Question 1

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

Accepted Answer

A) $16.67 an hour. 
B) $6.00 an hour. 
C) $10.00 an hour. 
D) $18.75 an hour. 
E) $12.50 an hour. 
A) $16.67 an hour. 
B) $6.00 an hour. 
C) $10.00 an hour. 
D) $18.75 an hour. 
E) $12.50 an hour.

Question 2

Of the following countries, which has the lowest level of real GDP per person?

Accepted Answer

A) China 
B) Singapore 
C) Korea 
D) Hong Kong 
E) Canada 
A) China 
B) Singapore 
C) Korea 
D) Hong Kong 
E) Canada

Question 3

When labour productivity decreases, there is _______ the aggregate production function and _______ in potential GDP.

Accepted Answer

A) a movement down along; no change 
B) a downward shift of; a decrease 
C) a downward shift of; no change 
D) a movement down along; a decrease 
E) neither a movement along nor a shift of; no change 
A) a movement down along; no change 
B) a downward shift of; a decrease 
C) a downward shift of; no change 
D) a movement down along; a decrease 
E) neither a movement along nor a shift of; no change

Question 4

Which of the following does not contribute to achieving faster growth?

Accepted Answer

A) increased saving 
B) increased research and development 
C) improvement in the quality of education 
D) slowing down international trade so that more countries become self- sufficient 
E) provision of international aid to developing nations 
A) increased saving 
B) increased research and development 
C) improvement in the quality of education 
D) slowing down international trade so that more countries become self- sufficient 
E) provision of international aid to developing nations

Question 5

Between 1926 and 2016, the average growth rate of real GDP per person in Canada was _______ percent a year.During this period, _______ grew at a faster rate than the population.

Accepted Answer

A) 1.0; inflation 
B) 3.0; real GDP 
C) 2.0; GDP; 
D) 2.0; real GDP 
E) 3.0; GDP 
A) 1.0; inflation 
B) 3.0; real GDP 
C) 2.0; GDP; 
D) 2.0; real GDP 
E) 3.0; GDP

Question 6

The new growth theory holds that growth can persist indefinitely based on the major assumption that

Accepted Answer

A) discoveries bring profit. 
B) knowledge capital does not experience diminishing returns. 
C) knowledge destroys profit. 
D) discoveries result from regulations. 
E) knowledge is a public capital good. 
A) discoveries bring profit. 
B) knowledge capital does not experience diminishing returns. 
C) knowledge destroys profit. 
D) discoveries result from regulations. 
E) knowledge is a public capital good.

Question 7

A movement along the aggregate production function occurs when _______ changes.

Accepted Answer

A) technology 
B) capital 
C) the inflation rate 
D) the interest rate 
E) the quantity of labour 
A) technology 
B) capital 
C) the inflation rate 
D) the interest rate 
E) the quantity of labour

Question 8

The current growth rate of real GDP per person is 2 percent a year.How long will it take for real GDP per person to double?

Accepted Answer

A) half a year 
B) 35 years 
C) approximately 10 years 
D) 2 years 
E) 28.6 years 
A) half a year 
B) 35 years 
C) approximately 10 years 
D) 2 years 
E) 28.6 years

Question 9

If real GDP per person is growing at 4 percent per year, it will double in

Accepted Answer

A) 8 years. 
B) 25 years. 
C) 17.5 years. 
D) 4 years. 
E) 56 years. 
A) 8 years. 
B) 25 years. 
C) 17.5 years. 
D) 4 years. 
E) 56 years.

Question 10

Which theory of economic growth concludes that technological advances are influenced by the profit motive?

Accepted Answer

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

Question 11

Real GDP is $20 million.If the economy grows at 10 percent per year, approximately how many years will it take for real GDP to grow to $80 million?

Accepted Answer

A) 4 
B) 30 
C) 7 
D) 14 
E) 3.5 
A) 4 
B) 30 
C) 7 
D) 14 
E) 3.5

Question 12

Factors that influence labour productivity include

Accepted Answer

A) physical capital, the real wage rate, and technology. 
B) physical capital, human capital, and technology. 
C) the demand for labour, the real wage rate, and technology. 
D) the inflation rate, the real wage rate, and the exchange rate. 
E) the population growth rate, human capital, and markets. 
A) physical capital, the real wage rate, and technology. 
B) physical capital, human capital, and technology. 
C) the demand for labour, the real wage rate, and technology. 
D) the inflation rate, the real wage rate, and the exchange rate. 
E) the population growth rate, human capital, and markets.

Question 13

Suppose a country's population grows by 2 percent a year and, at the same time, its real GDP grows by 5 percent a year.Real GDP per person is increasing by _______ a year.

Accepted Answer

A) 3 percent 
B) 2 percent 
C) 10 percent 
D) 5 percent 
E) 7 percent 
A) 3 percent 
B) 2 percent 
C) 10 percent 
D) 5 percent 
E) 7 percent

Question 14

The decreasing slope of the aggregate production function reflects

Accepted Answer

A) increasing aggregate demand. 
B) diminishing returns. 
C) rising unemployment. 
D) a decrease in potential GDP. 
E) decreasing costs. 
A) increasing aggregate demand. 
B) diminishing returns. 
C) rising unemployment. 
D) a decrease in potential GDP. 
E) decreasing costs.

Question 15

If real GDP is $12,150 billion and aggregate labour hours are 270 billion, labour productivity equals

Accepted Answer

A) $32.81 an hour. 
B) $48 an hour. 
C) $6.50 an hour. 
D) $650 an hour. 
E) $45 an hour. 
A) $32.81 an hour. 
B) $48 an hour. 
C) $6.50 an hour. 
D) $650 an hour. 
E) $45 an hour.

Question 16

If an increase in capital increases labour productivity, the supply of labour _______ and the demand for labour _______.

Accepted Answer

A) decreases; stays the same 
B) increases; decreases 
C) stays the same; increases 
D) increases; increases 
E) increases; stays the same 
A) decreases; stays the same 
B) increases; decreases 
C) stays the same; increases 
D) increases; increases 
E) increases; stays the same

Question 17

Choose the statements concerning neoclassical growth theory which are true. 1.Neoclassical growth theory was developed in the late 19th century.
2.The rate of technological change influences the economic growth rate but economic growth does not influen pace of technological change.
3.Economic growth will stop if technology stops advancing.
4.Technological change results from the choices people make in the pursuit of profit.

Accepted Answer

A) Statements 1 and 4 are correct. 
B) Statements 2 and 3 are correct. 
C) Statements 3 and 4 are correct. 
D) Statements 1 and 3 are correct. 
E) Statements 2 and 4 are correct. 
A) Statements 1 and 4 are correct. 
B) Statements 2 and 3 are correct. 
C) Statements 3 and 4 are correct. 
D) Statements 1 and 3 are correct. 
E) Statements 2 and 4 are correct.

Question 18

Which of the following is not a source of economic growth?

Accepted Answer

A) better educated workers 
B) increasing stock market prices 
C) advances in technology 
D) appropriate incentive system 
E) growing physical capital 
A) better educated workers 
B) increasing stock market prices 
C) advances in technology 
D) appropriate incentive system 
E) growing physical capital

Question 19

Knowledge capital is different from physical capital because knowledge capital

Accepted Answer

A) plays a part in economic growth. 
B) is free. 
C) does not experience diminishing returns. 
D) experiences diminishing returns. 
E) increases with investment. 
A) plays a part in economic growth. 
B) is free. 
C) does not experience diminishing returns. 
D) experiences diminishing returns. 
E) increases with investment.

Question 20

All of the following statements are included in new growth theory except

Accepted Answer

A) the forces of competition destroy incentives to make new discoveries. 
B) discoveries bring profit, and competition destroys profit. 
C) discoveries result from choices. 
D) knowledge is capital that is not subject to the law of diminishing returns. 
E) discoveries are a public capital good. 
A) the forces of competition destroy incentives to make new discoveries. 
B) discoveries bring profit, and competition destroys profit. 
C) discoveries result from choices. 
D) knowledge is capital that is not subject to the law of diminishing returns. 
E) discoveries are a public capital good.

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

Of the following countries, which has the lowest level of real GDP per person?

When labour productivity decreases, there is _ the aggregate production function and _ in potential GDP.

Which of the following does not contribute to achieving faster growth?

Between 1926 and 2016, the average growth rate of real GDP per person in Canada was _ percent a year.During this period, _ grew at a faster rate than the population.

The new growth theory holds that growth can persist indefinitely based on the major assumption that

A movement along the aggregate production function occurs when _______ changes.

The current growth rate of real GDP per person is 2 percent a year.How long will it take for real GDP per person to double?

If real GDP per person is growing at 4 percent per year, it will double in

Which theory of economic growth concludes that technological advances are influenced by the profit motive?

Real GDP is $20 million.If the economy grows at 10 percent per year, approximately how many years will it take for real GDP to grow to $80 million?

Factors that influence labour productivity include

Suppose a country's population grows by 2 percent a year and, at the same time, its real GDP grows by 5 percent a year.Real GDP per person is increasing by _______ a year.

The decreasing slope of the aggregate production function reflects

If real GDP is $12,150 billion and aggregate labour hours are 270 billion, labour productivity equals

If an increase in capital increases labour productivity, the supply of labour _ and the demand for labour _.

Which of the following is not a source of economic growth?

Knowledge capital is different from physical capital because knowledge capital

All of the following statements are included in new growth theory except

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

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

Of the following countries, which has the lowest level of real GDP per person?

When labour productivity decreases, there is _______ the aggregate production function and _______ in potential GDP.

Which of the following does not contribute to achieving faster growth?

Between 1926 and 2016, the average growth rate of real GDP per person in Canada was _______ percent a year.During this period, _______ grew at a faster rate than the population.

The new growth theory holds that growth can persist indefinitely based on the major assumption that

A movement along the aggregate production function occurs when _______ changes.

The current growth rate of real GDP per person is 2 percent a year.How long will it take for real GDP per person to double?

If real GDP per person is growing at 4 percent per year, it will double in

Which theory of economic growth concludes that technological advances are influenced by the profit motive?

Real GDP is $20 million.If the economy grows at 10 percent per year, approximately how many years will it take for real GDP to grow to $80 million?

Factors that influence labour productivity include

Suppose a country's population grows by 2 percent a year and, at the same time, its real GDP grows by 5 percent a year.Real GDP per person is increasing by _______ a year.

The decreasing slope of the aggregate production function reflects

If real GDP is $12,150 billion and aggregate labour hours are 270 billion, labour productivity equals

If an increase in capital increases labour productivity, the supply of labour _______ and the demand for labour _______.

Which of the following is not a source of economic growth?

Knowledge capital is different from physical capital because knowledge capital

All of the following statements are included in new growth theory except

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 decreases, there is _ the aggregate production function and _ in potential GDP.

Between 1926 and 2016, the average growth rate of real GDP per person in Canada was _ percent a year.During this period, _ grew at a faster rate than the population.

If an increase in capital increases labour productivity, the supply of labour _ and the demand for labour _.