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9.5  Immigration, Property Rights, and Growth

1) Of the following views on the effects of immigration on the receiving nation's economic growth, which have NOT been suggested by economists Michael Kremer and Julian Simon?

A) Technological progress is driven by population growth.

B) Immigrants raise the standard of living of a nation's native population.

C) Immigration increases a nation's labor pool and encourages ingenuity.

D) Immigration costs the local population jobs and greatly lowers their incomes.

2) Which of the following will NOT lead to increased capital investment within a country?

A) Increased uncertainty about private property rights

B) Increased certainty about private property rights

C) The decreased possibility of nationalization of private property

D) Increased certainty about being able to reap the gains from investing

3) The more certain private property rights are,

A) the less people need to invest in education or human capital development.

B) the less entrepreneurship there will be.

C) the more capital accumulation there will be.

D) the more an economy must grow to maintain a certain living standard.

4) A system of private property rights

A) enhances economic growth by creating incentives to the Fed to maintain stable prices.

B) enhances economic growth by increasing the probability that a person can gain from making investments today.

C) retards economic growth by serving the interests of the wealthy only.

D) retards economic growth by limiting the options of people who own nothing.

5) Entrepreneurship functions better when

A) the government performs the entrepreneurial function.

B) there is a well-defined property rights system.

C) saving is relatively low.

D) most of the population has low levels of education.

6) The immediate effect of increased population growth, with real GDP growth unchanged, is to

A) reduce economic growth by reducing per capita real GDP.

B) increase economic growth by stimulating more saving.

C) increase economic growth by boosting the capital stock.

D) leave economic growth unchanged.

7) According to the late Julian Simon,

A) legal immigrants have a favorable impact on the welfare of American citizens, but illegal immigrants have a negative impact. However, the positive effect of the legal immigrants is stronger than the negative impact of the illegal immigrants.

B) legal immigrants have a favorable impact on the welfare of American citizens, but illegal immigrants have a negative impact that almost exactly offsets the positive effect of the legal immigrants.

C) legal and illegal immigrants have a positive effect on the welfare of American citizens.

D) legal and illegal immigrants have a negative effect on the welfare of American citizens.

8) A system of private property rights

A) encourages economic growth by creating incentives to invest in capital and to be innovative.

B) discourages economic growth by discouraging the development of new ideas and ways of doing things.

C) reduces the efficiency of government, which reduces the growth rate of the economy over time.

D) encourages investment but discourages entrepreneurial activity, so the effect on economic growth is uncertain.

9) Entrepreneurship functions better when

A) patent laws are not strongly enforced since they make imitation difficult.

B) government provides technical support to entrepreneurs.

C) a system of private property rights permits entrepreneurs to capture the rewards from their entrepreneurial activities.

D) universities provide research that is closely interrelated with the entrepreneurial activities.

10) The protection of property rights leads to

A) more poverty.

B) more illiteracy.

C) more capital formation.

D) unemployment.

 

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