Title: Explain economic growth
Course: TEST Course

Q: Over the course of human history:
- economic growth follows a steady, long-term upward path.
- all countries have achieved substantial gains in per capita GDP since the 19th century.
- economic growth has brought about substantial gains in incomes and standards of living in many countries.
A: economic growth has brought about substantial gains in incomes and standards of living in many countries.

Q: Throughout human history economic growth
- follows a steady, long-term upward path.
- has achieved substantial gains in per capita GDP since the 19th century for all countries.
- has brought about substantial gains in incomes and standards of living in many countries.
A: has brought about substantial gains in incomes and standards of living in many countries.

Q: A long-run process that occurs as a country’s potential output increases is the description for
- government spending and net exports.
- goods produced within a four-month period.
- economic growth.
A: economic growth.

Q: Economic growth is
- the sum of consumption, investment, government spending and net exports.
- the quantity of goods produced within a four-month period.
- a long-run process that occurs as a country’s potential output increases.
A: a long-run process that occurs as a country’s potential output increases.

Q: Economic growth has been
- sustained and rapid since the 1500’s.
- sustained and rapid since the 20th century.
- sustained and rapid since the 1800’s.
A: sustained and rapid since the 1800’s.

Q: Since the 1800’s economic growth has been
- spotty and halting.
- untouched by the industrial revolution and technological changes.
- sustained and rapid.
A: sustained and rapid.

Q: Which of the following choices is a true statement about the roots of modern economic growth?
- Modern economic growth finds its roots in democratic political systems.
- Modern economic growth finds its roots in cultural factors.
- Modern economic growth finds its roots in technological progress and industrialization.
A: Modern economic growth finds its roots in technological progress and industrialization.

Q: Modern economic growth finds its roots in
- democratic political systems.
- cultural factors.
- technological progress and industrialization.
A: technological progress and industrialization.

Q: Contractual laws, by establishing recourse (protection) for parties involved,
- reduces inflation.
- prevents recessions.
- promotes economic transactions and growth.
A: promotes economic transactions and growth.

Q: A way to increase economic transactions,
- includes reducing the number of patents (exclusive rights to a product or process).
- Includes higher taxes to fund local government.
- includes enforcing contractual laws that protect parties involved in contacts.
A: includes enforcing contractual laws that protect parties involved in contacts.

Q: Political stability and property rights protection
- ensure income equality.
- guarantees low unemployment.
- promote economic growth.
A: promote economic growth.

Q: Which of the following promotes economic growth?
- A clean natural environment.
- Geographic location.
- Political stability and property rights protection.
A: Political stability and property rights protection.

Q: In the long run, important sources of an increase in a nation’s economic growth include(s):
- zero rate of population growth.
- low college graduation rates.
- high rate of labor force growth.
A: high rate of labor force growth.

Q: Important sources that influence a nation’s economic growth in the long run include(s):
- zero rate of population growth.
- low college graduation rates.
- high rate of labor force growth.
A: high rate of labor force growth.

Q: The country of Norway has offers free college to students and even some universities offer free tuition to international students. Why would the Norwegian government support this tuition free environment?
- To increase the number of programs where national taxes can be applied.
- To contribute to economic health and growth by keeping more money in the pockets of students.
- To facilitate capital deepening by getting a better educated populace.
A: To facilitate capital deepening by getting a better educated populace.

Q: China had special economic zones originally in places such as Hong Kong and Shenzhen set up back in the 1980s. Why would the Chinese government support these areas with different rules like no tax on trade or different economic laws?
- To increase the number of programs where national taxes can be excised.
- To contribute to economic health and growth by keeping more money in government.
- To facilitate a healthy economic environment and grow international trade.
A: To facilitate a healthy economic environment and grow international trade.

Q: Economic growth is supported by
- laws restricting trade between nations.
- laws limiting access to private property.
- laws that build trust between parties.
A: laws that build trust between parties.

Q: Laws that built economic trust and stability
- guarantee businesses profit.
- limit inflation.
- increase economic growth.
A: increase economic growth.

Q: One of the important factors supporting economic growth is
- laws ensuring low prices.
- a strong currency.
- an effective system of laws.
A: an effective system of laws.

Q: Lack of property rights
- encourage production.
- increases productivity.
- diminish economic growth.
A: diminish economic growth.

Q: Frankini has a coffee shop business he opened in the small country of Timpopo. After paying for his business license he opened the shop. Business has be increasing, but he is continually squeezed by corrupt policemen wanting bribes for protection and greedy politicians continually making new rules to extract more money from his business. Frankini’s business environment is not really supportive. What would make business in Timpopo better?
- More international trade unions.
- Government programs to assist the poor and needy.
- A set of effective laws and adequate protection under those laws.
A: A set of effective laws and adequate protection under those laws.

Q: Kendra started her wedding boutique business in the country of Mexico. After paying her licensing fees and filing the proper paperwork, she business license he opened the shop. Business has be increasing, and she finds it easy to understand her tax duties and legal requirements to run her shop. She knows that if there is ever a problem there is a clear way to settle things because the government has spelled out the rules and laws. Why is starting and running her business easy for Kendra?
- There are more opportunities to pay for things online.
- There are more government programs to assist the poor and needy.
- There is a set of effective laws and adequate protection under those laws for her business.
A: There is a set of effective laws and adequate protection under those laws for her business.

Q: Wesley lives in a country with little protection under the law for conducting business or bringing his ideas about a revolutionary new car tire to the market with patent production. Because of the economic conditions what will Wesley most likely do?
- Develop his tire and bring it to market with ease and minimal cost.
- Keep his ideas in a notebook and sell them to the highest bidder.
- Find a country where he can develop his tire idea and have it protected under strong patent laws.
A: Find a country where he can develop his tire idea and have it protected under strong patent laws.

Q: Jerusha lives in a country with a large amount of protection under the law for conducting business or bringing her ideas to the market with patten production. Because of the economic conditions what will Jerusha most likely do with her rainwater collecting invention?
- Keep her ideas in a notebook and sell them to the highest bidder.
- Find a country where she can develop her idea away from strong patent laws.
- Develop her invention and bring it to market with ease and minimal cost.
A: Develop her invention and bring it to market with ease and minimal cost.