Question 1

Classical growth theory asserts that

Accepted Answer

A)  an increase in the labor supply raises real wage rates. 
B)  population growth is determined by the level of income per person. 
C)  real wage rates fall over time and, as they fall, they increase the population growth rate. 
D)  the economy can grow indefinitely. 
A)  an increase in the labor supply raises real wage rates. 
B)  population growth is determined by the level of income per person. 
C)  real wage rates fall over time and, as they fall, they increase the population growth rate. 
D)  the economy can grow indefinitely.

Question 2

-In the above figure, at the real wage rate of $50

Accepted Answer

A)  there is shortage of 20 billion hours per year. 
B)  there is a shortage of 100 billion hours per year. 
C)  there is a surplus of 100 billion hours per year. 
D)  there is a surplus of 60 billion hours per year. 
A)  there is shortage of 20 billion hours per year. 
B)  there is a shortage of 100 billion hours per year. 
C)  there is a surplus of 100 billion hours per year. 
D)  there is a surplus of 60 billion hours per year.

Question 3

Which of the following ideas are included in classical growth theory?
I. Subsistence real wage
II. Growth in real GDP per person is temporary.
III. Technological change induces investment.

Accepted Answer

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

Question 4

If the real wage rate is such so that the quantity of labor supplied equals the quantity of labor demanded,

Accepted Answer

A)  a full- employment equilibrium occurs. 
B)  real GDP is at potential GDP. 
C)  the opportunity cost effect of not working equals the income effect. 
D)  Both answers A and B are correct. 
A)  a full- employment equilibrium occurs. 
B)  real GDP is at potential GDP. 
C)  the opportunity cost effect of not working equals the income effect. 
D)  Both answers A and B are correct.

Question 5

If at the prevailing real wage rate, the quantity of labor supplied exceeds the quantity demanded,

Accepted Answer

A)  there is a shortage of labor. 
B)  the real wage rate is greater than the equilibrium real wage rate. 
C)  the real wage rate will rise to restore equilibrium. 
D)  None of the above answers is correct. 
A)  there is a shortage of labor. 
B)  the real wage rate is greater than the equilibrium real wage rate. 
C)  the real wage rate will rise to restore equilibrium. 
D)  None of the above answers is correct.

Question 6

If real GDP is $13,000 billion and aggregate hours are 270 billion, labor productivity equals

Accepted Answer

A)  $650 per hour. 
B)  $6.50 per hour. 
C)  $48 per hour. 
D)  $45 per hour. 
A)  $650 per hour. 
B)  $6.50 per hour. 
C)  $48 per hour. 
D)  $45 per hour.

Question 7

Several factors are important for achieving faster economic growth. Which of the following is one of those factors?

Accepted Answer

A)  increased government expenditure 
B)  promotion of consumption expenditure 
C)  expansion of international trade 
D)  increased taxes on saving 
A)  increased government expenditure 
B)  promotion of consumption expenditure 
C)  expansion of international trade 
D)  increased taxes on saving

Question 8

By measuring we can see that the economies of Hong Kong and Singapore are catching up to the economies of North America but that the economies of Central and South America are not.

Accepted Answer

A)  inflation per person 
B)  real GDP 
C)  the population 
D)  real GDP per person 
A)  inflation per person 
B)  real GDP 
C)  the population 
D)  real GDP per person

Question 9

The best definition for economic growth is

Accepted Answer

A)  a sustained expansion of consumption goods over a given period. 
B)  a sustained expansion of production possibilities measured as the increase in real GDP over a given period. 
C)  a sustained expansion of production possibilities measured as the increase in nominal GDP over a given period. 
D)  a sustained expansion of production goods over a given period. 
A)  a sustained expansion of consumption goods over a given period. 
B)  a sustained expansion of production possibilities measured as the increase in real GDP over a given period. 
C)  a sustained expansion of production possibilities measured as the increase in nominal GDP over a given period. 
D)  a sustained expansion of production goods over a given period.

Question 10

In the United States, over the last 20 years, labor has become causing firms to _.

Accepted Answer

A)  less productive; pay higher wages to get more productive workers 
B)  less productive; demand more labor 
C)  more productive; demand less labor 
D)  more productive; demand more labor 
A)  less productive; pay higher wages to get more productive workers 
B)  less productive; demand more labor 
C)  more productive; demand less labor 
D)  more productive; demand more labor

Question 11

Suppose that last year your money wage rate was $22 per hour and the CPI was 130. This year your money wage rate increases to $24 and the CPI increases to 134.5. Your real wage rate has

Accepted Answer

A)  increased from $22.00 to $22.92. 
B)  increased from $16.92 to $17.84. 
C)  increased from $15.40 to $15.72. 
D)  None of the above answers is correct. 
A)  increased from $22.00 to $22.92. 
B)  increased from $16.92 to $17.84. 
C)  increased from $15.40 to $15.72. 
D)  None of the above answers is correct.

Question 12

The aggregate production function shows how varies with _ _.

Accepted Answer

A)  leisure time; labor 
B)  real GDP; labor 
C)  labor; leisure time 
D)  labor; capital 
A)  leisure time; labor 
B)  real GDP; labor 
C)  labor; leisure time 
D)  labor; capital

Question 13

An increase in a nation's population results in

Accepted Answer

A)  a movement along the production function. 
B)  a leftward shift in the labor supply curve. 
C)  an upward shift in the production function. 
D)  Both answers A and C are correct. 
A)  a movement along the production function. 
B)  a leftward shift in the labor supply curve. 
C)  an upward shift in the production function. 
D)  Both answers A and C are correct.

Question 14

In 2005, Armenia had a real GDP of approximately $4.21 billion and a population of 2.98 million. In 2006, real GDP was $4.59 billion and population was 2.97 million.
-During 2009, the country of Economia had a real GDP of $115 billion and the population was 0.9 billion. In 2008, real GDP was 105 billion and the population was 0.85 billion. Economia's growth rate of real GDP per person is

Accepted Answer

A)  5.88 percent 
B)  3.23 percent 
C)  5 percent 
D)  9.52 percent 
A)  5.88 percent 
B)  3.23 percent 
C)  5 percent 
D)  9.52 percent

Question 15

Which growth theory models growth as a perpetual motion machine?

Accepted Answer

A)  all growth theories model growth as a perpetual motion machine 
B)  new growth theory 
C)  neoclassical growth theory 
D)  classical growth theory 
A)  all growth theories model growth as a perpetual motion machine 
B)  new growth theory 
C)  neoclassical growth theory 
D)  classical growth theory

Question 16

-The first table above gives the labor demand and labor supply schedules for a nation. The second table gives its production function.
a) What is the equilibrium real wage rate and the level of employment?
b) What is potential GDP?

Accepted Answer

a) The equilibrium real wage rate is $15

Question 17

In the United States from 1990 to 2008, advances in technology and investment in capital

Accepted Answer

A)  increased the supply of labor. 
B)  lead to movements along the U.S. production function but did not shift the production function 
C)  increased workers' productivity. 
D)  shifted the U.S. production function downward. 
A)  increased the supply of labor. 
B)  lead to movements along the U.S. production function but did not shift the production function 
C)  increased workers' productivity. 
D)  shifted the U.S. production function downward.

Question 18

If real GDP is $11,750 billion and aggregate hours are 175 billion, labor productivity equals

Accepted Answer

A)  $23.50 per hour. 
B)  $52 per hour. 
C)  $235 per hour. 
D)  $67 per hour. 
A)  $23.50 per hour. 
B)  $52 per hour. 
C)  $235 per hour. 
D)  $67 per hour.

Question 19

Which of the following statements is correct?

Accepted Answer

A)  When the real wage increases, the labor supply curve shifts leftward. 
B)  When the real wage increases, the labor supply curve shifts rightward. 
C)  When the real wage decreases, the labor supply curve shifts leftward. 
D)  None of the above statements are correct. 
A)  When the real wage increases, the labor supply curve shifts leftward. 
B)  When the real wage increases, the labor supply curve shifts rightward. 
C)  When the real wage decreases, the labor supply curve shifts leftward. 
D)  None of the above statements are correct.

Question 20

Helping create the 1973- 1983 slowdown in productivity growth was

Accepted Answer

A)  a large increase in capital per hour of labor. 
B)  passing fewer environmental protection laws. 
C)  large increases in the price of oil. 
D)  All of the above helped create the slowdown in productivity growth. 
A)  a large increase in capital per hour of labor. 
B)  passing fewer environmental protection laws. 
C)  large increases in the price of oil. 
D)  All of the above helped create the slowdown in productivity growth.

Classical growth theory asserts that

-In the above figure, at the real wage rate of $50

Which of the following ideas are included in classical growth theory? I. Subsistence real wage II. Growth in real GDP per person is temporary. III. Technological change induces investment.

If the real wage rate is such so that the quantity of labor supplied equals the quantity of labor demanded,

If at the prevailing real wage rate, the quantity of labor supplied exceeds the quantity demanded,

If real GDP is $13,000 billion and aggregate hours are 270 billion, labor productivity equals

Several factors are important for achieving faster economic growth. Which of the following is one of those factors?

By measuring we can see that the economies of Hong Kong and Singapore are catching up to the economies of North America but that the economies of Central and South America are not.

The best definition for economic growth is

In the United States, over the last 20 years, labor has become causing firms to _.

Suppose that last year your money wage rate was $22 per hour and the CPI was 130. This year your money wage rate increases to $24 and the CPI increases to 134.5. Your real wage rate has

The aggregate production function shows how varies with _ _.

An increase in a nation's population results in

Which growth theory models growth as a perpetual motion machine?

-The first table above gives the labor demand and labor supply schedules for a nation. The second table gives its production function. a) What is the equilibrium real wage rate and the level of employment? b) What is potential GDP?

In the United States from 1990 to 2008, advances in technology and investment in capital

If real GDP is $11,750 billion and aggregate hours are 175 billion, labor productivity equals

Which of the following statements is correct?

Helping create the 1973- 1983 slowdown in productivity growth was

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

Classical growth theory asserts that

-In the above figure, at the real wage rate of $50

Which of the following ideas are included in classical growth theory? I. Subsistence real wage II. Growth in real GDP per person is temporary. III. Technological change induces investment.

If the real wage rate is such so that the quantity of labor supplied equals the quantity of labor demanded,

If at the prevailing real wage rate, the quantity of labor supplied exceeds the quantity demanded,

If real GDP is $13,000 billion and aggregate hours are 270 billion, labor productivity equals

Several factors are important for achieving faster economic growth. Which of the following is one of those factors?

By measuring we can see that the economies of Hong Kong and Singapore are catching up to the economies of North America but that the economies of Central and South America are not.

The best definition for economic growth is

In the United States, over the last 20 years, labor has become causing firms to _.

Suppose that last year your money wage rate was $22 per hour and the CPI was 130. This year your money wage rate increases to $24 and the CPI increases to 134.5. Your real wage rate has

The aggregate production function shows how varies with _ _.

An increase in a nation's population results in

Which growth theory models growth as a perpetual motion machine?

-The first table above gives the labor demand and labor supply schedules for a nation. The second table gives its production function. a) What is the equilibrium real wage rate and the level of employment? b) What is potential GDP?

In the United States from 1990 to 2008, advances in technology and investment in capital

If real GDP is $11,750 billion and aggregate hours are 175 billion, labor productivity equals

Which of the following statements is correct?

Helping create the 1973- 1983 slowdown in productivity growth was

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