Question 1

Looking at real GDP per person in the United States over the past 100 years, we see that real GDP

Accepted Answer

A)  has usually stayed constant. 
B)  each year has always increased. 
C)  increased during most of the years but not all of them. 
D)  only grew after World War II. 
A)  has usually stayed constant. 
B)  each year has always increased. 
C)  increased during most of the years but not all of them. 
D)  only grew after World War II.

Question 2

A higher savings rate that leads to an increase in the capital stock

Accepted Answer

A)  leads to increases in labor productivity. 
B)  is associated with a decrease in the rate of growth of the population. 
C)  leads to higher interest rates. 
D)  immediately decreases investment. 
A)  leads to increases in labor productivity. 
B)  is associated with a decrease in the rate of growth of the population. 
C)  leads to higher interest rates. 
D)  immediately decreases investment.

Question 3

The gaps between the United States and the Asian countries of Honk Kong, Singapore, Taiwan and China have been

Accepted Answer

A)  decreasing 
B)  there are no gaps between these Asian countries and the United States 
C)  increasing 
D)  remaining fairly constant 
A)  decreasing 
B)  there are no gaps between these Asian countries and the United States 
C)  increasing 
D)  remaining fairly constant

Question 4

The classical model of Malthus predicted that economies would

Accepted Answer

A)  experience rapid technological progress. 
B)  reach a state where the growth of real GDP per person stopped. 
C)  continue to grow indefinitely. 
D)  experience significant productivity growth. 
A)  experience rapid technological progress. 
B)  reach a state where the growth of real GDP per person stopped. 
C)  continue to grow indefinitely. 
D)  experience significant productivity growth.

Question 5

Characterize the years between 1961 and 2008 on the basis of labor productivity growth.

Accepted Answer

The 1960s witnessed the fastest growth r

Question 6

Hu Tells Leaders China Growth Will Help World Economy
Chinese President Hu Jintao told world leaders that his country "has taken an active part in the international cooperation to deal with the financial crisis'' by providing a "$586 billion economic sti focused on building low- rent housing, roads, railways and airports. The package also allows tax deductions for fixed assets such as machinery to stimulate investment. Farmers will also benefit fro subsidies."
Hu stated that "China is in itself an important contribution to international financial stability and wo economic growth.''
If the fiscal stimulus spending does generate economic growth, we can expect to see

Accepted Answer

A)  growth in the supply of labor. 
B)  growth China's price level. 
C)  growth in labor productivity. 
D)  an excess supply of labor in China's labor market. 
A)  growth in the supply of labor. 
B)  growth China's price level. 
C)  growth in labor productivity. 
D)  an excess supply of labor in China's labor market.

Question 7

If a rich country grows at a faster rate than a poor one, then

Accepted Answer

A)  the difference in their living standards will not change over time. 
B)  the gap in their standard of living will widen over time. 
C)  whether or not the living standards gap widens or closes over time depends on the absolute size of the relative growth rates. 
D)  the gap in their standard of living will close over time. 
A)  the difference in their living standards will not change over time. 
B)  the gap in their standard of living will widen over time. 
C)  whether or not the living standards gap widens or closes over time depends on the absolute size of the relative growth rates. 
D)  the gap in their standard of living will close over time.

Question 8

Over the past four decades,

Accepted Answer

A)  U.S. real GDP per person has fallen below that of the other rich industrial countries. 
B)  the growth rate of GDP per person in the United States has been increasing. 
C)  U.S. real GDP per person has been increasing. 
D)  Both answers A and C are correct. 
A)  U.S. real GDP per person has fallen below that of the other rich industrial countries. 
B)  the growth rate of GDP per person in the United States has been increasing. 
C)  U.S. real GDP per person has been increasing. 
D)  Both answers A and C are correct.

Question 9

Which of the following statements are correct?
I. The average economic growth rate in real GDP per person in the United States over the last cent was 5 percent per year.
II. The United States has the highest economic growth rate of any nation.

Accepted Answer

A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II 
A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II

Question 10

The historical record for the United States since 1900 shows

Accepted Answer

A)  growth until 1970 and then a period of constant per person real GDP. 
B)  economic growth for about half the years and economic decline for the other half. 
C)  continuous economic growth for each year, although at different rates, throughout the entire century. 
D)  mostly positive economic growth, though the Great Depression caused actual GDP to dip well below potential GDP. 
A)  growth until 1970 and then a period of constant per person real GDP. 
B)  economic growth for about half the years and economic decline for the other half. 
C)  continuous economic growth for each year, although at different rates, throughout the entire century. 
D)  mostly positive economic growth, though the Great Depression caused actual GDP to dip well below potential GDP.

Question 11

Suppose a country is producing $20 million of real GDP. If the economy grows at 10 percent per year, approximately how many years will to take for real GDP to grow to $80 million?

Accepted Answer

A)  14 
B)  30 
C)  4 
D)  7 
A)  14 
B)  30 
C)  4 
D)  7

Question 12

If the demand for labor increases
I. employment increases.
II. the real wage rate increases.

Accepted Answer

A)  Only I is correct. 
B)  Only II is correct. 
C)  Both I and II are correct. 
D)  Neither I nor II is correct. 
A)  Only I is correct. 
B)  Only II is correct. 
C)  Both I and II are correct. 
D)  Neither I nor II is correct.

Question 13

If workers' money wage rates increase by 5 percent and the price level remains constant, workers'

Accepted Answer

A)  quantity of labor supplied will increase. 
B)  quantity of labor supplied will not change. 
C)  quantity of labor supplied will decrease. 
D)  demand for jobs will decrease. 
A)  quantity of labor supplied will increase. 
B)  quantity of labor supplied will not change. 
C)  quantity of labor supplied will decrease. 
D)  demand for jobs will decrease.

Question 14

Neoclassical growth theory predicts that

Accepted Answer

A)  advances in technology increase the productivity of capital, which leads to an increase in investment and rising real GDP per person. 
B)  growth in real GDP can continue indefinitely. 
C)  growth in real GDP can increase without any increase in investment demand. 
D)  advances in technology are a result of discoveries motivated by the pursuit of profits. 
A)  advances in technology increase the productivity of capital, which leads to an increase in investment and rising real GDP per person. 
B)  growth in real GDP can continue indefinitely. 
C)  growth in real GDP can increase without any increase in investment demand. 
D)  advances in technology are a result of discoveries motivated by the pursuit of profits.

Question 15

An assumption of classical growth theory is that when the population growth rate
)

Accepted Answer

A)  the real wage rate decreases; increases 
B)  the real wage rate exceeds the subsistence real wage rate; increases 
C)  people become more skilled; decreases 
D)  saving declines; decreases 
A)  the real wage rate decreases; increases 
B)  the real wage rate exceeds the subsistence real wage rate; increases 
C)  people become more skilled; decreases 
D)  saving declines; decreases

Question 16

Activities that encourage faster growth are

Accepted Answer

A)  developing trade barriers to protect national industries. 
B)  taxes on saving that serve to encourage more spending and less saving. 
C)  high levels of consumption and low levels of savings. 
D)  investment in new capital and human capital. 
A)  developing trade barriers to protect national industries. 
B)  taxes on saving that serve to encourage more spending and less saving. 
C)  high levels of consumption and low levels of savings. 
D)  investment in new capital and human capital.

Question 17

If the real wage rate is such that the quantity of labor supplied by workers is less than the quantity of labor demanded by firms,

Accepted Answer

A)  real GDP equals potential GDP since firms make the decision on how many workers to hire. 
B)  the real wage rate will decrease. 
C)  the economy is at full employment. 
D)  the unemployment rate is less than the natural unemployment rate. 
A)  real GDP equals potential GDP since firms make the decision on how many workers to hire. 
B)  the real wage rate will decrease. 
C)  the economy is at full employment. 
D)  the unemployment rate is less than the natural unemployment rate.

Question 18

The notion that technological change is not random but instead is driven by the pursuit of profits is an essential element of

Accepted Answer

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

Question 19

If capital per hour of labor increases, real GDP per hour of labor

Accepted Answer

A)  increases for a given level of technology. 
B)  increases because the level of technology increases. 
C)  decreases for a given level of technology. 
D)  decreases because the level of technology decreases. 
A)  increases for a given level of technology. 
B)  increases because the level of technology increases. 
C)  decreases for a given level of technology. 
D)  decreases because the level of technology decreases.

Question 20

-In the above figure, if the real wage is $10 per hour, a labor

Accepted Answer

A)  shortage will occur and the real wage will rise. 
B)  shortage will occur and the real wage will fall. 
C)  surplus will occur and the real wage will fall. 
D)  surplus will occur and the real wage will rise. 
A)  shortage will occur and the real wage will rise. 
B)  shortage will occur and the real wage will fall. 
C)  surplus will occur and the real wage will fall. 
D)  surplus will occur and the real wage will rise.

Looking at real GDP per person in the United States over the past 100 years, we see that real GDP

A higher savings rate that leads to an increase in the capital stock

The gaps between the United States and the Asian countries of Honk Kong, Singapore, Taiwan and China have been

The classical model of Malthus predicted that economies would

Characterize the years between 1961 and 2008 on the basis of labor productivity growth.

If a rich country grows at a faster rate than a poor one, then

Over the past four decades,

Which of the following statements are correct? I. The average economic growth rate in real GDP per person in the United States over the last cent was 5 percent per year. II. The United States has the highest economic growth rate of any nation.

The historical record for the United States since 1900 shows

Suppose a country is producing $20 million of real GDP. If the economy grows at 10 percent per year, approximately how many years will to take for real GDP to grow to $80 million?

If the demand for labor increases I. employment increases. II. the real wage rate increases.

If workers' money wage rates increase by 5 percent and the price level remains constant, workers'

Neoclassical growth theory predicts that

An assumption of classical growth theory is that when the population growth rate )

Activities that encourage faster growth are

If the real wage rate is such that the quantity of labor supplied by workers is less than the quantity of labor demanded by firms,

The notion that technological change is not random but instead is driven by the pursuit of profits is an essential element of

If capital per hour of labor increases, real GDP per hour of labor

-In the above figure, if the real wage is $10 per hour, a labor

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

Looking at real GDP per person in the United States over the past 100 years, we see that real GDP

A higher savings rate that leads to an increase in the capital stock

The gaps between the United States and the Asian countries of Honk Kong, Singapore, Taiwan and China have been

The classical model of Malthus predicted that economies would

Characterize the years between 1961 and 2008 on the basis of labor productivity growth.

If a rich country grows at a faster rate than a poor one, then

Over the past four decades,

Which of the following statements are correct? I. The average economic growth rate in real GDP per person in the United States over the last cent was 5 percent per year. II. The United States has the highest economic growth rate of any nation.

The historical record for the United States since 1900 shows

Suppose a country is producing $20 million of real GDP. If the economy grows at 10 percent per year, approximately how many years will to take for real GDP to grow to $80 million?

If the demand for labor increases I. employment increases. II. the real wage rate increases.

If workers' money wage rates increase by 5 percent and the price level remains constant, workers'

Neoclassical growth theory predicts that

An assumption of classical growth theory is that when the population growth rate )

Activities that encourage faster growth are

If the real wage rate is such that the quantity of labor supplied by workers is less than the quantity of labor demanded by firms,

The notion that technological change is not random but instead is driven by the pursuit of profits is an essential element of

If capital per hour of labor increases, real GDP per hour of labor

-In the above figure, if the real wage is $10 per hour, a labor

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