Question 1

-In the above figure, if the real wage is $20 per hour, a labor

Accepted Answer

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

Question 2

Which theory emphasizes the significance of new discoveries that can be used by many people at the same time?

Accepted Answer

A)  new growth theory 
B)  neoclassical growth theory 
C)  classical growth theory 
D)  None of the above answers are correct. 
A)  new growth theory 
B)  neoclassical growth theory 
C)  classical growth theory 
D)  None of the above answers are correct.

Question 3

-The shows how real GDP varies as the quantity of labor employed varies, other things remaining the same.

Accepted Answer

A)  labor demand curve 
B)  aggregate production function 
C)  short- run aggregate supply curve 
D)  labor supply curve 
A)  labor demand curve 
B)  aggregate production function 
C)  short- run aggregate supply curve 
D)  labor supply curve

Question 4

To increase the pace of economic growth we must increase the growth rate of _ _ or increase the growth rate of .

Accepted Answer

A)  capital per hour of labor; technological progress 
B)  aggregate supply; the price level 
C)  aggregate demand; the real wage rate 
D)  aggregate work hours; consumption 
A)  capital per hour of labor; technological progress 
B)  aggregate supply; the price level 
C)  aggregate demand; the real wage rate 
D)  aggregate work hours; consumption

Question 5

Explain the role played by technological change in classical growth theory, neoclassical growth theory, and new growth theory.

Accepted Answer

Technology plays a secondary role in cla

Question 6

As the real wage rate increases, the

Accepted Answer

A)  supply of labor curve shifts rightward. 
B)  supply of labor curve shifts leftward. 
C)  quantity of labor supplied increases. 
D)  quantity of labor supplied increases and the supply of labor shifts rightward. 
A)  supply of labor curve shifts rightward. 
B)  supply of labor curve shifts leftward. 
C)  quantity of labor supplied increases. 
D)  quantity of labor supplied increases and the supply of labor shifts rightward.

Question 7

Real GDP per person is slowly converging around the world.

Accepted Answer

A) True 
 B)False

Question 8

The labor demand curve slopes downward because

Accepted Answer

A)  workers supply fewer hours of work when the real wage rate rises. 
B)  workers supply more hours of work when the real wage rate rises. 
C)  the firm maximizes profits by hiring more labor when the real wage rate falls. 
D)  the firm maximizes profits by hiring more labor when the real wage rate rises. 
A)  workers supply fewer hours of work when the real wage rate rises. 
B)  workers supply more hours of work when the real wage rate rises. 
C)  the firm maximizes profits by hiring more labor when the real wage rate falls. 
D)  the firm maximizes profits by hiring more labor when the real wage rate rises.

Question 9

Which of the following statements regarding U.S. economic growth is NOT correct?

Accepted Answer

A)  In the 1930s, real GDP fell well below its trend. 
B)  Over the past 100 years, on the average real GDP per person grew 2 percent a year. 
C)  The growth rate of real GDP per person accelerated between 1973 to 1984. 
D)  The average annual growth rate of real GDP per person was lower prior to 1929 than after World War II. 
A)  In the 1930s, real GDP fell well below its trend. 
B)  Over the past 100 years, on the average real GDP per person grew 2 percent a year. 
C)  The growth rate of real GDP per person accelerated between 1973 to 1984. 
D)  The average annual growth rate of real GDP per person was lower prior to 1929 than after World War II.

Question 10

Of the following Asian countries, which has the lowest level of real GDP per person?

Accepted Answer

A)  China 
B)  Taiwan 
C)  Hong Kong 
D)  Singapore 
A)  China 
B)  Taiwan 
C)  Hong Kong 
D)  Singapore

Question 11

A problem with the neoclassical growth theory is its

Accepted Answer

A)  prediction that population growth raises the real wage rate. 
B)  prediction that population growth lowers the real wage rate. 
C)  inability to explain persistent differences between countries' GDP growth rates. 
D)  comparison of the economy to a perpetual motion machine. 
A)  prediction that population growth raises the real wage rate. 
B)  prediction that population growth lowers the real wage rate. 
C)  inability to explain persistent differences between countries' GDP growth rates. 
D)  comparison of the economy to a perpetual motion machine.

Question 12

Economics became known as the "Dismal Science" because of the

Accepted Answer

A)  classical growth theory prediction of subsistence wage rates in the long run. 
B)  tendency of competitive markets to keep prices and profits low. 
C)  trouble students have earning good grades in their Introductory Economics classes. 
D)  neoclassical growth theory prediction that growth would not persist in the long run. 
A)  classical growth theory prediction of subsistence wage rates in the long run. 
B)  tendency of competitive markets to keep prices and profits low. 
C)  trouble students have earning good grades in their Introductory Economics classes. 
D)  neoclassical growth theory prediction that growth would not persist in the long run.

Question 13

The labor force participation rate

Accepted Answer

A)  has an inverse effect of the supply of labor. 
B)  decreases as the real wage rate rises. 
C)  increases as the real wage rate increases. 
D)  does not change when the real wage rate changes. 
A)  has an inverse effect of the supply of labor. 
B)  decreases as the real wage rate rises. 
C)  increases as the real wage rate increases. 
D)  does not change when the real wage rate changes.

Question 14

The real wage rate measures the quantity of goods and services an hour's work will buy.

Accepted Answer

A) True 
 B)False

Question 15

Which growth theory predicts perpetual growth?

Accepted Answer

A)  neoclassical growth theory 
B)  classical growth theory 
C)  new growth theory 
D)  None of the above answers is correct. 
A)  neoclassical growth theory 
B)  classical growth theory 
C)  new growth theory 
D)  None of the above answers is correct.

Question 16

Neoclassical growth theory predicts that China's economic growth rate will .

Accepted Answer

A)  continue at around 10 percent a year 
B)  decrease when the interest rate increases 
C)  eventually converge to the U.S. economic growth rate. 
D)  always remain above the U.S. economic growth rate 
A)  continue at around 10 percent a year 
B)  decrease when the interest rate increases 
C)  eventually converge to the U.S. economic growth rate. 
D)  always remain above the U.S. economic growth rate

Question 17

Moving along the aggregate production function, all of the following are held constant EXCEPT

Accepted Answer

A)  technology 
B)  labor 
C)  human capital 
D)  capital 
A)  technology 
B)  labor 
C)  human capital 
D)  capital

Question 18

A higher saving rate leads to faster growth because

Accepted Answer

A)  more saving produces greater additions to capital per hour of labor, raising real GDP per person. 
B)  capital would wear out faster. 
C)  population growth would accelerate. 
D)  people could consume more of an economy's output. 
A)  more saving produces greater additions to capital per hour of labor, raising real GDP per person. 
B)  capital would wear out faster. 
C)  population growth would accelerate. 
D)  people could consume more of an economy's output.

Question 19

According to new growth theory, technological change is driven by

Accepted Answer

A)  government policies. 
B)  firms' attempts to increase their profit. 
C)  random chance. 
D)  foreign firms' attempts to increase their sales in the domestic market. 
A)  government policies. 
B)  firms' attempts to increase their profit. 
C)  random chance. 
D)  foreign firms' attempts to increase their sales in the domestic market.

Question 20

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.
-In 2008, Armenia had a real GDP of approximately $4.21 billion and a population of 2.98 million. In 2009, real GDP was $4.59 billion and population was 2.97 million. From 2008 to 2009, Armenia's standard of living .

Accepted Answer

A)  might have increased, decreased, or remained unchanged but more information is needed to determine which. 
B)  decreased 
C)  increased 
D)  did not change 
A)  might have increased, decreased, or remained unchanged but more information is needed to determine which. 
B)  decreased 
C)  increased 
D)  did not change

-In the above figure, if the real wage is $20 per hour, a labor

Which theory emphasizes the significance of new discoveries that can be used by many people at the same time?

-The shows how real GDP varies as the quantity of labor employed varies, other things remaining the same.

To increase the pace of economic growth we must increase the growth rate of _ _ or increase the growth rate of .

Explain the role played by technological change in classical growth theory, neoclassical growth theory, and new growth theory.

As the real wage rate increases, the

Real GDP per person is slowly converging around the world.

The labor demand curve slopes downward because

Which of the following statements regarding U.S. economic growth is NOT correct?

Of the following Asian countries, which has the lowest level of real GDP per person?

A problem with the neoclassical growth theory is its

Economics became known as the "Dismal Science" because of the

The labor force participation rate

The real wage rate measures the quantity of goods and services an hour's work will buy.

Which growth theory predicts perpetual growth?

Neoclassical growth theory predicts that China's economic growth rate will .

Moving along the aggregate production function, all of the following are held constant EXCEPT

A higher saving rate leads to faster growth because

According to new growth theory, technological change is driven by

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

-In the above figure, if the real wage is $20 per hour, a labor

Which theory emphasizes the significance of new discoveries that can be used by many people at the same time?

-The shows how real GDP varies as the quantity of labor employed varies, other things remaining the same.

To increase the pace of economic growth we must increase the growth rate of _ _ or increase the growth rate of .

Explain the role played by technological change in classical growth theory, neoclassical growth theory, and new growth theory.

As the real wage rate increases, the

Real GDP per person is slowly converging around the world.

The labor demand curve slopes downward because

Which of the following statements regarding U.S. economic growth is NOT correct?

Of the following Asian countries, which has the lowest level of real GDP per person?

A problem with the neoclassical growth theory is its

Economics became known as the "Dismal Science" because of the

The labor force participation rate

The real wage rate measures the quantity of goods and services an hour's work will buy.

Which growth theory predicts perpetual growth?

Neoclassical growth theory predicts that China's economic growth rate will .

Moving along the aggregate production function, all of the following are held constant EXCEPT

A higher saving rate leads to faster growth because

According to new growth theory, technological change is driven by

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