Tackle the Test: Multiple-Choice Questions

1. Question

   Which of the following is a source of productivity growth?

   
   

   
   

   1. increased physical capital

      
      
   
   

   2. increased human capital

      
      
   
   

   3. technological progress
      

      
      
   
   

   A.

   I only

   B.

   II only

   C.

   III only

   D.

   I and II only

   E.

   I, II, and III

   Which of the following is a source of productivity growth?

2. Question

   Which of the following is an example of physical capital?

   A.

   machinery

   B.

   health care

   C.

   education

   D.

   money

   E.

   all of the above

   Which of the following is an example of physical capital?
3. Page 383

   Question

   The following statement describes which area of the world? “This area has experienced growth rates unprecedented in history and now looks like an economically advanced country.”

   A.

   North America

   B.

   Latin America

   C.

   Europe

   D.

   East Asia

   E.

   Africa

   The following statement describes which area of the world? “This area has experienced growth rates unprecedented in history and now looks like an economically advanced country.”

4. Question

   Which of the following is cited as an important factor preventing long-run economic growth in Africa?

   A.

   political instability

   B.

   lack of property rights

   C.

   unfavorable geographic conditions

   D.

   poor health

   E.

   all of the above

   Which of the following is cited as an important factor preventing lon

5. Question

   The “convergence hypothesis”

   A.

   states that differences in real GDP per capita among countries widen over time.

   B.

   states that low levels of real GDP per capita are associated with higher growth rates.

   C.

   states that low levels of real GDP per capita are associated with lower growth rates.

   D.

   contradicts the “Rule of 70.”

   E.

   has been proven by evidence from all parts of the world.

   The “convergence hypothesis”