1. Technological improvement leads to increases in factor productivity but does not contribute much to the growth of aggregate real income for a nation.
a. True
b. False
2. Government rules and regulations that push up costs and drive down profits provide an incentive for business to start up.
a. True
b. False
3. Aggregate real income cannot increase if there is no growth in labor and capital resources.
a. True
b. False
4. One factor that explains lower wages for women is that they do not acquire as much productivity enhancing human capital development through on-the-job training because they are less likely to remain steadily employed.
a. True
b. False
5. Greater openness to international trade has resulted in the benefits of international trade being heavily skewed toward less develop nations in which the bulk of international trade occurs.
a. True
b. False
6. Economic growth in any given year for a given nation is a separate event that does not compound over time.
a. True
b. False
7. Former communist countries that protected their home industries from competition and trade have experienced the greatest amount of technological progress in these same industries.
a. True
b. False
8. Less developed countries that depend on short-term capital inflows to finance business expansion may find that their economic growth rates will suffer badly if those same capital flows are suddenly reversed.
a. True
b. False
9. A higher rate of population growth always leads to economic growth.
a. True
b. False
10. There appears to be no clear relationship between the ease of doing business within a nation and that nation's level of per capita real income.
a. True
b. False