By offering more generous unemployment insurance

186) By offering more generous unemployment insurance programs, European countries can expect
A) workers to gain new skills quickly in response to fluctuations in the labor market.
B) to pay less in taxes than in the United States.
C) shorter periods of unemployment for their workers.
D) longer periods of unemployment for their workers.
Answer: D
186)
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Learning Outcome: Macro - 14: Identify different types and measures of unemployment and discuss its causes.
187) Which of the following is an example of the way the financial markets in the United States can
encourage technological progress more efficiently than other countries?
B) The level of legal protection for investors in the United States is relatively low.
187)
C) Because the financial market in the United States is so large, the quantity of trading in
corporate stocks and bonds makes those investments less liquid.
D) Even when entrepreneurs cannot secure sufficient funding for projects from banks, venture
capital firms may be willing to lend money.
Answer: D
Page Ref: 752/370
Learning Outcome: Macro - 4: Explain the sources of productivity growth.
45

188) The economic growth model predicts that
D) Governments must centrally direct the economy for growth to occur.
188)
Answer: B
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Learning Outcome: Macro - 17: Discuss the fundamentals of key macroeconomic theories.
189) Empirical evidence from 1960 to 2011 shows that convergence in economic growth is occurring in
which of the following cases?
C) Low - income industrial countries are catching up to high - income developing countries.
189)
D) Low - income developing countries are catching up to high - income industrial countries.
Answer: A
Page Ref: 748/366
Learning Outcome: Macro - 16: Discuss the obstacles to development in developing countries and ways to
address those obstacles.
190) Which of the following countries actually experienced negative economic growth from 1960 to
2011?
A) Singapore B) Israel C) Malaysia D) Niger
190)
Answer: D
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Learning Outcome: Macro - 16: Discuss the obstacles to development in developing countries and ways to
address those obstacles.