Question 1

An increase in labor hours will lead to

Accepted Answer

A)  a shift of the aggregate production function but no movement along it. 
B)  neither a movement along nor a shift in the aggregate production function. 
C)  a movement along the aggregate production function but no shift in it. 
D)  both a movement along and a shift in the aggregate production function. 
A)  a shift of the aggregate production function but no movement along it. 
B)  neither a movement along nor a shift in the aggregate production function. 
C)  a movement along the aggregate production function but no shift in it. 
D)  both a movement along and a shift in the aggregate production function.

Question 2

Which of the following will NOT work to increase the rate of economic growth?

Accepted Answer

A)  improve the quality of education 
B)  increase saving 
C)  limit competition from international trade 
D)  All of the above will work to increase the rate of economic growth. 
A)  improve the quality of education 
B)  increase saving 
C)  limit competition from international trade 
D)  All of the above will work to increase the rate of economic growth.

Question 3

What is the main shortcoming of the neoclassical growth model and how does the new growth theory address this shortcoming?

Accepted Answer

One difficulty with the neoclassical mod

Question 4

According to neoclassical growth theory, increased real GDP per person from economic growth will

Accepted Answer

A)  last indefinitely regardless of any other factor. 
B)  last because there is no link between growth and population. 
C)  not last because the population will increase. 
D)  last as long as technological change continues. 
A)  last indefinitely regardless of any other factor. 
B)  last because there is no link between growth and population. 
C)  not last because the population will increase. 
D)  last as long as technological change continues.

Question 5

Equilibrium in the labor market

Accepted Answer

A)  cannot occur if the production function is shifting upward. 
B)  occurs when actual GDP is equal to potential GDP 
C)  means that resources are allocated inefficiently 
D)  can happen only when real GDP exceeds potential GDP. 
A)  cannot occur if the production function is shifting upward. 
B)  occurs when actual GDP is equal to potential GDP 
C)  means that resources are allocated inefficiently 
D)  can happen only when real GDP exceeds potential GDP.

Question 6

The relationship between the labor employed by a firm and the real wage rate is shown by the

Accepted Answer

A)  demand for jobs curve. 
B)  supply of jobs curve. 
C)  demand for labor curve. 
D)  supply of labor curve. 
A)  demand for jobs curve. 
B)  supply of jobs curve. 
C)  demand for labor curve. 
D)  supply of labor curve.

Question 7

Which theory of economic growth concludes that growth can continue indefinitely?

Accepted Answer

A)  the new theory 
B)  the neoclassical theory 
C)  the classical theory 
D)  all of the theories 
A)  the new theory 
B)  the neoclassical theory 
C)  the classical theory 
D)  all of the theories

Question 8

In the classical theory of growth, what is the final outcome of an increase in growth and labor productivity?

Accepted Answer

In the classical growth theory, a rise i

Question 9

-In the above figure, the equilibrium real wage rate is

Accepted Answer

A)  $10 per hour. 
B)  $20 per hour. 
C)  $15 per hour. 
D)  none of the above 
A)  $10 per hour. 
B)  $20 per hour. 
C)  $15 per hour. 
D)  none of the above

Question 10

If capital per hour of labor growth is 3.6 percent and labor productivity growth is 4 percent, how much labor productivity growth can be attributed to capital growth?

Accepted Answer

The one- third rule indicates

Question 11

The quantity of labor demanded depends on the

Accepted Answer

A)  price of output not the money wage rate nor the real wage rate. 
B)  real wage rate not the money wage rate. 
C)  money wage rate not the real wage rate. 
D)  level of income. 
A)  price of output not the money wage rate nor the real wage rate. 
B)  real wage rate not the money wage rate. 
C)  money wage rate not the real wage rate. 
D)  level of income.

Question 12

-The country of Kemper is on its aggregate production function at point W in the above figure. If the population increases with no change in capital or technology, the economy will

Accepted Answer

A)  remain at point W. 
B)  move to point such as Z. 
C)  move to point such as X. 
D)  move to point such as Y. 
A)  remain at point W. 
B)  move to point such as Z. 
C)  move to point such as X. 
D)  move to point such as Y.

Question 13

What factors raise the productivity of labor?

Accepted Answer

The productivity of labor is affected by

Question 14

The United States experienced a slowdown in economic growth during which of the following time periods?

Accepted Answer

A)  1973 - 1983 
B)  1920's 
C)  late 1990's 
D)  1960's 
A)  1973 - 1983 
B)  1920's 
C)  late 1990's 
D)  1960's

Question 15

If the price level increases, but workers' money wage rates remain constant,which of the following i TRUE?
I. The quantity of labor demanded will increase.
II. The real wage rate will decrease.
III. The demand for labor curve shifts rightward.

Accepted Answer

A)  II and III 
B)  I and II 
C)  I only 
D)  I, II and III 
A)  II and III 
B)  I and II 
C)  I only 
D)  I, II and III

Question 16

What is the one- third rule? What is it used for?

Accepted Answer

The one- third rule is the observation t

Question 17

Slowdonia's current growth rate of real GDP per person is 2 percent a year. How long will it take to double real GDP per person?

Accepted Answer

A)  28.6 years 
B)  35 years 
C)  approximately 10 years 
D)  half a year 
A)  28.6 years 
B)  35 years 
C)  approximately 10 years 
D)  half a year

Question 18

-The tables above show the labor market and the production function schedule for the country of Pickett. An increase in population changes the labor supply by 20 billion hours at each real wage rate. Potential GDP .

Accepted Answer

A)  does not change 
B)  increases to $18 trillion 
C)  increases to $50 trillion 
D)  decreases to $3 trillion 
A)  does not change 
B)  increases to $18 trillion 
C)  increases to $50 trillion 
D)  decreases to $3 trillion

Question 19

Using the Rule of 70, if the country of Flowerdom's current growth rate of real GDP per person was 10 percent a year, how long would it take the country's real GDP per person to double?

Accepted Answer

A)  1 year 
B)  7 years 
C)  0.7 years 
D)  10 years 
A)  1 year 
B)  7 years 
C)  0.7 years 
D)  10 years

Question 20

In the United States, which of the following occurred between 1990 and 2008?

Accepted Answer

A)  Total labor hours and working- age population increased. 
B)  Potential GDP increased. 
C)  Increases in labor productivity lead to increases in the real wage rate. 
D)  All of the above answers are correct. 
A)  Total labor hours and working- age population increased. 
B)  Potential GDP increased. 
C)  Increases in labor productivity lead to increases in the real wage rate. 
D)  All of the above answers are correct.

An increase in labor hours will lead to

Which of the following will NOT work to increase the rate of economic growth?

What is the main shortcoming of the neoclassical growth model and how does the new growth theory address this shortcoming?

According to neoclassical growth theory, increased real GDP per person from economic growth will

Equilibrium in the labor market

The relationship between the labor employed by a firm and the real wage rate is shown by the

Which theory of economic growth concludes that growth can continue indefinitely?

In the classical theory of growth, what is the final outcome of an increase in growth and labor productivity?

-In the above figure, the equilibrium real wage rate is

If capital per hour of labor growth is 3.6 percent and labor productivity growth is 4 percent, how much labor productivity growth can be attributed to capital growth?

The quantity of labor demanded depends on the

-The country of Kemper is on its aggregate production function at point W in the above figure. If the population increases with no change in capital or technology, the economy will

What factors raise the productivity of labor?

The United States experienced a slowdown in economic growth during which of the following time periods?

If the price level increases, but workers' money wage rates remain constant,which of the following i TRUE? I. The quantity of labor demanded will increase. II. The real wage rate will decrease. III. The demand for labor curve shifts rightward.

What is the one- third rule? What is it used for?

Slowdonia's current growth rate of real GDP per person is 2 percent a year. How long will it take to double real GDP per person?

-The tables above show the labor market and the production function schedule for the country of Pickett. An increase in population changes the labor supply by 20 billion hours at each real wage rate. Potential GDP .

Using the Rule of 70, if the country of Flowerdom's current growth rate of real GDP per person was 10 percent a year, how long would it take the country's real GDP per person to double?

In the United States, which of the following occurred between 1990 and 2008?

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

An increase in labor hours will lead to

Which of the following will NOT work to increase the rate of economic growth?

What is the main shortcoming of the neoclassical growth model and how does the new growth theory address this shortcoming?

According to neoclassical growth theory, increased real GDP per person from economic growth will

Equilibrium in the labor market

The relationship between the labor employed by a firm and the real wage rate is shown by the

Which theory of economic growth concludes that growth can continue indefinitely?

In the classical theory of growth, what is the final outcome of an increase in growth and labor productivity?

-In the above figure, the equilibrium real wage rate is

If capital per hour of labor growth is 3.6 percent and labor productivity growth is 4 percent, how much labor productivity growth can be attributed to capital growth?

The quantity of labor demanded depends on the

-The country of Kemper is on its aggregate production function at point W in the above figure. If the population increases with no change in capital or technology, the economy will

What factors raise the productivity of labor?

The United States experienced a slowdown in economic growth during which of the following time periods?

If the price level increases, but workers' money wage rates remain constant,which of the following i TRUE? I. The quantity of labor demanded will increase. II. The real wage rate will decrease. III. The demand for labor curve shifts rightward.

What is the one- third rule? What is it used for?

Slowdonia's current growth rate of real GDP per person is 2 percent a year. How long will it take to double real GDP per person?

-The tables above show the labor market and the production function schedule for the country of Pickett. An increase in population changes the labor supply by 20 billion hours at each real wage rate. Potential GDP .

Using the Rule of 70, if the country of Flowerdom's current growth rate of real GDP per person was 10 percent a year, how long would it take the country's real GDP per person to double?

In the United States, which of the following occurred between 1990 and 2008?

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