Question 1

Population increases are the limiting factor in the growth process in

Accepted Answer

A)  real growth theory. 
B)  the new growth theory. 
C)  classical growth theory. 
D)  neoclassical growth theory. 
A)  real growth theory. 
B)  the new growth theory. 
C)  classical growth theory. 
D)  neoclassical growth theory.

Question 2

Human capital is

Accepted Answer

A)  the investment people make in industries that make capital goods. 
B)  a measure of the labor productivity of workers. 
C)  people's knowledge and skills. 
D)  the saving done by human beings. 
A)  the investment people make in industries that make capital goods. 
B)  a measure of the labor productivity of workers. 
C)  people's knowledge and skills. 
D)  the saving done by human beings.

Question 3

When the quantity of labor demanded exceeds the quantity of labor supplied, the real wage rate

Accepted Answer

A)  rises to eliminate the labor- market surplus. 
B)  falls to eliminate the labor- market surplus. 
C)  falls to eliminate the labor- market shortage. 
D)  rises to eliminate the labor- market shortage. 
A)  rises to eliminate the labor- market surplus. 
B)  falls to eliminate the labor- market surplus. 
C)  falls to eliminate the labor- market shortage. 
D)  rises to eliminate the labor- market shortage.

Question 4

If the population increases, then potential GDP and employment .

Accepted Answer

A)  increases; decreases 
B)  decreases; increases 
C)  decreases; decreases 
D)  increases; increases 
A)  increases; decreases 
B)  decreases; increases 
C)  decreases; decreases 
D)  increases; increases

Question 5

The neoclassical growth theory says, in part, that

Accepted Answer

A)  a population explosion driven by economic growth will end economic growth. 
B)  technology does not play a role in economic growth. 
C)  the differences in nation's growth rates will persist indefinitely. 
D)  technological change leads to economic growth. 
A)  a population explosion driven by economic growth will end economic growth. 
B)  technology does not play a role in economic growth. 
C)  the differences in nation's growth rates will persist indefinitely. 
D)  technological change leads to economic growth.

Question 6

Growth accounting is a method of

Accepted Answer

A)  measuring labor productivity. 
B)  measuring GDP. 
C)  calculating the economic growth rate. 
D)  estimating the contributions of the sources of growth. 
A)  measuring labor productivity. 
B)  measuring GDP. 
C)  calculating the economic growth rate. 
D)  estimating the contributions of the sources of growth.

Question 7

New growth theory holds that choices, and the discoveries that result from them, result in growth that is temporary in nature.

Accepted Answer

A) True 
 B)False

Question 8

If we compare the productivity growth in the United States from 1963 to 1973 with productivity growth from 1993 to 2005,

Accepted Answer

A)  the growth rate was the same in each decade. 
B)  growth did not occur in productivity in either period. 
C)  the growth rate was higher from 1963 to 1973. 
D)  the growth rate was higher from 1993 to 2005. 
A)  the growth rate was the same in each decade. 
B)  growth did not occur in productivity in either period. 
C)  the growth rate was higher from 1963 to 1973. 
D)  the growth rate was higher from 1993 to 2005.

Question 9

Labor productivity is defined as

Accepted Answer

A)  zero percent unemployment. 
B)  changes in the average hours per worker hour of capital. 
C)  the quantity of real GDP produced per hour of labor. 
D)  the quantity of potential GDP produced per hour of labor. 
A)  zero percent unemployment. 
B)  changes in the average hours per worker hour of capital. 
C)  the quantity of real GDP produced per hour of labor. 
D)  the quantity of potential GDP produced per hour of labor.

Question 10

A worker's stock of knowledge is known as

Accepted Answer

A)  financial capital. 
B)  human capital. 
C)  physical capital. 
D)  monetary capital. 
A)  financial capital. 
B)  human capital. 
C)  physical capital. 
D)  monetary capital.

Question 11

The demand curve for labor shows how many hours workers demand to work.

Accepted Answer

A) True 
 B)False

Question 12

An increase in labor productivity the real wage rate and an increase in population
The real wage rate.

Accepted Answer

A)  lowers; raises 
B)  lowers; lowers 
C)  raises; lowers 
D)  raises; raises 
A)  lowers; raises 
B)  lowers; lowers 
C)  raises; lowers 
D)  raises; raises

Question 13

Which of the following contributes to an increase in labor productivity?

Accepted Answer

A)  an increase in human capital 
B)  an increase in physical capital 
C)  technological advances 
D)  All of the above contribute to an increase in labor productivity. 
A)  an increase in human capital 
B)  an increase in physical capital 
C)  technological advances 
D)  All of the above contribute to an increase in labor productivity.

Question 14

In 2005, Armenia had a real GDP of approximately $4.21 billion and a population of 2.98 million. In 2006, real GDP was $4.59 billion and population was 2.97 million.
-During 2009, the country of Economia had a real GDP of $115 billion and the population was 0.9 billion. In 2008, real GDP was 105 billion and the population was 0.85 billion. In 2008, real GDP per person was

Accepted Answer

A)  $124 
B)  $128 
C)  $135 
D)  $117 
A)  $124 
B)  $128 
C)  $135 
D)  $117

Question 15

If the quantity of capital per worker in the economy increases,

Accepted Answer

A)  labor productivity increases. 
B)  the stock of human capital necessarily increases. 
C)  the amount of money held by workers increases. 
D)  the stock of financial assets held by the public increases. 
A)  labor productivity increases. 
B)  the stock of human capital necessarily increases. 
C)  the amount of money held by workers increases. 
D)  the stock of financial assets held by the public increases.

Question 16

All of the following would stimulate economic growth EXCEPT

Accepted Answer

A)  decreasing taxes on consumption (for instance, decreasing a sales taxes) and increasing income taxes. 
B)  decreasing tuition charges at state universities. 
C)  encouraging international trade. 
D)  subsidizing basic research. 
A)  decreasing taxes on consumption (for instance, decreasing a sales taxes) and increasing income taxes. 
B)  decreasing tuition charges at state universities. 
C)  encouraging international trade. 
D)  subsidizing basic research.

Question 17

Classical growth theory argues that, when the real wage rate rises above the subsistence level,

Accepted Answer

A)  people don't want to work as much, decreasing labor supply. 
B)  technological change slows down, stagnating the economy. 
C)  population growth increases, driving the real wage rate back to subsistence level. 
D)  the economy enjoys a period of permanent growth. 
A)  people don't want to work as much, decreasing labor supply. 
B)  technological change slows down, stagnating the economy. 
C)  population growth increases, driving the real wage rate back to subsistence level. 
D)  the economy enjoys a period of permanent growth.

Question 18

The table below shows data for China.   The standard of living between 2003 and 2006 increased by .

Accepted Answer

A)  55.3 percent 
B)  35 percent 
C)  1.8 percent 
D)  32.7 percent 
A)  55.3 percent 
B)  35 percent 
C)  1.8 percent 
D)  32.7 percent

Question 19

What is the law of diminishing returns? Give an example of what the law of diminishing returns implies.

Accepted Answer

The law of diminishing returns is the ob

Question 20

A factor that turned out to be a weakness of the classical theory of growth is its

Accepted Answer

A)  assumption that the growth rate of the population increases when income increases. 
B)  emphasis on saving and investment. 
C)  reliance on constant growth in technology. 
D)  neglect of the subsistence real wage. 
A)  assumption that the growth rate of the population increases when income increases. 
B)  emphasis on saving and investment. 
C)  reliance on constant growth in technology. 
D)  neglect of the subsistence real wage.

Population increases are the limiting factor in the growth process in

Human capital is

When the quantity of labor demanded exceeds the quantity of labor supplied, the real wage rate

If the population increases, then potential GDP and employment .

The neoclassical growth theory says, in part, that

Growth accounting is a method of

New growth theory holds that choices, and the discoveries that result from them, result in growth that is temporary in nature.

If we compare the productivity growth in the United States from 1963 to 1973 with productivity growth from 1993 to 2005,

Labor productivity is defined as

A worker's stock of knowledge is known as

The demand curve for labor shows how many hours workers demand to work.

An increase in labor productivity the real wage rate and an increase in population The real wage rate.

Which of the following contributes to an increase in labor productivity?

If the quantity of capital per worker in the economy increases,

All of the following would stimulate economic growth EXCEPT

Classical growth theory argues that, when the real wage rate rises above the subsistence level,

The table below shows data for China. The standard of living between 2003 and 2006 increased by .

What is the law of diminishing returns? Give an example of what the law of diminishing returns implies.

A factor that turned out to be a weakness of the classical theory of growth is its

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: They Keynesian Model

U.S. Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 6: Economic Growth

Population increases are the limiting factor in the growth process in

Human capital is

When the quantity of labor demanded exceeds the quantity of labor supplied, the real wage rate

If the population increases, then potential GDP and employment .

The neoclassical growth theory says, in part, that

Growth accounting is a method of

New growth theory holds that choices, and the discoveries that result from them, result in growth that is temporary in nature.

If we compare the productivity growth in the United States from 1963 to 1973 with productivity growth from 1993 to 2005,

Labor productivity is defined as

A worker's stock of knowledge is known as

The demand curve for labor shows how many hours workers demand to work.

An increase in labor productivity the real wage rate and an increase in population The real wage rate.

Which of the following contributes to an increase in labor productivity?

If the quantity of capital per worker in the economy increases,

All of the following would stimulate economic growth EXCEPT

Classical growth theory argues that, when the real wage rate rises above the subsistence level,

The table below shows data for China. The standard of living between 2003 and 2006 increased by .

What is the law of diminishing returns? Give an example of what the law of diminishing returns implies.

A factor that turned out to be a weakness of the classical theory of growth is its

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: They Keynesian Model

U.S. Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters