Chapter 7 Reading Quiz

Question 1

The Industrial Revolution lead to all of the following except

  manufacturing towns 
  pollution 
  social mobility 
  a traditional economy 
 
Question 2

Which of these countries has a strong Rule of Law?

  South Sudan 
  Canada 
  Yemen 
  Myanmar 
 
Question 3

Which of the following is not a component of the production function?

  human capital 
  trade 
  physical capital 
  technology 
 
Question 4

How is human capital acquired?

  through education 
  free trade 
  investments in infrastructure 
  through Tik Tok 
 
Question 5

From 2017 to 2018, Peru’s GDP grew from $222 billion USD to $226.85. Assuming Peru will maintain the same growth rate, what will Peru’s GDP be in 5 years?
  $247.33 billion USD 
  $252.74 billion USD 
  $448.85 billion USD 
  $199 billion USD 
 
Question 6

Which of the following is not an example of capital deepening?

  restricting free trade 
  creating health clinics and providing free immunizations 
  building roads and bridges 
  building schools in developing countries 
 
Question 7

What can governments do to promote economic growth?

  accept bribes to do business 
  maintain and uphold the rule of law 
  suppress rule of law 
  hire and promote family members into positions of power 
 
Question 8

What is the future value of a $10,000 investment that earns 7% in compound interest over 5 years?

  $327,680,000 
  $141,985 
  $13,500 
  $14,025 
 
Question 9

Convergence occurs when low-income countries have ____________ rates of economic growth than high-income countries.

  equal 
  slower 
  higher 
  lower 
 
Question 10

What is the most important contributor to economic growth?

  authoritarian rule 
  technology 
  physical capital 
  corruption