Question 1

-The table above shows the labor market for the country of Pickett. When the labor market is in equilibrium, the real wage rate is and of labor a year are employed.

Accepted Answer

A)  any value less than $25 an hour; any value greater than 40 billion hours 
B)  any value greater than $30 an hour; any value more than 40 billion hours 
C)  $30 an hour; 40 billion hours 
D)  any value greater than or equal to $25 an hour; any value less than 40 billion hours 
A)  any value less than $25 an hour; any value greater than 40 billion hours 
B)  any value greater than $30 an hour; any value more than 40 billion hours 
C)  $30 an hour; 40 billion hours 
D)  any value greater than or equal to $25 an hour; any value less than 40 billion hours

Question 2

If capital per hour of labor grows by 3 percent a year and labor productivity grows by 1.5 percent a year, the one third rule says that the growth in labor productivity can be divided so that capital growth accounted for percentage points and technological change accounted for percentage points.

Accepted Answer

A)  1.0; 0.5 
B)  1.5; 0.0 
C)  2.0; - 0.5 
D)  0.5; 1.0 
A)  1.0; 0.5 
B)  1.5; 0.0 
C)  2.0; - 0.5 
D)  0.5; 1.0

Question 3

How has the U.S. growth experience compared to that of Central Europe and Africa? How has compared to the recent experience of Asian nations such as Hong Kong and Singapore.

Accepted Answer

A persistent gap in the level of real GD

Question 4

In addition to saving and investment in capital, making an even larger contribution to long- term economic growth in real GDP per person

Accepted Answer

A)  is a larger work force. 
B)  are technological advances. 
C)  is higher current consumption. 
D)  is lower current consumption. 
A)  is a larger work force. 
B)  are technological advances. 
C)  is higher current consumption. 
D)  is lower current consumption.

Question 5

Using growth accounting, a factor leading to "technological change" includes

Accepted Answer

A)  diminishing returns. 
B)  advances in human capital. 
C)  increases in capital per hour of labor. 
D)  None of the above answers is correct. 
A)  diminishing returns. 
B)  advances in human capital. 
C)  increases in capital per hour of labor. 
D)  None of the above answers is correct.

Question 6

The view that population growth occurs when real GDP per person exceeds the amount necessary to sustain life is part of the _ .

Accepted Answer

A)  modern theory of population growth 
B)  classical growth theory 
C)  new growth theory 
D)  neoclassical growth theory 
A)  modern theory of population growth 
B)  classical growth theory 
C)  new growth theory 
D)  neoclassical growth theory

Question 7

An increase in a nation's population results in

Accepted Answer

A)  a movement along the nation's production function. 
B)  an upward shift of the nation's production function. 
C)  a decrease in the full- employment quantity of labor. 
D)  a rightward shift in the labor demand curve. 
A)  a movement along the nation's production function. 
B)  an upward shift of the nation's production function. 
C)  a decrease in the full- employment quantity of labor. 
D)  a rightward shift in the labor demand curve.

Question 8

The decreasing slope of a production function reflects

Accepted Answer

A)  rising unemployment. 
B)  diminishing returns. 
C)  decreasing costs. 
D)  increasing aggregate demand. 
A)  rising unemployment. 
B)  diminishing returns. 
C)  decreasing costs. 
D)  increasing aggregate demand.

Question 9

Over the past 100 years, the average growth rate of real GDP per person in the United States was 2 percent a year. During this period, grew at a faster rate than .

Accepted Answer

A)  the population; real GDP 
B)  GDP; the population 
C)  inflation; real GDP 
D)  real GDP; the population 
A)  the population; real GDP 
B)  GDP; the population 
C)  inflation; real GDP 
D)  real GDP; the population

Question 10

-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 11

The assumption that population growth will lead to a fall in the real wage rate back to subsistence level is

Accepted Answer

A)  central to the new growth theory. 
B)  associated with Malthusians. 
C)  accepted by all economists today. 
D)  part of the neoclassical school of growth theory. 
A)  central to the new growth theory. 
B)  associated with Malthusians. 
C)  accepted by all economists today. 
D)  part of the neoclassical school of growth theory.

Question 12

-The table above shows capital per hour of labor and labor productivity for the beach economy of Whitepool. In the year 2008, how many seashells does the increase in capital per hour of labor contribute and how many seashells of growth does technological change contribute to the growth in real GDP per hour of labor?

Accepted Answer

A)  12 seashells; 12 seashells 
B)  54 seashells; - 30 seashells 
C)  3 seashells; 3 seashells 
D)  24 seashells; 0 seashells 
A)  12 seashells; 12 seashells 
B)  54 seashells; - 30 seashells 
C)  3 seashells; 3 seashells 
D)  24 seashells; 0 seashells

Question 13

According to the law of diminishing returns, an additional unit of

Accepted Answer

A)  labor decreases output. 
B)  capital produces more output than an additional unit of labor. 
C)  labor produces less output than the previous unit. 
D)  labor produces more output than the previous unit. 
A)  labor decreases output. 
B)  capital produces more output than an additional unit of labor. 
C)  labor produces less output than the previous unit. 
D)  labor produces more output than the previous unit.

Question 14

If real GDP per person is growing at 4 percent per year, approximately how many years will it take to double?

Accepted Answer

A)  4 
B)  17.5 
C)  25 
D)  8 
A)  4 
B)  17.5 
C)  25 
D)  8

Question 15

The historical record for the United States for the past 100 years shows

Accepted Answer

A)  growth until 1970 and then a period of constant per person real GDP. 
B)  growth in real GDP per person during most years. 
C)  economic growth for about half the years and economic decline for the other half. 
D)  continuous economic growth, although at different rates, throughout the entire century. 
A)  growth until 1970 and then a period of constant per person real GDP. 
B)  growth in real GDP per person during most years. 
C)  economic growth for about half the years and economic decline for the other half. 
D)  continuous economic growth, although at different rates, throughout the entire century.

Question 16

Which of the following predicts that there can be no sustained rise in the real wage rate above the subsistence level?

Accepted Answer

A)  classical growth theory 
B)  new growth theory 
C)  neoclassical growth theory 
D)  None of the above because all predict that there will be a sustained rise above the subsistence level. 
A)  classical growth theory 
B)  new growth theory 
C)  neoclassical growth theory 
D)  None of the above because all predict that there will be a sustained rise above the subsistence level.

Question 17

Define the aggregate production function. Discuss why the aggregate production function exhibits diminishing returns.

Accepted Answer

The aggregate production function is the

Question 18

Neoclassical growth theory predicts that

Accepted Answer

A)  capital is constant over time. 
B)  output is constant over time. 
C)  the growth rates of all nations will converge. 
D)  the growth rates of all nations will diverge. 
A)  capital is constant over time. 
B)  output is constant over time. 
C)  the growth rates of all nations will converge. 
D)  the growth rates of all nations will diverge.

Question 19

An important foundation of the new growth theory is that

Accepted Answer

A)  improvements in labor productivity are poor measures of technological growth. 
B)  the growth rate of the capital stock is more important than the growth rate of new knowledge in generating economic growth. 
C)  we will get more technological advances the greater the rewards people receive from making technological advances. 
D)  we will get more technological advances the more the government is involved in deciding which technology to pursue. 
A)  improvements in labor productivity are poor measures of technological growth. 
B)  the growth rate of the capital stock is more important than the growth rate of new knowledge in generating economic growth. 
C)  we will get more technological advances the greater the rewards people receive from making technological advances. 
D)  we will get more technological advances the more the government is involved in deciding which technology to pursue.

Question 20

What are the basic arguments of the classical growth theory?

Accepted Answer

The classical growth theory originated d

-The table above shows the labor market for the country of Pickett. When the labor market is in equilibrium, the real wage rate is and of labor a year are employed.

If capital per hour of labor grows by 3 percent a year and labor productivity grows by 1.5 percent a year, the one third rule says that the growth in labor productivity can be divided so that capital growth accounted for percentage points and technological change accounted for percentage points.

How has the U.S. growth experience compared to that of Central Europe and Africa? How has compared to the recent experience of Asian nations such as Hong Kong and Singapore.

In addition to saving and investment in capital, making an even larger contribution to long- term economic growth in real GDP per person

Using growth accounting, a factor leading to "technological change" includes

The view that population growth occurs when real GDP per person exceeds the amount necessary to sustain life is part of the _ .

An increase in a nation's population results in

The decreasing slope of a production function reflects

Over the past 100 years, the average growth rate of real GDP per person in the United States was 2 percent a year. During this period, grew at a faster rate than .

-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?

The assumption that population growth will lead to a fall in the real wage rate back to subsistence level is

According to the law of diminishing returns, an additional unit of

If real GDP per person is growing at 4 percent per year, approximately how many years will it take to double?

The historical record for the United States for the past 100 years shows

Which of the following predicts that there can be no sustained rise in the real wage rate above the subsistence level?

Define the aggregate production function. Discuss why the aggregate production function exhibits diminishing returns.

Neoclassical growth theory predicts that

An important foundation of the new growth theory is that

What are the basic arguments of the classical growth theory?

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

-The table above shows the labor market for the country of Pickett. When the labor market is in equilibrium, the real wage rate is and of labor a year are employed.

If capital per hour of labor grows by 3 percent a year and labor productivity grows by 1.5 percent a year, the one third rule says that the growth in labor productivity can be divided so that capital growth accounted for percentage points and technological change accounted for percentage points.

How has the U.S. growth experience compared to that of Central Europe and Africa? How has compared to the recent experience of Asian nations such as Hong Kong and Singapore.

In addition to saving and investment in capital, making an even larger contribution to long- term economic growth in real GDP per person

Using growth accounting, a factor leading to "technological change" includes

The view that population growth occurs when real GDP per person exceeds the amount necessary to sustain life is part of the _ .

An increase in a nation's population results in

The decreasing slope of a production function reflects

Over the past 100 years, the average growth rate of real GDP per person in the United States was 2 percent a year. During this period, grew at a faster rate than .

-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?

The assumption that population growth will lead to a fall in the real wage rate back to subsistence level is

According to the law of diminishing returns, an additional unit of

If real GDP per person is growing at 4 percent per year, approximately how many years will it take to double?

The historical record for the United States for the past 100 years shows

Which of the following predicts that there can be no sustained rise in the real wage rate above the subsistence level?

Define the aggregate production function. Discuss why the aggregate production function exhibits diminishing returns.

Neoclassical growth theory predicts that

An important foundation of the new growth theory is that

What are the basic arguments of the classical growth theory?

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