Question 1

Use the graph to answer the following questions.

Accepted Answer

The answer of Use the graph to answer the following...

Question 2

In recent years in the United States both technology and capital have contributed substantially to productivity growth, suggesting that policy should not focus solely on one determinant at the expense of the other.

Accepted Answer

A) True 
 B)False

Question 3

Renowned economists such as William Baumol, Paul Krugman, and Edward Lazear believe that productivity growth is one of the key issues for determining long-term economic growth.

Accepted Answer

A) True 
 B)False

Question 4

According to economist Daron Acemoglu, all of the following are fundamental causes of economic growth EXCEPT

Accepted Answer

A) technology. 
B) the legal system. 
C) property rights. 
D) geography. 
E) openness to trade. 
A) technology. 
B) the legal system. 
C) property rights. 
D) geography. 
E) openness to trade.

Question 5

According to Paul Krugman, distinguished economics columnist for the New York Times, which of the following is the most important issue facing the economy today?

Accepted Answer

A) Slow productivity growth 
B) Foreign competition 
C) Lagging technology 
D) The inappropriate industrial base 
E) Deteriorating infrastructure 
A) Slow productivity growth 
B) Foreign competition 
C) Lagging technology 
D) The inappropriate industrial base 
E) Deteriorating infrastructure

Question 6

Learning by doing represents a situation in which workers become more proficient by doing a particular task repeatedly.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is true?

Accepted Answer

A) The technology supply responds to market conditions. 
B) Human capital has no role in research and development. 
C) Attempts to bring about technological change via research and development are often tried but are usually not successful. 
D) Technological change occurs at a constant rate. 
E) Industries that attempt to produce new technologies face very little risk. 
A) The technology supply responds to market conditions. 
B) Human capital has no role in research and development. 
C) Attempts to bring about technological change via research and development are often tried but are usually not successful. 
D) Technological change occurs at a constant rate. 
E) Industries that attempt to produce new technologies face very little risk.

Question 8

The growth rate of productivity due to an increase in capital income equals

Accepted Answer

A) the share of capital income in aggregate income. 
B) the slope of the productivity function. 
C) the growth rate of capital per hour worked times the share of capital income in aggregate income. 
D) the growth rate of capital per hour worked. 
E) the growth rate of technology. 
A) the share of capital income in aggregate income. 
B) the slope of the productivity function. 
C) the growth rate of capital per hour worked times the share of capital income in aggregate income. 
D) the growth rate of capital per hour worked. 
E) the growth rate of technology.

Question 9

Suppose that in a given year there has been an increase in both technology and the amount of capital per hour worked. Draw the consequence of these changes using a productivity function.

Accepted Answer

As shown in the figure below, the increa

Question 10

Suppose the productivity function is given by   .

Accepted Answer

The answer of Suppose the productivity function is given by...

Question 11

The coefficient on the growth of capital per hour of work in the growth accounting formula is

Accepted Answer

A) exactly one-fourth. 
B) exactly one-third. 
C) approximately two-thirds. 
D) exactly two-thirds. 
E) approximately one-third. 
A) exactly one-fourth. 
B) exactly one-third. 
C) approximately two-thirds. 
D) exactly two-thirds. 
E) approximately one-third.

Question 12

The term that best describes what happens when fewer workers are needed to produce the same amount of output with the same amount of capital is

Accepted Answer

A) invention. 
B) creative destruction. 
C) labor-saving technological change. 
D) diffusion. 
E) capital-saving technological change. 
A) invention. 
B) creative destruction. 
C) labor-saving technological change. 
D) diffusion. 
E) capital-saving technological change.

Question 13

Suppose that policymakers desire real GDP per hour of work to grow by 3.5 percent a year.

Accepted Answer

The answer of Suppose that policymakers desire real GDP per...

Question 14

According to economist Daron Acemoglu, causes of economic growth include of the following EXCEPT

Accepted Answer

A) physical capital. 
B) human capital 
C) technology. 
D) the legal system. 
E) None of these 
A) physical capital. 
B) human capital 
C) technology. 
D) the legal system. 
E) None of these

Question 15

The person who figured out that it is best to keep the milk, bread, and eggs at the back of the grocery store and not at the front probably did not profit as much from this idea as the grocery industry as a whole did. This is because

Accepted Answer

A) the concept didn't work. 
B) the concept was highly nonexcludable. 
C) that person's idea was not an innovation. 
D) the concept was not a commodity. 
E) the concept was nonrivalrous. 
A) the concept didn't work. 
B) the concept was highly nonexcludable. 
C) that person's idea was not an innovation. 
D) the concept was not a commodity. 
E) the concept was nonrivalrous.

Question 16

The government should intervene to encourage growth if the market

Accepted Answer

A) is providing the right incentives, and there is no risk of government failure. 
B) is not providing the right incentives, and there is little risk of government failure. 
C) is not providing the right incentives, and there is a risk of government failure. 
D) is providing the right incentives, and there is risk of government failure. 
E) is not providing the right incentives regardless of the risk of government failure. 
A) is providing the right incentives, and there is no risk of government failure. 
B) is not providing the right incentives, and there is little risk of government failure. 
C) is not providing the right incentives, and there is a risk of government failure. 
D) is providing the right incentives, and there is risk of government failure. 
E) is not providing the right incentives regardless of the risk of government failure.

Question 17

Identify whether the following measures are labor or capital saving.

Accepted Answer

The answer of Identify whether the following measures are labor...

Question 18

The decision to invest in human capital is influenced by considerations similar to those that motivate a firm to invest in physical capital. Therefore, if interest rates rise, fewer people will tend to invest in college education, since this is an investment that commonly involves borrowing money to afford tuition.

Accepted Answer

A) True 
 B)False

Question 19

Provide a definition of technology, and explain how it is possible to come up with an estimate of technological growth.

Accepted Answer

Technology is anything that means that m

Question 20

Which of the following should be focused on to explain the growth of productivity?

Accepted Answer

A) The growth of labor and capital 
B) The growth of capital and technology 
C) The growth of labor and technology 
D) The growth of the labor force 
E) The natural rate of unemployment 
A) The growth of labor and capital 
B) The growth of capital and technology 
C) The growth of labor and technology 
D) The growth of the labor force 
E) The natural rate of unemployment

Exam 21: Productivity and Economic Growth

Use the graph to answer the following questions.

In recent years in the United States both technology and capital have contributed substantially to productivity growth, suggesting that policy should not focus solely on one determinant at the expense of the other.

Renowned economists such as William Baumol, Paul Krugman, and Edward Lazear believe that productivity growth is one of the key issues for determining long-term economic growth.

According to economist Daron Acemoglu, all of the following are fundamental causes of economic growth EXCEPT

According to Paul Krugman, distinguished economics columnist for the New York Times, which of the following is the most important issue facing the economy today?

Learning by doing represents a situation in which workers become more proficient by doing a particular task repeatedly.

Which of the following statements is true?

The growth rate of productivity due to an increase in capital income equals

Suppose that in a given year there has been an increase in both technology and the amount of capital per hour worked. Draw the consequence of these changes using a productivity function.

Suppose the productivity function is given by .

The coefficient on the growth of capital per hour of work in the growth accounting formula is

The term that best describes what happens when fewer workers are needed to produce the same amount of output with the same amount of capital is

Suppose that policymakers desire real GDP per hour of work to grow by 3.5 percent a year.

According to economist Daron Acemoglu, causes of economic growth include of the following EXCEPT

The person who figured out that it is best to keep the milk, bread, and eggs at the back of the grocery store and not at the front probably did not profit as much from this idea as the grocery industry as a whole did. This is because

The government should intervene to encourage growth if the market

Identify whether the following measures are labor or capital saving.

Provide a definition of technology, and explain how it is possible to come up with an estimate of technological growth.

Which of the following should be focused on to explain the growth of productivity?

The Central Idea

Observing and Explaining the Economy

The Supply and Demand Model

Subtleties of the Supply and Demand Model

The Demand Curve and the Behavior of Consumers

The Supply Curve and the Behavior of Firms

The Efficiency of Markets

Costs and the Changes at Firms Over Time

The Rise and Fall of Industries

Monopoly

Product Differentiation, Monopolistic Competition, and Oligopoly

Antitrust Policy and Regulation

Labor Markets

Taxes, Transfers, and Income Distribution

Public Goods, Externalities, and Government Behavior

Capital and Financial Markets

Macroeconomics: the Big Picture

Measuring the Production, Income, and Spending of Nations

The Spending Allocation Model

Unemployment and Employment

Money and Inflation

The Nature and Causes of Economic Fluctuations

The Economic Fluctuations Model

Using the Economic Fluctuations Model

Fiscal Policy

Monetary Policy

Economic Growth Around the World

International Trade

International Finance

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