Question 1

Which of the following best explains why economic growth is crucial for improving health outcomes, such as reducing child mortality rates?

Accepted Answer

Economic growth leads to higher GDP per capita, which is strongly correlated with higher survival rates for newborns.

Question 2

Suppose Country A has a GDP per capita of $$10,000 and Country B has a GDP per capita of 50$$,000. According to the study materials, which of the following is most likely true?

Accepted Answer

Country B is likely to have a higher child survival rate than Country A.

Question 3

What is the formula for labor productivity as described in the materials?

Accepted Answer

$$Y \div L$$

Question 4

Which of the following is NOT a determinant of productivity according to the study materials?

Accepted Answer

The number of political parties in a country

Question 5

A country increases its investment in education, resulting in a higher average number of years of schooling. According to the materials, what is the most likely long-term effect?

Accepted Answer

An increase in productivity and higher wages for workers.

Question 6

If a government wants to boost productivity by increasing the stock of equipment and structures used to produce goods and services, which variable is it trying to increase?

Accepted Answer

Physical capital per worker ($$K/L)$$

Question 7

Which of the following best describes the tradeoff involved in increasing investment to boost economic growth?

Accepted Answer

Increasing investment requires reducing current consumption to fund the production of investment goods.

Question 8

Which of the following policies is most likely to promote long-run economic growth in a poor country, based on the study materials?

Accepted Answer

Allowing free trade and encouraging foreign investment

Question 9

Suppose a country implements strong property rights, honest government, and a dependable legal system. According to the materials, what is the likely impact on economic growth?

Accepted Answer

These institutions will likely promote economic growth by encouraging investment and innovation.

Question 10

Which of the following best explains why technological progress is considered the main reason for rising living standards over the long run?

Accepted Answer

Technological progress allows society to get more output from the same resources, boosting productivity.

Question 11

A country with an outward-oriented policy is most likely to experience which of the following outcomes?

Accepted Answer

Faster economic growth due to integration with the world economy.

Question 12

Which of the following is an example of foreign direct investment (FDI) as described in the study materials?

Accepted Answer

A foreign company building and operating a factory in the host country.

Question 13

If a country increases its saving rate, what is the most likely short-run and long-run effect on economic growth?

Accepted Answer

Short-run: lower consumption; Long-run: higher productivity and living standards.

Question 14

Which of the following best describes the role of institutions in economic growth?

Accepted Answer

Institutions shape economic incentives and can either promote or hinder growth.

Question 15

Suppose a country has a high level of corruption and weak property rights. According to the materials, what is the likely impact on economic growth?

Accepted Answer

Economic growth will likely be hindered due to reduced incentives for investment and innovation.

Question 16

Which of the following policies would most directly increase a country's human capital per worker ($$H/L$$)?

Accepted Answer

Investing in education and training programs

Question 17

A government wants to encourage technological progress. Which of the following policies would be most effective according to the study materials?

Accepted Answer

Implementing patent laws and providing tax incentives for private sector R&D

Question 18

If a country wants to increase its capital per worker ($$K/L$$), which of the following actions would be most effective?

Accepted Answer

Encouraging both domestic and foreign investment in capital goods

Question 19

Which of the following statements about trade and economic growth is supported by the study materials?

Accepted Answer

Trade has similar effects as discovering new technologies, improving productivity and living standards.

Question 20

A country is considering two policies: (1) giving cash payments for good school attendance, and (2) restricting imports to protect domestic industries. Based on the study materials, which policy is more likely to promote long-run economic growth?

Accepted Answer

Giving cash payments for good school attendance, because it increases human capital.

Long-Run Economic Growth: Determinants, Measurement, and Policy

Guida di studio - Domande di pratica

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