Question 1

Economies of scale indicates:

Accepted Answer

A) the idea that proprietorships are less bureaucratic and therefore more efficient than corporations. 
B) public investments in highways, schools, utilities, and such. 
C) the fact that large producers may be able to use more efficient technologies than smaller producers. 
D) the reallocation of labour from less-productive to more-productive uses. 
A) the idea that proprietorships are less bureaucratic and therefore more efficient than corporations. 
B) public investments in highways, schools, utilities, and such. 
C) the fact that large producers may be able to use more efficient technologies than smaller producers. 
D) the reallocation of labour from less-productive to more-productive uses.

Question 2

Defenders of growth say that it is the primary path to raising living standards.

Accepted Answer

A) True 
 B)False

Question 3

Using Image 8.1 Global Perspective, which of the following countries is the least competitive country in the world according to the global competitiveness index calculated for 2016-2017?

Accepted Answer

A) Canada 
B) Japan 
C) United States 
D) Germany 
A) Canada 
B) Japan 
C) United States 
D) Germany

Question 4

How does the environment react to waste, assuming that the standard of living is increasing?

Accepted Answer

A) Increases 
B) Decreases 
C) Has no effect 
D) Indeterminate 
A) Increases 
B) Decreases 
C) Has no effect 
D) Indeterminate

Question 5

Which of the following countries had the highest average annual rate of growth of real GDP from 1960 to 2010?

Accepted Answer

A) United Kingdom 
B) South Korea 
C) Canada 
D) United States 
A) United Kingdom 
B) South Korea 
C) Canada 
D) United States

Question 6

Over the past half century the growth of real GDP in Canada has been caused primarily by:

Accepted Answer

A) a falling price level. 
B) the reallocation of labour from manufacturing to agriculture. 
C) increases in the productivity of labour. 
D) the use of fewer inputs of labour. 
A) a falling price level. 
B) the reallocation of labour from manufacturing to agriculture. 
C) increases in the productivity of labour. 
D) the use of fewer inputs of labour.

Question 7

The best measure of economic growth adjusted for the population of a nation is the increase in:

Accepted Answer

A) aggregate demand over time. 
B) real GDP per worker over time. 
C) real GDP per capita over time. 
D) real GDP per dollar of capital stock over time. 
A) aggregate demand over time. 
B) real GDP per worker over time. 
C) real GDP per capita over time. 
D) real GDP per dollar of capital stock over time.

Question 8

Other things equal, if a full-employment economy reallocates a substantial quantity of its resources to capital goods, we would expect:

Accepted Answer

A) present consumption to rise. 
B) future consumption to fall. 
C) a lower rate of growth of real GDP. 
D) labour productivity to rise. 
A) present consumption to rise. 
B) future consumption to fall. 
C) a lower rate of growth of real GDP. 
D) labour productivity to rise.

Question 9

In 2017, the standard workweek in Canada was about:

Accepted Answer

A) 35 hours. 
B) 32 hours. 
C) 40 hours. 
D) 44 hours. 
A) 35 hours. 
B) 32 hours. 
C) 40 hours. 
D) 44 hours.

Question 10

A source of increasing returns to scale is:

Accepted Answer

A) less specialized inputs. 
B) less investment in technology. 
C) simultaneous consumption. 
D) the labour-force participation rate. 
A) less specialized inputs. 
B) less investment in technology. 
C) simultaneous consumption. 
D) the labour-force participation rate.

Question 11

One of the basic economic defences of economic growth rests on the conclusion that:

Accepted Answer

A) growth makes workers less obsolete and more secure in employment. 
B) growth reduces the cost to society of "common property" resources. 
C) growth makes the gap between unlimited wants and scarce resources less acute. 
D) a growth-oriented society confers a "work and look to the future" attitude on the members of society. 
A) growth makes workers less obsolete and more secure in employment. 
B) growth reduces the cost to society of "common property" resources. 
C) growth makes the gap between unlimited wants and scarce resources less acute. 
D) a growth-oriented society confers a "work and look to the future" attitude on the members of society.

Question 12

About two-thirds of Canada's growth rate in the last half century has been due to rising productivity and about one-third has been due to the use of more inputs.

Accepted Answer

A) True 
 B)False

Question 13

Refer to the above diagram.The most likely cause of a shift from AB to CD would be a(n):

Accepted Answer

A) increase in productivity. 
B) increase in the price level. 
C) decrease in the size of the labour force. 
D) recession. 
A) increase in productivity. 
B) increase in the price level. 
C) decrease in the size of the labour force. 
D) recession.

Question 14

Labour productivity may best be defined as:

Accepted Answer

A) total output/worker-hours. 
B) nominal GDP minus real GDP. 
C) the ratio of real capital to worker-hours. 
D) the annual increase in nominal GDP per worker. 
A) total output/worker-hours. 
B) nominal GDP minus real GDP. 
C) the ratio of real capital to worker-hours. 
D) the annual increase in nominal GDP per worker.

Question 15

The different starting dates for modern economic growth in different parts of the world are the main cause of:

Accepted Answer

A) today's small differences in per capita GDP levels around the world. 
B) today's large differences in per capita GDP levels around the world. 
C) today's small differences in nominal GDP levels around the world. 
D) today's large differences in population levels around the world. 
A) today's small differences in per capita GDP levels around the world. 
B) today's large differences in per capita GDP levels around the world. 
C) today's small differences in nominal GDP levels around the world. 
D) today's large differences in population levels around the world.

Question 16

Suppose total output (real GDP) is $4000 and labour productivity is 8.We can conclude that:

Accepted Answer

A) real GDP per capita must be $500. 
B) the price-level index must be greater than 100. 
C) nominal GDP must be $500. 
D) the number of worker-hours must be 500. 
A) real GDP per capita must be $500. 
B) the price-level index must be greater than 100. 
C) nominal GDP must be $500. 
D) the number of worker-hours must be 500.

Question 17

A supply factor in economic growth would be:

Accepted Answer

A) a fall in the efficient use of resources. 
B) a rise in the rate of resource depletion. 
C) an increase in the quantity of labour. 
D) an increase in consumption spending. 
A) a fall in the efficient use of resources. 
B) a rise in the rate of resource depletion. 
C) an increase in the quantity of labour. 
D) an increase in consumption spending.

Question 18

Which of the following arguments are correct:

Accepted Answer

A) Canada is entering an era of low structural unemployment due to rapid technological change. 
B) technological advance will result in a lower rate of economic growth. 
C) innovations in computers and communications, together with global competition, are boosting Canadian productivity and the economy's potential economic growth rate. 
D) technological change will require more central planning and government regulation. 
A) Canada is entering an era of low structural unemployment due to rapid technological change. 
B) technological advance will result in a lower rate of economic growth. 
C) innovations in computers and communications, together with global competition, are boosting Canadian productivity and the economy's potential economic growth rate. 
D) technological change will require more central planning and government regulation.

Question 19

During 1945-2016, the labour force in Canada has increased by about:

Accepted Answer

A) 13.5 million workers. 
B) 18 million workers. 
C) 4.5 million workers. 
D) 15.5 million workers. 
A) 13.5 million workers. 
B) 18 million workers. 
C) 4.5 million workers. 
D) 15.5 million workers.

Question 20

Which of the following is not a supply factor in economic growth?

Accepted Answer

A) the stock of capital 
B) technological advance 
C) the size and quality of the labour force 
D) full employment 
A) the stock of capital 
B) technological advance 
C) the size and quality of the labour force 
D) full employment

Exam 8: B: Economic Growth

Economies of scale indicates:

Defenders of growth say that it is the primary path to raising living standards.

Using Image 8.1 Global Perspective, which of the following countries is the least competitive country in the world according to the global competitiveness index calculated for 2016-2017?

How does the environment react to waste, assuming that the standard of living is increasing?

Which of the following countries had the highest average annual rate of growth of real GDP from 1960 to 2010?

Over the past half century the growth of real GDP in Canada has been caused primarily by:

The best measure of economic growth adjusted for the population of a nation is the increase in:

Other things equal, if a full-employment economy reallocates a substantial quantity of its resources to capital goods, we would expect:

In 2017, the standard workweek in Canada was about:

A source of increasing returns to scale is:

One of the basic economic defences of economic growth rests on the conclusion that:

About two-thirds of Canada's growth rate in the last half century has been due to rising productivity and about one-third has been due to the use of more inputs.

Refer to the above diagram.The most likely cause of a shift from AB to CD would be a(n):

Labour productivity may best be defined as:

The different starting dates for modern economic growth in different parts of the world are the main cause of:

Suppose total output (real GDP) is $4000 and labour productivity is 8.We can conclude that:

A supply factor in economic growth would be:

Which of the following arguments are correct:

During 1945-2016, the labour force in Canada has increased by about:

Which of the following is not a supply factor in economic growth?

B: Limits, Alternatives, and Choices

A: - Limits, Alternatives, and Choices

B: The Market System and the Circular Flow

A: - The Market System and the Circular Flow

B: Demand, Supply, and Market Equilibrium

A: - Demand, Supply, and Market Equilibrium

B: Market Failures: Public Goods and Externalities

A: - Market Failures: Public Goods and Externalities

B: Governments Role and Government Failure

A: Governments Role and Government Failure

B: an Introduction to Macroeconomics

A: an Introduction to Macroeconomics

B: Measuring the Economys Output

A: Measuring the Economys Output

A: Economic Growth

B: Business Cycles, Unemployment, and Inflation

A: Business Cycles, Unemployment, and Inflation

B: Basic Macroeconomic Relationships

A: Basic Macroeconomic Relationships

B: The Aggregate Expenditures Model

A: The Aggregate Expenditures Model

B: Aggregate Demand and Aggregate Supply

A: Aggregate Demand and Aggregate Supply

B: Fiscal Policy, Deficits, Surpluses, and Debt

A: Fiscal Policy, Deficits, Surpluses, and Debt

B: Money, Banking, and Money Creation

A: Money, Banking, and Money Creation

B: Interest Rates and Monetary Policy

A: Interest Rates and Monetary Policy

C: Financial Economics

A: Long-Run Macroeconomic Adjustments

B: Long-Run Macroeconomic Adjustments

A: International Trade

B: International Trade

A: The Balance of Payments and Exchange Rates

B: The Balance of Payments and Exchange Rates

The Economics of Developing Countries

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