1. Strong property rights are important for modern economic growth because:
a. They allow governments to extract the gains from private citizen’s investments.
b. People are more likely to invest if they don't fear that others can take their returns on investment without.
c. They ensure an equitable distribution of income.
d. Business cycle fluctuations will be smaller and less likely to disrupt investment patterns.
2. A subsistence economy is:
a. A very low-income economy.
b. An economy in which people make what they consume.
c. An economy in which people receive food for pay.
d. All of the above.
3. Most economists agree that an effective way of comparing income levels between countries around the world is through the use of:
a. Employment statistics.
b. GDP divided by GNP.
c. Foreign investment.
d. Purchasing power parity.
4. Growth depends on which two processes?
a. Accumulation of assets and making those assets more productive.
b. Harnessing natural resources and marketing them to developed nations at a "fair trade" rate.
c. Exploitation of the agricultural sector in order to advance industrialization.
d. Engaging in free trade while subsidizing domestic agricultural and industrial production.
1. Strong property rights are important for modern economic growth because:
a. They allow governments to extract the gains from private citizen’s investments.
b. People are more likely to invest if they don't fear that others can take their returns on investment without.
c. They ensure an equitable distribution of income.
d. Business cycle fluctuations will be smaller and less likely to disrupt investment patterns.
2. A subsistence economy is:
a. A very low-income economy.
b. An economy in which people make what they consume.
c. An economy in which people receive food for pay.
d. All of the above.
3. Most economists agree that an effective way of comparing income levels between countries around the world is through the use of:
a. Employment statistics.
b. GDP divided by GNP.
c. Foreign investment.
d. Purchasing power parity.
4. Growth depends on which two processes?
a. Accumulation of assets and making those assets more productive.
b. Harnessing natural resources and marketing them to developed nations at a "fair trade" rate.
c. Exploitation of the agricultural sector in order to advance industrialization.
d. Engaging in free trade while subsidizing domestic agricultural and industrial production.
