QUESTION 1

A productivity increase is illustrated by a shift in the production function

	a.	leftward.
	b.	rightward.
	c.	downward.
	d.	upward.

QUESTION 2

According to new growth theory, _______ is advocated as a critical component of economic growth.

	a.	government spending
	b.	new equipment
	c.	access to Federal natural resources
	d.	education

QUESTION 3

Advancements in information technology can be used to explain the

	a.	productivity slowdown of the early 2000s in the United States.
	b.	reductions in energy usage.
	c.	increases in energy usage.
	d.	productivity improvements in the United States.

QUESTION 4

Compared to workers in poor countries, workers in richer countries have

	a.	lower productivity but higher wages.
	b.	higher productivity and higher wages.
	c.	the same productivity but higher wages.
	d.	higher productivity but lower wages.

QUESTION 5

Differences in growth rates cannot explain why

	a.	the convergence hypothesis may hold.
	b.	some countries are wealthier than others.
	c.	income inequality exists.
	d.	the productivity growth rates in China and Japan are converging.

QUESTION 6

Governments in market economies usually have significant control over

	a.	personal consumption spending.
	b.	investment spending.
	c.	education spending.
	d.	import spending.

QUESTION 7

Human capital differs from physical capital in that

	a.	physical capital is intangible.
	b.	human capital has no cost to acquire.
	c.	human capital is tangible.
	d.	human capital is intangible.

QUESTION 8

Improvements in the level of technology will generally shift the production function downward.

True

False

QUESTION 9

More consumption rather than investment leads to stagnant growth in developing countries.

True

False

QUESTION 10

On-the-job training is one area of education in the United States most influenced by the

	a.	foreign sector.
	b.	government sector.
	c.	business sector.
	d.	household sector.

QUESTION 11

Private sector investment is usually done through borrowing. The economic variable that influences the level of investment is the

	a.	per capita GDP.
	b.	employment rate.
	c.	the real interest rate.
	d.	inflation rate.

QUESTION 12

Public sector and private sector collaboration is one way to support R&D.

True

False

QUESTION 13

Research and development refers to

	a.	the collaboration between the private sector and public sector.
	b.	the act of discovering new products or new ways of making products.
	c.	the act of putting new ideas into effect.
	d.	activities aimed at inventing new products or process, or improving existing ones.

QUESTION 14

The U.S. business sector has the most purview over

	a.	educational outcomes.
	b.	tax revenues.
	c.	university education.
	d.	on-the-job training.

QUESTION 15

The expansion of information technology and the increasing complexity of the economy should make the wage premium

	a.	continue rising.
	b.	rise.
	c.	fall.
	d.	continue falling.

QUESTION 16

The primary use of development assistance is to

	a.	allow developing countries imitate rather than innovate technologies.
	b.	invest in natural resources.
	c.	restrict the outflow of foreign direct investment.
	d.	encourage economic development through low-interest loans.

QUESTION 17

The school of engineering at a modern university would be a supporter of the new

	a.	growth theory.
	b.	consumption theory.
	c.	monetary theory.
	d.	construction theory.

QUESTION 18

U.S. government policy to stimulate research and development activities would be most likely to succeed if it involved

	a.	interest rate policy.
	b.	corporate tax policy.
	c.	personal income tax policy.
	d.	payroll tax policy.

QUESTION 19

Which of the following countries would find it easiest to achieve rapid growth in per capita GDP?

	a.	United States
	b.	United Kingdom
	c.	France
	d.	Mexico

QUESTION 20

Which price would you expect to rise the most in a high-income growing economy?

	a.	Tickets to a ballet performance
	b.	Blu-ray players
	c.	Passenger automobiles
	d.	Semiconductors for personal computers