Question :
131.Many governments actively work to:
A. attract foreign direct investment, hoping it : 1379089
131.Many governments actively work to:
A. attract foreign direct investment, hoping it will build up their capital stock when domestic savings aren’t sufficient.
B. attract foreign direct investment, so that when foreign companies invest in local firms, they can transfer human capital to local managers.
C. discourage foreign direct investment, in an effort to encourage locals to invest in their own economy.
D. discourage foreign direct investment, in an effort to avoid “crowding out.”
132.Ensuring that high-quality public education is freely available to all children is one of the most important ways that a country can:
A. increase its stock of human capital.
B. decrease its stock of human capital.
C. decrease its productivity.
D. increase its foreign direct investment.
133.Using public policy to promote health can:
A. contribute to growth.
B. take away resources from those that promote growth.
C. hurt a country’s chance of reaching high growth.
D. discourage citizens from taking care of themselves.
134.Using public policy to promote health can contribute to growth because:
A. workers who are in good health will be more productive and less likely to miss work days.
B. workers who get free health care are more likely to be careless.
C. workers who are in good health take more vacation days and are less likely to work.
D. it allows the importation of more goods and services.
135.In the United States:
A. about $400 billion a year goes into research and development.
B. about $500 billion a year goes into research and development.
C. about $200 billion a year goes into research and development.
D. about $300 billion a year goes into research and development.
136.Of the $400 billion a year that goes into research and development in the United States, about:
A. $50 billion of the investment takes place at universities and research institutes, and the rest is done by business.
B. $100 billion of the investment is done by government funding, and the rest is done by business.
C. $150 billion of the investment is done by business, and the rest is done by government funding.
D. half of the investment takes place at universities and research institutes, and the rest is done by business.
137.One way the government can encourage economic growth is to:
A. protect property rights.
B. enforce contracts.
C. ensure legal agreements will be upheld.
D. All of these actions will encourage economic growth.
138.Protecting property rights:
A. is essential to economic growth.
B. encourages people to invest in capital.
C. by governments will likely increase productivity.
D. All of these are true.
139.The enforcement of contracts by the government:
A. encourages economic growth.
B. allows people to enter into long-term investments more easily.
C. can increase physical capital investment.
D. All of these are true.
140.Effective, stable leadership is essential to:
A. economic growth.
B. discourage foreign direct investment from taking hold in a country.
C. increasing human capital.
D. increasing population size.
141.The trade-off between physical capital and current consumption:
A. is harder for poorer countries than rich ones.
B. is easier for poorer countries than rich ones.
C. involves giving up less current consumption for poor countries, since they have little.
D. involves giving up more current consumption for rich countries, since they have so much.
142.The poorer a country is:
A. the more difficult it is to pay for things that will bring it out of poverty.
B. the less they have to give up for the basic things that will bring them out of poverty.
C. the easier it is to pay for things that will bring it out of poverty.
D. the more they can invest in all the components of productivity at once.
143.The poverty trap refers to:
A. poorer countries having a harder time buying the things that will end their poverty.
B. richer countries spiraling downward into poverty if they invest in the wrong industries.
C. richer countries spiraling downward into poverty if they fail to invest enough in physical capital.
D. All of these describe the poverty trap.
144.Growth often requires:
A. concurrent improvements in many aspects of the economy.
B. governments to invest in one facet of the economy at a time, starting with education.
C. governments to invest in one facet of the economy at a time, starting with basic infrastructure.
D. governments to invest in one facet of the economy at a time, starting with leapfrog technology.
