Holt 7525-9 S15_IT

___ 8. Which of the following is correct?
a. Only countries with abundant natural resources have achieved a great deal of
economic growth
b. All countries with abundant natural resources have achieved a great deal of
economic growth
c. Some economists argue that abundant natural resources may be a hindrance to
economic growth
d. Both a. and b. above
___ 9. If the quantity of labor increases, but there is no increase in capital and no improvement
in technology:
a. Real GDP will likely decrease
b. per capita Real GDP will likely decrease
c. per capita Real GDP will likely increase
d. None of the above
___ 10. Labor productivity can be increased by:
a. an increase in human capital
b. an increase in physical capital
c. an increase in the quantity of labor
d. Both a. and b. above
___ 11. Increases in capital:
a. are made possible by saving
b. require an initial reduction in consumption
c. lead to per capita economic growth
d. All of the above
___ 12. Technological advance:
a. is the ability to produce more output per resource
b. can result from improved capital
c. can result from free international trade
d. All of the above
___ 13. Technological advance:
a. can result only from new technology
b. can result from improved production techniques
c. is unaffected by international trade
d. Both a. and c. above
___ 14. Strong private property rights:
a. provide more incentive for resource owners to develop and direct their resources to
their most valuable uses
b. help a nation’s efforts to achieve economic growth
c. Both of the above
d. Neither of the above
___ 15. Private property rights can be strengthened:
a. by decreasing government corruption
b. by increasing government regulation
c. by decreasing taxes
d. Both a. and c. above
FOR REVIEW ONLY - NOT FOR DISTRIBUTION
14 - 13 Economic Growth