Question 1

According to Thomas Robert Malthus,________.

Accepted Answer

A) labour productivity increases continuously 
B) the population growth rate is fixed 
C) technological advances lead to permanent increases in real GDP per person 
D) increases in real GDP per person are only temporary 
E) knowledge capital does not experience diminishing returns 
A) labour productivity increases continuously 
B) the population growth rate is fixed 
C) technological advances lead to permanent increases in real GDP per person 
D) increases in real GDP per person are only temporary 
E) knowledge capital does not experience diminishing returns

Question 2

An increase in education and training

Accepted Answer

A) increases labour productivity. 
B) increases aggregate hours. 
C) decreases real GDP growth. 
D) increases the employment-to-population ratio. 
E) is an increase in physical capital. 
A) increases labour productivity. 
B) increases aggregate hours. 
C) decreases real GDP growth. 
D) increases the employment-to-population ratio. 
E) is an increase in physical capital.

Question 3

Canada's economic growth rate was highest in which of the following decades?

Accepted Answer

A) the 1930s 
B) the 1960s 
C) the 1970s 
D) the 1980s 
E) the 1990s 
A) the 1930s 
B) the 1960s 
C) the 1970s 
D) the 1980s 
E) the 1990s

Question 4

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

Accepted Answer

A) Eastern Europe 
B) Central and South America 
C) Africa 
D) Japan 
E) China 
A) Eastern Europe 
B) Central and South America 
C) Africa 
D) Japan 
E) China

Question 5

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

Question 6

In the classical growth theory,economic growth eventually stops due to

Accepted Answer

A) diminishing returns. 
B) knowledge capital being easily replicated. 
C) the real rate of interest falling back down to its target rate. 
D) real GDP per person becoming too high. 
E) high population growth resulting from the increase in real GDP per person. 
A) diminishing returns. 
B) knowledge capital being easily replicated. 
C) the real rate of interest falling back down to its target rate. 
D) real GDP per person becoming too high. 
E) high population growth resulting from the increase in real GDP per person.

Question 7

In which of the following decades did Canada experience the slowest economic growth?

Accepted Answer

A) 1960s 
B) 1970s 
C) 1980s 
D) 1940s 
E) 1990s 
A) 1960s 
B) 1970s 
C) 1980s 
D) 1940s 
E) 1990s

Question 8

Slowdonia's current growth rate of real GDP per person is 1 percent a year.How long will it take to double real GDP per person?

Accepted Answer

A) 10 years 
B) 35 years 
C) 70 years 
D) 100 years 
E) Real GDP per person will never double 
A) 10 years 
B) 35 years 
C) 70 years 
D) 100 years 
E) Real GDP per person will never double

Question 9

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

Accepted Answer

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

Question 10

Labour productivity rises when

Accepted Answer

A) technological progress is stagnant. 
B) firms invest more in hiring workers than in replacing worn-out capital. 
C) the amount of capital per worker decreases. 
D) the real wage rate falls. 
E) the amount of capital per worker increases. 
A) technological progress is stagnant. 
B) firms invest more in hiring workers than in replacing worn-out capital. 
C) the amount of capital per worker decreases. 
D) the real wage rate falls. 
E) the amount of capital per worker increases.

Question 11

Use the figure below to answer the following question.
   
Figure 22.3.1
-Refer to Figure 22.3.1.The country of Kemper is on its aggregate production function at point W in the above figure.If the population increases with no change in capital or technology,the economy will

Accepted Answer

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

Question 12

Between 1960 and 2010,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.
China's real GDP per person in 2010 is approximately equal to real GDP per person in Hong Kong in ________.

Accepted Answer

A) exceeded;1998 
B) were less than;1988 
C) were less than;1976 
D) exceeded;1976 
E) were approximately equal to;1968 
A) exceeded;1998 
B) were less than;1988 
C) were less than;1976 
D) exceeded;1976 
E) were approximately equal to;1968

Question 13

Knowledge capital is different from physical capital because knowledge capital

Accepted Answer

A) does not experience diminishing returns. 
B) experiences diminishing returns. 
C) is free. 
D) increases with investment. 
E) none of the above. 
A) does not experience diminishing returns. 
B) experiences diminishing returns. 
C) is free. 
D) increases with investment. 
E) none of the above.

Question 14

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

Accepted Answer

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

Question 15

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 16

Use the figure below to answer the following question.
   
Figure 22.3.3
-Ceteris paribus,an increase in population results in a

Accepted Answer

A) higher level of labour employed and higher potential GDP per hour of labour. 
B) lower level of labour employed and higher potential GDP per hour of labour. 
C) higher level of labour employed and lower potential GDP per hour of labour. 
D) lower level of labour employed and lower potential GDP per hour of labour. 
E) constant level of labour employed and constant potential GDP per hour of labour. 
A) higher level of labour employed and higher potential GDP per hour of labour. 
B) lower level of labour employed and higher potential GDP per hour of labour. 
C) higher level of labour employed and lower potential GDP per hour of labour. 
D) lower level of labour employed and lower potential GDP per hour of labour. 
E) constant level of labour employed and constant potential GDP per hour of labour.

Question 17

Use the table below to answer the following questions.
Table 22.3.1

-Refer to Table 22.3.1.The tables show the labour market and the production function schedule for the country of Pickett.An increase in population changes the quantity of labour supplied by 20 billion hours at each real wage rate.Potential GDP ________.

Accepted Answer

A) does not change. 
B) decreases to $3 trillion. 
C) increases to $50 trillion. 
D) increases to $18 trillion. 
E) increases to $20 trillion. 
A) does not change. 
B) decreases to $3 trillion. 
C) increases to $50 trillion. 
D) increases to $18 trillion. 
E) increases to $20 trillion.

Question 18

An increase in labour productivity ________ the real wage rate and an increase in population ________ the real wage rate.

Accepted Answer

A) raises;lowers 
B) raises;raises 
C) lowers;lowers 
D) lowers;raises 
E) raises;does not change 
A) raises;lowers 
B) raises;raises 
C) lowers;lowers 
D) lowers;raises 
E) raises;does not change

Question 19

During 2011,the country of Economia had real GDP of $115 billion and the population was 0.9 billion.In 2010,real GDP was $105 billion and the population was 0.85 billion.In 2010,real GDP per person was

Accepted Answer

A) $128. 
B) $124. 
C) $135. 
D) $117. 
E) $1,235. 
A) $128. 
B) $124. 
C) $135. 
D) $117. 
E) $1,235.

Question 20

According to ________ growth theory,growth of real GDP per person comes to a stop because a population explosion returns real GDP per person to the subsistence level.
According to ________ growth theory,growth of real GDP per person comes to a stop when technology stops advancing.
According to ________ growth theory,growth of real GDP per person is unending.

Accepted Answer

A) classical;new;neoclassical 
B) neoclassical;classical;new 
C) new;neoclassical;classical 
D) classical;neoclassical;new 
E) new;classical;neoclassical 
A) classical;new;neoclassical 
B) neoclassical;classical;new 
C) new;neoclassical;classical 
D) classical;neoclassical;new 
E) new;classical;neoclassical

Exam 22: Economic Growth

According to Thomas Robert Malthus,________.

An increase in education and training

Canada's economic growth rate was highest in which of the following decades?

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

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

In the classical growth theory,economic growth eventually stops due to

In which of the following decades did Canada experience the slowest economic growth?

Slowdonia's current growth rate of real GDP per person is 1 percent a year.How long will it take to double real GDP per person?

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

Labour productivity rises when

Use the figure below to answer the following question. Figure 22.3.1 -Refer to Figure 22.3.1.The country of Kemper is on its aggregate production function at point W in the above figure.If the population increases with no change in capital or technology,the economy will

Between 1960 and 2010,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. China's real GDP per person in 2010 is approximately equal to real GDP per person in Hong Kong in ________.

Knowledge capital is different from physical capital because knowledge capital

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

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

Use the figure below to answer the following question. Figure 22.3.3 -Ceteris paribus,an increase in population results in a

An increase in labour productivity ________ the real wage rate and an increase in population ________ the real wage rate.

During 2011,the country of Economia had real GDP of $115 billion and the population was 0.9 billion.In 2010,real GDP was $105 billion and the population was 0.85 billion.In 2010,real GDP per person was

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Between 1960 and 2010,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. China's real GDP per person in 2010 is approximately equal to real GDP per person in Hong Kong in .

An increase in labour productivity the real wage rate and an increase in population the real wage rate.