Question 1

Public agencies are the users of most research funds in the United States.

Accepted Answer

A) True 
 B)False

Question 2

According to economist Daron Acemoglu, technology is a fundamental cause of economic growth.

Accepted Answer

A) True 
 B)False

Question 3

A teacher develops a new hypermedia program for learning economics. How does this illustrate the concepts of invention, innovation, and diffusion?

Accepted Answer

The invention aspect occurs when the tea

Question 4

The total amount of capital in the economy increases each year by that year's amount of

Accepted Answer

A) gross investment. 
B) net investment. 
C) GDP. 
D) private saving. 
E) government saving. 
A) gross investment. 
B) net investment. 
C) GDP. 
D) private saving. 
E) government saving.

Question 5

If copyright laws were made tougher and were more strictly enforced, companies would be encouraged to

Accepted Answer

A) purchase more plants and equipment. 
B) hire more labor. 
C) engage in more R&D activity. 
D) hire less labor. 
E) None of these 
A) purchase more plants and equipment. 
B) hire more labor. 
C) engage in more R&D activity. 
D) hire less labor. 
E) None of these

Question 6

Consider the production function shown in the figure below. An increase in capital will result in
A)a downward shift in the production function.
B)the slope of the production function becoming flatter.
C)a leftward movement along the production function.
D)a rightward movement along the production function.
E)an upward shift in the production function.

Accepted Answer

@#IMG-DLM& a.a downward shift in the production fu

Question 7

If economic policymakers want to increase people's income and reduce poverty, they must focus on reducing and maintaining productivity growth.

Accepted Answer

A) True 
 B)False

Question 8

The flattening out of the production function is due to

Accepted Answer

A) the declining opportunity cost of labor. 
B) the increasing scarcity of labor. 
C) increasing returns to labor. 
D) all other factors being held constant. 
E) the increasing specialization of labor. 
A) the declining opportunity cost of labor. 
B) the increasing scarcity of labor. 
C) increasing returns to labor. 
D) all other factors being held constant. 
E) the increasing specialization of labor.

Question 9

Which of the following is true?

Accepted Answer

A) Growth in capital alone explains virtually all of the recent growth in productivity. 
B) Economic policies cannot influence the growth of productivity in the economy. 
C) Increases in labor will increase real GDP per hour of work. 
D) The growth of productivity is determined by the available labor, capital, and technology. 
E) Increasing the investment share of GDP will increase the growth of capital. 
A) Growth in capital alone explains virtually all of the recent growth in productivity. 
B) Economic policies cannot influence the growth of productivity in the economy. 
C) Increases in labor will increase real GDP per hour of work. 
D) The growth of productivity is determined by the available labor, capital, and technology. 
E) Increasing the investment share of GDP will increase the growth of capital.

Question 10

New data have just been released showing that the growth rate of technology has dropped. Write a short memo that explains what the government can do to improve the situation. What if the data had also showed a drop in capital per hour of work?

Accepted Answer

Answers will vary. They should

Question 11

The productivity function differs from the production function because

Accepted Answer

A) all variables are measured in per-worker terms. 
B) it illustrates the effect of technological change. 
C) the productivity function is not subject to diminishing returns. 
D) the productivity function is not influenced by changes in labor. 
E) the productivity function does not measure output. 
A) all variables are measured in per-worker terms. 
B) it illustrates the effect of technological change. 
C) the productivity function is not subject to diminishing returns. 
D) the productivity function is not influenced by changes in labor. 
E) the productivity function does not measure output.

Question 12

Which of the following is the best example of an embodied technological change?

Accepted Answer

A) Using a new forecasting technique 
B) A firm engaging in human capital development 
C) A retail outlet reorganizing its shelf space 
D) A company deciding to use robots 
E) A firm that replaces capital with labor 
A) Using a new forecasting technique 
B) A firm engaging in human capital development 
C) A retail outlet reorganizing its shelf space 
D) A company deciding to use robots 
E) A firm that replaces capital with labor

Question 13

An equation that enables economists to estimate the relative contributions of capital and technology to productivity growth is known as

Accepted Answer

A) the proportions formula. 
B) the technology growth formula. 
C) the technology proportion formula. 
D) the Sarbanes-Oxley formula. 
E) None of these 
A) the proportions formula. 
B) the technology growth formula. 
C) the technology proportion formula. 
D) the Sarbanes-Oxley formula. 
E) None of these

Question 14

Use the analysis presented in the text to explain why Apple Computer does not document how to transfer music from an iPod (portable music player) to iTunes (a program on the computer to store music).

Accepted Answer

Apple's decision, most likely, was made

Question 15

All inventions result in innovations.

Accepted Answer

A) True 
 B)False

Question 16

Diminishing returns explain why labor and capital alone cannot account for the phenomenal growth in productivity during the last 200 years.

Accepted Answer

A) True 
 B)False

Question 17

In the formula
A)the change in capital per hour.
B)the growth rate of the labor force.
C)the growth rate of capital per hour.
D)the slope of the productivity function.
E)the increase in productivity.

Accepted Answer

@#IMG-DLM& , the term @#IMG-DLM& represents
a.the change in

Question 18

The growth accounting formula explains the growth of total output.

Accepted Answer

A) True 
 B)False

Question 19

Since World War II,

Accepted Answer

A) most R&D spending has been used to support civilian research. 
B) most R&D spending has been used to support defense-related research. 
C) there has been very little R&D spending in the United States. 
D) the United States has used an industrial-policy approach to target companies that received government money for R&D. 
E) the government has played a very minor role in the R&D process. 
A) most R&D spending has been used to support civilian research. 
B) most R&D spending has been used to support defense-related research. 
C) there has been very little R&D spending in the United States. 
D) the United States has used an industrial-policy approach to target companies that received government money for R&D. 
E) the government has played a very minor role in the R&D process.

Question 20

Equipping lawn mowers with internal combustion engines is an example of

Accepted Answer

A) technology spillovers. 
B) learning by doing. 
C) specialization. 
D) the nonrivalrous nature of technology. 
E) the rivalrous nature of technology. 
A) technology spillovers. 
B) learning by doing. 
C) specialization. 
D) the nonrivalrous nature of technology. 
E) the rivalrous nature of technology.

Exam 21: Productivity and Economic Growth

Public agencies are the users of most research funds in the United States.

According to economist Daron Acemoglu, technology is a fundamental cause of economic growth.

A teacher develops a new hypermedia program for learning economics. How does this illustrate the concepts of invention, innovation, and diffusion?

The total amount of capital in the economy increases each year by that year's amount of

If copyright laws were made tougher and were more strictly enforced, companies would be encouraged to

If economic policymakers want to increase people's income and reduce poverty, they must focus on reducing and maintaining productivity growth.

The flattening out of the production function is due to

Which of the following is true?

New data have just been released showing that the growth rate of technology has dropped. Write a short memo that explains what the government can do to improve the situation. What if the data had also showed a drop in capital per hour of work?

The productivity function differs from the production function because

Which of the following is the best example of an embodied technological change?

An equation that enables economists to estimate the relative contributions of capital and technology to productivity growth is known as

Use the analysis presented in the text to explain why Apple Computer does not document how to transfer music from an iPod (portable music player) to iTunes (a program on the computer to store music).

All inventions result in innovations.

Diminishing returns explain why labor and capital alone cannot account for the phenomenal growth in productivity during the last 200 years.

In the formula A)the change in capital per hour. B)the growth rate of the labor force. C)the growth rate of capital per hour. D)the slope of the productivity function. E)the increase in productivity.

The growth accounting formula explains the growth of total output.

Since World War II,

Equipping lawn mowers with internal combustion engines is an example of

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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