61) Economic growth occurs when there is
A) growth in technology that increases productivity.
B) growth in government spending.
C) lower taxes on individuals.
D) more environmental regulation.
62) Free trade
A) hurts economic growth because foreigners are not bound by the same patent laws as we are.
B) helps economic growth by encouraging the sharing of technology and industrial ideas.
C) hurts economic growth because foreign countries can produce goods with lower labor costs.
D) helps economic growth by increasing tariffs.
63) All of the following unambiguously contribute to economic growth EXCEPT
A) increase in human capital.
B) increase in technology.
C) increase in labor productivity.
D) increase in government spending.
64) A patent is
A) a bond issued by the government.
B) a bond issued by a state.
C) the monopoly right given to a producer/company.
D) an agreement between a union and management on certain labor issues.
65) Which of the following is most likely to reduce the rate of economic growth?
A) a high domestic saving rate
B) investment in human capital
C) subsidies for R&D activities
D) slow technological progress
66) Innovation is
A) always financed by the government.
B) an invention financed by the sale of bonds.
C) the transformation of an invention into something useful.
D) an invention financed by the sale of stock certificates.
67) According to new growth theory, economic growth is driven by
A) positive externalities.
B) the division of labor.
C) higher birth rates.
D) new ideas.
68) A government grant that gives an inventor the exclusive right or privilege to make, use, or sell his or her invention is known as
A) a positive externality.
B) a negative externality.
C) a protectionism clause.
D) a patent.
69) The federal government awards a patent holder the exclusive right to make, use, and sell an invention for a period of
A) 20 years.
B) 17 years.
C) unlimited period.
D) 100 years.
70) Which of the following is a true statement?
A) The most important sources of economic growth are the quantity and quality of the land and other natural resources a country controls.
B) The most important source of economic growth is the rate of population growth since a growing population stimulates demand for goods and services, and provides the labor to produce the goods and services.
C) The most important sources of economic growth are the new ideas generated by entrepreneurs in an economic system that permits them to capture the rewards of their entrepreneurial activities.
D) The most important source of economic growth is the extent to which the government directly enters into decisions where research and development activities should be directed and who should be involved in research and development activity.