1- Which of the following is most important if a country is going to achieve and sustain rapid economic growth?

a.institutions and policies that are supportive of private property rights, competition, and freedom of exchange

b.trade restrictions that keep cheap foreign goods out of the domestic market.

c.monetary policy makers who are willing to expand the supply of money rapidly

d.large government expenditures as a share of GDP

2- In 1820, average life expectancy at birth for the world was 26 years. By 2003, the average life expectancy worldwide at birth was

a.almost 80 years.

b.approximately 50 years.

c.approximately 64years.

d.less than 40 years.

3- If the ownership of a resource is secure

a.the value of the resource will be low and the resource will be used inefficiently.

b.the value of the resource will be high but the resource will be used inefficiently.

c.the value of the resource will be low but the resource will be used efficiently.

d.the value of the resource will be high and the resource will be used efficiently.

4- Which of the following would a private owner be prohibited from doing?

a.selling the property to another person

b.erecting a fence designed to keep others from using the property

c.painting the property a color that others do not like

d.using the property in a manner that invades or infringes on the property of another

5- Secure property rights promote economic progress because they

a.encourage individuals to produce efficiently and undertake productive activities.

b.weaken the incentive to take actions that increase the value of resources.

c.transfer the costs of a decline in property value to the government.

d.discourage property owners from engaging in activities that provide value to others.