Question 1

Neoclassical growth theory proposes that

Accepted Answer

A)  real GDP growth is caused by growth in the population. 
B)  technological progress increases the population growth rate and drives down real wages. 
C)  discoveries result from choices that increase profits. 
D)  real GDP per person grows because technological change increases the demand for capital. 
A)  real GDP growth is caused by growth in the population. 
B)  technological progress increases the population growth rate and drives down real wages. 
C)  discoveries result from choices that increase profits. 
D)  real GDP per person grows because technological change increases the demand for capital.

Question 2

predicts that real GDP per person can grow indefinitely.

Accepted Answer

A)  Classical growth theory 
B)  Neoclassical growth theory 
C)  Profit growth theory 
D)  New growth theory 
A)  Classical growth theory 
B)  Neoclassical growth theory 
C)  Profit growth theory 
D)  New growth theory

Question 3

Suppose capital per hour of labor grows at 3.0 percent per year and technological change grows at
1)0 percent per year. The growth rate of real GDP per hour of labor is percent per year.

Accepted Answer

A)  5.0 
B)  3.0 
C)  2.0 
D)  4.0 
A)  5.0 
B)  3.0 
C)  2.0 
D)  4.0

Question 4

Classical growth theory predicts that

Accepted Answer

A)  the supply of labor decreases as real wage rates rise. 
B)  technological progress increases the demand for labor, driving up real wage rates, and then population growth rises, driving down real wage rates to their subsistence level. 
C)  technological progress increases the demand for labor, driving down real wage rates, and then population growth rises, driving up real wage rates to their subsistence level. 
D)  technological progress decreases the demand for labor. 
A)  the supply of labor decreases as real wage rates rise. 
B)  technological progress increases the demand for labor, driving up real wage rates, and then population growth rises, driving down real wage rates to their subsistence level. 
C)  technological progress increases the demand for labor, driving down real wage rates, and then population growth rises, driving up real wage rates to their subsistence level. 
D)  technological progress decreases the demand for labor.

Question 5

If the current money wage rate is $25 per hour and the CPI = 132.4, then the real wage rate is

Accepted Answer

A)  $16.90. 
B)  $5.30. 
C)  $18.88. 
D)  $25.00. 
A)  $16.90. 
B)  $5.30. 
C)  $18.88. 
D)  $25.00.

Question 6

Theories of economic growth include:
I. Keynesian theory
II. classical theory
III. new growth theory

Accepted Answer

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

Question 7

The growth theory that predicts perpetual economic growth is

Accepted Answer

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

Question 8

Over the past 100 years real GDP per person in the United States, on average, has

Accepted Answer

A)  decreased by about 5 percent per year. 
B)  increased by about 5 percent per year. 
C)  increased by about 2 percent per year. 
D)  increased by about 10 percent per year. 
A)  decreased by about 5 percent per year. 
B)  increased by about 5 percent per year. 
C)  increased by about 2 percent per year. 
D)  increased by about 10 percent per year.

Question 9

During World War II, the increasing productivity of workers who built ships was due primarily to

Accepted Answer

A)  discoveries of new and better technologies. 
B)  human capital accumulation through schooling and training. 
C)  investments by shipyards in new capital equipment. 
D)  human capital accumulation by repeatedly doing the same tasks. 
A)  discoveries of new and better technologies. 
B)  human capital accumulation through schooling and training. 
C)  investments by shipyards in new capital equipment. 
D)  human capital accumulation by repeatedly doing the same tasks.

Question 10

Over the past forty years, there has been substantial closure of the gap in real GDP per person between which of the following groups of countries?

Accepted Answer

A)  the United States and Japan 
B)  Central and South America and Africa 
C)  Africa and Western Europe 
D)  the United States and Central and South America 
A)  the United States and Japan 
B)  Central and South America and Africa 
C)  Africa and Western Europe 
D)  the United States and Central and South America

Question 11

Labor productivity is measured by

Accepted Answer

A)  capital per hour of labor. 
B)  real GDP. 
C)  real GDP per unit of capital. 
D)  real GDP per hour of labor. 
A)  capital per hour of labor. 
B)  real GDP. 
C)  real GDP per unit of capital. 
D)  real GDP per hour of labor.

Question 12

The demand for labor curve

Accepted Answer

A)  is vertical. 
B)  is horizontal. 
C)  slopes upward. 
D)  slopes downward. 
A)  is vertical. 
B)  is horizontal. 
C)  slopes upward. 
D)  slopes downward.

Question 13

If the money wage rate is $17.50 per hour and the price level is 125, the real wage rate is

Accepted Answer

A)  $18.75. 
B)  $17.64. 
C)  $21.88. 
D)  $14.00. 
A)  $18.75. 
B)  $17.64. 
C)  $21.88. 
D)  $14.00.

Question 14

Which of the following is TRUE regarding the labor market?
I. The labor supply curve slopes upward because firms maximize profits as they hire more worke
II. If the real wage rate falls, the quantity of labor firms demand increases.
III. The demand for labor curve slopes downward because as the real wage rate falls, workers dem work fewer hours.

Accepted Answer

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

Question 15

In Lotusland, real GDP per hour of labor grows at 6 percent a year and capital per hour of labor increases by 6 percent a year. The one- third rule tells us that capital per hour of labor increased real GDP per hour of labor by .

Accepted Answer

A)  2 percent a year 
B)  3 percent a year 
C)  6 percent a year 
D)  12 percent a year 
A)  2 percent a year 
B)  3 percent a year 
C)  6 percent a year 
D)  12 percent a year

Question 16

Dividing the value of real GDP by aggregate labor hours gives

Accepted Answer

A)  the rate of capital accumulation. 
B)  labor productivity. 
C)  the net domestic product. 
D)  the size of the labor force. 
A)  the rate of capital accumulation. 
B)  labor productivity. 
C)  the net domestic product. 
D)  the size of the labor force.

Question 17

-The tables above show the labor market and the production function schedule for the country of Pickett. Potential GDP is .

Accepted Answer

A)  $25 trillion 
B)  $6 trillion 
C)  $14 trillion 
D)  $40 trillion 
A)  $25 trillion 
B)  $6 trillion 
C)  $14 trillion 
D)  $40 trillion

Question 18

The gap between real GDP per person in Africa and real GDP per person in the United States has been

Accepted Answer

A)  increasing. 
B)  remaining fairly constant. 
C)  there is no gap in real GDP per person between Africa and the United States. 
D)  decreasing. 
A)  increasing. 
B)  remaining fairly constant. 
C)  there is no gap in real GDP per person between Africa and the United States. 
D)  decreasing.

Question 19

Which of the following policy actions could speed productivity growth?
I. Tax incentives to encourage saving.
II. Encouraging international trade.
III. Directing public funds toward financing basic research.

Accepted Answer

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

Question 20

"Premier Liu Chao- shiuan announced Tuesday a government plan to distribute NT$82.9 billion (US billion) in consumption coupons to Taiwan's citizens in a bid to stimulate ... economic growth."
HYPERLINK "http://www.etaiwannews.com/" www.etaiwannews.com 11/18/20
The Premier's plan to boost economic growth by boosting consumption

Accepted Answer

A)  will not work because real GDP per person will decrease. 
B)  will work because there will be a movement out along Taiwan's aggregate production function. 
C)  will work because employment will increase. 
D)  will not work because economic growth is boosted by labor productivity, not consumption. 
A)  will not work because real GDP per person will decrease. 
B)  will work because there will be a movement out along Taiwan's aggregate production function. 
C)  will work because employment will increase. 
D)  will not work because economic growth is boosted by labor productivity, not consumption.

Neoclassical growth theory proposes that

predicts that real GDP per person can grow indefinitely.

Suppose capital per hour of labor grows at 3.0 percent per year and technological change grows at 1)0 percent per year. The growth rate of real GDP per hour of labor is percent per year.

Classical growth theory predicts that

If the current money wage rate is $25 per hour and the CPI = 132.4, then the real wage rate is

Theories of economic growth include: I. Keynesian theory II. classical theory III. new growth theory

The growth theory that predicts perpetual economic growth is

Over the past 100 years real GDP per person in the United States, on average, has

During World War II, the increasing productivity of workers who built ships was due primarily to

Over the past forty years, there has been substantial closure of the gap in real GDP per person between which of the following groups of countries?

Labor productivity is measured by

The demand for labor curve

If the money wage rate is $17.50 per hour and the price level is 125, the real wage rate is

In Lotusland, real GDP per hour of labor grows at 6 percent a year and capital per hour of labor increases by 6 percent a year. The one- third rule tells us that capital per hour of labor increased real GDP per hour of labor by .

Dividing the value of real GDP by aggregate labor hours gives

-The tables above show the labor market and the production function schedule for the country of Pickett. Potential GDP is .

The gap between real GDP per person in Africa and real GDP per person in the United States has been

Which of the following policy actions could speed productivity growth? I. Tax incentives to encourage saving. II. Encouraging international trade. III. Directing public funds toward financing basic research.

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

Neoclassical growth theory proposes that

predicts that real GDP per person can grow indefinitely.

Suppose capital per hour of labor grows at 3.0 percent per year and technological change grows at 1)0 percent per year. The growth rate of real GDP per hour of labor is percent per year.

Classical growth theory predicts that

If the current money wage rate is $25 per hour and the CPI = 132.4, then the real wage rate is

Theories of economic growth include: I. Keynesian theory II. classical theory III. new growth theory

The growth theory that predicts perpetual economic growth is

Over the past 100 years real GDP per person in the United States, on average, has

During World War II, the increasing productivity of workers who built ships was due primarily to

Over the past forty years, there has been substantial closure of the gap in real GDP per person between which of the following groups of countries?

Labor productivity is measured by

The demand for labor curve

If the money wage rate is $17.50 per hour and the price level is 125, the real wage rate is

In Lotusland, real GDP per hour of labor grows at 6 percent a year and capital per hour of labor increases by 6 percent a year. The one- third rule tells us that capital per hour of labor increased real GDP per hour of labor by .

Dividing the value of real GDP by aggregate labor hours gives

-The tables above show the labor market and the production function schedule for the country of Pickett. Potential GDP is .

The gap between real GDP per person in Africa and real GDP per person in the United States has been

Which of the following policy actions could speed productivity growth? I. Tax incentives to encourage saving. II. Encouraging international trade. III. Directing public funds toward financing basic research.

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