Question 1

The best definition of GDP is

Accepted Answer

A) The sum of the physical amounts of goods and services in the economy. 
B) A dollar measure of final output produced during a given time period within a nation's borders. 
C) A measure of the per capita economic growth rate of the economy. 
D) A physical measure of the capital stock of the economy. 
A) The sum of the physical amounts of goods and services in the economy. 
B) A dollar measure of final output produced during a given time period within a nation's borders. 
C) A measure of the per capita economic growth rate of the economy. 
D) A physical measure of the capital stock of the economy.

Question 2

Over many years the capital stock in the United States has grown to approximately

Accepted Answer

A) $80 trillion. 
B) $40 trillion. 
C) $90 trillion. 
D) $20 trillion. 
A) $80 trillion. 
B) $40 trillion. 
C) $90 trillion. 
D) $20 trillion.

Question 3

What are externalities,and how do they affect who pays the true cost of a polluting factory?

Accepted Answer

Externalities are the market effects fel

Question 4

Per capita GDP will definitely rise if

Accepted Answer

A) The population falls and GDP does not fall. 
B) The rate of economic growth falls. 
C) The rate of economic growth is less than the rate of population growth. 
D) There is a decrease in the size of the working population. 
A) The population falls and GDP does not fall. 
B) The rate of economic growth falls. 
C) The rate of economic growth is less than the rate of population growth. 
D) There is a decrease in the size of the working population.

Question 5

As a country's human capital increases,we observe that

Accepted Answer

A) Labor-intensive production processes increases. 
B) Worker productivity increases. 
C) Sector service jobs decreases. 
D) None of the choices are correct. 
A) Labor-intensive production processes increases. 
B) Worker productivity increases. 
C) Sector service jobs decreases. 
D) None of the choices are correct.

Question 6

On average,since 1900 the population of the United States has grown by roughly ________ percent per year.

Accepted Answer

A) 9 
B) 6 
C) 3 
D) 1 
A) 9 
B) 6 
C) 3 
D) 1

Question 7

The high productivity of the U.S.economy results from using highly educated workers in a capital-intensive production process.

Accepted Answer

A) True 
 B)False

Question 8

Regarding increasing productivity,factor mobility is

Accepted Answer

A) Important in that it helps to fix a stable labor-intensive production process. 
B) Important in that it helps to fix a stable capital-intensive production process. 
C) Important in that it helps to reallocate resources in a dynamic economy. 
D) Not important in either a stable or dynamic economy. 
A) Important in that it helps to fix a stable labor-intensive production process. 
B) Important in that it helps to fix a stable capital-intensive production process. 
C) Important in that it helps to reallocate resources in a dynamic economy. 
D) Not important in either a stable or dynamic economy.

Question 9

Which of the following countries had the highest average growth rate for per capita GDP from 2000 to 2009?

Accepted Answer

A) Canada. 
B) Haiti. 
C) China. 
D) Burundi. 
A) Canada. 
B) Haiti. 
C) China. 
D) Burundi.

Question 10

Which of the following is considered a service in the calculation of GDP?

Accepted Answer

A) Manufacturing reclining chairs. 
B) Constructing new homes. 
C) Tax preparation. 
D) Manufacturing automobiles. 
A) Manufacturing reclining chairs. 
B) Constructing new homes. 
C) Tax preparation. 
D) Manufacturing automobiles.

Question 11

The government regulates monopolies in order to

Accepted Answer

A) Ensure that product quality meets minimum standards,such as testing of new drugs. 
B) Prohibit mergers or acquisitions that would lessen competition. 
C) Protect consumers from false advertising. 
D) All of the choices are correct. 
A) Ensure that product quality meets minimum standards,such as testing of new drugs. 
B) Prohibit mergers or acquisitions that would lessen competition. 
C) Protect consumers from false advertising. 
D) All of the choices are correct.

Question 12

In the United States today,nearly ________ of the population has attained a college degree.

Accepted Answer

A) 30 percent 
B) 15 percent 
C) 50 percent 
D) 40 percent 
A) 30 percent 
B) 15 percent 
C) 50 percent 
D) 40 percent

Question 13

The investment in human capital through education and training can result in

Accepted Answer

A) Greater productivity. 
B) Low factor mobility. 
C) Less capital-intensive production. 
D) Reduced output per labor hour. 
A) Greater productivity. 
B) Low factor mobility. 
C) Less capital-intensive production. 
D) Reduced output per labor hour.

Question 14

What percentage of the world's population subsists on incomes of less than $3 a day?

Accepted Answer

A) 40 percent. 
B) 50 percent. 
C) 60 percent. 
D) 70 percent. 
A) 40 percent. 
B) 50 percent. 
C) 60 percent. 
D) 70 percent.

Question 15

Which of the following is an example of an external cost?

Accepted Answer

A) Unemployment. 
B) Unfair pricing behavior by a monopoly. 
C) Automobile exhaust fumes. 
D) Eating a sandwich at a local deli 
A) Unemployment. 
B) Unfair pricing behavior by a monopoly. 
C) Automobile exhaust fumes. 
D) Eating a sandwich at a local deli

Question 16

How is per capita GDP affected by GDP growth and population growth?

Accepted Answer

Per capita GDP is the dollar value of GD

Question 17

The bottom 80 percent of the families in the United States receive approximately ________ percent of total income.

Accepted Answer

A) 10 
B) 20 
C) 50 
D) 90 
A) 10 
B) 20 
C) 50 
D) 90

Question 18

The standard of living rises when population growth exceeds economic growth.

Accepted Answer

A) True 
 B)False

Question 19

According to the World Bank,nearly 40 percent of the people on earth subsist on incomes of less than $3 per day.

Accepted Answer

A) True 
 B)False

Question 20

What factors contribute to the high level of productivity of the American worker?

Accepted Answer

Productivity is affected by th

Exam 2: The Useconomy: a Global View

The best definition of GDP is

Over many years the capital stock in the United States has grown to approximately

What are externalities,and how do they affect who pays the true cost of a polluting factory?

Per capita GDP will definitely rise if

As a country's human capital increases,we observe that

On average,since 1900 the population of the United States has grown by roughly ________ percent per year.

The high productivity of the U.S.economy results from using highly educated workers in a capital-intensive production process.

Regarding increasing productivity,factor mobility is

Which of the following countries had the highest average growth rate for per capita GDP from 2000 to 2009?

Which of the following is considered a service in the calculation of GDP?

The government regulates monopolies in order to

In the United States today,nearly ________ of the population has attained a college degree.

The investment in human capital through education and training can result in

What percentage of the world's population subsists on incomes of less than $3 a day?

Which of the following is an example of an external cost?

How is per capita GDP affected by GDP growth and population growth?

The bottom 80 percent of the families in the United States receive approximately ________ percent of total income.

The standard of living rises when population growth exceeds economic growth.

According to the World Bank,nearly 40 percent of the people on earth subsist on incomes of less than $3 per day.

What factors contribute to the high level of productivity of the American worker?

Economics: the Core Issues

Supply and Demand

The Role of Government

National Income Accounting

Unemployment

Inflation

The Business Cycle

Aggregate Demand

Self-Adjustment or Instability

Fiscal Policy

Deficits and Debt

Money and Banks

The Federal Reserve System

Monetary Policy

Supply-Side Policy: Short-Run Options

Growth and Productivity: Long-Run Possibilities

Theory Versus Reality

Consumer Choice

Elasticity

The Costs of Production

The Competitive Firm

Competitive Markets

Monopoly

Oligopoly

Monopolistic Competition

Natural Monopolies: Deregulation

Environmental Protection

The Farm Problem

The Labor Market

Labor Unions

Financial Markets

Taxes: Equity Versus Efficiency

Transfer Payments: Welfare and Social Security

International Trade

International Finance

Global Poverty

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