Holt 7525-9 S15_IT

___ 16. Governments can encourage free and competitive markets by:
a. imposing licensing requirements
b. imposing tariffs and quotas
c. imposing price controls
d. None of the above
___ 17. Among the necessary functions of government are:
a. provision of public goods
b. control of externalities
c. protection of private property rights
d. All of the above
___ 18. A large government hinders economic growth because:
a. a large government necessitates high tax rates
b. high tax rates reduce private property rights
c. a large government increases the opportunities for rent seeking
d. All of the above
___ 19. Governmental policies that are growth-inducing include:
a. a stable price level
b. tight control over international trade
c. strong private property rights
d. Both a. and c. above
___ 20. Industrial policy:
a. ensures that aid will go to the industries with the greatest potential for growth
b. might include trade restrictions
c. succeeds because governments can predict the future with scientific accuracy
d. All of the above
___ 21. Classical growth theory:
a. is most closely associated with Thomas Robert Malthus
b. holds that per capita economic growth can not be sustained
c. holds that an increase in the standard of living would lead to population growth
d. All of the above
___ 22. Neoclassical growth theory:
a. is most closely associated with Paul Romer
b. emphasizes capital and technology
c. holds that technological advance will allow for ever-increasing standards of living
d. All of the above
___ 23. New growth theory:
a. is most closely associated with Paul Romer
b. emphasizes new ideas and technological advance
c. holds that technological advance will allow for ever-increasing standards of living
d. All of the above
___ 24. In a centrally planned economy:
a. fewer new ideas will be developed than in free market economy
b. bad ideas will quickly be abandoned because of the competitive pressure
c. Both of the above
d. Neither of the above
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___ 25. Between 1990 and 2010, economic growth rates:
a. were generally higher for oil importing countries than for oil exporting countries
b. were generally higher for oil exporting countries than for oil importing countries
c. were about the same for oil importing countries and for oil exporting countries
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