Growth and Development: Sample Quiz

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1. The different growth rates in South Korea and North Korea illustrate the importance of:

culture.
 incentives.
 population growth.
 technology.

2. The key to increasing capital is:

saving and investment.
 government spending.
 population growth.
 abundant natural resources.

3. What gets counted as natural resources largely depends, according to many economists, on:

population growth.
 the amount of physical capital.
 the state of knowledge and technology.
 demographics.

4. The rapid economic growth of Hong Kong is sometimes used to argue that

culture is not very important.
 incentives are not very important.
 natural resources are not very important.
 capital stock is not very important.

5. Which of the following is an example of human capital?

a factory owned and operated by the government.
 a mine owned by an individual capitalist.
 a drill press owned by a non-profit organization.
 the skill of a heart surgeon.

6. The construction of the Erie Canal In the early 19th century reduced the cost of moving grain and merchandise between the east coast to the Midwest. Grain flowed east and manufactured goods flowed west. The Erie Canal is an example of:

physical capital.
 human capital.
 technology.
 a natural resource.

7. The construction of the Erie Canal In the early 19th century reduced the cost of moving grain and merchandise between the east coast to the Midwest. Grain flowed east and manufactured goods flowed west. In terms of growth, the Erie Canal:

did nothing because it was not a productive resource as is a factory, but only help move goods.
 allowed greater specialization by expanding the market, thus increasing output.
 encouraged people to move to regions with low population density, hence reducing growth.
 was an example of a mercantilist policy that Adam Smith thought was harmful.

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Copyright Robert Schenk