Question 1

Which of the following is not a characteristic of technology?

Accepted Answer

A) It requires trademarks and copyrights in order for those developing it to be compensated. 
B) It is possible for more than one person to use the good at the same time. 
C) It is easy to preclude others from using it. 
D) It is difficult to preclude others from using the good. 
E) Its supply depends on the cost of producing it. 
A) It requires trademarks and copyrights in order for those developing it to be compensated. 
B) It is possible for more than one person to use the good at the same time. 
C) It is easy to preclude others from using it. 
D) It is difficult to preclude others from using the good. 
E) Its supply depends on the cost of producing it.

Question 2

Exhibit 21-1
  
-Suppose you are given the following information about productivity growth and growth of capital per hour of work for two different time periods. How much of the slowdown in productivity was due to technological change? Is there anything the government could do to reverse this situation?

Accepted Answer

Growth rate of technology 1970-1995 = 4.

Question 3

Increases in labor, according to the theory of economic growth,

Accepted Answer

A) increase productivity but not the growth of real GDP. 
B) increase neither productivity growth nor the growth of real GDP. 
C) increase both productivity and the growth of real GDP. 
D) increase the growth of real GDP but not productivity. 
E) have an uncertain effect on both productivity and real GDP. 
A) increase productivity but not the growth of real GDP. 
B) increase neither productivity growth nor the growth of real GDP. 
C) increase both productivity and the growth of real GDP. 
D) increase the growth of real GDP but not productivity. 
E) have an uncertain effect on both productivity and real GDP.

Question 4

Which of the following is the best example of a disembodied technological change?

Accepted Answer

A) A company that replaces workers with robots 
B) A local bagel bakery deciding to use the Thompson bagel machine 
C) Learning by doing 
D) A mortgage company using a new computer program to determine whether an applicant qualifies for a loan 
E) A firm that replaces labor with capital 
A) A company that replaces workers with robots 
B) A local bagel bakery deciding to use the Thompson bagel machine 
C) Learning by doing 
D) A mortgage company using a new computer program to determine whether an applicant qualifies for a loan 
E) A firm that replaces labor with capital

Question 5

For an entrepreneur to profit from an innovation,

Accepted Answer

A) the innovation, when viewed as a commodity, needs to be highly rivalrous in nature. 
B) it should be undesirable and unfeasible for excludability to exist. 
C) the innovation, when viewed as a commodity, needs to be highly nonrivalrous in nature. 
D) the innovation needs to be both highly nonexcludable and highly nonrivalrous. 
E) the innovation needs to be excludable. 
A) the innovation, when viewed as a commodity, needs to be highly rivalrous in nature. 
B) it should be undesirable and unfeasible for excludability to exist. 
C) the innovation, when viewed as a commodity, needs to be highly nonrivalrous in nature. 
D) the innovation needs to be both highly nonexcludable and highly nonrivalrous. 
E) the innovation needs to be excludable.

Question 6

According to economist Daron Acemoglu, nature can never be a fundamental cause of economic growth.

Accepted Answer

A) True 
 B)False

Question 7

Suppose a worker at a computer company rearranges existing machines and labor and increases production in the process. Using the production function, with output on the vertical axis and labor on the horizontal axis, this would be described as

Accepted Answer

A) an upward shift of the curve combined with an upward movement along the curve. 
B) a movement upward along the curve. 
C) a movement downward along the curve. 
D) a downward shift of the curve. 
E) an upward shift of the curve. 
A) an upward shift of the curve combined with an upward movement along the curve. 
B) a movement upward along the curve. 
C) a movement downward along the curve. 
D) a downward shift of the curve. 
E) an upward shift of the curve.

Question 8

All of the following are found to promote economic growth EXCEPT

Accepted Answer

A) high corruption. 
B) democracy. 
C) enforcement of property rights. 
D) protection of patents and copyrights. 
E) good navigation systems. 
A) high corruption. 
B) democracy. 
C) enforcement of property rights. 
D) protection of patents and copyrights. 
E) good navigation systems.

Question 9

If the owner of a type of technology is able to successfully preclude others from using the good, this type of technology could be classified as a(n)

Accepted Answer

A) nonexcludable good. 
B) excludable good. 
C) rival good. 
D) normal good. 
E) nontradable good. 
A) nonexcludable good. 
B) excludable good. 
C) rival good. 
D) normal good. 
E) nontradable good.

Question 10

Exhibit 21-1
  
-Suppose a country's capital stock is $14 trillion, and a fall in government spending causes a $700 billion increase in investment. Use the growth-accounting formula to determine the effect the change in government purchases has on long-run output growth. (Assume that the coefficient on capital in the growth accounting formula is one-third.)

Accepted Answer

The $700 billion increase in investment

Question 11

Policies designed to improve education in grades K through 12 will result primarily in

Accepted Answer

A) more diffusion. 
B) better organization. 
C) more human capital. 
D) more creative destruction. 
E) more learning by doing. 
A) more diffusion. 
B) better organization. 
C) more human capital. 
D) more creative destruction. 
E) more learning by doing.

Question 12

Exhibit 21-1
  
-Answer the questions below:

Accepted Answer

The answer of Exhibit 21-1
  
-Answer the questions below:
...

Question 13

Answer the questions below:

Accepted Answer

The answer of Answer the questions below:
  
...

Question 14

Suppose the production function Y = f(K,L) is such that   . Plot the production function with Y on the vertical axis and L on the horizontal axis for the case where K = 500. Plot the productivity curve with Y/L on the vertical axis and K/L on the horizontal axis.

Accepted Answer

See the fo

Question 15

Society usually benefits more from an innovation than the person who develops it.

Accepted Answer

A) True 
 B)False

Question 16

If output per hour grows by 4 percent and capital per hour of work grows by 6 percent, then, based on Solow's growth accounting formula, the growth rate of technology is

Accepted Answer

A) 6 percent. 
B) .67 percent. 
C) 2 percent 
D) 0 percent. 
E) 1 percent. 
A) 6 percent. 
B) .67 percent. 
C) 2 percent 
D) 0 percent. 
E) 1 percent.

Question 17

Equipping cars with a navigational system that uses global positioning systems is best described as an example of

Accepted Answer

A) an invention. 
B) innovation. 
C) learning by doing. 
D) diffusion. 
E) specialization. 
A) an invention. 
B) innovation. 
C) learning by doing. 
D) diffusion. 
E) specialization.

Question 18

Which of the following types of government spending are likely to help economic growth? Why?

Accepted Answer

The answer of Which of the following types of government...

Question 19

A copyright will enable a good to become more rivalrous in nature.

Accepted Answer

A) True 
 B)False

Question 20

What is the difference between learning by doing and human capital formation?

Accepted Answer

The key difference is that human capital

Exam 21: Productivity and Economic Growth

Which of the following is not a characteristic of technology?

Increases in labor, according to the theory of economic growth,

Which of the following is the best example of a disembodied technological change?

For an entrepreneur to profit from an innovation,

According to economist Daron Acemoglu, nature can never be a fundamental cause of economic growth.

Suppose a worker at a computer company rearranges existing machines and labor and increases production in the process. Using the production function, with output on the vertical axis and labor on the horizontal axis, this would be described as

All of the following are found to promote economic growth EXCEPT

If the owner of a type of technology is able to successfully preclude others from using the good, this type of technology could be classified as a(n)

Policies designed to improve education in grades K through 12 will result primarily in

Exhibit 21-1 -Answer the questions below:

Answer the questions below:

Suppose the production function Y = f(K,L) is such that . Plot the production function with Y on the vertical axis and L on the horizontal axis for the case where K = 500. Plot the productivity curve with Y/L on the vertical axis and K/L on the horizontal axis.

Society usually benefits more from an innovation than the person who develops it.

If output per hour grows by 4 percent and capital per hour of work grows by 6 percent, then, based on Solow's growth accounting formula, the growth rate of technology is

Equipping cars with a navigational system that uses global positioning systems is best described as an example of

Which of the following types of government spending are likely to help economic growth? Why?

A copyright will enable a good to become more rivalrous in nature.

What is the difference between learning by doing and human capital formation?

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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