The less certain property rights are A) the more people need to invest in education or hu

The less certain property rights are

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

B) the more entrepreneurship there will be.

C) the less capital accumulation there will be.

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

72) A system of property rights

A) enhances economic growth by creating incentives to the Bank of Canada 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.

73) 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.

74) Entrepreneurship functions less effectively when

A) the government performs the entrepreneurial function.

B) the property rights system is not very well-defined .

C) saving is relatively low.

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

75) An important factor in determining a country's rate of economic growth is

A) the diversity of its population.

B) its rate of saving.

C) the size of its labour force.

D) the proportion of the adult population that is working.

76) To consume more in the future, a society must

A) maintain low inflation.

B) plan carefully.

C) consume less today.

D) have low tax rates on consumption.

77) Many countries find it difficult to achieve economic growth. This is because economic growth

A) is not understood well by economists, so it is difficult to advise policy makers on the best policies to pursue.

B) requires saving and saving means less consumption today. A poor country may find it difficult to consume less today.

C) appears to be predetermined and not subject to factors that policy makers can have any affect on.

D) depends on technological change and technological change depends on non-economic factors such as the growth rate of scientific knowledge.

78) A system of 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.

79) One of the major tenets of the new growth theory is that

A) technology is not an important determinant of economic growth.

B) economic growth is not as important as leisure time growth.

C) the greater the rewards for technological advances are, the greater the number of technological advances we will have.

D) the rewards associated with technological advances have little to do with the actual rate of invention or innovation.

80) New growth theory argues that

A) growth is due to the proper government policies concerning interest rates.

B) growth relies on maintaining lower growth rates of population, especially in less developed countries.

C) technology cannot be looked at as an outside factor without an explanation of what drives it.

D) technology is the key factor that explains growth but technology is beyond economic explanation itself.