Question 1

The economist credited with pioneering the "new growth theory" is

Accepted Answer

A)  Milton Friedman. 
B)  Jia-Tzu Weng. 
C)  Paul Romer. 
D)  Julian Simon. 
A)  Milton Friedman. 
B)  Jia-Tzu Weng. 
C)  Paul Romer. 
D)  Julian Simon.

Question 2

In 1961,President Kennedy committed the United States to a manned lunar mission by the end of the decade.Few thought we could actually do it,but of course we did,with five months to spare.This story might illustrate a __________ growth theory argument that technological change __________.

Accepted Answer

A)  new; can be deliberately accelerated 
B)  new; relies on government policy 
C)  neoclassical; can be deliberately accelerated 
D)  neoclassical; relies on government policy 
A)  new; can be deliberately accelerated 
B)  new; relies on government policy 
C)  neoclassical; can be deliberately accelerated 
D)  neoclassical; relies on government policy

Question 3

Absolute real economic growth is an increase in __________ from one period to the next.

Accepted Answer

A)  GDP 
B)  Real GDP 
C)  per-capita Real GDP 
D)  per-capita GDP 
E)  none of the above 
A)  GDP 
B)  Real GDP 
C)  per-capita Real GDP 
D)  per-capita GDP 
E)  none of the above

Question 4

The term human capital refers to education,training and experience.

Accepted Answer

A) True 
 B)False

Question 5

Suppose the population of a country falls,but Real GDP remains constant.There is __________ economic growth.

Accepted Answer

A)  both absolute and per-capita real 
B)  absolute, but not per-capita real 
C)  per-capita real, but not absolute 
D)  neither absolute nor per-capita real 
A)  both absolute and per-capita real 
B)  absolute, but not per-capita real 
C)  per-capita real, but not absolute 
D)  neither absolute nor per-capita real

Question 6

Exhibit 17-4

-Refer to Exhibit 17-4 Assume that the starting point in graphs (a)and (b)in Exhibit 17-4 is point 1. After a decrease in income taxes,there would be a ______________________ which would cause a movement along the production function from point 1 to point ______________. The result would be a shift of the LRAS curve from LRAS1 to _______________ resulting in _______________..

Accepted Answer

A)  leftward shift of the labor supply curve from SL1 to SL3; movement along the production function to point 3; LRAS3; a shrinking economy 
B)  rightward shift of the labor supply curve from SL1 to SL2; movement along the production function to point 3; LRAS3; a shrinking economy 
C)  leftward shift of the labor supply curve from SL1 to SL3; movement along the production function to point 2; LRAS2; economic growth 
D)  rightward shift of the labor supply curve from SL1 to SL2; movement along the production function to point 2; LRAS2; economic growth 
A)  leftward shift of the labor supply curve from SL1 to SL3; movement along the production function to point 3; LRAS3; a shrinking economy 
B)  rightward shift of the labor supply curve from SL1 to SL2; movement along the production function to point 3; LRAS3; a shrinking economy 
C)  leftward shift of the labor supply curve from SL1 to SL3; movement along the production function to point 2; LRAS2; economic growth 
D)  rightward shift of the labor supply curve from SL1 to SL2; movement along the production function to point 2; LRAS2; economic growth

Question 7

In the production function,the variable K represents human capital.

Accepted Answer

A) True 
 B)False

Question 8

Examples of physical capital include _______________________. Examples of human capital include ______________________________.

Accepted Answer

A)  knowledge one picks up through education and training; factories and computers 
B)  machines and factories; chairs and desks 
C)  knowledge one picks up through education and experience; factories and machines 
D)  machines and factories; knowledge one picks up through education and training 
A)  knowledge one picks up through education and training; factories and computers 
B)  machines and factories; chairs and desks 
C)  knowledge one picks up through education and experience; factories and machines 
D)  machines and factories; knowledge one picks up through education and training

Question 9

In the production function Real GDP = T (L,K),the T stands for tax coefficient.

Accepted Answer

A) True 
 B)False

Question 10

New growth theory holds technology to be __________; neoclassical growth theory holds technology to be __________.

Accepted Answer

A)  exogenous; endogenous 
B)  endogenous; endogenous 
C)  endogenous; exogenous 
D)  exogenous; exogenous 
A)  exogenous; endogenous 
B)  endogenous; endogenous 
C)  endogenous; exogenous 
D)  exogenous; exogenous

Question 11

Neoclassical growth theory does not emphasize how __________ contribute to growth.

Accepted Answer

A)  the quantity of capital 
B)  technological changes 
C)  the quantity of labor 
D)  factors limiting population growth 
E)  a and c 
A)  the quantity of capital 
B)  technological changes 
C)  the quantity of labor 
D)  factors limiting population growth 
E)  a and c

Question 12

The term economic growth can be used in reference to absolute real economic growth or to per- capita real economic growth.

Accepted Answer

A) True 
 B)False

Question 13

An economy doubles in size every 25 years if it maintains a steady annual growth rate of about __________ percent.

Accepted Answer

A)  4.0 
B)  2.8 
C)  3.5 
D)  2.0 
A)  4.0 
B)  2.8 
C)  3.5 
D)  2.0

Question 14

When income taxes fall,the supply of labor curve shifts rightward,ultimately leading to the LRAS curve shifting rightward (economic growth).

Accepted Answer

A) True 
 B)False

Question 15

The Real GDP of country X doubled in 10 years.It follows that

Accepted Answer

A)  the per-capita Real GDP doubled during this time, too. 
B)  the per-capita Real GDP remained stable during this time. 
C)  the per-capita Real GDP fell during this time. 
D)  disposable income also doubled during this time. 
E)  none of the above 
A)  the per-capita Real GDP doubled during this time, too. 
B)  the per-capita Real GDP remained stable during this time. 
C)  the per-capita Real GDP fell during this time. 
D)  disposable income also doubled during this time. 
E)  none of the above

Question 16

Technological advances make it possible to

Accepted Answer

A)  produce goods without using any resources. 
B)  obtain the same output by using more resources. 
C)  obtain the same output by using fewer resources. 
D)  lower labor productivity. 
A)  produce goods without using any resources. 
B)  obtain the same output by using more resources. 
C)  obtain the same output by using fewer resources. 
D)  lower labor productivity.

Question 17

Suppose that the production function for an economy is graphed with Real GDP on the vertical axis and labor on the horizontal axis. When the level of capital in this economy rises,it causes ____________________which shifts the LRAS curve ____________ resulting in ______________________.

Accepted Answer

A)  a movement down along a given production function; leftward; a shrinking economy 
B)  the production function to shift downward; leftward; a shrinking economy 
C)  a movement up along a given production function; rightward; economic growth 
D)  the production function to shift upward; rightward; economic growth 
A)  a movement down along a given production function; leftward; a shrinking economy 
B)  the production function to shift downward; leftward; a shrinking economy 
C)  a movement up along a given production function; rightward; economic growth 
D)  the production function to shift upward; rightward; economic growth

Question 18

Two Harvard economists,Robert Barro and Rachel McCleary,have researched the role that ________________ plays in economic growth.

Accepted Answer

A)  religion 
B)  meta-ideas 
C)  technology 
D)  human resource development 
A)  religion 
B)  meta-ideas 
C)  technology 
D)  human resource development

Question 19

According to economist Benjamin Friedman,sustained economic growth can make people more willing to work toward improving the environment and reducing poverty.

Accepted Answer

A) True 
 B)False

Question 20

In the production function Real GDP = T (L,K,NR,H),the T represents the _____________ coefficient,the L represents ________________,the K represents _______________,the NR represents natural resources,and the H represents ________________.

Accepted Answer

A)  tax; labor; capital; humanity 
B)  technology; labor; knowledge; humanity 
C)  technology; labor; capital; human capital 
D)  trade; labor; knowledge; human capital 
A)  tax; labor; capital; humanity 
B)  technology; labor; knowledge; humanity 
C)  technology; labor; capital; human capital 
D)  trade; labor; knowledge; human capital

Exam 17: Economic Growth: Resources, Technology, Ideas, and Institutions

The economist credited with pioneering the "new growth theory" is

In 1961,President Kennedy committed the United States to a manned lunar mission by the end of the decade.Few thought we could actually do it,but of course we did,with five months to spare.This story might illustrate a __________ growth theory argument that technological change __________.

Absolute real economic growth is an increase in __________ from one period to the next.

The term human capital refers to education,training and experience.

Suppose the population of a country falls,but Real GDP remains constant.There is __________ economic growth.

In the production function,the variable K represents human capital.

Examples of physical capital include _______________________. Examples of human capital include ______________________________.

In the production function Real GDP = T (L,K),the T stands for tax coefficient.

New growth theory holds technology to be __________; neoclassical growth theory holds technology to be __________.

Neoclassical growth theory does not emphasize how __________ contribute to growth.

The term economic growth can be used in reference to absolute real economic growth or to per- capita real economic growth.

An economy doubles in size every 25 years if it maintains a steady annual growth rate of about __________ percent.

When income taxes fall,the supply of labor curve shifts rightward,ultimately leading to the LRAS curve shifting rightward (economic growth).

The Real GDP of country X doubled in 10 years.It follows that

Technological advances make it possible to

Suppose that the production function for an economy is graphed with Real GDP on the vertical axis and labor on the horizontal axis. When the level of capital in this economy rises,it causes ____________________which shifts the LRAS curve ____________ resulting in ______________________.

Two Harvard economists,Robert Barro and Rachel McCleary,have researched the role that ________________ plays in economic growth.

According to economist Benjamin Friedman,sustained economic growth can make people more willing to work toward improving the environment and reducing poverty.

In the production function Real GDP = T (L,K,NR,H),the T represents the _____________ coefficient,the L represents ________________,the K represents _______________,the NR represents natural resources,and the H represents ________________.

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, Controlled, and Relative

Supply, Demand, and Price: Applications

Macroeconomic Measurements: Prices and Unemployment

Macroeconomic Measurements: GDP and Real GDP

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self Regulating Economy

Keynesian Macroeconomics and Economic Instability: A Critique of the Self-Regulating Economy

Fiscal Policy and the Federal Budget

Money, Banking,and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

The Financial Crisis of 2007-2009

Debates in Macroeconomics Over the Role and Effects of Government

Elasticity

Consumer Choice: Maximizing Utility and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition, Oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages,Unions,and Labor

The Distribution of Income and Poverty

Interest, Rent, and Profit

Market Failure: Externalities, Public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

Globalization and International Impacts on the Economy

The Economic Case For and Against Government: Five Topics Considered

Stocks, Bonds, Futures, and Options

Agriculture: Problems, Policies, and Unintended Effects

Filters

In 1961,President Kennedy committed the United States to a manned lunar mission by the end of the decade.Few thought we could actually do it,but of course we did,with five months to spare.This story might illustrate a growth theory argument that technological change .

Examples of physical capital include _. Examples of human capital include ________.

New growth theory holds technology to be ; neoclassical growth theory holds technology to be .

Suppose that the production function for an economy is graphed with Real GDP on the vertical axis and labor on the horizontal axis. When the level of capital in this economy rises,it causes which shifts the LRAS curve resulting in __.

In the production function Real GDP = T (L,K,NR,H),the T represents the _____ coefficient,the L represents ,the K represents _,the NR represents natural resources,and the H represents __________.