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12 Cards in this Set
- Front
- Back
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The experience of Asia from 1960 to the end of the 20th century suggests that higher investment rates
a) lead to excess capacity and long‐term unemployment b) can stimulate economic growth until the steady state is reached c) reduce the rate of economic growth in the short run and increase it in the long run d) are not influence by domestic saving or interest rates e) cannot be sustained because they ultimately induce higher depreciation rates |
B. CAN STIMULATE ECONOMIC GROWTH UNTIL THE STEADY STATE IS REACHED
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Dramatic economic growth in South Korea and Singapore in the latter half of the 20th century was primarily due to
a) a larger labour force caused by immigration b) improved technology c) a larger stock of capital d) total factor productivity e) increased longevity |
C. A LARGER STOCK OF CAPITAL
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Ethno‐linguistic diversity in Africa is the result of
a) immigration from China and India b) government policies to promote bilingual education c) heavy reliance on imported technology d) arbitrary boundaries created by European colonialism e) study‐abroad programs which educate African students in European schools |
D. ARBITRARY BOUNDARIES CREATED BY EUROPEAN COLONIALISM
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Rent seeking behaviour can affect economic growth because:
a) it stimulates innovation b) it allows arbitrageurs to capture profits that would otherwise go unrealized c) it reduces the level of risk in the economy d) it provides an efficient use of land e) it shifts labour away from entrepreneurial activity |
E. IT SHIFTS LABOR AWAY FROM ENTREPRENEURIAL ACTIVITY
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Colonialism affected African growth by:
a) fractionalizing the continent ethnically and linguistically b) extracting rents for repatriation to Europe c) neglecting development in regions of high mortality d) establishing political institutions that persist to the present day e) all of the above |
E. ALL OF THE ABOVE
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One of the principal reasons why foreign aid has not fostered significant economic growth in Africa is that:
a) aid has focused on infrastructure rather than technology b) exchange rates have reduced the value of aid c) inflation has eroded the purchasing power of donated funds d) aid has been misappropriated by governments for their own purposes e) the timing of aid disbursements has routinely been delayed, discouraging effective planning and investment |
D. AID HAS BEEN MISAPPROPRIATED BY GOVTS FOR THEIR OWN PURPOSES
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Which of the following industries accounts for the largest share of world trade?
a) agriculture b) mining c) manufacturing d) construction e) services |
C. MANUFACTURING
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As a general rule,
a) large economies tend to be more open than small economies b) small economies tend to be more open than large economies c) small economies tend to export more services than goods d) small economies tend to have greater diversity of exports than large economies e) small economies tend only to trade with each other, and large economies tend to do the same |
B. SMALL ECONOMIES TEND TO BE MORE OPEN THAN LARGE ECONOMIES
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The price of a country’s exports relative to the price of its imports is called
a) the export price ratio b) the comparative advantage c) the tariff barrier d) the terms of trade e) the mercantile factor |
D. THE TERMS OF TRADE
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An increase in a country’s terms of trade means that
a) export‐import contracts are of longer duration b) imports have become relatively more expensive c) the exchange rate is rising d) the benefits from trade are increasing e) the country is becoming less open to foreign trade |
D. THE BENEFITS FROM TRADE ARE INCREASING
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QUESTION 11: SEE WORKSHEET
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SEE WORKSHEET
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QUESTION 12: SEE WORKSHEET
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SEE WORKSHEET
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