double will be about
15 years.
17 years.
20 years.
D. 23 years.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-05 Explain how the average rate of U.S. productivity growthhas fluctuated since1973.
Test Bank: I Topic: The Rise inthe Average Rate of Productivity Growth
If the secular trend of labor productivity rises from 2 percentper year to 4 percent, the number of years that it willtake for the standard of livingto double will decline by about
5.2 years.
10.1 years.
C. 17.5 years.
D. 23.8 years.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-05 Explain how the average rate of U.S. productivity growthhas fluctuated since1973.
Test Bank: I Topic: The Rise inthe Average Rate of Productivity Growth
The annual growth of U.S. labor productivity
A. was greater between 1973 and 1995 than between 1995 and 2010.
B. was greater between 1995 and 2010 than between 1973 and 1995.
was negative in the late 1990s.
averaged nearly 5 percentin the 1990s.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-05 Explain how the average rate of U.S. productivity growthhas fluctuated since1973.
Test Bank: I Topic: The Rise inthe Average Rate of Productivity Growth
The period in the U.S. economyfrom 1995 to 2010 is characterized by
a higher trend rate ofsaving.
a higher naturalrate of unemployment.
C. a higher trend rate of productivity growth.
D. the end of the businesscycle.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-05 Explain how the average rate of U.S. productivity growthhas fluctuated since1973.
Test Bank: I Topic: The Rise inthe Average Rate of Productivity Growth
Increases in the value of a productto each user, including existing users, as the total number of users rises are called
information cascades.
learning effects.
C. network effects.
D. scale economies.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-05 Explain how the average rate of U.S. productivity growthhas fluctuated since1973.
Test Bank: I Topic: The Rise inthe Average Rate of Productivity Growth
Network effects are
A. increases in the value of a product to each user, including existing users, as the total number of users rises.
reductions in per-unit production cost as firms learn by doing.
increases in demand resulting from products being mentioned positively in a television program.
the change in real GDP resulting from a change in investment or government spending.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-05 Explain how the average rate of U.S. productivity growthhas fluctuated since1973.
Test Bank: I Topic: The Rise inthe Average Rate of Productivity Growth
All of the following are sourcesof increasing returns and economies of scale except
A. network effects.
B. the multiplier effect.
learning by doing.
simultaneous consumption.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-05 Explain how the average rate of U.S. productivity growthhas fluctuated since1973.
Test Bank: I Topic: The Rise inthe Average Rate of Productivity Growth
The fundamental invention underpinning the 1995–2010 rise in the average rate of productivity growth is the
A. microchip.
fuel cell.
Internet.
personal computer.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-05 Explain how the average rate of U.S. productivity growthhas fluctuated since1973.
Test Bank: I Topic: The Rise inthe Average Rate of Productivity Growth
All of the following are economic implications of the 1995–2010 rise in the average rate of productivity growth except
a lower natural rate of unemployment.
larger outward shifts of the economy'sproduction possibilities curve.
C. an end to the business cycle.
D. a greater rate of economic growth.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-05 Explain how the average rate of U.S. productivity growthhas fluctuated since1973.
Test Bank: I Topic: The Rise inthe Average Rate of Productivity Growth
Which of the following explanations is consistent with the declinein productivity growth that followedthe Great Recession?
A. High levels of debt incurredprior to the Great Recession have hindered firms’ ability to make productivity-enhancing investments.
The Federal Reserve kept interest rates too high, stifling investments that would increase productivity.
High levels of inflationfollowing the Great Recessioncreated too much uncertainty for firms, discouraging productivity-enhancing investments.
Consumer demand following the Great Recession exceeded firms’ capacity to satisfythat demand.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-05 Explain how the average rate of U.S. productivity growthhas fluctuated since1973.
Test Bank: I Topic: The Rise inthe Average Rate of Productivity Growth
Measured productivity growth for the United States declined following the Great Recession. Which of the following explanations for that phenomenon suggests that measured productivity has failed to accountfor actual gains?
A. high debt levels, accumulated prior to the Great Recession
B. creation of new products that are essentially free to consumers
overcapacity of firms, implyinga greater ability to produce than is currently measured
stalled technological progress that has encouraged greater consumption of leisureactivities
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-05 Explain how the average rate of U.S. productivity growthhas fluctuated since1973.
Test Bank: I Topic: The Rise inthe Average Rate of Productivity Growth
In the period followingthe Great Recession, the creationof new Internet apps has
significantly enhanced productivity.
significantly reduced productivity by creatingexcessive distractions for workers.
C. had little measured effect on GDP or productivity but may create a lot of consumer surplus.
D. led firms in these markets to expand capacity beyond what consumers demand.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-05 Explain how the average rate of U.S. productivity growthhas fluctuated since1973.
Test Bank: I Topic: The Rise inthe Average Rate of Productivity Growth
Which of the following statements is true about productivity growth in the United States since the Great Recession?
A. The productivity growth rate has stagnated to about 3 percentper year.
B. The productivity growth rate fell to 0.4 percent from 2010 to 2015.
Productivity growth grew as new products,particularly Internet apps, were introduced.
Firms have lacked the capacity to meet consumer demand, causing measured productivity to fall.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-05 Explain how the average rate of U.S. productivity growthhas fluctuated since1973.
Test Bank: I Topic: The Rise inthe Average Rate of Productivity Growth
Which of the following is a true statement?
A. Economists who support economic growth say that it is the most practical route to the higherstandards of living that the vast majority of peopledesire.
Most economists believe that the recentrise in the averagerate of productivity growth implies an end to the business cycle.
Most economists believe that increasesin real GDP actuallyproduce decreases in overalleconomic well-being because of spillover costs.
Mainstream economists disagree as to whetherthe rate of productivity growth was higher between 1995 and 2010 or between 1973 and 1995.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-06 Discuss differing perspectives as to whethergrowth is desirable and sustainable.
Test Bank: I Topic: Is Growth Desirableand Sustainable?
Proponents of economic growth say that pollution
A. is an inevitable by-product of growth.
B. occurs, not because of growth, but because common resources are treated as free goods.
declines as a countrymoves from agriculture to industry.
is detrimental to economic growth.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-06 Discuss differing perspectives as to whethergrowth is desirable and sustainable.
Test Bank: I Topic: Is Growth Desirableand Sustainable?
Critics of economicgrowth
A. contend that growth and industrialization reduce pollution.
B. argue that economic growth does not resolve socioeconomic problems such as an unequal distribution of income and wealth.
point out that growth results in greater economic security for workers.
say that its benefits accrue nearly exclusively to white males.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-06 Discuss differing perspectives as to whethergrowth is desirable and sustainable.
Test Bank: I Topic: Is Growth Desirableand Sustainable?
Which of the followingis not an argument made by proponents of economic growth?
Growth is the basic means of improving livingstandards.
It is easier to reduce poverty when the economy is growing than when it is not.
C. There is a direct relationship betweena growing real GDP and rising pollution.
D. Growth provides an economicenvironment favorable to education and self-fulfillment.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-06 Discuss differing perspectives as to whethergrowth is desirable and sustainable.
Test Bank: I Topic: Is Growth Desirableand Sustainable?
(Consider This) The main point of the Consider This box about hypothetical countries Slogo, Sumgo, and Speedo is that over several decades, differing
A. inflation rates create large differences in real GDP per capita.
B. economic growth rates create large differences in real GDP per capita.
ratios of defense spendingto GDP create large differences in real GDP per capita.
unemployment rates create large differences in real GDP per capita.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
Learning Objective: 08-02 Define modern economic growth and explain theinstitutional structures neededforan economy to experience it.
Test Bank: I Topic: Modern Economic Growth
(Consider This) According to the Consider This box about hypothetical countries Slogo, Sumgo, and Speedo,small differences in make for large differences in
over several decades, assuming the same growth of populationfor each country.
inflation rates; unemployment rates
unemployment rates; economic growth rates
C. economic growth rates; real GDP per capita
D. tax rates; real GDP per capita
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
Learning Objective: 08-02 Define modern economic growth and explain theinstitutional structures neededforan economy to experience it.
Test Bank: I Topic: Modern Economic Growth
(Consider This) According to the Consider This box on patents and innovation, the cost for U.S. and European drug companies to research, patent, and safety-test a new drug is about
$100 million.
$750 million.
C. $1 billion.
D. $10 billion.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
Learning Objective: 08-02 Define modern economic growth and explain theinstitutional structures neededforan economy to experience it.
Test Bank: I Topic: Modern Economic Growth
(Consider This) The Consider This box on patents and innovation demonstrates that
A. patent protection for U.S. companies may not be as effectivewhen other countries do not respector enforce U.S. patent laws.
patent laws are relatively uniform across nations.
countries like India have no incentive to enact or enforce patent laws.
follower countries tend to have stronger patent laws than leader countries.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
Learning Objective: 08-02 Define modern economic growth and explain theinstitutional structures neededforan economy to experience it.
Test Bank: I Topic: Modern Economic Growth
(Consider This) Over the past several decades, the percentage of women in the paid U.S. workforce has
increased in spite of decliningwages for women.
decreased because relatively more women are stayinghome to raise their children.
C. increased due to higher wages, expanded job accessibility, changing preferences and attitudes, and other factors.
D. increased for unmarried women but decreased for married women.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-03 Identify the general supply, demand,and efficiency forces that give rise toeconomic growth. Learning Objective: 08-04 Describe growth accounting and the specificfactors accounting for economic growth in the United States.
Test Bank: I Topic: Accounting for Growth Topic: Determinants of Growth
(Consider This) Rising wages for women in the United States have increased
the proportion of women workingpart time comparedto working full time.
labor costs and thus shifted the nation's production possibilities curve inward.
average family size in the United States.
D. the percentage of marriedwomen in the workforce.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-03 Identify the general supply, demand,and efficiency forces that give rise toeconomic growth. Learning Objective: 08-04 Describe growth accounting and the specificfactors accounting for economic growth in the United States.
Test Bank: I Topic: Accounting for Growth Topic: Determinants of Growth
(Last Word) The inverse dependency ratio is defined as
A. the number of peopleof working age divided by the number of dependents.
the number of dependents divided by the number of people of working age.
the number of seniorsover age 65 divided by the number of youths under age 20.
the number of youths under age 20 dividedby the number of seniors over age 65.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
Learning Objective: 08-03 Identify the general supply, demand,and efficiency forces that give rise toeconomic growth.
Test Bank: I Topic: Determinants of Growth
(Last Word) The inverse dependency ratio is predicted to fall to about 1.16 by 2050. What is the most likely effect of this decline?
It will likely cause workerproductivity to decline.
The Social Security system will be on stronger financialfooting.
Innovation will increase significantly as dependents take advantage of their otherwise idle time.
D. Living standards will fall if productivity gains don't sufficiently offset the decline in the ratio.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
Learning Objective: 08-03 Identify the general supply, demand,and efficiency forces that give rise toeconomic growth.
Test Bank: I Topic: Determinants of Growth
(Last Word) It is expected that by 2050, most nations will have decreasing populations. With the likely decline in the labor force and number of hours of work in the economy,what must occur for real GDP to continue to rise?
A. Increasing amounts of natural resources must be brought into production.
B. Labor productivity must grow faster than the drop in work hours.
Consumption spending must grow faster than the drop in work hours.
Government spending and tax policy must be altered to stimulate sufficient demand.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
Learning Objective: 08-03 Identify the general supply, demand,and efficiency forces that give rise toeconomic growth.
Test Bank: I Topic: Determinants of Growth
True / False Questions
In the United States, real GDP per capita has increased more rapidlythan real GDP.
FA LSE
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
Learning Objective: 08-01 List two ways that economicgrowth is measured.
Test Bank: I Topic: Economic Growth
An economy with an averagegrowth rate of 10 percentcan expect to see its real GDP double in approximately 7 years.
TRUE
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
Learning Objective: 08-01 List two ways that economicgrowth is measured.
Test Bank: I Topic: Economic Growth
Growth is a widely held economic goal primarily because it createsa more equal distribution of wealthand income.
FA LSE
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
Learning Objective: 08-01 List two ways that economicgrowth is measured. Learning Objective: 08-06 Discuss differing perspectives as to whether growth is desirable and sustainable.
Test Bank: I Topic: Economic Growth
Topic: Is Growth Desirable andSustainable?
Real GDP per capita is found by dividingreal GDP by the size of the labor force.
FA LSE
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
Learning Objective: 08-01 List two ways that economicgrowth is measured.
Test Bank: I Topic: Economic Growth
The rule of 70 is used to find how long it willtake an economyto grow by 70 percent.
FA LSE
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
Learning Objective: 08-01 List two ways that economicgrowth is measured.
Test Bank: I Topic: Economic Growth
Growth in well-being tends tobe understated by growth in real GDP becauseof increases in leisure time.
TRUE
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
Learning Objective: 08-01 List two ways that economicgrowth is measured.
Test Bank: I Topic: Economic Growth
Modern economic growth is defined as increases in real GDP over time.
FA LSE
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
Learning Objective: 08-02 Define modern economic growth and explain theinstitutional structures neededforan economy to experience it.
Test Bank: I Topic: Modern Economic Growth
Modern economic growth since the 1820s has widened wealth and income disparities between richer and poorer nations.
TRUE
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
Learning Objective: 08-02 Define modern economic growth and explain theinstitutional structures neededforan economy to experience it.
Test Bank: I Topic: Modern Economic Growth
Leader countries tend to have higher growth rates than follower countries.
FA LSE
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
Learning Objective: 08-02 Define modern economic growth and explain theinstitutional structures neededforan economy to experience it.
Test Bank: I Topic: Modern Economic Growth
Follower countries achieve high rates of growth by adopting technologies developedby leader countries.
TRUE
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
Learning Objective: 08-02 Define modern economic growth and explain theinstitutional structures neededforan economy to experience it.
Test Bank: I Topic: Modern Economic Growth
Strong economic growth since 1960 has allowed nations like Singapore and Ireland to surpass nations such as the United Kingdom and France in real GDP per capita.
TRUE
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
Learning Objective: 08-02 Define modern economic growth and explain theinstitutional structures neededforan economy to experience it.
Test Bank: I Topic: Modern Economic Growth
Strong property rights inhibit economic growth by strictlyregulating economic behavior.
FA LSE
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
Learning Objective: 08-02 Define modern economic growth and explain theinstitutional structures neededfora