Question 1

If an economy's real GDP is growing by 5 percent per year, its real domestic output will double in approximately fourteen years.

Accepted Answer

A) True 
 B)False

Question 2

Compared to the leader countries, the follower countries can grow at a faster rate because:

Accepted Answer

A) follower countries have a hard time adopting a technology. 
B) leader countries cannot grow anymore. 
C) follower countries can skip past many stages of technology that the leader countries had to pass through. 
D) leader countries can skip past many stages of technology that the follower countries had to pass through. 
A) follower countries have a hard time adopting a technology. 
B) leader countries cannot grow anymore. 
C) follower countries can skip past many stages of technology that the leader countries had to pass through. 
D) leader countries can skip past many stages of technology that the follower countries had to pass through.

Question 3

Improvements in education and training explain nearly 80 percent of the historical growth of Canadian labour productivity.

Accepted Answer

A) True 
 B)False

Question 4

If an economy's real GDP doubles in fourteen years, then the average annual rate of growth in real GDP is about:

Accepted Answer

A) 3 percent. 
B) 4 percent. 
C) 5 percent. 
D) 6 percent. 
A) 3 percent. 
B) 4 percent. 
C) 5 percent. 
D) 6 percent.

Question 5

Which is a demand factor in economic growth?

Accepted Answer

A) more human and natural resources 
B) technological progress and innovation 
C) an increase in the economy's stock of capital goods 
D) an increase in total spending in the economy 
A) more human and natural resources 
B) technological progress and innovation 
C) an increase in the economy's stock of capital goods 
D) an increase in total spending in the economy

Question 6

Poorer follower countries can grow much faster than leader countries because they can simply adopt existing technologies from richer leader countries.

Accepted Answer

A) True 
 B)False

Question 7

Simultaneous consumption is a source of increasing returns and economies of scale.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is an effect of economic growth on the production possibilities curve?

Accepted Answer

A) An outward shift of the curve 
B) A downward movement along the curve 
C) An upward movement along the curve 
D) An inward shift of the curve 
A) An outward shift of the curve 
B) A downward movement along the curve 
C) An upward movement along the curve 
D) An inward shift of the curve

Question 9

Over a year, a nation's GDP at current prices rose by 15 percent while the price index increased from 100 to 110.GDP at constant prices rose by about:

Accepted Answer

A) 3 percent. 
B) 5 percent. 
C) 7 percent. 
D) 9 percent. 
A) 3 percent. 
B) 5 percent. 
C) 7 percent. 
D) 9 percent.

Question 10

Economic well-being in Canada is understated by growth rates because they:

Accepted Answer

A) account for pollution expenditures. 
B) don't account for improvement in products. 
C) account for illegal activity. 
D) don't account for the slowdown in productivity. 
A) account for pollution expenditures. 
B) don't account for improvement in products. 
C) account for illegal activity. 
D) don't account for the slowdown in productivity.

Question 11

Assume that an economy has 1500 workers, each working 2000 hours per year.If the average real output per worker-hour is $20, then total output or real GDP will be:

Accepted Answer

A) $3 million. 
B) $30 million. 
C) $45 million. 
D) $60 million. 
A) $3 million. 
B) $30 million. 
C) $45 million. 
D) $60 million.

Question 12

In Canada, the highest increase in the average annual rates of productivity growth was observed during the period of:

Accepted Answer

A) 1946-1973. 
B) 1946-2015. 
C) 1973-1981. 
D) 2000-2015. 
A) 1946-1973. 
B) 1946-2015. 
C) 1973-1981. 
D) 2000-2015.

Question 13

Which of the following has made the largest contribution to the growth of labour productivity in Canada?

Accepted Answer

A) technological advance 
B) education and training of labour 
C) economies of scale 
D) improved resource allocation 
A) technological advance 
B) education and training of labour 
C) economies of scale 
D) improved resource allocation

Question 14

Refer to the above table, between years 2 and 3:

Accepted Answer

A) Italy's real GDP grew more rapidly than China's real GDP. 
B) real GDP fell in China. 
C) population growth reduced Italy's real GDP growth to zero. 
D) population fell in Italy's. 
A) Italy's real GDP grew more rapidly than China's real GDP. 
B) real GDP fell in China. 
C) population growth reduced Italy's real GDP growth to zero. 
D) population fell in Italy's.

Question 15

Other things being equal, all of the following would cause a rise in a country's real per capita GDP, except a(n):

Accepted Answer

A) increase in the general price level. 
B) decrease in the population size. 
C) increase in labour productivity. 
D) decrease in imports. 
A) increase in the general price level. 
B) decrease in the population size. 
C) increase in labour productivity. 
D) decrease in imports.

Question 16

Refer to the diagram below.A shift in the production possibilities curve from AB to CD is most likely due to:

Accepted Answer

A) the use of the economy's resources in an efficient way. 
B) an increase in the spending of business and consumers. 
C) an increase in government purchase of the economy's output. 
D) an increase in the quantity and quality of labour resources. 
A) the use of the economy's resources in an efficient way. 
B) an increase in the spending of business and consumers. 
C) an increase in government purchase of the economy's output. 
D) an increase in the quantity and quality of labour resources.

Question 17

The movement of workers from lower productivity jobs to higher productivity jobs would be an example of a(n):

Accepted Answer

A) technological advance. 
B) network effects. 
C) simultaneous consumption. 
D) improved resource allocation. 
A) technological advance. 
B) network effects. 
C) simultaneous consumption. 
D) improved resource allocation.

Question 18

Real GDP = worker-hours * labour productivity.

Accepted Answer

A) True 
 B)False

Question 19

Which would be the best economic measure to compare standards of living among nations over time?

Accepted Answer

A) changes in labour productivity 
B) changes in real domestic output 
C) changes in real GDP per capita 
D) changes in nominal income per capita 
A) changes in labour productivity 
B) changes in real domestic output 
C) changes in real GDP per capita 
D) changes in nominal income per capita

Question 20

Economic growth is best defined as an increase in:

Accepted Answer

A) either real GDP or real GDP per capita. 
B) nominal GDP. 
C) total consumption expenditures. 
D) wealth in the economy. 
A) either real GDP or real GDP per capita. 
B) nominal GDP. 
C) total consumption expenditures. 
D) wealth in the economy.

Exam 8: B: Economic Growth

If an economy's real GDP is growing by 5 percent per year, its real domestic output will double in approximately fourteen years.

Compared to the leader countries, the follower countries can grow at a faster rate because:

Improvements in education and training explain nearly 80 percent of the historical growth of Canadian labour productivity.

If an economy's real GDP doubles in fourteen years, then the average annual rate of growth in real GDP is about:

Which is a demand factor in economic growth?

Poorer follower countries can grow much faster than leader countries because they can simply adopt existing technologies from richer leader countries.

Simultaneous consumption is a source of increasing returns and economies of scale.

Which of the following is an effect of economic growth on the production possibilities curve?

Over a year, a nation's GDP at current prices rose by 15 percent while the price index increased from 100 to 110.GDP at constant prices rose by about:

Economic well-being in Canada is understated by growth rates because they:

Assume that an economy has 1500 workers, each working 2000 hours per year.If the average real output per worker-hour is $20, then total output or real GDP will be:

In Canada, the highest increase in the average annual rates of productivity growth was observed during the period of:

Which of the following has made the largest contribution to the growth of labour productivity in Canada?

Refer to the above table, between years 2 and 3:

Other things being equal, all of the following would cause a rise in a country's real per capita GDP, except a(n):

Refer to the diagram below.A shift in the production possibilities curve from AB to CD is most likely due to:

The movement of workers from lower productivity jobs to higher productivity jobs would be an example of a(n):

Real GDP = worker-hours * labour productivity.

Which would be the best economic measure to compare standards of living among nations over time?

Economic growth is best defined as an increase in:

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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