Question 1

Choose the statement that is incorrect.

Accepted Answer

A) The standard of living depends on real GDP per person. 
B) The growth rate of real GDP per person can be calculated approximately by subtracting the population growth rate from the real GDP growth rate. 
C) Real GDP per person grows only if real GDP grows faster than the population grows. 
D) Real GDP increases when the economy returns to full employment in an expansion phase of the business cycle. 
E) The return to full employment in an expansion phase of the business cycle is economic growth. 
A) The standard of living depends on real GDP per person. 
B) The growth rate of real GDP per person can be calculated approximately by subtracting the population growth rate from the real GDP growth rate. 
C) Real GDP per person grows only if real GDP grows faster than the population grows. 
D) Real GDP increases when the economy returns to full employment in an expansion phase of the business cycle. 
E) The return to full employment in an expansion phase of the business cycle is economic growth. E

Question 2

Use the figure below to answer the following questions.
   Figure 6.3.2
-Refer to Figure 6.3.2.If the real wage is $20 an hour, a labour

Accepted Answer

A) shortage occurs and the real wage falls. 
B) surplus occurs and the real wage falls. 
C) surplus occurs and the real wage rises. 
D) surplus occurs and the demand for labour increases. 
E) shortage occurs and the real wage rises. 
A) shortage occurs and the real wage falls. 
B) surplus occurs and the real wage falls. 
C) surplus occurs and the real wage rises. 
D) surplus occurs and the demand for labour increases. 
E) shortage occurs and the real wage rises. B

Question 3

For three years, there was no technological change in Longland but capital per hour of labour increased from $10 to $20 to $30 and real GDP per hour of labour increased from $3.80 to $5.70 to $7.13.Then in the fourth year, capital per hour of labour remained constant but real GDP per hour of labour increased to $10.Longland _______
Experience diminishing returns because _______ .

Accepted Answer

A) does; as capital per hour of labour increases, real GDP per hour of labour increases but by smaller amounts 
B) does; all countries experience diminishing returns 
C) does not; in the fourth year capital per hour of labour does not change 
D) does; in the fourth year capital per hour of labour does not change 
E) does not; as capital per hour of labour increases, real GDP per hour of labour also increases 
A) does; as capital per hour of labour increases, real GDP per hour of labour increases but by smaller amounts 
B) does; all countries experience diminishing returns 
C) does not; in the fourth year capital per hour of labour does not change 
D) does; in the fourth year capital per hour of labour does not change 
E) does not; as capital per hour of labour increases, real GDP per hour of labour also increases A

Question 4

In 2016, Northland had real GDP of $4.21 billion and a population of 2.98 million.In 2017, real GDP was $4.59 billion and population was 2.97 million.Between 2016 and 2017, Northland's standard of living

Accepted Answer

A) did not change. 
B) increased. 
C) might have increased, decreased, or remained unchanged. 
D) decreased. 
E) doubled. 
A) did not change. 
B) increased. 
C) might have increased, decreased, or remained unchanged. 
D) decreased. 
E) doubled.

Question 5

If the money wage rate is $15.00 an hour and the price level is 120, the real wage rate is

Accepted Answer

A) $15.00 an hour. 
B) $8.50 an hour. 
C) $12.50 an hour. 
D) $10.75 an hour. 
E) $18 an hour. 
A) $15.00 an hour. 
B) $8.50 an hour. 
C) $12.50 an hour. 
D) $10.75 an hour. 
E) $18 an hour.

Question 6

An increase in education and training

Accepted Answer

A) decreases real GDP growth. 
B) increases the hours worked per person. 
C) increases labour productivity. 
D) increases aggregate hours. 
E) increases the employment rate. 
A) decreases real GDP growth. 
B) increases the hours worked per person. 
C) increases labour productivity. 
D) increases aggregate hours. 
E) increases the employment rate.

Question 7

In the classical growth theory, economic growth eventually stops due to

Accepted Answer

A) knowledge capital being easily replicated. 
B) the real rate of interest falling back down to its target rate. 
C) diminishing returns. 
D) high population growth resulting from the increase in real GDP per person. 
E) real GDP per person becoming too high. 
A) knowledge capital being easily replicated. 
B) the real rate of interest falling back down to its target rate. 
C) diminishing returns. 
D) high population growth resulting from the increase in real GDP per person. 
E) real GDP per person becoming too high.

Question 8

Which of the following ideas apply to the neoclassical growth theory? I.The rate of technological change influences the rate of economic growth.
II.Technological change promotes saving and investment.
III.Convergence of economic growth rates across countries.

Accepted Answer

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

Question 9

Convergence between real GDP per person in Canada and Japan was relatively _______ during the 1980s; During the 1990s, Japan's economy _______ .

Accepted Answer

A) rapid; grew at an even faster rate 
B) slow; stagnated 
C) rapidly; continued at the 1980s pace 
D) slow; grew rapidly 
E) rapid; stagnated 
A) rapid; grew at an even faster rate 
B) slow; stagnated 
C) rapidly; continued at the 1980s pace 
D) slow; grew rapidly 
E) rapid; stagnated

Question 10

In the labour market, an increase in labour productivity _______ the real wage rate and _______ the level of employment.

Accepted Answer

A) lowers; decreases 
B) raises; does not change 
C) raises; decreases 
D) raises; increases 
E) lowers; increases 
A) lowers; decreases 
B) raises; does not change 
C) raises; decreases 
D) raises; increases 
E) lowers; increases

Question 11

Use the information below to answer the following questions.
Fact 6.2.1
China was the largest economy for centuries because everyone had the same type of economy-subsistence-and so the country the most people would be economically biggest.Then the Industrial Revolution sent the West on a more prosperous path.No world is returning to a common economy, this time technology- and information- based, so once again population triumphs.
-Consider Fact 6.2.1.China's was the world's largest economy until the Industrial Revolution because

Accepted Answer

A) it was a large exporter of goods and services. 
B) the Industrial Revolution gave the greatest growth to the countries with the largest populations. 
C) it had a diverse climate. 
D) it was the country with the largest land mass. 
E) people in all countries had approximately the same subsistence level of income. 
A) it was a large exporter of goods and services. 
B) the Industrial Revolution gave the greatest growth to the countries with the largest populations. 
C) it had a diverse climate. 
D) it was the country with the largest land mass. 
E) people in all countries had approximately the same subsistence level of income.

Question 12

In which of the following decades did Canada experience the slowest economic growth?

Accepted Answer

A) 1960s 
B) 1970s 
C) 1980s 
D) 1940s 
E) 1990s 
A) 1960s 
B) 1970s 
C) 1980s 
D) 1940s 
E) 1990s

Question 13

If the current growth rate of real GDP per person is 10 percent a year, how long will it take for real GDP per person to double?

Accepted Answer

A) 49 years 
B) 0.7 years 
C) 10 years 
D) 7 years 
E) 1 year 
A) 49 years 
B) 0.7 years 
C) 10 years 
D) 7 years 
E) 1 year

Question 14

During 2016, the country of Economia had real GDP of $115 billion and the population was 0.9 billion.In 2017, real GDP was $105 billion and the population was 0.85 billion.In 2017, real GDP per person was

Accepted Answer

A) $124. 
B) $1,235. 
C) $135. 
D) $80.95. 
E) $128. 
A) $124. 
B) $1,235. 
C) $135. 
D) $80.95. 
E) $128.

Question 15

Labour productivity grows as

Accepted Answer

A) physical capital grows, human capital grows, and technology advances. 
B) depreciation increases. 
C) the population grows. 
D) people work longer hours. 
E) consumption expenditure increases. 
A) physical capital grows, human capital grows, and technology advances. 
B) depreciation increases. 
C) the population grows. 
D) people work longer hours. 
E) consumption expenditure increases.

Question 16

An increase in labour productivity _______ the real wage rate and an increase in population _______ the real wage rate.

Accepted Answer

A) raises; lowers 
B) lowers; raises 
C) lowers; lowers 
D) raises; does not change 
E) raises; raises 
A) raises; lowers 
B) lowers; raises 
C) lowers; lowers 
D) raises; does not change 
E) raises; raises

Question 17

Use the information below to answer the following questions.
Fact 6.2.1
China was the largest economy for centuries because everyone had the same type of economy-subsistence-and so the country the most people would be economically biggest.Then the Industrial Revolution sent the West on a more prosperous path.No world is returning to a common economy, this time technology- and information- based, so once again population triumphs.
-Consider Fact 6.2.1.Following the Industrial Revolution, the United States surpassed China to become the world's largest economy because

Accepted Answer

A) the U.S.population growth rate was much lower than China's population growth rate. 
B) China began to import a significant portion of life- sustaining goods and services. 
C) the benefits of the Industrial Revolution were greater in the United States than in China. 
D) the U.S.population exceeded China's population. 
E) the United States was a strong, united country following the Civil War and reconstruction. 
A) the U.S.population growth rate was much lower than China's population growth rate. 
B) China began to import a significant portion of life- sustaining goods and services. 
C) the benefits of the Industrial Revolution were greater in the United States than in China. 
D) the U.S.population exceeded China's population. 
E) the United States was a strong, united country following the Civil War and reconstruction.

Question 18

Which one of the following quotations could be attributed to a supporter of the classical growth theory?

Accepted Answer

A) "Growth will last as long as knowledge accumulation continues." 
B) "Growth will last only until the increase in population brings productivity down to the subsistence level." 
C) "Growth will last as long as technology keeps advancing." 
D) "Prosperity will last as long as technology keeps advancing." 
E) "Prosperity will last as long as there is knowledge accumulation." 
A) "Growth will last as long as knowledge accumulation continues." 
B) "Growth will last only until the increase in population brings productivity down to the subsistence level." 
C) "Growth will last as long as technology keeps advancing." 
D) "Prosperity will last as long as technology keeps advancing." 
E) "Prosperity will last as long as there is knowledge accumulation."

Question 19

According to Thomas Robert Malthus,

Accepted Answer

A) increases in real GDP per person are only temporary. 
B) labour productivity increases continuously. 
C) the population growth rate is fixed. 
D) knowledge capital does not experience diminishing returns. 
E) technological advances lead to permanent increases in real GDP per person. 
A) increases in real GDP per person are only temporary. 
B) labour productivity increases continuously. 
C) the population growth rate is fixed. 
D) knowledge capital does not experience diminishing returns. 
E) technological advances lead to permanent increases in real GDP per person.

Question 20

Economic growth is

Accepted Answer

A) a sustained expansion of consumption expenditure over a given period. 
B) a sustained expansion of the population. 
C) the expansion of production possibilities. 
D) equal to real GDP per person multiplied by 70. 
E) always accompanied by a rising price level. 
A) a sustained expansion of consumption expenditure over a given period. 
B) a sustained expansion of the population. 
C) the expansion of production possibilities. 
D) equal to real GDP per person multiplied by 70. 
E) always accompanied by a rising price level.

Choose the statement that is incorrect.

Use the figure below to answer the following questions. Figure 6.3.2 -Refer to Figure 6.3.2.If the real wage is $20 an hour, a labour

In 2016, Northland had real GDP of $4.21 billion and a population of 2.98 million.In 2017, real GDP was $4.59 billion and population was 2.97 million.Between 2016 and 2017, Northland's standard of living

If the money wage rate is $15.00 an hour and the price level is 120, the real wage rate is

An increase in education and training

In the classical growth theory, economic growth eventually stops due to

Which of the following ideas apply to the neoclassical growth theory? I.The rate of technological change influences the rate of economic growth. II.Technological change promotes saving and investment. III.Convergence of economic growth rates across countries.

Convergence between real GDP per person in Canada and Japan was relatively _ during the 1980s; During the 1990s, Japan's economy _ .

In the labour market, an increase in labour productivity _ the real wage rate and _ the level of employment.

In which of the following decades did Canada experience the slowest economic growth?

If the current growth rate of real GDP per person is 10 percent a year, how long will it take for real GDP per person to double?

During 2016, the country of Economia had real GDP of $115 billion and the population was 0.9 billion.In 2017, real GDP was $105 billion and the population was 0.85 billion.In 2017, real GDP per person was

Labour productivity grows as

An increase in labour productivity _ the real wage rate and an increase in population _ the real wage rate.

Which one of the following quotations could be attributed to a supporter of the classical growth theory?

According to Thomas Robert Malthus,

Economic growth 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 Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 6: Economic Growth

Choose the statement that is incorrect.

Use the figure below to answer the following questions. Figure 6.3.2 -Refer to Figure 6.3.2.If the real wage is $20 an hour, a labour

In 2016, Northland had real GDP of $4.21 billion and a population of 2.98 million.In 2017, real GDP was $4.59 billion and population was 2.97 million.Between 2016 and 2017, Northland's standard of living

If the money wage rate is $15.00 an hour and the price level is 120, the real wage rate is

An increase in education and training

In the classical growth theory, economic growth eventually stops due to

Which of the following ideas apply to the neoclassical growth theory? I.The rate of technological change influences the rate of economic growth. II.Technological change promotes saving and investment. III.Convergence of economic growth rates across countries.

Convergence between real GDP per person in Canada and Japan was relatively _______ during the 1980s; During the 1990s, Japan's economy _______ .

In the labour market, an increase in labour productivity _______ the real wage rate and _______ the level of employment.

In which of the following decades did Canada experience the slowest economic growth?

If the current growth rate of real GDP per person is 10 percent a year, how long will it take for real GDP per person to double?

During 2016, the country of Economia had real GDP of $115 billion and the population was 0.9 billion.In 2017, real GDP was $105 billion and the population was 0.85 billion.In 2017, real GDP per person was

Labour productivity grows as

An increase in labour productivity _______ the real wage rate and an increase in population _______ the real wage rate.

Which one of the following quotations could be attributed to a supporter of the classical growth theory?

According to Thomas Robert Malthus,

Economic growth 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 Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Convergence between real GDP per person in Canada and Japan was relatively _ during the 1980s; During the 1990s, Japan's economy _ .

In the labour market, an increase in labour productivity _ the real wage rate and _ the level of employment.

An increase in labour productivity _ the real wage rate and an increase in population _ the real wage rate.