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1 | |
A country operating on its production possibilities curve can raise its rate of economic growth by: |
| | A) | simultaneously producing fewer capital goods and fewer consumption goods. |
| | B) | sacrificing current consumption for extra capital goods. |
| | C) | sacrificing capital goods for extra current consumption. |
| | D) | simultaneously producing more capital and more consumption goods. |
| | E) | simultaneously producing fewer capital and fewer consumption goods. |
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2 | |
A country's GDP is growing at 8 percent a year. It will therefore double in approximately: |
| | A) | 9 years. |
| | B) | 8 years. |
| | C) | 12 years. |
| | D) | 18 years. |
| | E) | 4.5 years. |
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3 | |
Which of the following has not been a major source of economic growth in Canada in recent decades? |
| | A) | increases in the quantity of capital |
| | B) | technological progress |
| | C) | more natural resources |
| | D) | greater efficiency in production |
| | E) | a greater quantity of capital. |
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4 | |
Between the mid-1970s and the late 1990s, Canada's lackluster growth in labour productivity was related to which of the following? |
| | A) | expansionary government policies to counteract high unemployment |
| | B) | low productivity growth in industries such as textiles, clothing, and furniture |
| | C) | the shift of workers from the service to manufacturing sectors |
| | D) | low productivity growth in industries such as those producing electronic machinery and industrial and commercial machinery |
| | E) | the trade liberalization that accompanied GATT, the WTO, the FTA, and NAFTA |
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5 | |
Which of the following is not an argument made by supporters of economic growth? |
| | A) | Economic growth always leads to a more equal distribution of income. |
| | B) | Economic growth has a positive effect on average living standards. |
| | C) | Economic growth makes it easier to finance social improvements. |
| | D) | Economic growth provides intangible psychological benefits. |
| | E) | all of the above |
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6 | |
Critics of economic growth stress its effect on: |
| | A) | a country's mood of optimism and confidence in the future. |
| | B) | the resources available for social improvements. |
| | C) | the environment. |
| | D) | average living standards. |
| | E) | the ability to finance social improvements. |
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7 | |
Throughout the world, how many people live on a budget worth one US dollar or less a day? |
| | A) | 1.2 billion |
| | B) | 2.1 billion |
| | C) | 550 million |
| | D) | 2.4 billion |
| | E) | 260 million |
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8 | |
As defined by the World Bank, high-income countries are those whose: |
| | A) | GNP is US$800 billion or more. |
| | B) | per capita GDP is US$8545 or more. |
| | C) | per capita GNP is US$9266 or more. |
| | D) | GDP is US$600 billion or more. |
| | E) | none of the above |
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9 | |
As defined by the World Bank, low-income countries are those whose: |
| | A) | GNP is US$200 million or less. |
| | B) | per capita GDP is US$845 or less. |
| | C) | per capita GNP is US$1755 or less. |
| | D) | GDP is US$500 million or less. |
| | E) | none of the above |
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10 | |
Countries that have recently exhibited strong economic growth and rapid industrialization are known as: |
| | A) | IACs. |
| | B) | the G8. |
| | C) | LDCs. |
| | D) | NICs. |
| | E) | the OECD countries. |
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11 | |
The growth in per capita incomes in the world's poorer countries: |
| | A) | is less than in the world's rich countries, when expressed in dollar terms. |
| | B) | is about the same as in the world's rich countries, when expressed in dollar terms. |
| | C) | is greater than in the world's rich countries, when expressed in dollar terms. |
| | D) | is less than in the world's rich countries, when expressed in percentage terms. |
| | E) | is the same as the world's rich countries, when expressed in percentage terms. |
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12 | |
One of the main elements that underlies the vicious circle of poverty is: |
| | A) | the use of overly sophisticated technologies. |
| | B) | high mortality rates. |
| | C) | rapid population growth. |
| | D) | capital-intensive production. |
| | E) | high investment. |
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13 | |
Which of the following actions would be most popular among economists as a development strategy for low-income countries? |
| | A) | making production more labour-intensive |
| | B) | ensuring political and economic stability |
| | C) | setting up trade barriers against foreign imports |
| | D) | using government planning to distribute scarce resources |
| | E) | none of the above |
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14 | |
According to empirical research, foreign aid is most successful in: |
| | A) | countries that follow expansionary policies to minimize unemployment. |
| | B) | countries that use tariffs to aid their infant industries. |
| | C) | countries that follow the functional finance principle of fiscal policy. |
| | D) | countries that stress the rule of law and the development of a competent bureaucracy. |
| | E) | countries that are able to receive the largest amounts of foreign aid. |
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15 | |
According to Nuala Beck, which of the following is not characteristic of today's technology circle? |
| | A) | It is being driven by the abundant supply of semiconductors. |
| | B) | The pace-setting countries of this era are Great Britain and Germany. |
| | C) | The main innovator at the start of this era was the Texas Instruments scientist, Jack Kilby, who invented the microchip. |
| | D) | Today's emerging industries are genetic engineering and artificial intelligence. |
| | E) | It involves the application of electronics and miniaturization to overcome limitations of existing energy and materials. |
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2002 McGraw-Hill Higher Education