Question 1

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
-Botswana,natural resources

Accepted Answer

Botswana is a landlocked country located in Southern Africa, bordered by Namibia, South Africa, Zimbabwe, and Zambia. It is known for its stable political environment, robust democratic traditions, and a relatively strong economy, especially when compared to some of its regional neighbors. The country gained independence from British colonial rule in 1966 and has since transformed itself from one of the poorest countries in the world to a middle-income nation.

Natural resources refer to materials or substances that occur in nature and can be used for economic gain. These include minerals, forests, water, and fertile land. Natural resources can be renewable, such as solar and wind energy, or non-renewable, such as oil, coal, and minerals.

The significance of Botswana's natural resources, particularly diamonds, cannot be overstated. Botswana is one of the world's largest producers of diamonds, and the mining sector is a critical component of its economy. The discovery of diamonds shortly after independence has played a pivotal role in Botswana's economic development. The revenue generated from diamond mining has been used to fund infrastructure, healthcare, and education, contributing to the country's high standard of living compared to many other African nations.

The relationship between Botswana and its natural resources, especially diamonds, is a prime example of how a country can leverage its natural wealth to achieve economic growth and development. The government of Botswana entered into a joint venture with De Beers, a major player in the diamond industry, to form the Debswana Diamond Company. This partnership has been instrumental in ensuring that the profits from diamond mining benefit the country's economy and its citizens.

Moreover, Botswana has been commended for its prudent management of natural resource revenues, avoiding the so-called "resource curse" that has afflicted many resource-rich countries, where an abundance of natural resources leads to economic instability, corruption, and conflict. Instead, Botswana has used its natural resources to build a more diversified economy, investing in sectors such as tourism and financial services, while also establishing sovereign wealth funds to ensure long-term fiscal sustainability.

In summary, Botswana's natural resources, particularly its diamond reserves, have been central to its economic success and development. The country's ability to manage these resources effectively has allowed it to become a model of good governance and economic management in Africa.

Question 2

In order for sustained economic growth to be successful,the centerpiece to the growth process in most countries must be its:

Accepted Answer

A

Question 3

Economists think that economic growth depends fundamentally on all of the following EXCEPT:

Accepted Answer

Inequality does not necessarily play a fundamental role in economic growth, although it can have important implications for the distribution of the benefits of growth. Economic growth depends on factors such as increasing the quantity and quality of physical capital, labor, natural resources, and technological progress leading to efficiency gains.

Question 4

Countries with slow growth include all of the following EXCEPT:

Accepted Answer

The answer of Countries with slow growth include all of...

Question 5

Economists Barry Bosworth and Susan Collins found that capital accumulation accounted for about two-thirds of total growth in:

Accepted Answer

Bosworth and Collins found that capital accumulation accounted for about two-thirds of total growth in East Asia.

Question 6

Countries with rapid growth include all of the following EXCEPT:

Accepted Answer

All of the other countries listed have experienced rapid economic growth in recent years, while Chile's growth has been more moderate.

Question 7

In the Solow model,investment comes from:

Accepted Answer

In the Solow model, investment comes from saving, as a portion of output is saved and invested in new capital goods. Neither outside lenders nor the government are explicitly included in the model as sources of investment, and while investment does increase the capital stock, it is not accurate to say that investment comes from the capital stock itself. Therefore, option C is the best choice.

Question 8

Economist Stephen Radelet has demonstrated that,by stabilizing economic and political problems in the mid-1990s,17 sub-Saharan African countries experienced an annual average total factor productivity growth rate of:

Accepted Answer

Stephen Radelet's research indicated that 17 sub-Saharan African countries achieved an annual average total factor productivity growth rate of 1.5 percent after stabilizing economic and political issues in the mid-1990s.

Question 9

Being landlocked means that:

Accepted Answer

Being landlocked means being surrounded by land without any direct access to the ocean or sea. This makes it difficult to engage in international trade and transport goods. Landlocked countries often have to rely on their neighboring countries or establish costly transportation routes to access ports, increasing overall costs and hindering development. However, it does not necessarily mean growth is impossible, foreign aid is needed or new advances in technology are not beneficial.

Question 10

The empirical relationship between trade and growth is:

Accepted Answer

The empirical relationship between trade and growth is generally found to be strong. Numerous studies have shown that countries that are more open to international trade tend to have higher growth rates. This is because trade allows countries to specialize in the production of goods and services in which they have a comparative advantage, leading to more efficient allocation of resources, access to larger markets, and the adoption of new technologies and practices.

Question 11

Since 1980,GDP per capita has grown more than sevenfold in:

Accepted Answer

According to the given information, GDP per capita has grown more than sevenfold since 1980. The only country that has experienced this level of growth is China. Therefore, the best choice is B.

Question 12

Malaysia's growing life expectancy over the past generation can be largely attributed to:

Accepted Answer

Malaria was a major cause of death in Malaysia, and its reduction has contributed to the increase in life expectancy over the past generation. The other options (A, C, and D) do not have a direct correlation with life expectancy.

Question 13

While Robert Solow established the model for the study of modern economic development,this economist's research in the early 1990s had set the contemporary stage for explaining the variance in growth across countries:

Accepted Answer

Robert Barro's research in the early 1990s on the determinants of economic growth, including factors such as human capital, government policy, and institutions, has been influential in explaining why some countries experience higher rates of economic growth than others.

Question 14

A country's labor force grows 1.2 percent and its capital stock grows 3 percent.Assume that labor share of output is 0.25.If the economy grows 4.55 percent,how much does total factor productivity grow?

Accepted Answer

The answer of A country's labor force grows 1.2 percent...

Question 15

Which of the following is NOT much of a problem in Botswana?

Accepted Answer

Corruption is not much of a problem in Botswana, as it is considered one of the least corrupt countries in Africa, ranking 34th out of 180 countries in the 2019 Corruption Perceptions Index by Transparency International. However, unemployment, HIV/AIDS, and inequality are significant issues in the country.

Question 16

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
-Factor accumulation,productivity growth

Accepted Answer

The answer of IDs and Paired-Concept Questions
These terms can be...

Question 17

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
-Thailand,Zambia

Accepted Answer

The answer of IDs and Paired-Concept Questions
These terms can be...

Question 18

Diminishing returns to capital means that as you add more capital:

Accepted Answer

When you add more capital, the additional contribution to output eventually declines, leading to diminishing returns to capital. This occurs because there is a limited amount of complementary inputs, such as labor or technology, to combine with capital. Therefore, each additional unit of capital has a smaller impact on output than the previous units, resulting in diminishing returns.

Question 19

IDs and Paired-Concept Questions
These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them.
-Saving,Solow model

Accepted Answer

The answer of IDs and Paired-Concept Questions
These terms can be...

Question 20

Between 1990-2002,this nation's growth and development performance was the worst in the world at -7.2 percent:

Accepted Answer

Between 1990-2002, the Democratic Republic of the Congo had the worst growth and development performance in the world with a negative growth rate of -7.2 percent. This was largely due to political instability and civil war during this period.

Quiz 3: Economic Growth: Concepts and Patterns

In order for sustained economic growth to be successful,the centerpiece to the growth process in most countries must be its:

Economists think that economic growth depends fundamentally on all of the following EXCEPT:

Countries with slow growth include all of the following EXCEPT:

Economists Barry Bosworth and Susan Collins found that capital accumulation accounted for about two-thirds of total growth in:

Countries with rapid growth include all of the following EXCEPT:

In the Solow model,investment comes from:

Economist Stephen Radelet has demonstrated that,by stabilizing economic and political problems in the mid-1990s,17 sub-Saharan African countries experienced an annual average total factor productivity growth rate of:

Being landlocked means that:

The empirical relationship between trade and growth is:

Since 1980,GDP per capita has grown more than sevenfold in:

Malaysia's growing life expectancy over the past generation can be largely attributed to:

While Robert Solow established the model for the study of modern economic development,this economist's research in the early 1990s had set the contemporary stage for explaining the variance in growth across countries:

A country's labor force grows 1.2 percent and its capital stock grows 3 percent.Assume that labor share of output is 0.25.If the economy grows 4.55 percent,how much does total factor productivity grow?

Which of the following is NOT much of a problem in Botswana?

IDs and Paired-Concept Questions These terms can be used individually as short-answer identification questions, or they can be used in pairs. In the latter case, ask students to explain (1) the meaning and significance of each of the two terms and (2) the relationship between them. -Thailand,Zambia

Diminishing returns to capital means that as you add more capital:

Between 1990-2002,this nation's growth and development performance was the worst in the world at -7.2 percent: