Question 1

If capital per hour of labor increases, real GDP per hour of labor

Accepted Answer

A)  decreases because the level of technology decreases. 
B)  decreases for a given level of technology. 
C)  increases because the level of technology increases. 
D)  increases for a given level of technology. 
A)  decreases because the level of technology decreases. 
B)  decreases for a given level of technology. 
C)  increases because the level of technology increases. 
D)  increases for a given level of technology.

Question 2

The relationship between the labor employed by a firm and the real wage rate is shown by the

Accepted Answer

A)  supply of labor curve. 
B)  supply of jobs curve. 
C)  demand for labor curve. 
D)  demand for jobs curve. 
A)  supply of labor curve. 
B)  supply of jobs curve. 
C)  demand for labor curve. 
D)  demand for jobs curve.

Question 3

What is the effect on real GDP per person if labor productivity increases?

Accepted Answer

Real GDP equals aggregate hours) × labor

Question 4

$\begin{array}{|c|l|}
\hline \begin{array}{c}
\text { Leisure } \
\text { (hours) }
\end{array} & \begin{array}{l}
\text { Real GDP } \
(2005 \text { dollars })
\end{array} \\hline 0 & 2,000 \
\hline 40 & 1,920 \
\hline 80 & 1,680 \
\hline 120 & 1,280 \
\hline 160 & 720 \
\hline 200 & 0 \
\hline
\end{array}$
-The people of Palm Island are willing to work 80 hours a day for a real wage rate of $4 an hour. Then each dollar increase in the real wage, they are willing to work 10 additional hours a day. Palm Islandʹs production possibilities are in the table above.
a) Draw Palm Islandʹs demand for labor curve.
b) Draw Palm Islandʹs supply of labor curve.
c) What are the full-employment equilibrium real wage rate and quantity of labor in Palm Islandʹs economy?
d) What is Palm Islandʹs potential GDP?

Accepted Answer

See the figure above. Palm Islandʹs dema

Question 5

If the level of technology rises, real GDP per hour of labor

Accepted Answer

A)  increases because the amount of capital per hour of labor increases. 
B)  decreases because the level of capital per hour of labor decreases. 
C)  decreases for a given level of capital per hour of labor. 
D)  increases for any level of capital per hour of labor. 
A)  increases because the amount of capital per hour of labor increases. 
B)  decreases because the level of capital per hour of labor decreases. 
C)  decreases for a given level of capital per hour of labor. 
D)  increases for any level of capital per hour of labor.

Question 6

In 2010, of the following had the highest real GDP per person.

Accepted Answer

A)  Japan 
B)  Canada 
C)  the United States 
D)  the Europe Big 4 countries 
A)  Japan 
B)  Canada 
C)  the United States 
D)  the Europe Big 4 countries

Question 7

An increase in labor productivity the real wage rate and an increase in population
The real wage rate.

Accepted Answer

A)  lowers; raises 
B)  raises; raises 
C)  lowers; lowers 
D)  raises; lowers 
A)  lowers; raises 
B)  raises; raises 
C)  lowers; lowers 
D)  raises; lowers

Question 8

Which of the following does NOT increase labor productivity?

Accepted Answer

A)  physical capital growth 
B)  human capital growth 
C)  technological advances 
D)  increases in aggregate hours 
A)  physical capital growth 
B)  human capital growth 
C)  technological advances 
D)  increases in aggregate hours

Question 9

New growth theory assumes that

Accepted Answer

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

Question 10

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

Accepted Answer

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

Question 11

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

Accepted Answer

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

Question 12

To achieve faster growth, one possibility is to tax

Accepted Answer

A)  consumption. 
B)  hiring. 
C)  saving. 
D)  immigration. 
A)  consumption. 
B)  hiring. 
C)  saving. 
D)  immigration.

Question 13

Potential GDP per labor hour can increase due to

Accepted Answer

A)  increases in the quantity of money. 
B)  decreases in the quantity of capital. 
C)  increases in population. 
D)  increases in labor productivity. 
A)  increases in the quantity of money. 
B)  decreases in the quantity of capital. 
C)  increases in population. 
D)  increases in labor productivity.

Question 14

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

Accepted Answer

The aggregate production function is the

Question 15

An assumption of neoclassical growth theory is that

Accepted Answer

A)  more growth encourages more technological change. 
B)  technological change is random. 
C)  technological change can be influenced by savings. 
D)  None of the above answers is correct. 
A)  more growth encourages more technological change. 
B)  technological change is random. 
C)  technological change can be influenced by savings. 
D)  None of the above answers is correct.

Question 16

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

Question 17

Human capital is, in part, the

Accepted Answer

A)  stock of plant and equipment. 
B)  stock of knowledge of a worker. 
C)  amount of money held by a worker. 
D)  stock of financial assets held by the public. 
A)  stock of plant and equipment. 
B)  stock of knowledge of a worker. 
C)  amount of money held by a worker. 
D)  stock of financial assets held by the public.

Question 18

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 19

In neoclassical growth theory, technological change __________.

Accepted Answer

A)  occurs at a steady rate 
B)  is influenced by the rate of economic growth 
C)  is influenced by population growth 
D)  occurs by chance 
A)  occurs at a steady rate 
B)  is influenced by the rate of economic growth 
C)  is influenced by population growth 
D)  occurs by chance

Question 20

-In the above figure, the equilibrium real wage rate is

Accepted Answer

A)  $15 per hour. 
B)  $10 per hour. 
C)  $20 per hour. 
D)  none of the above 
A)  $15 per hour. 
B)  $10 per hour. 
C)  $20 per hour. 
D)  none of the above

If capital per hour of labor increases, real GDP per hour of labor

The relationship between the labor employed by a firm and the real wage rate is shown by the

What is the effect on real GDP per person if labor productivity increases?

If the level of technology rises, real GDP per hour of labor

In 2010, of the following had the highest real GDP per person.

An increase in labor productivity the real wage rate and an increase in population The real wage rate.

Which of the following does NOT increase labor productivity?

New growth theory assumes that

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

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

To achieve faster growth, one possibility is to tax

Potential GDP per labor hour can increase due to

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

An assumption of neoclassical growth theory is that

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

Human capital is, in part, the

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

In neoclassical growth theory, technological change __________.

-In the above figure, the equilibrium real wage rate is

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: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

Exam 6: Economic Growth

If capital per hour of labor increases, real GDP per hour of labor

The relationship between the labor employed by a firm and the real wage rate is shown by the

What is the effect on real GDP per person if labor productivity increases?

If the level of technology rises, real GDP per hour of labor

In 2010, of the following had the highest real GDP per person.

An increase in labor productivity the real wage rate and an increase in population The real wage rate.

Which of the following does NOT increase labor productivity?

New growth theory assumes that

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

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

To achieve faster growth, one possibility is to tax

Potential GDP per labor hour can increase due to

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

An assumption of neoclassical growth theory is that

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

Human capital is, in part, the

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

In neoclassical growth theory, technological change __________.

-In the above figure, the equilibrium real wage rate is

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: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters