28) Empirical evidence from 1960 to 2010 shows that convergence in economic growth is occurring in which of the following cases? A) Low-income industrial countries are catching up to high-income industrial countries. B) Low-income developing countries are catching up to high-income industrial countries. C) Low-income industrial countries are catching up to high-income developing countries. D) All low-income countries are catching up to all high-income countries.
28) Empirical evidence from 1960 to 2010 shows that convergence in
A) Low-income industrial countries are catching up to high-income industrial countries.
B) Low-income developing countries are catching up to high-income industrial countries.
C) Low-income industrial countries are catching up to high-income developing countries.
D) All low-income countries are catching up to all high-income countries.
29) Which of the following countries actually experienced negative economic growth from 1960 to 2010?
A) Israel
B) Singapore
C) Niger
D) Malaysia
30) Which of the following accurately describes the impact of the rule of law on a country's economic growth rate?
A) Countries with a strong rule of law have faster economic growth.
B) Countries with a weak rule of law have faster economic growth.
C) Countries that enforce property rights through lawsuits have slower economic growth.
D) Countries where favoritism and bribery are common have stronger rates of growth.
31) Which of the following is not a reason why low-income countries might experience low economic growth?
A) The country has endured extended periods of war.
B) The country fails to enforce a rule of law.
C) The country has a good education system.
D) The country has a low rate of saving and investment.
32) There has been catch-up among ________, but there has not been catch-up among ________.
A) developing countries such as Niger; industrialized countries such as Japan
B) industrialized countries such as Japan; all countries of the world
C) developing countries such as Niger; all countries of the world
D) all countries of the world together; industrialized countries such as Japan
33) ________ save a ________ of their income. This ________ capital in their economy and raises economic growth.
A) Developing countries; large proportion; decreases
B) Developing countries; small proportion; increases
C) High-income countries; large proportion; increases
D) High-income countries; small proportion; increases
34) Lack of investment in strong education and health care systems
A) causes a deterioration in human capital and a decline in labor productivity.
B) causes a decline in physical capital and a decline in labor productivity.
C) increases human capital and cause a decline in labor productivity.
D) causes a deterioration in human capital and an increase in physical capital.
35) Which of the following is an example of foreign portfolio investment?
A) the purchase of a U.S. stock by a U.S. citizen
B) the purchase of a U.S. Treasury bond by a German citizen
C) the purchase of a U.S. mutual fund by a U.S. citizen
D) the purchase of a Japanese factory by a Korean citizen
36) Georg, a German citizen, just purchased 10 shares of stock in Microsoft, a U.S. company. This purchase is an example of
A) foreign direct investment.
B) foreign public investment.
C) foreign portfolio investment.
D) contractual globalization.
37) Which of the following is an example of foreign direct investment?
A) You purchase a plane ticket to China on American Airlines.
B) American Airlines builds a hub in China.
C) You buy a plane that was made in China.
D) A stock broker from China sells you a Chinese government savings bond.
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