Question 1

As the level of real interest rates rise,the amount of new investment will rise also.

Accepted Answer

A) True 
 B)False

Question 2

During the mid to late 1990s,the incentives for investment spending were provided by rising

Accepted Answer

A)  aggregate demand. 
B)  real interest rates. 
C)  levels of corporate taxes. 
D)  levels of capital gains taxes. 
A)  aggregate demand. 
B)  real interest rates. 
C)  levels of corporate taxes. 
D)  levels of capital gains taxes.

Question 3

The wage premium in the United States has risen consistently starting in

Accepted Answer

A)  1973. 
B)  1975. 
C)  1978. 
D)  1983. 
A)  1973. 
B)  1975. 
C)  1978. 
D)  1983.

Question 4

Which of the following would a macroeconomist classify as capital?

Accepted Answer

A)  a software program for an accounting firm 
B)  a share of stock in General Electric 
C)  a corporate bond from IBM 
D)  All of the above are types of capital. 
A)  a software program for an accounting firm 
B)  a share of stock in General Electric 
C)  a corporate bond from IBM 
D)  All of the above are types of capital.

Question 5

As the economy becomes more technologically sophisticated,the wage premium can be expected to

Accepted Answer

A)  continue rising. 
B)  continue falling. 
C)  rise. 
D)  fall. 
A)  continue rising. 
B)  continue falling. 
C)  rise. 
D)  fall.

Question 6

The process of research and development

Accepted Answer

A)  always leads to useful products. 
B)  almost never leads to useful products. 
C)  often involves a waste of resources. 
D)  is usually conducted in governmental laboratories. 
A)  always leads to useful products. 
B)  almost never leads to useful products. 
C)  often involves a waste of resources. 
D)  is usually conducted in governmental laboratories.

Question 7

Compared to the price of long-distance telephone calls,college tuition in the United States has

Accepted Answer

A)  fallen. 
B)  risen. 
C)  stayed the same. 
D)  risen at the same rate as the CPI. 
A)  fallen. 
B)  risen. 
C)  stayed the same. 
D)  risen at the same rate as the CPI.

Question 8

Higher rates of productivity growth are most closely associated with higher rates of

Accepted Answer

A)  consumer spending. 
B)  investment spending. 
C)  government spending. 
D)  import spending. 
A)  consumer spending. 
B)  investment spending. 
C)  government spending. 
D)  import spending.

Question 9

Higher energy prices can be used to adequately explain the productivity slowdown in

Accepted Answer

A)  the United States and the rest of the world. 
B)  the United States but not the rest of the world. 
C)  the rest of the world but not the United States. 
D)  neither the United States nor the rest of the world. 
A)  the United States and the rest of the world. 
B)  the United States but not the rest of the world. 
C)  the rest of the world but not the United States. 
D)  neither the United States nor the rest of the world.

Question 10

What is the price of investment? How are they related? What has to be done to increase investment?

Accepted Answer

The real interest rate is the price of i

Question 11

Discuss that factors that help explain the rapid productivity growth in the United States after 1995.

Accepted Answer

The following factors help explain the s

Question 12

Economists believe that the same explanation for the rapid growth of costs applies to services,theatrical performances and restaurant meals.

Accepted Answer

A) True 
 B)False

Question 13

Explain the ways in which the government can persuade private businesses to invest more in order to speed up the process of capital formation?

Accepted Answer

Real interest rates: The amount that bus

Question 14

The type of human capital formation that occurs in the business sector is called

Accepted Answer

A)  vocational education. 
B)  business education. 
C)  on-the-job training. 
D)  productivity enhancement. 
A)  vocational education. 
B)  business education. 
C)  on-the-job training. 
D)  productivity enhancement.

Question 15

The "cost disease of personal services" phenomenon predicts that the price of tickets to baseball games and cell phone rates will increase at approximately the same rate.

Accepted Answer

A) True 
 B)False

Question 16

The lessons of the Japanese recovery were most successfully repeated by

Accepted Answer

A)  the Soviet Union. 
B)  Argentina and Brazil. 
C)  Taiwan,Singapore,and Hong Kong. 
D)  Bulgaria and Romania. 
A)  the Soviet Union. 
B)  Argentina and Brazil. 
C)  Taiwan,Singapore,and Hong Kong. 
D)  Bulgaria and Romania.

Question 17

Part of the tremendous growth in China can be attributed to

Accepted Answer

A)  loans received from the international financial bodies like World Bank,ADB. 
B)  FDI inflows and its ability to save and invest nearly half of its GDP. 
C)  financial aid received from foreign governments. 
D)  development assistance inflows from developed countries. 
A)  loans received from the international financial bodies like World Bank,ADB. 
B)  FDI inflows and its ability to save and invest nearly half of its GDP. 
C)  financial aid received from foreign governments. 
D)  development assistance inflows from developed countries.

Question 18

Mandated on-the-job training is seen in the United States mainly as a(n)

Accepted Answer

A)  useful spur to economic growth. 
B)  proper use of legislative power. 
C)  unwarranted governmental interference. 
D)  necessary requirement for increased productivity. 
A)  useful spur to economic growth. 
B)  proper use of legislative power. 
C)  unwarranted governmental interference. 
D)  necessary requirement for increased productivity.

Question 19

According to the cost disease of the personal services,service activities that require direct personal contact

Accepted Answer

A)  tend to fall in price relative to other goods and services. 
B)  tend to rise in price relative to other goods and services. 
C)  follow price patterns similar to other goods and services. 
D)  tend to move up and down in price ignoring the rest of the market. 
A)  tend to fall in price relative to other goods and services. 
B)  tend to rise in price relative to other goods and services. 
C)  follow price patterns similar to other goods and services. 
D)  tend to move up and down in price ignoring the rest of the market.

Question 20

All other things being equal,a greater supply of scientists and engineers will increase the level of technology.

Accepted Answer

A) True 
 B)False

As the level of real interest rates rise,the amount of new investment will rise also.

During the mid to late 1990s,the incentives for investment spending were provided by rising

The wage premium in the United States has risen consistently starting in

Which of the following would a macroeconomist classify as capital?

As the economy becomes more technologically sophisticated,the wage premium can be expected to

The process of research and development

Compared to the price of long-distance telephone calls,college tuition in the United States has

Higher rates of productivity growth are most closely associated with higher rates of

Higher energy prices can be used to adequately explain the productivity slowdown in

What is the price of investment? How are they related? What has to be done to increase investment?

Discuss that factors that help explain the rapid productivity growth in the United States after 1995.

Economists believe that the same explanation for the rapid growth of costs applies to services,theatrical performances and restaurant meals.

Explain the ways in which the government can persuade private businesses to invest more in order to speed up the process of capital formation?

The type of human capital formation that occurs in the business sector is called

The "cost disease of personal services" phenomenon predicts that the price of tickets to baseball games and cell phone rates will increase at approximately the same rate.

The lessons of the Japanese recovery were most successfully repeated by

Part of the tremendous growth in China can be attributed to

Mandated on-the-job training is seen in the United States mainly as a(n)

According to the cost disease of the personal services,service activities that require direct personal contact

All other things being equal,a greater supply of scientists and engineers will increase the level of technology.

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand An Initial Look

An Introduction To Macroeconomics

The Goals Of Macroeconomic Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

Filters

Exam 7: Economic Growth Theory And Policy

As the level of real interest rates rise,the amount of new investment will rise also.

During the mid to late 1990s,the incentives for investment spending were provided by rising

The wage premium in the United States has risen consistently starting in

Which of the following would a macroeconomist classify as capital?

As the economy becomes more technologically sophisticated,the wage premium can be expected to

The process of research and development

Compared to the price of long-distance telephone calls,college tuition in the United States has

Higher rates of productivity growth are most closely associated with higher rates of

Higher energy prices can be used to adequately explain the productivity slowdown in

What is the price of investment? How are they related? What has to be done to increase investment?

Discuss that factors that help explain the rapid productivity growth in the United States after 1995.

Economists believe that the same explanation for the rapid growth of costs applies to services,theatrical performances and restaurant meals.

Explain the ways in which the government can persuade private businesses to invest more in order to speed up the process of capital formation?

The type of human capital formation that occurs in the business sector is called

The "cost disease of personal services" phenomenon predicts that the price of tickets to baseball games and cell phone rates will increase at approximately the same rate.

The lessons of the Japanese recovery were most successfully repeated by

Part of the tremendous growth in China can be attributed to

Mandated on-the-job training is seen in the United States mainly as a(n)

According to the cost disease of the personal services,service activities that require direct personal contact

All other things being equal,a greater supply of scientists and engineers will increase the level of technology.

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand An Initial Look

An Introduction To Macroeconomics

The Goals Of Macroeconomic Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

Filters