Question 1

If the real wage rate is $10.00 per hour and the price level is 60, the money wage rate is

Accepted Answer

A)  $18.50 per hour. 
B)  $6.00 per hour. 
C)  $16.75 per hour. 
D)  $10.00 per hour. 
A)  $18.50 per hour. 
B)  $6.00 per hour. 
C)  $16.75 per hour. 
D)  $10.00 per hour.

Question 2

Growth accounting is designed to measure the amount of economic growth resulting from

Accepted Answer

A)  only technological progress. 
B)  only increased labor. 
C)  technological progress, increased labor, and increased capital. 
D)  only increased capital and labor. 
A)  only technological progress. 
B)  only increased labor. 
C)  technological progress, increased labor, and increased capital. 
D)  only increased capital and labor.

Question 3

If the real wage rate is such that the quantity of labor supplied is greater than the quantity of labor demanded,

Accepted Answer

A)  real GDP will not equal potential GDP. 
B)  the economy is at full employment. 
C)  job search decreases. 
D)  labor resources are allocated efficiently. 
A)  real GDP will not equal potential GDP. 
B)  the economy is at full employment. 
C)  job search decreases. 
D)  labor resources are allocated efficiently.

Question 4

If the labor market is in equilibrium and then the labor supply curve shifts rightward,

Accepted Answer

A)  there will be a surplus of jobs at the new equilibrium. 
B)  the equilibrium wage rate will rise. 
C)  there will be a surplus of labor at the original equilibrium wage rate. 
D)  there will be a shortage of labor at the original equilibrium wage rate. 
A)  there will be a surplus of jobs at the new equilibrium. 
B)  the equilibrium wage rate will rise. 
C)  there will be a surplus of labor at the original equilibrium wage rate. 
D)  there will be a shortage of labor at the original equilibrium wage rate.

Question 5

The Rule of 70 is used to

Accepted Answer

A)  calculate the standard of living 
B)  calculate the economy's growth rate 
C)  estimate how much of an economy's growth rate is due to increases in capital per hour of labor 
D)  estimate how long it will take the level of any variable to double 
A)  calculate the standard of living 
B)  calculate the economy's growth rate 
C)  estimate how much of an economy's growth rate is due to increases in capital per hour of labor 
D)  estimate how long it will take the level of any variable to double

Question 6

In Country A, the working age population is 100 million, the employment-to-population ratio is 60%, and, on average, people work 1,500 hours per year.
-In Country A, the working age population is 100 million, the employment- to- population ratio is 60 percent, and, on average, people work 1,500 hours per year. How many people are employed in Country A?

Accepted Answer

A)  40 million 
B)  100 million 
C)  60 million 
D)  43 million 
A)  40 million 
B)  100 million 
C)  60 million 
D)  43 million

Question 7

An aggregate production function describes the relationship between

Accepted Answer

A)  labor and leisure. 
B)  real GDP and the quantity of labor employed. 
C)  capital and labor. 
D)  All of the above answers are correct. 
A)  labor and leisure. 
B)  real GDP and the quantity of labor employed. 
C)  capital and labor. 
D)  All of the above answers are correct.

Question 8

Labor productivity, real GDP per labor hour, increases if

Accepted Answer

A)  new technologies are continuously discovered. 
B)  saving and investment cause an increase in the quantity of capital per worker. 
C)  there is an increase in the accumulation of human capital. 
D)  All of the above answers are correct. 
A)  new technologies are continuously discovered. 
B)  saving and investment cause an increase in the quantity of capital per worker. 
C)  there is an increase in the accumulation of human capital. 
D)  All of the above answers are correct.

Question 9

If the money wage rate rises relative to the price level, firms the quantity of labor they demand and workers the quantity of labor they supply.

Accepted Answer

A)  decrease; increase 
B)  decrease; decrease 
C)  increase; decrease 
D)  increase; increase 
A)  decrease; increase 
B)  decrease; decrease 
C)  increase; decrease 
D)  increase; increase

Question 10

What best explains why the real wage is always driven to the subsistence level in the classical model?

Accepted Answer

A)  Population growth occurs, shifting the labor supply curve leftward. 
B)  Growth is not possible so the demand for labor never changes. 
C)  Population growth occurs, increasing the supply of labor. 
D)  Investment in capital decreases labor demand, decreasing the demand for labor. 
A)  Population growth occurs, shifting the labor supply curve leftward. 
B)  Growth is not possible so the demand for labor never changes. 
C)  Population growth occurs, increasing the supply of labor. 
D)  Investment in capital decreases labor demand, decreasing the demand for labor.

Question 11

-In the figure, when the real wage rate is $10 an hour, _.

Accepted Answer

A)  the demand for labor will increase 
B)  a shortage of labor exists and the real wage rate will rise 
C)  the demand for labor will decrease 
D)  a surplus of labor exists and the real wage rate will fall 
A)  the demand for labor will increase 
B)  a shortage of labor exists and the real wage rate will rise 
C)  the demand for labor will decrease 
D)  a surplus of labor exists and the real wage rate will fall

Question 12

"China Unveils Plans for Science- based Development "
According to the story, "China intends to massively increase its scientific prowess and lift its popula of poverty by 2050 A strategy issued by the State Council will increase annual investment in rese
And development to 900 billion yuan (US$112 billion) by 2020. This would boost the proportion of
Gross domestic product spent on research from today's 1.3 per cent to 2.5 per cent."
HYPERLINK "http://www.scidev.net/" www.scidev.net, 2/10/20
China's plans to speed the pace of technology growth

Accepted Answer

A)  will create a positive relationship between population growth and real GDP growth according to the neoclassical growth model. 
B)  will cause the population to increase and the real wage to fall according to the new growth theory. 
C)  will positively affect real GDP growth according to the neoclassical growth theory. 
D)  is negatively related to real GDP growth according to the classical growth theory. 
A)  will create a positive relationship between population growth and real GDP growth according to the neoclassical growth model. 
B)  will cause the population to increase and the real wage to fall according to the new growth theory. 
C)  will positively affect real GDP growth according to the neoclassical growth theory. 
D)  is negatively related to real GDP growth according to the classical growth theory.

Question 13

Real GDP grows when
I. the quantities of the factors of production grow.
II. persistent advances in technology make factors of production increasingly productive.
III. human capital grows.

Accepted Answer

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

Question 14

On- the- job- training is an example of

Accepted Answer

A)  investment in physical capital. 
B)  increasing labor force participation. 
C)  technological change. 
D)  investment in human capital. 
A)  investment in physical capital. 
B)  increasing labor force participation. 
C)  technological change. 
D)  investment in human capital.

Question 15

Economic growth tends to be higher in a country that

Accepted Answer

A)  does not grant patents to inventors. 
B)  has an economy open to international trade. 
C)  has an undeveloped system of property rights. 
D)  has a low savings rate. 
A)  does not grant patents to inventors. 
B)  has an economy open to international trade. 
C)  has an undeveloped system of property rights. 
D)  has a low savings rate.

Question 16

If the real wage rate is $15.00 per hour and the price level is 180, the money wage rate is

Accepted Answer

A)  $16.67 per hour. 
B)  $27.00 per hour. 
C)  $18.75 per hour. 
D)  $20.50 per hour. 
A)  $16.67 per hour. 
B)  $27.00 per hour. 
C)  $18.75 per hour. 
D)  $20.50 per hour.

Question 17

Classical economists believed that technological progress would make the labor force

Accepted Answer

A)  more productive, shifting the labor demand curve rightward and raising real wage rates. 
B)  less productive, shifting the labor demand curve leftward and lowering real wage rates. 
C)  more productive, shifting the labor demand curve leftward and lowering real wage rates. 
D)  less productive, shifting the labor demand curve leftward and raising real wage rates. 
A)  more productive, shifting the labor demand curve rightward and raising real wage rates. 
B)  less productive, shifting the labor demand curve leftward and lowering real wage rates. 
C)  more productive, shifting the labor demand curve leftward and lowering real wage rates. 
D)  less productive, shifting the labor demand curve leftward and raising real wage rates.

Question 18

Convergence of the income gap has been most dramatic between

Accepted Answer

A)  South America and the United States. 
B)  Africa and the United States. 
C)  Hong Kong and the United States. 
D)  the Central European countries and the United States. 
A)  South America and the United States. 
B)  Africa and the United States. 
C)  Hong Kong and the United States. 
D)  the Central European countries and the United States.

Question 19

The subsistence real wage rate is the

Accepted Answer

A)  real wage rate that produces an excess supply of labor. 
B)  real wage rate that produces an excess demand for labor. 
C)  minimum real wage rate necessary to sustain life. 
D)  real wage rate that causes technological progress to occur. 
A)  real wage rate that produces an excess supply of labor. 
B)  real wage rate that produces an excess demand for labor. 
C)  minimum real wage rate necessary to sustain life. 
D)  real wage rate that causes technological progress to occur.

Question 20

In the United States, real wage rates and employment have both increased because the

Accepted Answer

A)  labor demand curve has shifted rightward more than the labor supply curve has shifted rightward. 
B)  labor demand curve has shifted leftward more than the labor supply curve has shifted rightward. 
C)  labor supply curve has shifted rightward and the labor demand curve has not shifted. 
D)  labor demand curve has shifted leftward and the labor supply curve has not shifted. 
A)  labor demand curve has shifted rightward more than the labor supply curve has shifted rightward. 
B)  labor demand curve has shifted leftward more than the labor supply curve has shifted rightward. 
C)  labor supply curve has shifted rightward and the labor demand curve has not shifted. 
D)  labor demand curve has shifted leftward and the labor supply curve has not shifted.

If the real wage rate is $10.00 per hour and the price level is 60, the money wage rate is

Growth accounting is designed to measure the amount of economic growth resulting from

If the real wage rate is such that the quantity of labor supplied is greater than the quantity of labor demanded,

If the labor market is in equilibrium and then the labor supply curve shifts rightward,

The Rule of 70 is used to

An aggregate production function describes the relationship between

Labor productivity, real GDP per labor hour, increases if

If the money wage rate rises relative to the price level, firms the quantity of labor they demand and workers the quantity of labor they supply.

What best explains why the real wage is always driven to the subsistence level in the classical model?

-In the figure, when the real wage rate is $10 an hour, _.

Real GDP grows when I. the quantities of the factors of production grow. II. persistent advances in technology make factors of production increasingly productive. III. human capital grows.

On- the- job- training is an example of

Economic growth tends to be higher in a country that

If the real wage rate is $15.00 per hour and the price level is 180, the money wage rate is

Classical economists believed that technological progress would make the labor force

Convergence of the income gap has been most dramatic between

The subsistence real wage rate is the

In the United States, real wage rates and employment have both increased because the

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

If the real wage rate is $10.00 per hour and the price level is 60, the money wage rate is

Growth accounting is designed to measure the amount of economic growth resulting from

If the real wage rate is such that the quantity of labor supplied is greater than the quantity of labor demanded,

If the labor market is in equilibrium and then the labor supply curve shifts rightward,

The Rule of 70 is used to

An aggregate production function describes the relationship between

Labor productivity, real GDP per labor hour, increases if

If the money wage rate rises relative to the price level, firms the quantity of labor they demand and workers the quantity of labor they supply.

What best explains why the real wage is always driven to the subsistence level in the classical model?

-In the figure, when the real wage rate is $10 an hour, _.

Real GDP grows when I. the quantities of the factors of production grow. II. persistent advances in technology make factors of production increasingly productive. III. human capital grows.

On- the- job- training is an example of

Economic growth tends to be higher in a country that

If the real wage rate is $15.00 per hour and the price level is 180, the money wage rate is

Classical economists believed that technological progress would make the labor force

Convergence of the income gap has been most dramatic between

The subsistence real wage rate is the

In the United States, real wage rates and employment have both increased because the

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