Question : 21) Property rights assure people that A) the government will not : 1238559

21) Property rights assure people that

A) the government will not confiscate their income or savings.

B) the government will provide a minimum standard of living.

C) the factors of production and goods are owned jointly by the government and the people.

D) economic growth will enhance government involvement in the economy.

E) international trade will be limited.

22) Jose and Julia were discussing the necessary components to achieve economic growth. Jose stated that the economy must include free markets, specialization and trade, and an ethical judicial system. Julia reminded Jose that another key component is

A) freedom of speech.

B) freedom of religion.

C) a guaranteed high rate of return on savings.

D) property rights.

E) democracy.

23) One possible way of achieving faster economic growth is to

A) regulate the amount of international trade and limit it so that not too much occurs.

B) limit research and development because research and development does not contribute anything to today’s production.

C) assign the government ownership of all capital.

D) protect property rights and free markets.

E) tax saving so that people spend more and firms’ profits are higher.

24) Which of the following are important for countries to promote with property rights and incentives if economic growth is to occur?

i.specialization

ii.saving and investment

iii.increases in human capital

iv.discovery of new technology

A) i, ii, iii and iv.

B) ii and iii.

C) iii and iv.

D) ii and iv.

E) i, ii and iv only.

25) One way to achieve faster growth in GDP per person is to increase the

A) number of women working in the home rather than in the workforce.

B) growth rate of the quantity of money.

C) growth rate of human capital.

D) growth rate of the population.

E) limits on international trade in order to keep more of total spending on domestically produced goods.

26) The following government policies will help achieve faster economic growth EXCEPT

A) discouraging saving and encouraging spending.

B) encouraging research and development.

C) establishing and protecting property rights.

D) improving the quality of education.

E) increasing saving.

27) If Turkey wants to promote faster economic growth, it will need to

A) promote incentive systems to encourage saving, research and development, increased trade and improved education.

B) restrict economic freedom so the government has better control of markets.

C) restrict international trade to protects its own workers.

D) promote government intervention to help markets determine incentives.

E) restrict property rights so that individuals can better share inventions.

28) Retirement savings accounts, such as IRAs, help increase economic growth because

A) people have an incentive to work harder and longer hours to save for the future.

B) they keep the interest rates high.

C) savings finances investment.

D) government invests them.

E) they encourage international trade.

29) One possible way of achieving faster economic growth is to

A) encourage saving.

B) protect the economy from international trade.

C) limit investment because investment adds nothing to production today.

D) eliminate property rights because they prevent people from using other people’s ideas.

E) tax saving so that people spend more and businesses make more profit.

30) East Asian economies have grown

A) rapidly because of high saving rates.

B) rapidly despite a lack of property rights.

C) slowly because of a lack of property rights.

D) slowly because of low saving rates.

E) rapidly because they virtually eliminated international trade.