Question 1

According to the law of diminishing returns,along the aggregate production function an additional unit of

Accepted Answer

A) capital produces more output than an additional unit of labour. 
B) labour decreases output. 
C) labour produces more output than the previous unit. 
D) labour produces less output than the previous unit. 
E) labour increases the real wage rate. 
A) capital produces more output than an additional unit of labour. 
B) labour decreases output. 
C) labour produces more output than the previous unit. 
D) labour produces less output than the previous unit. 
E) labour increases the real wage rate.

Question 2

The Industrial Revolution in England was largely the result of

Accepted Answer

A) growth in human capital. 
B) population growth. 
C) technological innovations that were financed mainly by government spending. 
D) technological innovations encouraged by the patent system. 
E) the elimination of the patent system. 
A) growth in human capital. 
B) population growth. 
C) technological innovations that were financed mainly by government spending. 
D) technological innovations encouraged by the patent system. 
E) the elimination of the patent system.

Question 3

Use the figure below to answer the following question.
   
Figure 22.3.1
-If the money wage rate is $15.00 an hour and the price level is 120,the real wage rate is

Accepted Answer

A) $8.50 an hour. 
B) $10.75 an hour. 
C) $12.50 an hour. 
D) $15.00 an hour. 
E) $18 an hour. 
A) $8.50 an hour. 
B) $10.75 an hour. 
C) $12.50 an hour. 
D) $15.00 an hour. 
E) $18 an hour.

Question 4

An increase in population results in

Accepted Answer

A) an upward shift in the production function. 
B) a movement along the production function. 
C) a leftward shift of the labour supply curve. 
D) a rightward shift of the labour demand curve. 
E) both B and D are correct. 
A) an upward shift in the production function. 
B) a movement along the production function. 
C) a leftward shift of the labour supply curve. 
D) a rightward shift of the labour demand curve. 
E) both B and D are correct.

Question 5

If capital per worker decreases,real GDP per hour of labour

Accepted Answer

A) decreases because the level of technology decreases. 
B) increases because the level of technology increases. 
C) increases for a given level of technology. 
D) decreases for a given level of technology. 
E) none of the above. 
A) decreases because the level of technology decreases. 
B) increases because the level of technology increases. 
C) increases for a given level of technology. 
D) decreases for a given level of technology. 
E) none of the above.

Question 6

Which of the following ideas apply to the neoclassical growth theory?
I.The rate of technological change influences the rate of economic growth.
II.Technological change promotes saving and investment.
III.Convergence of economic growth rates across countries.

Accepted Answer

A) I only 
B) II only 
C) III only 
D) I and II only 
E) I, II, and III 
A) I only 
B) II only 
C) III only 
D) I and II only 
E) I, II, and III

Question 7

In the labour market,an increase in labour productivity ________ the real wage rate and ________ the level of employment.

Accepted Answer

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

Question 8

If new capital increases labour productivity,the supply of labour ________ and the demand for labour ________.

Accepted Answer

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

Question 9

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

Accepted Answer

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

Question 10

Compared to growth in other countries,between 1960 and 2010 Canada

Accepted Answer

A) fell behind most other countries. 
B) dramatically caught up to and passed other countries. 
C) worsened dramatically versus the United States, but did better versus other countries. 
D) did as well or better than most countries except certain Asian countries. 
E) did none of the above. 
A) fell behind most other countries. 
B) dramatically caught up to and passed other countries. 
C) worsened dramatically versus the United States, but did better versus other countries. 
D) did as well or better than most countries except certain Asian countries. 
E) did none of the above.

Exam 22: Economic Growth

According to the law of diminishing returns,along the aggregate production function an additional unit of

The Industrial Revolution in England was largely the result of

Use the figure below to answer the following question. Figure 22.3.1 -If the money wage rate is $15.00 an hour and the price level is 120,the real wage rate is

An increase in population results in

If capital per worker decreases,real GDP per hour of labour

Which of the following ideas apply to the neoclassical growth theory? I.The rate of technological change influences the rate of economic growth. II.Technological change promotes saving and investment. III.Convergence of economic growth rates across countries.

In the labour market,an increase in labour productivity ________ the real wage rate and ________ the level of employment.

If new capital increases labour productivity,the supply of labour ________ and the demand for labour ________.

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

Compared to growth in other countries,between 1960 and 2010 Canada

What Is Economics?

The Economic Problem

Demand and Supply

Elasticity

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Government Actions in Markets

Global Markets in Action

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Possibilities, Preferences, and Choices

Organizing Production

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Public Goods and Common Resources

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Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: The Keynesian Model

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In the labour market,an increase in labour productivity the real wage rate and the level of employment.

If new capital increases labour productivity,the supply of labour and the demand for labour .