PPOG 502 Quiz Economic Foundations

PPOG 502 Quiz: Economic Foundations and Economic Growth

Covers the Learn material from Module 1: Week 1 – Module 2: Week 2.

1. According to Sowell, which of the following is the most significant reason that developing countries have lingered in poverty?
2. Which of the following is true about government spending programs intended to stimulate the economy?
3. The economic principle that incentives matter is best seen in which of the following statements?
4. According to Sowell, which of the following would not be a contributor to economic growth?
5. High income tax rates:
6. Major reductions in income tax rates in the US, in the 1920s, the mid-1960s, and the 1980s, were immediately followed by
7. Thomas Sowell points out that in 1991, China and India had similar levels of output per person. But ten years later, China’s output per person was nearly twice that of India. According to Sowell, this was the result of
8. The bribery, kickbacks, favoritism, and other corruption caused by involvement of the government in the market leads to a system referred to by Gwartney et al. as:
9. Looking back at thousands of years of history, Sowell sees a great advantage for commerce and therefore economic growth in all of the following except:
10. Gwartney et al. say that if “private owners fail to maintain their property or if they allow it to be abused or damaged, they will bear the consequences in the form of a decline in the property’s value.” This implies that
11. Trade with countries that have far lower wages than the US will tend to
12. According to Sowell, poor countries can best increase their economic growth rates by welcoming
13. Contrasting Japan, Germany, Switzerland, and Sweden with Spain, Sowell points out that:
14. Gwartney et al. point out that investment rates in eastern European economies and the Soviet Union were very high for several decades prior to the collapse of Communism. Despite this investment, these economies did not enjoy rising living standards because
15. The Economic Freedom of the World index shows that higher levels of economic freedom are correlated with
16. According to Gwartney et al., various “doomsday” forecasts predicting resource exhaustion have tended to be wrong because
17. Restricting imports through trade barriers will:
18. When the money supply expands rapidly, the result is most likely to be:
19. When governments impose price floors, such as a minimum price for milk,
20. Which of the following is a consequence of competition in the marketplace?