Question 1

An advance in technology that results in increased productivity results in a

Accepted Answer

A)  rightward shift of the labor demand curve. 
B)  rightward shift of both the labor supply and labor demand curves. 
C)  movement along the production function. 
D)  rightward shift of the labor supply curve. 
A)  rightward shift of the labor demand curve. 
B)  rightward shift of both the labor supply and labor demand curves. 
C)  movement along the production function. 
D)  rightward shift of the labor supply curve.

Question 2

When the real wage rate is such that the quantity of labor demanded equals the quantity of labor supplied, .

Accepted Answer

A)  real GDP produced equals potential GDP 
B)  the short- run aggregate supply curve is vertical 
C)  the real wage rate is $25 an hour 
D)  job search is zero 
A)  real GDP produced equals potential GDP 
B)  the short- run aggregate supply curve is vertical 
C)  the real wage rate is $25 an hour 
D)  job search is zero

Question 3

Labor growth depends mainly on and labor productivity growth depends on _ _.

Accepted Answer

A)  population growth; increases in real GDP 
B)  growth in real GDP per person; technological advances 
C)  population growth; technological advances 
D)  growth in real GDP per person; growth rate of capital 
A)  population growth; increases in real GDP 
B)  growth in real GDP per person; technological advances 
C)  population growth; technological advances 
D)  growth in real GDP per person; growth rate of capital

Question 4

New growth theory assumes that

Accepted Answer

A)  knowledge does not experience diminishing returns. 
B)  only random technological advances produce growth. 
C)  all inputs experience diminishing returns. 
D)  None of the above answers is correct. 
A)  knowledge does not experience diminishing returns. 
B)  only random technological advances produce growth. 
C)  all inputs experience diminishing returns. 
D)  None of the above answers is correct.

Question 5

List and explain the factors that can increase labor productivity.

Accepted Answer

The three factors that can increase labo

Question 6

With no technological change, a 7 percent increase in capital per hour of labor causes approximately a percent increase in real GDP per hour of labor.

Accepted Answer

A)  7 
B)  7/3 
C)  1/3 
D)  14 
A)  7 
B)  7/3 
C)  1/3 
D)  14

Question 7

Economists are interested in long- term economic growth because growth increases real GDP per person and improves our standard of living.

Accepted Answer

A) True 
 B)False

Question 8

With no change in labor productivity, what would happen to the real wage rate and potential GDP if the population increased?

Accepted Answer

An increase in population increases the

Question 9

A country would achieve faster growth by _.

Accepted Answer

A)  taxing income and not consumption 
B)  increasing union membership 
C)  encouraging free trade 
D)  increasing the cost of education 
A)  taxing income and not consumption 
B)  increasing union membership 
C)  encouraging free trade 
D)  increasing the cost of education

Question 10

When labor productivity increases, the demand for labor curve and the supply of labor curve .

Accepted Answer

A)  shift s leftward; does not shift 
B)  shifts leftward; shifts rightward 
C)  shifts rightward; does not shift 
D)  shifts rightward; shifts rightward 
A)  shift s leftward; does not shift 
B)  shifts leftward; shifts rightward 
C)  shifts rightward; does not shift 
D)  shifts rightward; shifts rightward

Question 11

If the money wage rate is $10 per hour and the price level is 100, the real wage rate is

Accepted Answer

A)  $11.10. 
B)  $11.00. 
C)  $10.00. 
D)  $10.10. 
A)  $11.10. 
B)  $11.00. 
C)  $10.00. 
D)  $10.10.

Question 12

Last year, labor productivity increased 4 percent and capital per hour of labor grew 6 percent. How much of the increase in labor productivity was the result of the increase in capital per hour of labor and how much was the result of increases in technology and human capital?

Accepted Answer

The one- third rule indicates that (6 pe

Question 13

Which growth theory compares a subsistence real wage rate to the actual real wage rate?

Accepted Answer

A)  new growth theory 
B)  neoclassical growth theory 
C)  classical growth theory 
D)  inflation growth theory 
A)  new growth theory 
B)  neoclassical growth theory 
C)  classical growth theory 
D)  inflation growth theory

Question 14

Which of the following is associated with classical growth theory?
I. Growth in real GDP can continue indefinitely.
II. Technological growth increases as the population grows.
III. Population explosions bring real GDP per person back to subsistence levels.

Accepted Answer

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

Question 15

If real GDP is $800 million and aggregate labor hours are 20 million, labor productivity is .

Accepted Answer

A)  $40 per hour 
B)  $40 million 
C)  $16,000 million 
D)  $160 per hour 
A)  $40 per hour 
B)  $40 million 
C)  $16,000 million 
D)  $160 per hour

Question 16

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

Accepted Answer

A)  Technological change decreased the demand for labor. 
B)  The effects on the supply of labor from the increased in population were greater than the effects on the demand for labor from capital accumulation and technological change. 
C)  Capital accumulation and technological change both increased the productivity of labor and the demand for labor increased. 
D)  The real wage rate decreased because the increase in the demand for labor was less than the increase in the supply of labor. 
A)  Technological change decreased the demand for labor. 
B)  The effects on the supply of labor from the increased in population were greater than the effects on the demand for labor from capital accumulation and technological change. 
C)  Capital accumulation and technological change both increased the productivity of labor and the demand for labor increased. 
D)  The real wage rate decreased because the increase in the demand for labor was less than the increase in the supply of labor.

Question 17

Explain how the labor market and the production function determine potential GDP.

Accepted Answer

The labor market determines the equilibr

Question 18

We are interested in long- term growth primarily because it brings

Accepted Answer

A)  lower price levels. 
B)  higher price levels. 
C)  higher standards of living. 
D)  trade wars with our trading partners. 
A)  lower price levels. 
B)  higher price levels. 
C)  higher standards of living. 
D)  trade wars with our trading partners.

Question 19

If the money wage rate is $15.00 per hour and the price level is 120, the real wage rate is

Accepted Answer

A)  $15.00 per hour. 
B)  $8.50 per hour. 
C)  $10.75 per hour. 
D)  $12.50 per hour. 
A)  $15.00 per hour. 
B)  $8.50 per hour. 
C)  $10.75 per hour. 
D)  $12.50 per hour.

Question 20

Briefly explain how growth in real GDP differs across economies including the United States, Japan, Africa, Central America, Hong Kong, Korea, and Singapore.

Accepted Answer

Over the past 100 years, growth in real

An advance in technology that results in increased productivity results in a

When the real wage rate is such that the quantity of labor demanded equals the quantity of labor supplied, .

Labor growth depends mainly on and labor productivity growth depends on _ _.

New growth theory assumes that

List and explain the factors that can increase labor productivity.

With no technological change, a 7 percent increase in capital per hour of labor causes approximately a percent increase in real GDP per hour of labor.

Economists are interested in long- term economic growth because growth increases real GDP per person and improves our standard of living.

With no change in labor productivity, what would happen to the real wage rate and potential GDP if the population increased?

A country would achieve faster growth by _.

When labor productivity increases, the demand for labor curve and the supply of labor curve .

If the money wage rate is $10 per hour and the price level is 100, the real wage rate is

Last year, labor productivity increased 4 percent and capital per hour of labor grew 6 percent. How much of the increase in labor productivity was the result of the increase in capital per hour of labor and how much was the result of increases in technology and human capital?

Which growth theory compares a subsistence real wage rate to the actual real wage rate?

Which of the following is associated with classical growth theory? I. Growth in real GDP can continue indefinitely. II. Technological growth increases as the population grows. III. Population explosions bring real GDP per person back to subsistence levels.

If real GDP is $800 million and aggregate labor hours are 20 million, labor productivity is .

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

Explain how the labor market and the production function determine potential GDP.

We are interested in long- term growth primarily because it brings

If the money wage rate is $15.00 per hour and the price level is 120, the real wage rate is

Briefly explain how growth in real GDP differs across economies including the United States, Japan, Africa, Central America, Hong Kong, Korea, and Singapore.

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 advance in technology that results in increased productivity results in a

When the real wage rate is such that the quantity of labor demanded equals the quantity of labor supplied, .

Labor growth depends mainly on and labor productivity growth depends on _ _.

New growth theory assumes that

List and explain the factors that can increase labor productivity.

With no technological change, a 7 percent increase in capital per hour of labor causes approximately a percent increase in real GDP per hour of labor.

Economists are interested in long- term economic growth because growth increases real GDP per person and improves our standard of living.

With no change in labor productivity, what would happen to the real wage rate and potential GDP if the population increased?

A country would achieve faster growth by _.

When labor productivity increases, the demand for labor curve and the supply of labor curve .

If the money wage rate is $10 per hour and the price level is 100, the real wage rate is

Last year, labor productivity increased 4 percent and capital per hour of labor grew 6 percent. How much of the increase in labor productivity was the result of the increase in capital per hour of labor and how much was the result of increases in technology and human capital?

Which growth theory compares a subsistence real wage rate to the actual real wage rate?

Which of the following is associated with classical growth theory? I. Growth in real GDP can continue indefinitely. II. Technological growth increases as the population grows. III. Population explosions bring real GDP per person back to subsistence levels.

If real GDP is $800 million and aggregate labor hours are 20 million, labor productivity is .

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

Explain how the labor market and the production function determine potential GDP.

We are interested in long- term growth primarily because it brings

If the money wage rate is $15.00 per hour and the price level is 120, the real wage rate is

Briefly explain how growth in real GDP differs across economies including the United States, Japan, Africa, Central America, Hong Kong, Korea, and Singapore.

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