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Macroeconomics, Second Canadian Edition (Hubbard)
Chapter 7 Long-Run Economic Growth: Sources and Policies
7.1 Economic Growth over Time and around the World
1) Which of the following is not a reason Palliser Furniture Upholstery Ltd. decided to build a factory in
Mexico instead of in China?
A) It would be easier for managers to oversee production.
B) Investing in Mexico carries virtually no risk.
C) Mexico is closer to Palliser's North American markets.
D) Producing in Mexico is cheaper than producing in Canada.
Answer: B
Diff: 1 Page Ref: 151-152
Topic: Economic Growth Over Time
2CE: New to 2CE
Learning Outcome: 7.1 Define economic growth, calculate economic growth rates, and describe global trends in
economic growth
AACSB: Reflective Thinking
Special Feature: Chapter Opener: Will Economic Reforms in Mexico Boost Growth?
2) Some factors currently exist that inhibit the growth rate of the Mexican economy. The main reason
given is
A) the introduction of free-market reforms.
B) the lack of natural resources in Mexico.
C) the lack of the rule of law that predictably enforce property rights.
D) the total lack of governmental intervention in the market place.
E) the lack of highly educated workers.
Answer: C
2CE: Classic (1CE)- updated for 2CE
economic growth
3) The rapid growth of the Chinese economy should

A) benefit Canadian consumers, as they have access to less expensive consumer goods.
B) make it more difficult for citizens of Canada to find a job.
C) make the cost of living for Canadians rise.
D) not affect the mix of jobs available to citizens of Canada.
E) A and B
Answer: A
Diff: 2 Page Ref: 152
economic growth
Special Feature: Economics in Your Life: Would You Be Better Off without China?
1
Copyright © 2018 Pearson Canada, Inc.
4) The Industrial Revolution began in
A) England around 1750.
B) the United States around 1820.
C) Canada around 1867.
D) Germany around 1780.
E) France around 1777.
Answer: A
Topic: Economic Growth from 1 000 000 BCE to the Present
economic growth
5) Which of the following is a reason why the Industrial Revolution began in England, and not in China,
India, Africa, or Japan?
A) The British system ensured the property rights of entrepreneurs.
B) English inventors were more productive than those in other countries.
C) British government was less stable than those in other countries.
D) The British people had a longer history of embracing technological change.
E) The British Navy prevented China from growing.
Answer: A
2CE: New to 2CE
economic growth
Special Feature: Making the Connection: Why Did the Industrial Revolution Begin in England?
6) Suppose that in 2011 real GDP grew in Estonia by 3% and that the population increased by 5%.
Therefore in 2011, Estonia experienced
A) economic growth, but not an increase in living standards.
B) economic growth and an increase in living standards.
C) no economic growth, but an increase in living standards.
D) no economic growth and no increase in living standards.
E) economic collapse and an increase in living standards.
Answer: A
Topic: Why Do Growth Rates Matter?
economic growth
2
7) The period of time from 1 000 000 BCE to 1300 CE was a period of
A) no sustained economic growth.
B) slow and steady economic growth.
C) moderate economic growth.
D) rapid and sustained economic growth.
E) rapidly accelerating economic growth.
Answer: A
economic growth
8) Significant economic growth did not begin in the world until

A) 1000 CE.
B) 1750 CE.
C) 1820 CE.
D) the 20th century CE.
E) 1500 CE.
Answer: B
economic growth
9) According to Douglass North, the Industrial Revolution occurred in England because

A) the British Parliament took control of the government and could credibly commit to upholding
property rights.
B) the British monarchy took control of the government and pledged not to raise taxes arbitrarily.
C) the British courts became tied to the king and began to refuse to enforce property rights.
D) the British Parliament instituted a command economy structure and implemented a planned
economy.
E) the British navy was the most powerful in the world.
Answer: A
economic growth
3
10) Growth in real GDP per capita for the world economy was greatest during
A) the fifteenth century.
B) the seventeenth century.
C) the eighteenth century.
D) the nineteenth century.
E) the twentieth century.
Answer: E
economic growth
11) If Canada and Bolivia have annual per capita growth rates of 3.2% and 1.35%, respectively, and if
Canada's per capita GDP is higher, then in the long run
A) real GDP per capita in Canada will always be 1.9% higher than real GDP per capital in Bolivia.
B) the difference between the level of real GDP per capita in Canada and real GDP per capita in Bolivia
will shrink over time.
C) the difference between the level of real GDP per capita in Canada and real GDP per capita in Bolivia
will increase over time.
D) the difference between the level of real GDP per capita in Canada and real GDP per capita in Bolivia
will always be $1.9 trillion.
Answer: C
Topic: The Rich Get Richer
economic growth
12) If real GDP per capita in Canada is $8,000, what will real GDP per capita in Canada be after 5 years
if real GDP per capita grows at an annual rate of 3.2%?
A) $8,520
B) $9,280
C) $9,365
D) $10,560
E) $12,350
Answer: C
economic growth
AACSB: Analytic Skills
4
13) If real GDP per capita in Ireland is estimated to be $7,400 in 2012, what will real GDP per capita be
in 2017 if real GDP per capita grows at an annual rate of 2.8%?
A) $7,607
B) $8,496
C) $9,472
D) $20,720
E) $21,375
Answer: B
economic growth
14) If real GDP per capita in Canada is $8,000 in 2018, and if real GDP per capita is $12,000 in 2028, what
is the average annual growth rate of GDP per capita between 2018 and 2028?
A) 3.33%
B) 8.45%
C) 15%
D) 33%
E) 50%
Answer: B
economic growth
Special Feature: Don't Let This Happen to You: Don't Confuse the Average Annual Percentage Change with the
Total Percentage Change
15) If real GDP per capita in Canada is $8,000 in 2018, and if real GDP per capita is $12,000 in 2028, what
is the total percent change in the growth rate of GDP per capita between 2018 and 2028?
A) 3.33%
B) 5%
C) 15%
D) 33%
E) 50%
Answer: E
economic growth
5
16) Increasing the growth rate of GDP per capita and sustaining this growth rate in an economy can
A) increase infant mortality.
B) increase standards of living.
C) increase the level of poverty.
D) lower life expectancy.
E) eliminate poverty.
Answer: B
economic growth
17) Between 1960 and now, deaths rates among children have
A) declined in most high-income countries and have risen in most low-income countries.
B) declined in nearly all countries, including most low-income countries.
C) remained relatively unchanged in most high-income countries and have declined in most low-
income countries.
D) declined in most high-income countries and have remained relatively unchanged in most low-
income countries.
E) risen in virtually all countries.
Answer: B
economic growth
Special Feature: Making the Connection: Is Income All That Matters?
18) Between 1970 and now, the percentage of people able to read and write in sub-Saharan Africa has
A) more than doubled.
B) increased by a factor of four.
C) declined by 50 percent.
D) increased only 10 percent.
E) fallen by 25 percent.
Answer: A
2CE: New to 2CE
economic growth
19) Small differences in economic growth rates result in small differences in living standards.
Answer: FALSE
Topic: Small Differences in Growth Rates Are Important
economic growth
6
20) An economy that grows too slowly fails to raise living standards.
Answer: TRUE
economic growth
21) Most of the countries of Africa are considered newly industrializing countries.
Answer: FALSE
economic growth
22) What features made England in the eighteenth century the place where the Industrial Revolution
occurred?
Answer: The British Parliament had just gained control over the government from the king; British
courts became independent of the king, upheld property rights and protected wealth, and markets in
England at the time were "efficient" in that prices for the same products were the same across regions
after accounting for transportation costs.
economic growth
23) What are some of the reasons used to explain improvements in health, education, democracy, and
political stability in many low-income countries?
Answer: Reasons include increases in technology and knowledge, such as the development in
inexpensive vaccines or the use of mosquito nets, and changes in attitudes, such as placing greater value
on education or increasing support for political freedoms.
economic growth
7
24) Which of the following accurately describes economic growth and standards of living between
and 1300 CE?
A) Standards of living in 1300 CE were substantially better than what they were in 1,000,000 BCE.
B) Standards of living substantially declined from 1,000,000 BCE to 1300 CE.
C) Significant economic growth took place between 1,000,000 BCE and 1300 CE.
D) No sustained economic growth occurred between 1,000,000 BCE and 1300 CE.
E) Standards of living grew slowly, but steadily between 1,000,000 BCE and 1300 CE.
Answer: D
2CE: Yes
Learning Outcome: Macro 4: Explain the sources of productivity growth
25) Entrepreneurship in Mexico is

A) still risky due to government corruption and organized crime.
B) the sole responsibility of the Mexican government.
C) a relatively new phenomenon.
D) the main reason Mexico does not enjoy the same standard of living as the United States and Canada.
E) much safer than in Canada.
Answer: A
Topic: The Chinese Economic Miracle
2CE: New to 2CE
AACSB: Reflective Thinking, Multicultural and Diversity
26) The best measure of a country's standard of living is

A) GDP per labour hour.
B) GDP per unit of capital.
C) GDP per capita.
D) total nominal GDP.
E) the employment population ratio.
Answer: C
2CE: Yes
8
27) If a country's real GDP is rising by 3% per year while its population is rising at 5% per year, which of
the following is true?
A) The country's standard of living is falling.
B) The country's standard of living is rising.
C) Growth in nominal GDP outweighs growth in the population.
D) Growth in nominal GDP is less than the growth in the population.
E) Nominal GDP per capita must be constant.
Answer: A
2CE: Yes
Table 7.1
GDP Population
Country (billions of dollars) (millions of people)
Sweden $385 9.05
Ireland 223 4.21
28) Refer to Table 7.1. Based on the table above, which country has a higher standard of living and
why?
A) Sweden has a higher standard of living because its GDP is higher.
B) Ireland has a higher standard of living because its GDP per capita is higher.
C) Sweden has a higher standard of living because its GDP per capita is higher.
D) Ireland has a higher standard of living because growth in GDP is greater in Ireland than in Sweden.
E) Ireland and Sweden have almost identical standards of living.
Answer: B
2CE: Yes
29) According to the World Bank, in 2013 China's GDP was approximately $9.24 trillion (in U.S. dollars).
That same year, India's GDP was approximately $3.88 trillion (also in U.S. dollars). With which of the
following populations would China's standard of living have been considered higher than India's that
year?
A) China's population = 1.4 billion; India's population = 1.3 billion
B) China's population = 5.3 billion; India's population = 1.4 billion
C) China's population = 500 million; India's population = 125 million
D) China's population = 2.0 billion; India's population = 0.7 billion
E) China's population = 1.2 billion; India's population = 1.4 billion
Answer: A
2CE: Yes
9
30) The Industrial Revolution
A) marked the beginning of significant economic growth in the world.
B) started in France around the year 1750.
C) produced goods exclusively using human or animal power.
D) had no impact on standards of living in the world.
E) marked the beginning of poverty around the world.
Answer: A
2CE: Yes
31) Which of the following is not a reason why the Industrial Revolution occurred when and where it
did?
A) The British government was committed to upholding private property rights.
B) The British government was able to eliminate arbitrary increases in taxes.
C) The British government was able to more easily seize wealth.
D) Institutional changes by the British government helped protect wealth.
E) The British courts were effective at enforcing contracts.
Answer: C
2CE: Yes
32) During which of the following periods was growth in GDP per capita the fastest?
A) prior to 500 CE.
B) 500 CE to 1500 CE.
C) 1500 CE to 1800 CE.
D) 1800-1900 CE.
E) 1900-2000 CE.
Answer: E
2CE: Yes
10
33) In the long run, ________ differences in economic growth rates result in ________ differences in GDP
per capita.
A) large; small
B) large; no
C) small; large
D) small; no
Answer: C
Topic: Small Differences in Growth Rates Are Important
2CE: Yes
34) GDP in a country grew from $10 billion to $14 billion over the span of 5 years. The average annual
growth rate of GDP was
A) 2%.
B) 4%.
C) 7%.
D) 10%.
E) 40%.
Answer: C
2CE: Yes
35) GDP in a country grew from $10 billion to $14 billion over the span of 5 years. The total percentage
change in GDP was
A) 4%.
B) 7%.
C) 10%.
D) 40%.
E) 2%.
Answer: D
2CE: Yes
11
36) If GDP per capita rises by 2% between 2015 and 2016, which of the following is necessarily true?
A) Real GDP has risen by more than 2%.
B) Real GDP has risen by 2%.
C) The population has decreased.
D) The population has increased, but by less than 2%.
E) None of the above is necessarily true.
Answer: E
2CE: Yes
37) The key factors in raising standards of living in low-income countries have been increases in
A) capital accumulation and the money supply.
B) technology and knowledge.
C) foreign aid and population.
D) income and government ownership of resources.
E) trade restrictions.
Answer: B
2CE: Yes
38) ________ is considered a high-income country, ________ a developing country, and ________ a
newly industrializing country.
A) Japan; Hong Kong; South Korea
B) The United States; Somalia; Taiwan
C) Canada; France; Singapore
D) Honduras; New Zealand; South Korea
E) India; Russia; Canada
Answer: B
2CE: Yes
12
39) Which of the following countries had the lowest GDP per capita in 2014?
A) France
B) Mexico
C) Central African Republic
D) Argentina
E) Singapore
Answer: C
40) Which of the following countries had the highest GDP per capita in 2014?
A) Qatar
B) Canada
C) Japan
D) Norway
E) China
Answer: A
2CE: 1CE
41) High-income countries are also referred to as

A) developing countries.
B) industrialized countries.
C) growing countries.
D) agrarian countries.
E) newly developed countries.
Answer: B
2CE: Yes
13
42) The small group of East Asian countries that experienced high rates of growth in the 1980s and
1990s are referred to as
A) newly industrializing countries.
B) countries with low standards of living.
C) education-deprived countries.
D) industrial countries.
E) newly decolonized countries.
Answer: A
2CE: Yes
43) According to Nobel Laureate Douglass North, one reason why the Industrial Revolution occurred in
England before many other countries was because the King of England consistently maintained control
over the court system and the government.
Answer: FALSE
2CE: Yes
44) Most economic growth in the world occurred between 1,000,000 BCE and 1300 CE.
Answer: FALSE
2CE: Yes
45) In 2014, South America had a lower average GDP per capita than any other continent.
Answer: FALSE
46) Only income can produce increases in standard of living.

Answer: FALSE
2CE: Yes
14
47) How do economic growth rates affect a nation's standard of living?
Answer: The speed at which an economy grows determines the standard of living of its people. If an
economy grows too slowly, then standards of living can decline. If a country is already poor, then slow
growth can fail to raise standards of living of its citizens. This can result in people living in poverty,
poor health, having poor nutrition, low life expectancy, high infant mortality, and an overall poor
quality of life. On the other hand, more rapid rates of growth can improve standards of living. This can
lift people out of poverty, raise life expectancy, improve health, eliminate hunger, and improve the
general quality of life.
2CE: Yes
Table 7.2
Population GDP (measured in
Country (thousands) thousands of U.S. dollars
Bangladesh 131,200 $53,800,000
India 1,052,000 517,300,000
Singapore 4,200 113,500,000
Turkey 69,600 204,870,000
48) Refer to Table 7.2. Calculate the GDP per capita for each country in the table. Which country has the
highest standard of living? Why?
Answer: GDP per capita = GDP / Population.
GDP per capita in Bangladesh: $53,800,000 / 131,200 = $410.06.
GDP per capita in India: $517,300,000 / 1,052,000 = $491.73.
GDP per capita in Singapore: $113,500,000 / 4,200 = $27,023.81.
GDP per capita in Turkey: $204,870,000 / 69,600 = $2,943.53.
Singapore has the highest standard of living because it has the highest GDP per capita.
2CE: Yes
15
7.2 What Determines How Fast Economies Grow?
1) An economic growth model explains

A) changes in real GDP per capita in the long run.
B) how changes in the money supply affect real interest rates.
C) changes in government tax policies over time.
D) the growth rate of the price level over time.
E) changes in a country's population over time.
Answer: A
Topic: What Determines How Fast Economies Grow?
Learning Outcome: 7.2 Use the economic growth model to explain why growth rates differ across countries
2) Which of the following is not one of the three sources of technological change?
A) additional amounts of existing capital
B) better machinery and equipment
C) increases in human capital
D) better means of organizing and managing production
Answer: A
3) Which of the following would you expect to result in faster economic growth?
A) the invention of new computers that increase labour productivity
B) a decrease in the average level of education in the economy
C) a decrease in the stock of capital per worker
D) a decrease in research and development spending
E) an increase in the rate of population growth
Answer: A
4) An economy can improve its standard of living by

A) organizing production so that the quantity of goods produced per hour will decrease.
B) reducing the amount of human capital workers have.
C) increasing the amount of capital available per hour worked.
D) increasing the minimum wage.
E) all of the above
Answer: C
16
5) When an economy faces diminishing returns,
A) the slope of the per-worker production function becomes steeper as capital per hour worked
increases.
B) the slope of the per-worker production function becomes flatter as capital per hour worked increases.
C) the per-worker production function shifts to the left.
D) the per-worker production function shifts to the right.
E) the per-worker production function does not pass through the origin.
Answer: B
Topic: Per-Worker Production Function
6) When additions of input to a fixed quantity of another input lead to progressively smaller increases
in output, we say we are facing
A) diminishing returns.
B) negative returns.
C) accelerating returns.
D) decreasing production.
E) diseconomies of scale.
Answer: A
7) Suppose that an increase in capital per hour worked from $15,000 to $20,000 increases real GDP per
hour worked by $500. If capital per hour worked increases further to $25,000, by how much would you
expect real GDP per hour worked to increase if there are diminishing returns?
A) by less than $500
B) by exactly $500
C) by more than $500 but less than $5,000
D) by more than $5,000 but less than $20,000
E) by more than $20,000
Answer: A
17
Figure 7.1
8) Refer to Figure 7.1. Diminishing marginal returns is illustrated in the per-worker production function
in the figure above by a movement from
A) A to C.
B) B to C.
C) C to D.
D) D to C.
E) A to D.
Answer: A
9) Refer to Figure 7.1. Technological change is illustrated in the per-worker production function in the
figure above by a movement from
A) A to B.
B) B to C.
C) B to A.
D) D to C.
E) D to A.
Answer: B
18
10) Refer to Figure 7.1. Using the per-worker production function in the figure above, the largest
changes in an economy's standard of living would be achieved by a movement from
A) A to B to C.
B) B to C to D.
C) C to B to A.
D) D to C to B.
E) C to D to A.
Answer: B
11) Refer to Figure 7.1. Suppose the per-worker production function in the figure above represents the
production function for the Canadian economy. If Canada decided to double its support of university
research, this would cause a movement from
A) A to B.
B) B to C.
C) B to A.
D) D to C.
E) C to A.
Answer: B
12) Refer to Figure 7.1. Within a country, the impact of wars and revolutions and their subsequent
destruction of capital is reflected in the per-worker production function in the figure above by a
movement from
A) A to B.
B) B to C.
C) B to A.
D) C to A.
E) B to D.
Answer: D
Topic: Growth Policies
19
13) Refer to Figure 7.1. Many countries in Africa strongly discouraged and prohibited foreign direct
investment in the 1950s and 1960s. By doing so, these countries were essentially preventing a moment
from
A) A to B.
B) B to C.
C) B to A.
D) D to C.
E) D to A.
Answer: B
14) Refer to Figure 7.1. Which of the following could cause an economy to move from point C to B?
A) Restrictions on foreign direct investment and international migration.
B) Government funding of universities.
C) Policies that encourage firms to adopt new production technology.
D) The introduction of computer coding classes in primary education.
E) An economy gaining more capital.
Answer: A
2CE: New to 2CE
15) In the eighteenth century, Honoré Blanc, a French gunsmith, revolutionized the arms manufacturing
industry by focusing on interchangeable parts and standardization and the integration of the assembly
line. What impact did his methods for producing muskets have on the per-worker production function?
A) It became flatter.
B) It shifted up.
C) It shifted down.
D) It became linear.
E) It no longer passed through the origin.
Answer: B
20
16) If the per-worker production function shifts down,
A) it now takes more capital per hour worked to get the same amount of real GDP per hour worked.
B) an economy can increase its real GDP per hour worked without changing the level of capital per hour
worked.
C) the per-worker production function becomes steeper.
D) positive technological change has occurred in the economy.
E) workers have acquired more human capital.
Answer: A
17) Because of diminishing returns, an economy can continue to increase real GDP per hour worked
only if
A) there are decreases in human capital.
B) the per-worker production function shifts downward.
C) there continue to be decreases in capital per hour worked.
D) there is technological change.
E) there continue to be increases in capital per hour worked.
Answer: D
18) In a small European country, it is estimated that a $10,000 increase in capital per hour worked will
increase real GDP per hour worked by $300. Based on this information, what is the slope of the per-
worker production function in this range?
A) 0.03
B) 0.3
C) 3.3
D) 33.3
E) 333
Answer: A
21
19) In a small European country, it is estimated that changing the level of capital from $8 million to $10
million will increase real GDP from $2 million to $3 million. If the number of hours worked in the
labour force does not change, what does this information tell you about the slope of the per-worker
production function in this range?
A) The slope is -2.
B) The slope is 1/2.
C) The slope is 2.
D) The slope is 4.
E) The slope is 8.
Answer: B
20) In a small European country, it is estimated that changing the level of capital from $8 million to $10
million will increase real GDP from $2 million to $3 million. What level of GDP would you expect the
economy to be able to reach if spending on capital continued to rise to $12 million, assuming no
technological change and no change in the hours of work?
A) GDP would increase further, but by less than $1 million.
B) GDP would increase further by exactly $1 million.
C) GDP would increase further by more than $1 million.
D) GDP would increase further by exactly $4 million.
E) GDP would increase further, but more than $4 million.
Answer: A
21) If the slope of the per-worker production function is 1/2 in a given range, how will a $10,000 increase
in capital per hour worked affect real GDP per hour worked in the same given range?
A) Real GDP per hour worked will increase by $5,000.
B) Real GDP per hour worked will increase by $20,000.
C) Real GDP per hour worked will increase by $10,000.
D) Real GDP per hour worked will decrease by $20,000.
E) Real GDP per hour worked will increase by more than $20,000.
Answer: A
22
22) The Soviet Union's economy grew rapidly in terms of GDP per hour worked in the 1950s, but
eventually this growth slowed. Why did this occur?
A) Capital per hour worked grew rapidly from 1950 to 1980, but technological change occurred very
slowly.
B) Capital per hour worked grew slowly, but technological change grew very rapidly.
C) Increasing implementation of new technologies eventually suffered diminishing marginal returns.
D) The centrally planned economy invested too heavily in technological change.
E) The Soviet labour force grew too slowly to maintain growth.
Answer: A
Special Feature: Making the Connection: What Explains the Economic Failure of the Soviet Union?
23) Under the Soviet system of communism,

A) managerial pay was determined by the extent to which managers could lower the per-unit costs of
production.
B) technological progress was slow because managers had little incentive to develop new technologies.
C) competitive pressures in the Soviet Union allowed the country's technological progress to keep pace
with the rest of the world.
D) the per-worker production function in the Soviet Union shifted up more rapidly than production
functions in other countries.
E) worker's incentives exert effort were too strong, ultimately leading to a reduction in productivity.
Answer: B
24) Technological improvements are more likely to occur if

A) the economy is centrally planned.
B) entrepreneurs are compensated with higher profits for taking risks.
C) economic decisions are made by politicians rather than entrepreneurs.
D) companies face little competition in their markets.
E) governments directly control research and development.
Answer: B
23
Figure 7.2
25) Refer to Figure 7.2. Based on the per-worker production function above, if the Canadian economy
raises capital per hour worked from $35,000 to $40,000, by how much will real GDP per hour worked
increase?
A) $150
B) $1,850
C) $2,000
D) $5,000
E) $35,000
Answer: A
Special Feature: Solved Problem: Using the Economic Growth Model to Analyze the Failure of the Soviet Economy
26) Refer to Figure 7.2. Assuming no technological change, if Canada increases capital per hour worked
by $40,000 every year between 2015 and 2020, we would expect to see
A) real GDP per hour worked will increase by the same increment each year between 2015 and 2020.
B) real GDP per hour worked will be lower in 2020 than it was in 2015.
C) the per-worker production function will get flatter over time.
D) the per-worker production function will shift up every year there is increase in capital per hour
worked.
E) the per worker production function will become steeper every year.
Answer: C
24
27) According to new growth theory,
A) technological change is influenced by economic incentives.
B) centrally-planned economies are the most efficient.
C) growth in real GDP per capita occurs only if there are increasing returns.
D) economic growth is determined by forces outside the control of the market system.
E) capital accumulation will accelerate GDP growth.
Answer: A
Topic: New Growth Theory
28) Paul Romer, an economist at Stanford University, is most closely associated with what economic
theory?
A) new growth theory
B) labour productivity theory
C) the process of creative destruction
D) the Communist Manifesto
E) the quantity theory of money
Answer: A
29) According to new growth theory

A) physical capital is nonexcludable.
B) knowledge capital is excludable.
C) knowledge capital is subject to increasing returns.
D) knowledge capital is rival and excludable.
E) knowledge capital can be exhausted by advanced economies.
Answer: C
25
30) New growth theory assumes
A) knowledge capital is subject to decreasing returns at the firm level and increasing returns over the
entire economy.
B) physical capital is subject to decreasing returns at the firm level and increasing returns over the entire
economy.
C) physical capital is subject to increasing returns at the firm level and decreasing returns over the
entire economy.
D) knowledge capital is subject to increasing returns at the firm level and decreasing returns over the
entire economy.
E) the returns to knowledge capital can be exhausted in specific industries.
Answer: A
2CE: New to 2CE
31) Knowledge capital is

A) rival.
B) nonrival.
C) nonexcludable.
D) both B and C
Answer: D
32) Why would knowledge capital exhibit increasing returns for an entire economy, but not for an
individual firm?
A) Its non-rival nature means small gains in productivity can be enjoyed by thousands of firms at once.
B) Its non-rival nature means that firms must compete to enjoy the benefits fo knowledge capital.
C) Its non-excludable nature means that firms have an extra incentive to produce knowledge capital.
D) Its non-excludable nature means that use by one firm does not reduce the benefit of knowledge
capital to another.
E) Its non-excludable nature means that small gains in productivity cannot be captured by just one firm.
Answer: A
2CE: New to 2CE
26
33) Knowledge capital is nonrival in the sense that
A) two people can use the same knowledge to develop and produce a product.
B) firms do not compete to be the first to develop new technologies.
C) no single company can be excluded from the benefits of new technologies.
D) firms can benefit from the research and development of rival firms without paying for that benefit.
E) countries around the world all have access to the same technology.
Answer: A
34) Firms free ride on the research and development of other firms when they
A) buy a firm's newly developed product, and then give it away to consumers.
B) use knowledge other firms have developed without paying for that knowledge.
C) license a new technology from a firm that developed the new technology.
D) choose a level of research and development that is inefficiently high.
E) file a patent with the appropriate government.
Answer: B
35) Which of the following government provisions would help increase the accumulation of knowledge
capital?
A) patents
B) copyrights
C) education subsidies
D) All of the above are correct.
Answer: D
27
36) Because firms can free ride on the research and development of other firms,
A) firms choose a level of research and development where the marginal cost of research is equal to the
economy's marginal return of research.
B) firms choose a level of research and development where the marginal cost of research is above the
C) firms choose a level of research and development where the marginal cost of research is below the
D) firms choose a level of research and development where the marginal cost of research is below the
individual firm's marginal return of research.
E) firms will always face marginal costs of research and development that exceed their marginal return
of research.
Answer: C
37) A patent grants an inventor exclusive rights to a product for how long?
A) 14 years
B) 17 years
C) 20 years
D) 50 years
E) the lifetime of the product
Answer: C
38) Why do some firms choose not to file for a patent and instead try to keep the results of their research
a trade secret?
A) because firms must disclose information about the product or process being patented in a patent
application
B) because trade secrets are never divulged
C) because a patent only gives the inventor exclusive rights to a product or process for 5 years
D) because trade secrets provide the same exclusive legal rights to a product as a patent does
E) because legal enforcement of patents is uncertain in North America
Answer: A
28
39) Which of the following government policies would most likely result in an increase in economic
growth?
A) a decrease in the life of a patent from 20 years to 15 years
B) a decrease in the interest rate at which the government provides student loans
C) a decrease in government spending on grants issued through the National Institutes of Health
D) decreased copyright protection on music and movies
E) an increase in taxes on research and development spending
Answer: B
40) According to Joseph Schumpeter, economic growth is achieved through

A) focusing only on making old products better rather than inventing new ones.
B) centralizing economic production.
C) a process termed "creative destruction."
D) removing the entrepreneur from the production function.
E) protection of existing firms.
Answer: C
Topic: Creative Destruction
41) Creative destruction means that

A) firms develop new products that replace old products in the economy, thereby encouraging
economic growth.
B) economic growth can only be sustained if capital depreciates rapidly.
C) knowledge capital can be created through a system of government subsidies for education and
research and development.
D) research and development should only be financed if research and development is incremental (a
result of making small changes to existing products).
E) breaking up existing companies using competition law is required for economic growth.
Answer: A
42) Human capital refers to the percentage of the working-age population in the labour force.
Answer: FALSE
29
43) Technological change is the key to sustaining economic growth.
Answer: TRUE
44) One drawback of the patent system is that firms must disclose to the public information about the
product or process.
Answer: TRUE
45) Explain how advances in technology are critical to sustaining economic growth, even if capital per
hour worked is consistently increasing. Provide a graph of a per-worker production function to support
your answer.
Answer: As the level of capital per hour worked increases, an economy moves along the per-worker
production function toward higher levels of real GDP per hour worked. However, diminishing returns
imply that successive increases in capital per hour work increase real GDP per hour worked at a
decreasing rate. As shown in the graph below, moving from point A to point B implies an increase in
capital per hour worked. As a result, real GDP per hour worked increases from $780 to $800 (an increase
of $20). Moving from point B to point C implies a similar increase in capital per hour worked, but real
GDP per hour worked increases from $800 to $810 (an increase of only $10). Without technological
change that shifts the per-worker production function upward, continual growth in real GDP per hour
worked cannot be sustained even if capital per hour worked continues to increase.

30
46) Starting at point B in the diagram below, identify which combinations of points illustrate
technological change. Give a brief explanation to support your answer.
Answer: The movement from B to D in the diagram illustrates technological change. Technological
change is constant along a given production function. Technological change will shift the production
function up as more output is produced ($17,000 GDP per hour vs. $16,000 GDP per hour) with the
same amount of capital per hour worked ($60,000).
47) Explain how market economies are generally better able to achieve technological progress than are
centrally planned economies.
Answer: In a centrally planned economy, decisions regarding the allocation of resources are made by
government employees paid a salary, not by independent entrepreneurs whose own finances are at
stake. Independent entrepreneurs make choices for the use of resources based on the expected
profitability of various projects. This drive for profit provides an incentive for technological change that
centrally planned economies are unable to duplicate. The result is that technological progress is more
likely in market economies than in centrally planned economies.
31
48) Provide examples of three kinds of government policies that can help increase the accumulation of
knowledge capital and explain why government policies are often necessary to encourage the
accumulation of knowledge capital.
Answer: Knowledge capital is a result of research and development that culminates in new technology.
Because research and development is costly, and the resulting knowledge capital is both nonrival and
nonexcludable, firms have an incentive not to disclose new technologies. If other firms can receive some
of the benefits without incurring the costs of research and development, firms have less incentive to
invest in research and development (they act as "free riders"), so government policies are sometimes
necessary to encourage research and development. For example, government policies that protect
intellectual property rights with patents and copyrights guarantee firms exclusive rights to profits from
new technologies for a period of time. This will encourage the accumulation of knowledge capital. In
addition, subsidies for research and development through grants to researchers or tax benefits to firms
that invest in research and development can also encourage the accumulation of knowledge capital.
Finally, government subsidies for education will increase the number of workers who receive
education, thereby reducing firms' costs of training and increasing the level of research and
development firms will be willing to undertake.
49) Is knowledge capital subject to the law of diminishing returns? Explain.

Answer: The law of diminishing returns states that successive increases in capital result in successively
smaller and smaller increases in output. Knowledge capital may not be subject to the same law of
diminishing returns that physical capital is. In fact, knowledge capital may experience increasing returns
because knowledge, once discovered, is available to everyone and is therefore more likely to generate
new technologies and economic growth.
50) Describe the process of "creative destruction" using a specific example.

Answer: Creative destruction, based on the ideas of Joseph Schumpeter, describes the process whereby
older products are driven out of the market by newer products. New products that meet consumer
wants in qualitatively better ways will increase the overall standard of living for an economy. Here are
some current and historical examples of creative destruction: DVD players replaced video tapes and
VHS recorders, calculators replaced slide rules, clocks replaced sundials, cars replaced horses and
buggies, disposable diapers replaced cloth diapers, Game Boys and Xboxes replaced Ataris, Internet
Explorer replaced NCSA Mosaic, CD players replaced tape players, indoor plumbing replaced
outhouses, iPods replaced Walkmans, phones replaced the telegraph, planes replaced trains for travel,
digital cameras replaced film cameras, and electricity replaced candlelight and gas lights.
32
51) An economic growth model
A) explains changes in nominal GDP per capita in the long run.
B) explains changes in real GDP per capita in the long run.
C) explains changes in nominal GDP per capita in the short run.
D) explains changes in real GDP per capita in the short run.
E) explains changes in the unemployment rates in the long run.
Answer: B
Topic: What Makes Economies Grow?
2CE: Yes
52) Which factors explain labour productivity?

A) technological change; the quantity of labour per hour worked
B) diminishing returns; the quantity of labour per hour worked
C) diminishing returns; the quantity of capital per hour worked
D) technological change; the quantity of capital per hour worked
E) population; the unemployment rate; and minimum wages
Answer: D
2CE: Yes
53) The per-worker production function shows the relationship between ________ per hour worked and
________ per hour worked, holding ________ constant.
A) labour; real GDP; technology
B) capital; real GDP; technology
C) labour; capital; real GDP
D) capital; labour; real GDP
E) human capital; nominal GDP; population
Answer: B
2CE: Yes
33
Figure 7.3
54) Refer to Figure 7.3. Technological change is shown in the figure above by the movement from
A) B to C.
B) B to D.
C) B to E.
D) B to A.
E) D to C.
Answer: C
2CE: Yes
55) Refer to Figure 7.3. Which of the following would cause an economy to move from a point like A in
the figure above to a point like B?
A) an improvement in technology
B) a decrease in capital per hour worked
C) an increase in capital per hour worked
D) a technological regression
E) a rise in the population
Answer: C
2CE: Yes
34
56) Refer to Figure 7.3. Many workers leaving a region is shown in the figure above by a movement
from
A) B to C.
B) B to A.
C) B to E.
D) E to B.
E) C to E.
Answer: A
Topic: People Respond to Economic Incentives
2CE: New to 2CE
57) Refer to Figure 7.3. A large group of new workers entering the labour force is shown in the figure
above by a movement from
A) C to B.
B) A to B.
C) B to E.
D) E to B.
E) C to D.
Answer: A
2CE: New to 2CE
AACSB: Reflective Thinking, Communication
58) The per-worker production function has a ________ slope, indicating that increases in capital per
hour worked ________ real GDP.
A) negative; increase
B) positive; increase
C) negative; decrease
D) positive; decrease
Answer: B
2CE: Yes
35
59) A small economy increased its capital per hour worked (K/L) from $40,000 to $50,000. As a result,
real GDP per worker (Y/L) grew from $20,000 to $25,000. If the economy increases its capital per hour
worked by another $10,000 to $60,000, but there is no change in technology, by how much more and in
what direction will output per worker change?
A) Output per worker will increase by exactly $5,000.
B) Output per worker will increase by more than $5,000.
C) Output per worker will increase by less than $5,000.
D) Output per worker will fall by more than $5,000.
E) Output per worker will increase by more than $10,000.
Answer: C
2CE: Yes
60) What is human capital?

A) labour productivity
B) buildings, equipment, and machinery owned by individuals rather than firms
C) buildings, equipment, and machinery owned by firms
D) the accumulated knowledge and skills that workers acquire from education, training, and life
experiences
E) the employees available to be hired by a firm
Answer: D
2CE: Yes
61) If there is a change in the ability of a firm to produce a given level of output with a given level of
inputs, we say there is
A) human capital investment.
B) technological change.
C) an increase in labour productivity.
D) a movement along a given per-worker production function.
E) the accumulation of physical capital.
Answer: B
2CE: Yes
36
62) Technological change will
A) shift the per-worker production function up.
B) shift the per-worker production function down.
C) move the economy to a point beneath the per-worker production function.
D) move the economy along a given per-worker production function.
E) make the per-worker production flatter.
Answer: A
2CE: Yes
AACSB: Analytic Skills, Use of Information Technology
63) In the long run, a country will experience an increasing standard of living only if it experiences
A) a high rate of consumption.
B) continuous technological change.
C) a high rate of labour-force growth.
D) a slow rate of population growth.
E) a high rate of capital accumulation.
Answer: B
2CE: Yes
64) If, after an outflow of workers in a country, it now takes more capital per hour worked to get the
same amount of GDP per hour worked, this indicates ________ the per-worker production function in
that country.
A) a movement up
B) a movement down
C) an upward shift of
D) a downward shift of
E) a pivot to the left
Answer: D
2CE: Yes
37
65) If an outflow of workers leaves a country with a smaller but more productive workforce and the
capital per hour worked does not change, there will be ________ the per-worker production function in
that country.
A) a movement up
B) a movement down
C) an upward shift of
D) a downward shift of
E) a flattening out of
Answer: C
2CE: Yes
66) Which of the following describes the former Soviet Union's economy through most of the second
half of the 20th century?
A) The Soviet economy grew rapidly in the later half of the 20th century.
B) The Soviet economy increased capital per worker very slowly from 1950 through 1980.
C) The Soviet economy grew slowly because of the slow rate of technological change.
D) The Soviet economy grew because it added labour through its immigration policy in the 1950s.
E) The Soviet economy grew because it was able to develop new technology faster than most others.
Answer: C
2CE: Yes
67) The former Soviet Union consistently increased the amount of capital available to its workers, but
found that increases in capital resulted in progressively smaller and smaller increases in GDP per
worker. This phenomenon is referred to as
A) a rising standard of living.
B) diminishing returns to capital.
C) new growth theory.
D) a shift of the per-worker production function.
E) diseconomies of scale.
Answer: B
2CE: Yes
38
68) New growth theory
A) states that the rate of technological change is determined outside the working of the market system.
B) does not adequately explain the factors that determine productivity.
C) states that the rate of technological change is caused by economic incentives.
D) states that the rate of technological change is unaffected by economic incentives.
E) states that the rate of capital accumulation determines the rate of economic growth.
Answer: C
2CE: Yes
Learning Outcome: Macro 17: Discuss the fundamentals of key macroeconomic theories
69) If the per-worker production function shifts up,

A) it now takes more capital per hour worked to get the same amount of real GDP per hour worked.
B) an economy can increase its real GDP per hour worked without changing the level of capital per hour
worked.
C) the per-worker production function becomes flatter.
D) negative technological change has occurred in the economy.
E) future production will require more resources than in the past.
Answer: B
2CE: Yes
70) Knowledge capital is ________ in production and ________. As a result, firms ________ free ride.
A) nonrival; nonexcludable; can
B) nonrival; excludable; can
C) rival; nonexcludable; cannot
D) nonrival; nonexcludable; cannot
E) rival; excludable; cannot
Answer: A
2CE: Yes
39
71) An increase in ________ shifts the production function ________, and makes it possible to produce a
higher level of GDP with ________ capital per hour worked.
A) technology; down; the same amount of
B) technology; up; the same amount of
C) consumption; up; a lesser amount
D) labour productivity; down; the same amount of
E) capital stock; up; a lesser amount
Answer: B
2CE: Yes
AACSB: Reflective Thinking, Use of Information Technology
72) In a small Asian country, it is estimated that a $10,000 increase in capital per hour worked will
increase real GDP per hour worked by $600. Based on this information, what is the slope of the per-
worker production function in this range?
A) 0.06
B) 0.6
C) 6.6
D) 66.6
E) 666
Answer: A
2CE: Yes
73) In a small Asian country, it is estimated that changing the level of capital from $8 million to $12
million will increase real GDP from $5 million to $6 million. If the number of hours worked in the
labour force does not change, what does this information tell you about the slope of the per-worker
production function in this range?
A) The slope is -4.
B) The slope is 1/4.
C) The slope is 2.
D) The slope is 4.
E) The slope is 8.
Answer: B
2CE: Yes
40
74) In a small Asian country, it is estimated that changing the level of capital from $8 million to $12
million will increase real GDP from $4 million to $6 million. What level of GDP would you expect the
economy to be able to reach if spending on capital continued to rise to $16 million, assuming no
technological change and no change in the hours of work?
A) GDP would increase further, but by less than $2 million.
B) GDP would increase further by exactly $2 million.
C) GDP would increase further by more than $2 million.
D) GDP would increase further by exactly $8 million.
E) GDP would increase further by more than $8 million.
Answer: A
2CE: Yes
75) If the slope of the per-worker production function is 1/4 in a given range, how will a $10,000 increase
in capital per hour worked affect real GDP per hour worked in the same given range?
A) Real GDP per hour worked will increase by $2,500.
B) Real GDP per hour worked will increase by $40,000.
C) Real GDP per hour worked will increase by $10,000.
D) Real GDP per hour worked will decrease by $40.000.
E) Real GDP per hour worked will decrease by $10,000.
Answer: A
2CE: Yes
41
Figure 7.4
76) Refer to Figure 7.4. The movement from A to B to C illustrates

A) an improvement in technology.
B) a decline in capital per worker.
C) diminishing returns to capital.
D) diminishing returns to labour.
E) rising labour force participation.
Answer: C
2CE: Yes
77) Refer to Figure 7.4. The movement from E to B to D in the figure above illustrates
A) an improvement in technology.
B) a decline in capital per worker.
C) diminishing returns to capital.
D) diminishing returns to labour.
E) an increase in the price level.
Answer: A
2CE: Yes
42
78) Refer to Figure 7.4. Suppose the economy gains more capital per hour worked and experiences
technological change. This is shown in the figure above by the movement from
A) E to B to D.
B) A to B to C.
C) A to E.
D) A to D.
E) D to A.
Answer: D
2CE: Yes
79) Refer to Figure 7.4. Which of the following combinations of points illustrates changes in the Soviet
Union's economy from 1950 to 1980?
A) E to B
B) B to D
C) B to E
D) A to B to C
E) D to C
Answer: D
2CE: Yes
AACSB: Analytic Skills, Multicultural and Diversity
80) Refer to Figure 7.4. Using the per-worker production function in the figure above, the largest
changes in an economy's standard of living would be achieved by a movement from
A) A to B to C.
B) E to B to D.
C) C to B to A.
D) D to B to E.
E) D to A.
Answer: B
2CE: Yes
43
81) Refer to Figure 7.4. Suppose the per-worker production function in the figure above represents the
production function for the Canadian economy. If Canada decided to cut its support of university
research in half, this would cause a movement from
A) B to A.
B) B to E.
C) B to C.
D) B to D.
E) D to A.
Answer: B
2CE: Yes
82) Refer to Figure 7.4. Within a country, the impact of wars and revolutions and their subsequent
destruction of capital is reflected in the per-worker production function in the figure above by a
movement from
A) A to C.
B) B to C.
C) B to A.
D) E to B.
E) D to A.
Answer: C
2CE: Yes
83) Refer to Figure 7.4. Many countries in Africa strongly discouraged and prohibited foreign direct
investment in the 1950s and 1960s. By doing so, these countries were essentially preventing a movement
from
A) B to A.
B) E to B.
C) A to E.
D) D to B.
E) D to A.
Answer: B
2CE: Yes
44
84) New growth theory states that increases in ________ capital will result in ________ at the ________
level.
A) knowledge; increasing returns to scale; firm
B) physical; decreasing returns to scale; firm
C) knowledge; decreasing returns to scale; economy
D) knowledge; increasing returns to scale; economy
E) financial; constant returns to scale; economy
Answer: D
2CE: Yes
85) According to new growth theory, the accumulation of ________ capital is subject to diminishing
returns at the ________ level, but not at the level of the economy as a whole.
A) physical; firm
B) technological; personal
C) knowledge; firm
D) physical; production
E) financial; individual
Answer: A
2CE: Yes
86) Because knowledge capital is nonexcludable and nonrival, firms have an incentive to ________ the
research and development of other firms.
A) make bids on
B) not use
C) ignore
D) free ride on
E) steal
Answer: D
2CE: Yes
45
Another random document with
no related content on Scribd:
The Project Gutenberg eBook of The Cambridge natural
history, Vol. 02 (of 10)
This ebook is for the use of anyone anywhere in the United States and most
other parts of the world at no cost and with almost no restrictions whatsoever.
You may copy it, give it away or re-use it under the terms of the Project
Gutenberg License included with this ebook or online at www.gutenberg.org. If
you are not located in the United States, you will have to check the laws of the
country where you are located before using this eBook.
Title: The Cambridge natural history, Vol. 02 (of 10)
Author: Frank E. Beddard

W. B. Benham
F. W. Gamble
Marcus Hartog
Lilian Sheldon
Editor: S. F. Harmer
Sir A. E. Shipley
Release date: October 16, 2023 [eBook #71891]
Language: English
Original publication: New York: MacMillan and Co, 1901
Credits: Keith Edkins, Peter Becker and the Online Distributed Proofreading
Team at https://www.pgdp.net (This file was produced from images
generously made available by The Internet Archive)
*** START OF THE PROJECT GUTENBERG EBOOK THE CAMBRIDGE

NATURAL HISTORY, VOL. 02 (OF 10) ***
THE
CAMBRIDGE NATURAL HISTORY
EDITED BY
S. F. HARMER, M.A., Fellow of King's College, Cambridge; Superintendent of the

University Museum of Zoology
AND
A. E. SHIPLEY, M.A., Fellow of Christ's College, Cambridge; University Lecturer on

the Morphology of Invertebrates
VOLUME II
FLATWORMS AND MESOZOA

By F. W. Gamble, M.Sc. (Vict.), Owens College
NEMERTINES
By Miss L. Sheldon, Newnham College, Cambridge
THREAD-WORMS AND SAGITTA

By A. E. Shipley, M.A., Fellow of Christ's College, Cambridge
ROTIFERS
By Marcus Hartog, M.A., Trinity College, Cambridge (D.Sc. Lond.), Professor of Natural
History in the Queen's College, Cork
POLYCHAET WORMS
By W. Blaxland Benham, D.Sc. (Lond.), Hon. M.A. (Oxon.), Aldrichian Demonstrator of
Comparative Anatomy in the University of Oxford
EARTHWORMS AND LEECHES

By F. E. Beddard, M.A. (Oxon.), F.R.S., Prosector to the Zoological Society, London
GEPHYREA AND PHORONIS

By A. E. Shipley, M.A., Fellow of Christ's College, Cambridge
POLYZOA
By S. F. Harmer, M.A., Fellow of King's College, Cambridge
London
MACMILLAN AND CO., Limited
NEW YORK: THE MACMILLAN COMPANY
1901
All rights reserved
'Nous allons faire des vers ensemble'

André de Chénier
First Edition 1896. Reprinted 1901

CONTENTS
PAGE
Scheme of the Classification adopted in this Book ix
PLATYHELMINTHES AND MESOZOA

CHAPTER I
TURBELLARIA
Introduction—description of the Polyclad Leptoplana
tremellaris—Appearance—Habits—Structure: Polycladida—
Classification—Habits—Anatomy—Development: Tricladida—
Occurrence—Structure—Classification: Rhabdocoelida—
Occurrence—Habits—Reproduction—Classification 3
CHAPTER II
TREMATODA
Characters of Trematodes—Habits and Structure of Trematoda
Ectoparasitica (Monogenea)—Life-Histories of Polystomum
integerrimum, Diplozoon paradoxum, and Gyrodactylus
elegans—Trematoda Endoparasitica (Digenea)—Occurrence
and Habits of Digenea—Life-History of Distomum
macrostomum—Distomum hepaticum and its Effects—Bilharzia
haematobia—Bisexual Trematodes—Table of Hosts—
Classification 51
CHAPTER III
CESTODA
Introduction—Nature of Cestodes—Occurrence of Cestodes—
The Tape-Worms of Man and Domestic Animals—Table of Life-
Histories of Principal Cestodes of Man and Domestic Animals
—Structure and Development of Cestodes—Table for the
Discrimination of the More Usual Cestodes of Man and
Domestic Animals—Classification 74
CHAPTER IV
MESOZOA
Dicyemidae—Structure—Reproduction—Occurrence:
Orthonectidae—Occurrence—Structure: Trichoplax:
Salinella 92
NEMERTINEA
CHAPTER V
NEMERTINEA
Introductory—External Characters—Anatomy—Classification—
Development—Habits—Regeneration—Breeding—
Geographical Distribution—Land, Fresh-Water, and Parasitic
Forms—Affinities 99
NEMATHELMINTHES AND CHAETOGNATHA

CHAPTER VI
NEMATHELMINTHES
Introduction—Nematoda—Anatomy—Embryology—Classification
—Ascaridae—Strongylidae—Trichotrachelidae—Filariidae—
Mermithidae—Anguillulidae—Enoplidae—Parasitism:
Nematomorpha—Anatomy—Classification—Life-History:
Acanthocephala—Anatomy—Embryology—Classification 123
CHAPTER VII
CHAETOGNATHA
Structure—Reproduction—Habits—Food—Classification—Table
of Identification [see also p. 534] 186
ROTIFERA, GASTROTRICHA, AND KINORHYNCHA

CHAPTER VIII
ROTIFERA, GASTROTRICHA, AND KINORHYNCHA
Rotifera—History—External Features—Movements—Anatomy—
Reproduction—Embryology—Classification—Distribution—
Affinities: Gastrotricha: Kinorhyncha 197
ARCHIANNELIDA, POLYCHAETA, AND MYZOSTOMARIA

CHAPTER IX
The Chaetopodous Worms—The Archiannelida—Anatomy of
Nereis, as Typical of the Polychaeta 241
CHAPTER X
Classification of the Polychaeta—Shape—Head—Parapodia—
Chaetae—Gills—Internal Organs—Jaws—Sense Organs—
Reproduction—Larval Forms—Budding—Fission—Branching—
Regeneration 257
CHAPTER XI
Natural History of Polychaetes—General Habits—Character of 284
Tube and its Formation—Colouring—Protective and Mimetic
Devices—Phosphorescence—Food—Uses—Associated Worms
—Worms as Hosts—Distribution—Fossil Remains
CHAPTER XII
Characters of the Sub-Orders of Polychaetes—Characters of
the Families—Description of British Genera and Species: the
Myzostomaria 303
OLIGOCHAETA (EARTHWORMS, ETC.), AND HIRUDINEA

(LEECHES)
CHAPTER XIII
OLIGOCHAETA (EARTHWORMS AND THEIR ALLIES)
Introduction—Anatomy—Reproduction—Bionomics—Distribution
—Classification—Microdrili and Megadrili 347
CHAPTER XIV
HIRUDINEA (LEECHES)
Introduction—Anatomy—Reproduction—Classification—
Rhynchobdellae and Gnathobdellae 392
GEPHYREA AND PHORONIS

CHAPTER XV
GEPHYREA
Introduction—Anatomy—Development—Sipunculoidea—
Priapuloidea—Echiuroidea—Epithetosomatoidea—Affinities of
the Group 411
CHAPTER XVI
PHORONIS
History—Habits—Structure—Reproduction—Larva—
Metamorphosis—List of Species and Localities—Systematic
Position 450
POLYZOA
CHAPTER XVII
POLYZOA
Introduction—General Characters and Terminology—Brown
Bodies—History—Outlines of Classification—Marine Polyzoa
—Occurrence—Forms of Colony and of Zooecia—Ovicells—
Avicularia—Vibracula—Entoprocta 465
CHAPTER XVIII
POLYZOA—continued
Fresh-water Polyzoa—Phylactolaemata—Occurrence—Structure
of Cristatella—Division of Colony—Movements of Colony—
Retraction And Protrusion of Polypides in Polyzoa—
Statoblasts—Table for Determination of Genera of Fresh-
water Polyzoa—Reproductive Processes of Polyzoa—
Development—Affinities—Metamorphosis—Budding 492
CHAPTER XIX
POLYZOA—continued
Classification—Geographical Distribution—Palaeontology—
Methods for the Examination of Specific Characters—
Terminology—Key for the Determination of the Genera of
British Marine Polyzoa 515
Addendum to Chaetognatha 534
Index 535
SCHEME OF THE CLASSIFICATION ADOPTED IN THIS BOOK
PLATYHELMINTHES (p. 3)
Family.
TURBELLARIA Planoceridae
(p. 3) (p. 19).
Leptoplanidae
Acotylea (p. 16) (p. 19).
Cestoplanidae
(p. 19).
Polycladida
Enantiidae (p. 19).
(p. 7)
Anonymidae (p. 19)
Pseudoceridae
(p. 19).
Cotylea
Euryleptidae (p. 19).
Prosthiostomatidae
(p. 19).
Paludicola
Planariidae (p. 42).
(p. 30)
Procerodidae
Maricola (p. 42).
Tricladida (pp. 30, 32) = Gundidae.
(p. 30) Bdellouridae (p. 42).
Bipaliidae (p. 42).
Terricola Geoplanidae (p. 42).
(pp. 30, 33) Rhynchodemidae
(p. 42).
Rhabdocoelida Proporidae (p. 49).
(p. 42) Acoela (p. 42) Aphanostomatidae
(p. 49).
Macrostomatidae
(p. 49).
Microstomatidae
(p. 49).
Prorhynchidae
Rhabdocoela (p. 49).
(p. 43) Mesostomatidae
(p. 49).
Proboscidae (p. 49).
Vorticidae (p. 50).
Solenopharyngidae
(p. 50).
Alloeocoela Plagiostomatidae
(p. 43) (p. 50).
Bothrioplanidae
(p. 50).
Monotidae (p. 50).
Temnocephalidae
(pp. 53, 73).
Tristomatidae
(pp. 53, 73).
Monogenea (pp. 5, 52)
Polystomatidae
= Heterocotylea + Aspidocotylea
(pp. 53, 73).
(p. 73)
Gyrodactylidae
(pp. 53, 61).
Aspidobothridae
(p. 73).
TREMATODA Holostomatidae
(pp. 3, 51) (p. 73).
Amphistomatidae
(p. 73).
Distomatidae
Digenea (pp. 5, 52) = Malacocotylea (p. 73).
(p. 73) Gasterostomatidae
(p. 73).
Didymozoontidae
(p. 73).
Monostomatidae
(p. 73).
Cestodariidae
= Monozoa (p. 91).
Bothriocephalidae
(p. 91).
CESTODA (pp. 3, 74) Tetrarhynchidae
(p. 91).
Tetraphyllidae
(p. 91).
Taeniidae (p. 91).
MESOZOA
Dicyemidae (p. 93).
MESOZOA (pp. 3, 92) Orthonectida
(p. 94).
NEMERTINEA (p. 99)
HOPLONEMERTEA (p. 110) = Metanemertini (p. 112).
SCHIZONEMERTEA (p. 111) = Heteronemertini (ex parte) (p. 113).
PALAEONEMERTEA (p. 111) = Protonemertini (p. 112). + Mesonemertini
(p. 112). + Heteronemertini (ex parte) (p. 113).
NEMATHELMINTHES (p. 123)

Ascaridae (p. 138).
Strongylidae
(p. 142).
Trichotrachelidae
(p. 144).
Filariidae (p. 147).
Mermithidae
NEMATODA (pp. 123, 124) (p. 150).
Anguillulidae
(p. 154).
Enoplidae (p. 157).
Chaetosomatidae
(p. 158).
Desmoscolecidae
(p. 159).
NEMATOMORPHA (pp. 123, 164) Gordiidae (p. 164).
Echinorhynchidae
(p. 182)
Gigantorhynchidae
(p. 183).
ACANTHOCEPHALA (pp. 123, 174)
Neorhynchidae
(p. 184).
Arhynchidae
(p. 185).
CHAETOGNATHA (p. 186)
ROTIFERA (p. 197)

FLOSCULARIACEAE (p. 220) Flosculariidae
(p. 221).
Apsilidae (p. 221).
Melicertidae
(p. 221).
MELICERTACEAE (p. 221)
Trochosphaeridae
(p. 221).
Philodinidae
BDELLOIDA (p. 222)
(p. 222).
Asplanchnidae
ASPLANCHNACEAE (p. 222)
(p. 223).
Pedalionidae
SCIRTOPODA (p. 223)
(p. 223).
Microcodonidae
(p. 224).
Rhinopidae (p. 224).
Hydatinidae
(p. 224).
Synchaetidae
Illoricata (p. 223)
(p. 224).
Notommatidae
(p. 224).
Drilophagidae
(p. 224).
Triarthridae (p. 224).
Rattulidae (p. 225).
PLOIMA (p. 223)
Dinocharididae
(p. 225).
Salpinidae (p. 225).
Euchlanididae
(p. 225).
Cathypnidae
Loricata (p. 224)
(p. 225).
Coluridae (p. 225).
Pterodinidae
(p. 225).
Brachionidae
(p. 225).
Anuraeidae (p. 225).
SEISONACEAE (p. 225) Seisonidae (p. 226).
GASTROTRICHA
GASTROTRICHA Euichthydina (p. 235)
(p. 231). Apodina (p. 235)
KINORHYNCHA (p. 236)
CHAETOPODA (p. 241)

ARCHIANNELIDA (p. 241)
POLYCHAETA Phanerocephala Syllidae (p. 306).

(pp. 241, 245) (p. 303) Hesionidae (p. 308).
Aphroditidae
(p. 309).
Phyllodocidae
(p. 313).
Tomopteridae
(p. 315).
Nereidae (p. 315).
Nereidiformia Nephthydidae
(p. 303) (p. 317).
Amphinomidae
(p. 318).
Eunicidae (p. 318).
Glyceridae (p. 320).
Sphaerodoridae
(p. 320).
Ariciidae (p. 321).
Typhloscolecidae
(p. 321).
Spionidae (p. 321).
Polydoridae
(p. 323).
Spioniformia Chaetopteridae
(p. 304) (p. 323).
Magelonidae (325.
Ammocharidae
(p. 325).
Terebelliformia Cirratulidae (p. 325).
(p. 304) Terebellidae
(p. 327).
Ampharetidae
(p. 330).
Amphictenidae
(p. 330).
Capitelliformia Capitellidae
(p. 305) (p. 331).
Opheliidae (p. 331).
Maldanidae
(p. 332).
Arenicolidae
(p. 333).
Scoleciformia
Scalibregmidae
(p. 305)
(p. 334).
Chlorhaemidae
(p. 334).
Sternaspidae
(p. 335).
Sabellidae (p. 336).
Eriographidae
Sabelliformia (p. 338).
Cryptocephala (p. 305) Amphicorinidae
(p. 303) (p. 339).
Serpulidae (p. 339).
Hermelliformia Hermellidae
(p. 306) (p. 341).
MYZOSTOMARIA (pp. 241, 341)
OLIGOCHAETA Microdrili (p. 373) Aphaneura (p. 374).

(pp. 241, 347) Enchytraeidae
(p. 375).
Discodrilidae
(p. 376).
Phreoryctidae
(p. 376).
Naidomorpha
(p. 377).
Tubificidae (p. 378).
Lumbriculidae
(p. 379).
Moniligastridae
(p. 380).
Perichaetidae
(p. 380).
Cryptodrilidae
(p. 382).
Acanthodrilidae
Megadrili (pp. 373, 374). (p. 384).
Eudrilidae (p. 385).
Geoscolicidae
(p. 386).
Lumbricidae
(p. 388).
HIRUDINEA (p. 392)

Ichthyobdellidae
(p. 406).
RHYNCHOBDELLAE (p. 405)
Glossiphoniidae
(p. 406).
Gnathobdellidae
(p. 407).
GNATHOBDELLAE (p. 407)
Herpobdellidae
(p. 407).
GEPHYREA (p. 411)

SIPUNCULOIDEA (pp. 412, 420).
PRIAPULOIDEA (pp. 412, 430).
ECHIUROIDEA (pp. 412, 434).
EPITHETOSOMATOIDEA (pp. 412, 444).
PHORONIS (p. 450)
POLYZOA (p. 465)

ENTOPROCTA (pp. 475, 487)
ECTOPROCTA Gymnolaemata Cyclostomata Articulata (p. 517).

(p. 475) (p. 476) (p. 477) Inarticulata (p. 517).
Cheilostomata Cellularina (p. 518).
(p. 477) Flustrina (p. 518).
Escharina (p. 518).
Alcyonellea (p. 518).
Ctenostomata
Vesicularina
(p. 477)
(p. 518).
Phylactolaemata (pp. 476, 493)
PLATYHELMINTHES AND MESOZOA
BY
F. W. GAMBLE, M.Sc. (Vict.)

Demonstrator and Assistant-Lecturer in Zoology in the Owens College, Manchester.
CHAPTER I
TURBELLARIA
INTRODUCTION: DESCRIPTION OF THE POLYCLAD LEPTOPLANA TREMELLARIS—

APPEARANCE—HABITS—STRUCTURE: POLYCLADIDA—CLASSIFICATION—HABITS—
ANATOMY—DEVELOPMENT: TRICLADIDA—OCCURRENCE—STRUCTURE—
CLASSIFICATION: RHABDOCOELIDA—OCCURRENCE—HABITS—REPRODUCTION—
CLASSIFICATION.
The Platyhelminthes, or Flat Worms, form a natural assemblage of animals, the

members of which, however widely they may differ in appearance, habits, or life-
history, exhibit a fundamental similarity of organisation which justifies their
separation from other classes of worms, and their union into a distinct phylum.
Excluding the leeches (Hirudinea), and the long sea-worms (Nemertinea)—which,
though formerly included, are now treated independently—the Platyhelminthes
may be divided into three branches: (1) Turbellaria (including the Planarians), (2)
Trematoda (including the liver-flukes), and (3) Cestoda (tape-worms). The
Mesozoa will be treated as an appendix to the Platyhelminthes.
The Turbellaria were so called by Ehrenberg[1] (1831) on account of the cilia or

vibratile processes with which these aquatic animals are covered, causing by their
incessant action, tiny currents ("turbellae," disturbances) in the surrounding water.
The ciliary covering distinguishes this free-living group from the parasitic
Trematodes and Cestodes, some of which possess such an investment, but only
during their early free larval stage, for the short period when they have left the
parental host and are seeking another (Figs. 26, 27, 42).
Some Turbellaria (Rhabdocoelida) resemble Infusoria in their minute size, shape,

and movements. Nevertheless they possess an organisation of considerable
complexity. The fresh-water Planarians (Fig. 14), abounding in ponds and streams,
vary from a quarter to half an inch in length, and are elongated and flattened. Their
body is soft, and progresses by a characteristic, even, gliding motion like a snail.
The marine Planarians or Polyclads (Fig. 8) are usually broad and leaf-like,
sometimes attaining a length of six inches, and swim or creep in a most graceful
way. Land Planarians occur in this country (Fig. 15), but far more abundantly in
tropical and sub-tropical districts, in moist places, venturing abroad at night in
pursuit of prey. They are elongated and cylindrical, in some cases measuring,
when fully extended, a foot or more in length, and are often ornamented with
brilliantly coloured, longitudinal bands.
Turbellaria are carnivorous, overpowering their prey by peculiar cutaneous

offensive weapons, and then sucking out the contents of the victim by the
"pharynx." Land Planarians feed on earthworms, molluscs, and wood-lice; fresh-
water Planarians on Oligochaet worms, water-snails, and water-beetles; marine
forms devour Polychaet worms and molluscs. Some Turbellaria seem to prefer
freshly-killed or weakly examples of animals too large to be overpowered when
fully active. Certain Rhabdocoelida are messmates of Molluscs and Echinoderms,
and a few others are truly parasitic—a mode of life adopted by all Trematodes save
Temnocephala.
The Trematodes[2] may be divided into those living on the outer surface of various
aquatic animals, usually fish (Ectoparasites); and those which penetrate more or
less deeply into the alimentary canal or the associated organs of the host
(Endoparasites). They are oval, flattened Platyhelminthes ranging from a
microscopic size to a length of three feet (Nematobothrium, Fig. 22), and are
provided with organs of adhesion by which they cling to the outer surface, or to the
interior, of the animals they inhabit. Trematodes occur parasitically in all groups of
Vertebrates, but, with the exception of the liver-flukes of the sheep (Distomum
hepaticum and D. magnum), and of Bilharzia haematobia found in man (in the
blood-vessels of the urinary bladder) over the greater part of Africa, their attacks
are not usually of a serious nature. Ectoparasitic Trematodes are Monogenetic;
that is, their larvae grow up directly into mature forms. The Endoparasitic species,
however, are usually Digenetic. Their larvae enter an Invertebrate and produce a
new generation of different larvae, and these another. The last are immature
flukes. They enter a second host, which is swallowed by the final Vertebrate host in
which they become mature.
The Cestodes or Tape-worms have undergone more profound modifications both in

structure and in mode of development. They are all endoparasitic, and, with one
exception (Archigetes), attain maturity solely within the alimentary canal of
Vertebrates. In length they range from a few millimetres to several metres, but this
great size is attained from the need for the rapid production and accumulation of
enormous numbers of eggs. The "head" or "scolex" is attached to the mucous
membrane of the host by suckers or hooks, but there is no mouth nor any certain

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7.1 Economic Growth over Time and around the World

3) The rapid growth of the Chinese economy should

8) Significant economic growth did not begin in the world until

9) According to Douglass North, the Industrial Revolution occurred in England because

25) Entrepreneurship in Mexico is

26) The best measure of a country's standard of living is

41) High-income countries are also referred to as

46) Only income can produce increases in standard of living.

1) An economic growth model explains

4) An economy can improve its standard of living by

23) Under the Soviet system of communism,

24) Technological improvements are more likely to occur if

29) According to new growth theory

31) Knowledge capital is

40) According to Joseph Schumpeter, economic growth is achieved through

41) Creative destruction means that

Diff: 2 Page Ref: 158-159

49) Is knowledge capital subject to the law of diminishing returns? Explain.

50) Describe the process of "creative destruction" using a specific example.

52) Which factors explain labour productivity?

60) What is human capital?

69) If the per-worker production function shifts up,

76) Refer to Figure 7.4. The movement from A to B to C illustrates

Title: The Cambridge natural history, Vol. 02 (of 10)

Author: Frank E. Beddard

Release date: October 16, 2023 [eBook #71891]

Original publication: New York: MacMillan and Co, 1901

*** START OF THE PROJECT GUTENBERG EBOOK THE CAMBRIDGE

CAMBRIDGE NATURAL HISTORY

S. F. HARMER, M.A., Fellow of King's College, Cambridge; Superintendent of the

A. E. SHIPLEY, M.A., Fellow of Christ's College, Cambridge; University Lecturer on

FLATWORMS AND MESOZOA

THREAD-WORMS AND SAGITTA

EARTHWORMS AND LEECHES

GEPHYREA AND PHORONIS

All rights reserved

'Nous allons faire des vers ensemble'

First Edition 1896. Reprinted 1901

PLATYHELMINTHES AND MESOZOA

NEMATHELMINTHES AND CHAETOGNATHA

ROTIFERA, GASTROTRICHA, AND KINORHYNCHA

ARCHIANNELIDA, POLYCHAETA, AND MYZOSTOMARIA

OLIGOCHAETA (EARTHWORMS, ETC.), AND HIRUDINEA

GEPHYREA AND PHORONIS

NEMATHELMINTHES (p. 123)

NEMATOMORPHA (pp. 123, 164) Gordiidae (p. 164).

CHAETOGNATHA (p. 186)

ROTIFERA (p. 197)

KINORHYNCHA (p. 236)

CHAETOPODA (p. 241)

POLYCHAETA Phanerocephala Syllidae (p. 306).

MYZOSTOMARIA (pp. 241, 341)

OLIGOCHAETA Microdrili (p. 373) Aphaneura (p. 374).

HIRUDINEA (p. 392)

GEPHYREA (p. 411)

PHORONIS (p. 450)

POLYZOA (p. 465)

ECTOPROCTA Gymnolaemata Cyclostomata Articulata (p. 517).

F. W. GAMBLE, M.Sc. (Vict.)

INTRODUCTION: DESCRIPTION OF THE POLYCLAD LEPTOPLANA TREMELLARIS—