Macroeconomics Chapter 7 Quiz

Which of the following statements about the role of social media in promoting economic growth is FALSE?

The advent of social media raised costs for firms, which now must invest in Web pages and information gathering technology to stay competitive.

The historical evidence shows that:

a country's degree of freedom is related to the level of economic growth.

A legal system that enforces property rights is important to economic growth because:

legal protection of ideas and technologies gives people who innovate the ability to protect their work.

One reasonably objective measure for infrastructure is the Index of Economic Freedom, which incorporates information about freedoms in _____ categories.

10

The Rule of 70 states that the number of years required for a value to double in size is:

70 divided by the growth rate.

Infrastructure is:

a country's public capital

The capital-to-labor ratio is:

high in rich countries

Physical capital includes:

manufactured products that are used to produce other goods and services

Which is NOT a source of productivity growth?

moving resources from production to pension benefits

Human capital refers to:

skills, knowledge, and quality of workers.

Because it consists of _____ items, a nation's infrastructure is difficult to measure.

tangible and intangible

In general, the higher the capital-to-labor ratio:

the lower the rate of investment. (incorrect)