Question 1

Which theory of economic growth argues that population growth lowers the real wage rate and stops economic growth?

Accepted Answer

A) classical growth theory 
B) neoclassical growth theory 
C) new growth theory 
D) all of the theories 
E) none of the theories 
A) classical growth theory 
B) neoclassical growth theory 
C) new growth theory 
D) all of the theories 
E) none of the theories

Question 2

If the current growth rate of real GDP per person is 7 percent a year, how long will it take for real GDP per person to double?

Accepted Answer

A) 2 years 
B) 1 year 
C) 49 years 
D) 10 years 
E) 7 years 
A) 2 years 
B) 1 year 
C) 49 years 
D) 10 years 
E) 7 years

Question 3

Which theory of economic growth argues that growth does not automatically slow down?

Accepted Answer

A) classical growth theory 
B) neoclassical growth theory 
C) new growth theory 
D) all of the theories 
E) none of the theories 
A) classical growth theory 
B) neoclassical growth theory 
C) new growth theory 
D) all of the theories 
E) none of the theories

Question 4

Ceteris paribus, an increase in labour productivity results in a

Accepted Answer

A) higher real wage rate and higher potential GDP per hour of labour. 
B) higher real wage rate and lower potential GDP per hour of labour. 
C) lower real wage rate and lower potential GDP per hour of labour. 
D) constant real wage rate in the long run. 
E) lower real wage rate and higher potential GDP per hour of labour. 
A) higher real wage rate and higher potential GDP per hour of labour. 
B) higher real wage rate and lower potential GDP per hour of labour. 
C) lower real wage rate and lower potential GDP per hour of labour. 
D) constant real wage rate in the long run. 
E) lower real wage rate and higher potential GDP per hour of labour.

Question 5

Which of the following is a suggestion for increasing Canadian economic growth rates?

Accepted Answer

A) Tax education 
B) Stimulate saving by taxing consumption. 
C) Protect our industries from foreign competition. 
D) Reduce the time period for patent protection to increase replication. 
E) Put less public research funds into universities. 
A) Tax education 
B) Stimulate saving by taxing consumption. 
C) Protect our industries from foreign competition. 
D) Reduce the time period for patent protection to increase replication. 
E) Put less public research funds into universities.

Question 6

When the quantity of labour demanded exceeds the quantity of labour supplied, the real wage rate

Accepted Answer

A) does not change, but the money wage rate rises to eliminate the labour market shortage. 
B) rises to eliminate the labour market surplus. 
C) falls to eliminate the labour market shortage. 
D) rises to eliminate the labour market shortage. 
E) falls to eliminate the labour market surplus. 
A) does not change, but the money wage rate rises to eliminate the labour market shortage. 
B) rises to eliminate the labour market surplus. 
C) falls to eliminate the labour market shortage. 
D) rises to eliminate the labour market shortage. 
E) falls to eliminate the labour market surplus.

Question 7

Real GDP per person in the country of Flip is $10,000, and the growth rate is 10 percent a year.Real GDP per person in the country of Flap is $20,000 and the growth rate is 5 percent a year.When will real GDP per person be greater in Flip than in Flap?

Accepted Answer

A) in 2 years 
B) in 15 years 
C) never 
D) in 7 years 
E) in 10 years 
A) in 2 years 
B) in 15 years 
C) never 
D) in 7 years 
E) in 10 years

Question 8

An assumption of the new growth theory is that

Accepted Answer

A) the growth rate of labour productivity depends on people's ability to innovate. 
B) the marginal product from all types of capital increases as more capital is accumulated. 
C) all technological advances are the result of chance. 
D) people earn a subsistence real wage in the long run. 
E) technological advances encourage international trade. 
A) the growth rate of labour productivity depends on people's ability to innovate. 
B) the marginal product from all types of capital increases as more capital is accumulated. 
C) all technological advances are the result of chance. 
D) people earn a subsistence real wage in the long run. 
E) technological advances encourage international trade.

Question 9

When labour productivity increases, the demand for labour curve _______ and the supply of labour curve _______.

Accepted Answer

A) shifts leftward; does not shift 
B) shifts rightward; shifts rightward 
C) shifts rightward; does not shift 
D) shifts leftward; shifts rightward 
E) shifts rightward; shifts leftward 
A) shifts leftward; does not shift 
B) shifts rightward; shifts rightward 
C) shifts rightward; does not shift 
D) shifts leftward; shifts rightward 
E) shifts rightward; shifts leftward

Question 10

Human capital is the

Accepted Answer

A) skill and knowledge accumulated by humans. 
B) plant and equipment produced by humans and not by machines. 
C) technology used by humans to produce real GDP. 
D) machinery used by humans to produce GDP. 
E) technology used by humans to produce GDP. 
A) skill and knowledge accumulated by humans. 
B) plant and equipment produced by humans and not by machines. 
C) technology used by humans to produce real GDP. 
D) machinery used by humans to produce GDP. 
E) technology used by humans to produce GDP.

Question 11

When the population increases, potential GDP _______ and potential GDP per hour of labour _______.

Accepted Answer

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

Question 12

During the last 10 years, which of the following had the lowest level of real GDP per person?

Accepted Answer

A) Russia 
B) Japan 
C) Mexico 
D) Nigeria 
E) China 
A) Russia 
B) Japan 
C) Mexico 
D) Nigeria 
E) China

Question 13

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.What was Northland's growth rate of real GDP in 2017?

Accepted Answer

A) 3.8 percent 
B) 0.38 percent 
C) 8.3 percent 
D) 11.1 percent 
E) 9.0 percent 
A) 3.8 percent 
B) 0.38 percent 
C) 8.3 percent 
D) 11.1 percent 
E) 9.0 percent

Question 14

If the real wage rate is $10.00 an hour and the price level is 60, the money wage rate is

Accepted Answer

A) $18.50 an hour. 
B) $16.67 an hour. 
C) $6.00 an hour. 
D) $16.75 an hour. 
E) $10.00 an hour. 
A) $18.50 an hour. 
B) $16.67 an hour. 
C) $6.00 an hour. 
D) $16.75 an hour. 
E) $10.00 an hour.

Question 15

Use the figure below to answer the following question.
   Figure 6.3.1
-Refer to Figure 6.3.1.The country of Kemper is on its aggregate production function at point W.If the population increases with no change in capital or technology, the economy

Accepted Answer

A) moves to point such as X. 
B) moves to point such as Y. 
C) remains at point W. 
D) moves to point such as Z. 
E) either remains at point W or moves to point X. 
A) moves to point such as X. 
B) moves to point such as Y. 
C) remains at point W. 
D) moves to point such as Z. 
E) either remains at point W or moves to point X.

Question 16

Use the figure below to answer the following questions.
   Figure 6.3.2
-Refer to Figure 6.3.2.The equilibrium quantity of labour is

Accepted Answer

A) 100 billion hours per year. 
B) 150 billion hours per year. 
C) 250 billion hours per year. 
D) 50 billion hours per year. 
E) 200 billion hours per year. 
A) 100 billion hours per year. 
B) 150 billion hours per year. 
C) 250 billion hours per year. 
D) 50 billion hours per year. 
E) 200 billion hours per year.

Question 17

Between 1980 and 2016, growth rates in real GDP per person in Hong Kong, Korea, Singapore, Taiwan, and China _______ the growth rate of real GDP per person in Canada.
Korea's real GDP per person in 2016 is approximately equal to real GDP per person in Hong Kong in _______.

Accepted Answer

A) exceeded; 2006 
B) were approximately equal to; 2006 
C) were less than; 2006 
D) exceeded; 1980 
E) were less than; 1980 
A) exceeded; 2006 
B) were approximately equal to; 2006 
C) were less than; 2006 
D) exceeded; 1980 
E) were less than; 1980

Question 18

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.Northland's real GDP per person in 2017 was

Accepted Answer

A) $1,413. 
B) $64.70. 
C) $1,545. 
D) $6,470. 
E) $1.55. 
A) $1,413. 
B) $64.70. 
C) $1,545. 
D) $6,470. 
E) $1.55.

Question 19

Labour productivity is

Accepted Answer

A) shown as a movement along the production function. 
B) the rate of change in real GDP per hour of labour. 
C) the quantity of real GDP produced by an hour of labour. 
D) real GDP per hour of labour times the hours of work. 
E) real GDP per hour of labour times the population. 
A) shown as a movement along the production function. 
B) the rate of change in real GDP per hour of labour. 
C) the quantity of real GDP produced by an hour of labour. 
D) real GDP per hour of labour times the hours of work. 
E) real GDP per hour of labour times the population.

Question 20

When the population increases with no change in labour productivity, employment _______ and potential GDP _______.

Accepted Answer

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

Which theory of economic growth argues that population growth lowers the real wage rate and stops economic growth?

If the current growth rate of real GDP per person is 7 percent a year, how long will it take for real GDP per person to double?

Which theory of economic growth argues that growth does not automatically slow down?

Ceteris paribus, an increase in labour productivity results in a

Which of the following is a suggestion for increasing Canadian economic growth rates?

When the quantity of labour demanded exceeds the quantity of labour supplied, the real wage rate

Real GDP per person in the country of Flip is $10,000, and the growth rate is 10 percent a year.Real GDP per person in the country of Flap is $20,000 and the growth rate is 5 percent a year.When will real GDP per person be greater in Flip than in Flap?

An assumption of the new growth theory is that

When labour productivity increases, the demand for labour curve _ and the supply of labour curve _.

Human capital is the

When the population increases, potential GDP _ and potential GDP per hour of labour _.

During the last 10 years, which of the following had the lowest level of real GDP per person?

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.What was Northland's growth rate of real GDP in 2017?

If the real wage rate is $10.00 an hour and the price level is 60, the money wage rate is

Use the figure below to answer the following question. Figure 6.3.1 -Refer to Figure 6.3.1.The country of Kemper is on its aggregate production function at point W.If the population increases with no change in capital or technology, the economy

Use the figure below to answer the following questions. Figure 6.3.2 -Refer to Figure 6.3.2.The equilibrium quantity of labour is

Between 1980 and 2016, growth rates in real GDP per person in Hong Kong, Korea, Singapore, Taiwan, and China _ the growth rate of real GDP per person in Canada. Korea's real GDP per person in 2016 is approximately equal to real GDP per person in Hong Kong in _.

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.Northland's real GDP per person in 2017 was

Labour productivity is

When the population increases with no change in labour productivity, employment _ and potential GDP _.

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

Which theory of economic growth argues that population growth lowers the real wage rate and stops economic growth?

If the current growth rate of real GDP per person is 7 percent a year, how long will it take for real GDP per person to double?

Which theory of economic growth argues that growth does not automatically slow down?

Ceteris paribus, an increase in labour productivity results in a

Which of the following is a suggestion for increasing Canadian economic growth rates?

When the quantity of labour demanded exceeds the quantity of labour supplied, the real wage rate

Real GDP per person in the country of Flip is $10,000, and the growth rate is 10 percent a year.Real GDP per person in the country of Flap is $20,000 and the growth rate is 5 percent a year.When will real GDP per person be greater in Flip than in Flap?

An assumption of the new growth theory is that

When labour productivity increases, the demand for labour curve _______ and the supply of labour curve _______.

Human capital is the

When the population increases, potential GDP _______ and potential GDP per hour of labour _______.

During the last 10 years, which of the following had the lowest level of real GDP per person?

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.What was Northland's growth rate of real GDP in 2017?

If the real wage rate is $10.00 an hour and the price level is 60, the money wage rate is

Use the figure below to answer the following question. Figure 6.3.1 -Refer to Figure 6.3.1.The country of Kemper is on its aggregate production function at point W.If the population increases with no change in capital or technology, the economy

Use the figure below to answer the following questions. Figure 6.3.2 -Refer to Figure 6.3.2.The equilibrium quantity of labour is

Between 1980 and 2016, growth rates in real GDP per person in Hong Kong, Korea, Singapore, Taiwan, and China _______ the growth rate of real GDP per person in Canada. Korea's real GDP per person in 2016 is approximately equal to real GDP per person in Hong Kong in _______.

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.Northland's real GDP per person in 2017 was

Labour productivity is

When the population increases with no change in labour productivity, employment _______ and potential GDP _______.

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

When labour productivity increases, the demand for labour curve _ and the supply of labour curve _.

When the population increases, potential GDP _ and potential GDP per hour of labour _.

Between 1980 and 2016, growth rates in real GDP per person in Hong Kong, Korea, Singapore, Taiwan, and China _ the growth rate of real GDP per person in Canada. Korea's real GDP per person in 2016 is approximately equal to real GDP per person in Hong Kong in _.

When the population increases with no change in labour productivity, employment _ and potential GDP _.