101.Countries that pursued outward-oriented policies in the 20th century
a.experienced lower rates of economic growth than did countries that pursued inward-oriented policies.
b.experienced higher levels of political instability than did countries that pursued inward-oriented policies.
c.include Singapore, South Korea, and Taiwan.
d.All of the above are correct.
102.Countries with more than 80 percent of their population living within 100 kilometers of a coast will have an average GDP per person that is
a.around four times a country with less than 20 percent of the population living near the coast.
b.around ten times a country with less than 20 percent of the population living near the coast.
c.around twenty times a country with less than 20 percent of the population living near the coast.
d.around fifty times a country with less than 20 percent of the population living near the coast.
103.The president of Suldinia, a developing country, proposes that his country needs to help domestic firms by reducing trade restrictions.
a.These are outward-oriented policies and most economists believe they would have beneficial effects on growth in Suldinia.
b.These are outward-oriented policies and most economists believe they would have adverse effects on growth in Suldinia.
c.These are inward-oriented policies and most economists believe they would have beneficial effects on growth in Suldinia.
d.These are inward-oriented policies and most economists believe they would have adverse effects on growth in Suldinia.
104.In the past there have been violent protests against the World Bank and the World Trade Organization. The protesters argued that these institutions promote free trade and also encourage corporations in rich countries to invest in poor countries. The protesters contended that these practices make rich countries richer and poor countries poorer. An economist would
a.disagree with the protesters because these practices will help make both rich and poor countries richer.
b.disagree with the protesters about free trade, but would agree with the protesters about corporate investment.
c.disagree with the protesters about corporate investment, but would agree with the protesters about free trade.
d.agree with the protesters.
105.Outward-oriented policies
a.allow countries to take advantage of gains from trade.
b.have generally led to high growth for the countries that pursued them.
c.receive widespread support from economists.
d.All of the above are correct.
106.When a country removes trade barriers and imports appliances and exports engineering services,
a.its growth slows.
b.its productivity decreases.
c.it is essentially transforming engineering services into appliances.
d.its economic well-being decreases while that of the country that sells appliances increases.
107.Suppose a country increases trade restrictions. This country would be pursing an
a.inward policy, which most economists believe has beneficial effects on the economy.
b.inward policy, which most economists believe has adverse effects on the economy.
c.outward policy, which most economists believe has beneficial effects on the economy.
d.outward policy, which most economists believe has adverse effects on the economy.
108.A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth. The first is to increase barriers to trade. The second is to restrict foreign portfolio investment. Which of these policies would most economist think would promote growth?
a.both the first and the second
b.the first but not the second
c.the second but not the first
d.neither the first nor the second
109.National defense and knowledge are generally considered to be
a.private goods.
b.public goods.
c.proprietary goods.
d.societal goods.
110.Patents turn new ideas into
a.public goods, and increase the incentive to engage in research.
b.public goods, but decrease the incentive to engage in research.
c.private goods, and increase the incentive to engage in research.
d.private goods, but decrease the incentive to engage in research.