Macro_Chapter_16_study_guide_questions_13e - Macro Chapter...

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Macro Chapter 16 study guide questions Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. When a country's real GDP is increasing at a faster rate than its population, a. per capita GDP will be rising. b. per capita GDP will be falling. c. per capita GDP will remain constant. d. none of the above. ____ 2. The major sources of economic growth are a. gains from trade, entrepreneurial discovery, and investment in physical and human capital. b. price controls, heavy regulations, and high inflation. c. tariffs to protect domestic industries from foreign competition and budget deficits. d. a good climate, high levels of foreign aid, and abundant natural resources. ____ 3. Trade is a source of economic growth and prosperity because it a. moves goods, services, and resources from people who value them less to people who value them more. b. helps trading partners achieve larger outputs through division of labor, specialization, and adoption of methods of mass production. c. serves as a zero-sum game in which the gains to one trading partner are offset by losses to the other trading partner. d. both a and b, but not c. ____ 4. Which of the following will be required for a low-income country to move up the income ladder and achieve high-income status? a. rapid growth of the money supply to increase inflation and prices b. restrictions limiting the import of goods from other nations c. high tax rates to support a large government sector d. a high rate of sustained economic growth
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This document was uploaded on 11/01/2011 for the course ECO ECO2013 at FSU.

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Macro_Chapter_16_study_guide_questions_13e - Macro Chapter...

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