Question 1

What is the main difference between classical economists' ideas about economic growth versus what modern evidence suggests?

Accepted Answer

Classical economists assumed that as inc

Question 2

The quantity of labor supplied 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)  level of profits. 
D)  money wage rate not the real wage rate. 
A)  price of output not the money wage rate nor the real wage rate. 
B)  real wage rate not the money wage rate. 
C)  level of profits. 
D)  money wage rate not the real wage rate.

Question 3

The graphs below depict the production function and labor market for an imaginary economy. The economy is, initially, at points x and X.
   Figure 1 Figure 2
-An advance in technology will

Accepted Answer

A)  shift the production function downward. 
B)  shift the production function upward. 
C)  not shift the production function but will lead to a movement down along the production function. 
D)  not shift the production function but will lead to a movement up along the production function. 
A)  shift the production function downward. 
B)  shift the production function upward. 
C)  not shift the production function but will lead to a movement down along the production function. 
D)  not shift the production function but will lead to a movement up along the production function.

Question 4

Suppose that real GDP per hour of labor grew by 6 percent last year and the capital per hour of labor grew 9 percent. Using the one- third rule, by how much did the increase in capital per hour of labor increase real GDP per hour of labor?

Accepted Answer

A)  6 percent 
B)  3 percent 
C)  4 percent 
D)  2 percent 
A)  6 percent 
B)  3 percent 
C)  4 percent 
D)  2 percent

Question 5

"According to the neoclassical growth theory, national incentives to save, invest, accumulate human capital, and develop new technology influence the country's growth rate of real GDP." Comment on the accuracy of the previous statement.

Accepted Answer

The sentence is inaccurate. The neoclass

Question 6

Suppose that capital per hour of labor grew by 9 percent while GDP per hour of labor grew by 4 percent. Then the contribution of technology to growth in GDP per hour of labor is

Accepted Answer

A)  5 percent. 
B)  9 percent. 
C)  - 1 percent. 
D)  1 percent. 
A)  5 percent. 
B)  9 percent. 
C)  - 1 percent. 
D)  1 percent.

Question 7

What is the role of profits in the neoclassical growth theory versus the new growth theory?

Accepted Answer

Profits play essentially no role in the

Question 8

Suppose capital per hour of labor grows at 1.0 percent per year and technological change grows at
2)0 percent per year. Using the one- third rule, the growth rate of real GDP per hour of labor is
Percent per year.

Accepted Answer

A)  4.33 
B)  3.00 
C)  9.00 
D)  2.33 
A)  4.33 
B)  3.00 
C)  9.00 
D)  2.33

Question 9

If the price level rises by 4 percent and workers' money wage rates increase by 2 percent, then the

Accepted Answer

A)  the supply curve of labor shifts rightward. 
B)  quantity of labor supplied decreases. 
C)  quantity of labor supplied does not change because there is no change in the real wage rate. 
D)  quantity of labor supplied increases. 
A)  the supply curve of labor shifts rightward. 
B)  quantity of labor supplied decreases. 
C)  quantity of labor supplied does not change because there is no change in the real wage rate. 
D)  quantity of labor supplied increases.

Question 10

Which of the following statements is CORRECT?
I. Higher savings rates can stimulate economic growth.
II. Limiting international trade can stimulate economic growth.

Accepted Answer

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

Question 11

If a nation's population grows, then,

Accepted Answer

A)  there must be an increase in real GDP per person. 
B)  growth in real GDP per person will be greater than the growth of real GDP. 
C)  there can be no economic growth. 
D)  growth in real GDP per person will be less than the growth of real GDP. 
A)  there must be an increase in real GDP per person. 
B)  growth in real GDP per person will be greater than the growth of real GDP. 
C)  there can be no economic growth. 
D)  growth in real GDP per person will be less than the growth of real GDP.

Question 12

In the labor market, an increase in labor productivity the real wage rate and the level of employment.

Accepted Answer

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

Question 13

Over the past 100 years, real GDP per person in the United States has grown at an average of
Percent a year.

Accepted Answer

A)  1 
B)  3 
C)  2 
D)  4 
A)  1 
B)  3 
C)  2 
D)  4

Question 14

Which of the following directly creates growth in labor productivity?
I. Growth in capital per hour of labor.
II. Technological change.
III. Population growth.

Accepted Answer

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

Question 15

Labor productivity increases with

Accepted Answer

A)  increases in capital. 
B)  increases in depreciation. 
C)  increases in consumption expenditure. 
D)  All of the above answers are correct. 
A)  increases in capital. 
B)  increases in depreciation. 
C)  increases in consumption expenditure. 
D)  All of the above answers are correct.

Question 16

Classical growth theory proposes that real GDP growth is _ and that real GDP per person will _ the subsistence level.

Accepted Answer

A)  permanent; always be above 
B)  permanent; temporarily be above 
C)  temporary; temporarily be above 
D)  temporary; be above and below 
A)  permanent; always be above 
B)  permanent; temporarily be above 
C)  temporary; temporarily be above 
D)  temporary; be above and below

Question 17

Define labor productivity. Discuss the relationship between labor productivity, human capital growth, and technology change.

Accepted Answer

Labor productivity is real GDP per hour

Question 18

Underdeveloped countries in which real GDP per person has not grown as fast as in the United States since 1960 include

Accepted Answer

A)  Canada. 
B)  countries in Africa. 
C)  Japan. 
D)  Hong Kong. 
A)  Canada. 
B)  countries in Africa. 
C)  Japan. 
D)  Hong Kong.

Question 19

Which theory of economic growth concludes that in the long run people will be paid only a subsistence real wage rate?

Accepted Answer

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

Question 20

Which of the following statements are TRUE regarding the demand for labor?
I. The quantity of labor demanded depends on the real wage rate.
II. If the money wage rate increases and the price level remains the same, the quantity of labor demanded decreases.

Accepted Answer

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

What is the main difference between classical economists' ideas about economic growth versus what modern evidence suggests?

The quantity of labor supplied depends on the

The graphs below depict the production function and labor market for an imaginary economy. The economy is, initially, at points x and X. Figure 1 Figure 2 -An advance in technology will

Suppose that real GDP per hour of labor grew by 6 percent last year and the capital per hour of labor grew 9 percent. Using the one- third rule, by how much did the increase in capital per hour of labor increase real GDP per hour of labor?

"According to the neoclassical growth theory, national incentives to save, invest, accumulate human capital, and develop new technology influence the country's growth rate of real GDP." Comment on the accuracy of the previous statement.

Suppose that capital per hour of labor grew by 9 percent while GDP per hour of labor grew by 4 percent. Then the contribution of technology to growth in GDP per hour of labor is

What is the role of profits in the neoclassical growth theory versus the new growth theory?

Suppose capital per hour of labor grows at 1.0 percent per year and technological change grows at 2)0 percent per year. Using the one- third rule, the growth rate of real GDP per hour of labor is Percent per year.

If the price level rises by 4 percent and workers' money wage rates increase by 2 percent, then the

Which of the following statements is CORRECT? I. Higher savings rates can stimulate economic growth. II. Limiting international trade can stimulate economic growth.

If a nation's population grows, then,

In the labor market, an increase in labor productivity the real wage rate and the level of employment.

Over the past 100 years, real GDP per person in the United States has grown at an average of Percent a year.

Which of the following directly creates growth in labor productivity? I. Growth in capital per hour of labor. II. Technological change. III. Population growth.

Labor productivity increases with

Classical growth theory proposes that real GDP growth is _ and that real GDP per person will _ the subsistence level.

Define labor productivity. Discuss the relationship between labor productivity, human capital growth, and technology change.

Underdeveloped countries in which real GDP per person has not grown as fast as in the United States since 1960 include

Which theory of economic growth concludes that in the long run people will be paid only a subsistence real wage rate?

Which of the following statements are TRUE regarding the demand for labor? I. The quantity of labor demanded depends on the real wage rate. II. If the money wage rate increases and the price level remains the same, the quantity of labor demanded decreases.

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

What is the main difference between classical economists' ideas about economic growth versus what modern evidence suggests?

The quantity of labor supplied depends on the

The graphs below depict the production function and labor market for an imaginary economy. The economy is, initially, at points x and X. Figure 1 Figure 2 -An advance in technology will

Suppose that real GDP per hour of labor grew by 6 percent last year and the capital per hour of labor grew 9 percent. Using the one- third rule, by how much did the increase in capital per hour of labor increase real GDP per hour of labor?

"According to the neoclassical growth theory, national incentives to save, invest, accumulate human capital, and develop new technology influence the country's growth rate of real GDP." Comment on the accuracy of the previous statement.

Suppose that capital per hour of labor grew by 9 percent while GDP per hour of labor grew by 4 percent. Then the contribution of technology to growth in GDP per hour of labor is

What is the role of profits in the neoclassical growth theory versus the new growth theory?

Suppose capital per hour of labor grows at 1.0 percent per year and technological change grows at 2)0 percent per year. Using the one- third rule, the growth rate of real GDP per hour of labor is Percent per year.

If the price level rises by 4 percent and workers' money wage rates increase by 2 percent, then the

Which of the following statements is CORRECT? I. Higher savings rates can stimulate economic growth. II. Limiting international trade can stimulate economic growth.

If a nation's population grows, then,

In the labor market, an increase in labor productivity the real wage rate and the level of employment.

Over the past 100 years, real GDP per person in the United States has grown at an average of Percent a year.

Which of the following directly creates growth in labor productivity? I. Growth in capital per hour of labor. II. Technological change. III. Population growth.

Labor productivity increases with

Classical growth theory proposes that real GDP growth is _ and that real GDP per person will _ the subsistence level.

Define labor productivity. Discuss the relationship between labor productivity, human capital growth, and technology change.

Underdeveloped countries in which real GDP per person has not grown as fast as in the United States since 1960 include

Which theory of economic growth concludes that in the long run people will be paid only a subsistence real wage rate?

Which of the following statements are TRUE regarding the demand for labor? I. The quantity of labor demanded depends on the real wage rate. II. If the money wage rate increases and the price level remains the same, the quantity of labor demanded decreases.

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