Question 1

Carbon taxes and cap and trade systems are market-based incentives that are likely to be effective in limiting greenhouse gas emissions.

Accepted Answer

A) True 
 B)False

Question 2

Growth accounting estimates the contribution of each major factor in the aggregate production function to economic growth.

Accepted Answer

A) True 
 B)False

Question 3

Growth accounting is a fast-growing industry that assists taxpayers in filing their taxes online.

Accepted Answer

A) True 
 B)False

Question 4

In general, the growth in real GDP per capita in the U.S.:

Accepted Answer

A)  was smaller than the growth of per capita oil consumption before 1973. 
B)  fluctuated above and below the growth of per capita oil consumption before 1973. 
C)  was greater than the growth of per capita oil consumption after 1973. 
D)  was smaller than the growth of per capita oil consumption after oil prices began to increase in 2004. 
A)  was smaller than the growth of per capita oil consumption before 1973. 
B)  fluctuated above and below the growth of per capita oil consumption before 1973. 
C)  was greater than the growth of per capita oil consumption after 1973. 
D)  was smaller than the growth of per capita oil consumption after oil prices began to increase in 2004.

Question 5

Which factor contributes to economic development?

Accepted Answer

A)  low saving and investment rates 
B)  a command socialist economic system 
C)  investment in infrastructure 
D)  complete absence of government involvement 
A)  low saving and investment rates 
B)  a command socialist economic system 
C)  investment in infrastructure 
D)  complete absence of government involvement

Question 6

The economy has grown by 4% per year over the past 30 years. During the same period, the labor force has grown by 1% per year and the quantity of physical capital has grown by 5% per year. Each 1% increase in physical capital per worker is estimated to increase productivity by 0.4%. Assume that human capital has not changed during the past 30 years. How much has growing physical capital per worker contributed to productivity growth?

Accepted Answer

A)  6% 
B)  5.4% 
C)  2% 
D)  1.6% 
A)  6% 
B)  5.4% 
C)  2% 
D)  1.6%

Question 7

One factor frequently cited for slow growth in India until the 1990s is:

Accepted Answer

A)  reliance on the drug trade. 
B)  too little government intervention in the economy. 
C)  dependence of foreign capital flows. 
D)  corruption among government officials. 
A)  reliance on the drug trade. 
B)  too little government intervention in the economy. 
C)  dependence of foreign capital flows. 
D)  corruption among government officials.

Question 8

Technological progress allows workers to produce more:

Accepted Answer

A)  because it increases the amount of physical capital available. 
B)  because it increases the amount of human capital available. 
C)  even when the amount of physical capital and human capital do not change. 
D)  only if the amount of physical capital grows at the same rate. 
A)  because it increases the amount of physical capital available. 
B)  because it increases the amount of human capital available. 
C)  even when the amount of physical capital and human capital do not change. 
D)  only if the amount of physical capital grows at the same rate.

Question 9

Research and development is defined as spending to develop and implement new technologies.

Accepted Answer

A) True 
 B)False

Question 10

Output per capita in the United States in 2015 was about _____ as high as it was in 1900.

Accepted Answer

A)  twice 
B)  3 times 
C)  8 times 
D)  10 times 
A)  twice 
B)  3 times 
C)  8 times 
D)  10 times

Question 11

The convergence hypothesis says that international differences in real GDP per capita tend to increase over time.

Accepted Answer

A) True 
 B)False

Question 12

The aggregate production function exhibits _____ returns to physical capital.

Accepted Answer

A)  diminishing 
B)  constant 
C)  increasing 
D)  negative 
A)  diminishing 
B)  constant 
C)  increasing 
D)  negative

Question 13

Economists mostly agree that the problem of climate change necessitates government action in the form of market-based incentives such as:

Accepted Answer

A)  tax rebates to those causing negative externalities. 
B)  a reduction in the amount of gasoline that each person is allowed to purchase. 
C)  a carbon tax or a cap and trade system. 
D)  a reduction in the price of green cars and appliances. 
A)  tax rebates to those causing negative externalities. 
B)  a reduction in the amount of gasoline that each person is allowed to purchase. 
C)  a carbon tax or a cap and trade system. 
D)  a reduction in the price of green cars and appliances.

Question 14

Which country is NOT characterized by abundant farmland and mineral deposits?

Accepted Answer

A)  the United States 
B)  Canada 
C)  Argentina 
D)  Japan 
A)  the United States 
B)  Canada 
C)  Argentina 
D)  Japan

Question 15

Which statement accurately describes what is happening along a typical aggregate production function?

Accepted Answer

A)  At some point, increasing the amount of physical capital per worker will reduce productivity. 
B)  Increases in physical capital per worker will always bring about an increase in productivity that is worth the cost of the additional physical capital. 
C)  Because of diminishing returns, increasing the amount of physical capital per worker will eventually bring smaller and smaller increases in productivity. 
D)  Adding workers results in real GDP per worker rising at an increasing rate throughout the function. 
A)  At some point, increasing the amount of physical capital per worker will reduce productivity. 
B)  Increases in physical capital per worker will always bring about an increase in productivity that is worth the cost of the additional physical capital. 
C)  Because of diminishing returns, increasing the amount of physical capital per worker will eventually bring smaller and smaller increases in productivity. 
D)  Adding workers results in real GDP per worker rising at an increasing rate throughout the function.

Question 16

All else equal, a nation that has a high rate of _____ will have a high rate of _____ and therefore a high growth rate of _____ capital.

Accepted Answer

A)  investment; savings; human 
B)  savings; investment; natural 
C)  savings; investment; physical 
D)  savings; consumption; physical 
A)  investment; savings; human 
B)  savings; investment; natural 
C)  savings; investment; physical 
D)  savings; consumption; physical

Question 17

Suppose that real GDP per capita of the United States is $32,000 and its growth rate is 2% per year and that real GDP per capita of China is $4,000, and its annual growth rate is 7%. How many years will it take for China's real GDP per capita to be larger than real GDP per capita in the United States?

Accepted Answer

A)  70 to 75 years 
B)  40 to 45 years 
C)  15 to 20 years 
D)  5 to 10 years 
A)  70 to 75 years 
B)  40 to 45 years 
C)  15 to 20 years 
D)  5 to 10 years

Question 18

In an economy whose aggregate real output is growing faster than the total population:

Accepted Answer

A)  real GDP per capita is rising. 
B)  standard of living is declining. 
C)  national income is falling. 
D)  nominal GDP per capita is decreasing. 
A)  real GDP per capita is rising. 
B)  standard of living is declining. 
C)  national income is falling. 
D)  nominal GDP per capita is decreasing.

Question 19

The Rule of 70 applies:

Accepted Answer

A)  only to GDP. 
B)  only to GDP per capita. 
C)  to any growth rate. 
D)  only to developed countries. 
A)  only to GDP. 
B)  only to GDP per capita. 
C)  to any growth rate. 
D)  only to developed countries.

Question 20

Between 1980 and 1994, growth rates of real GDP per capita in sub-Saharan Africa fell by more than 10%.

Accepted Answer

A) True 
 B)False

Carbon taxes and cap and trade systems are market-based incentives that are likely to be effective in limiting greenhouse gas emissions.

Growth accounting estimates the contribution of each major factor in the aggregate production function to economic growth.

Growth accounting is a fast-growing industry that assists taxpayers in filing their taxes online.

In general, the growth in real GDP per capita in the U.S.:

Which factor contributes to economic development?

One factor frequently cited for slow growth in India until the 1990s is:

Technological progress allows workers to produce more:

Research and development is defined as spending to develop and implement new technologies.

Output per capita in the United States in 2015 was about _____ as high as it was in 1900.

The convergence hypothesis says that international differences in real GDP per capita tend to increase over time.

The aggregate production function exhibits _____ returns to physical capital.

Economists mostly agree that the problem of climate change necessitates government action in the form of market-based incentives such as:

Which country is NOT characterized by abundant farmland and mineral deposits?

Which statement accurately describes what is happening along a typical aggregate production function?

All else equal, a nation that has a high rate of ___ will have a high rate of _ and therefore a high growth rate of ___ capital.

In an economy whose aggregate real output is growing faster than the total population:

The Rule of 70 applies:

Between 1980 and 1994, growth rates of real GDP per capita in sub-Saharan Africa fell by more than 10%.

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

GDP and the CPI: Tracking the Macroeconomy

Unemployment and Inflation

Savings, Investment Spending, and the Financial Syst

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Filters

Exam 9: Long-Run Economic Growth

Carbon taxes and cap and trade systems are market-based incentives that are likely to be effective in limiting greenhouse gas emissions.

Growth accounting estimates the contribution of each major factor in the aggregate production function to economic growth.

Growth accounting is a fast-growing industry that assists taxpayers in filing their taxes online.

In general, the growth in real GDP per capita in the U.S.:

Which factor contributes to economic development?

One factor frequently cited for slow growth in India until the 1990s is:

Technological progress allows workers to produce more:

Research and development is defined as spending to develop and implement new technologies.

Output per capita in the United States in 2015 was about _____ as high as it was in 1900.

The convergence hypothesis says that international differences in real GDP per capita tend to increase over time.

The aggregate production function exhibits _____ returns to physical capital.

Economists mostly agree that the problem of climate change necessitates government action in the form of market-based incentives such as:

Which country is NOT characterized by abundant farmland and mineral deposits?

Which statement accurately describes what is happening along a typical aggregate production function?

All else equal, a nation that has a high rate of _____ will have a high rate of _____ and therefore a high growth rate of _____ capital.

In an economy whose aggregate real output is growing faster than the total population:

The Rule of 70 applies:

Between 1980 and 1994, growth rates of real GDP per capita in sub-Saharan Africa fell by more than 10%.

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

GDP and the CPI: Tracking the Macroeconomy

Unemployment and Inflation

Savings, Investment Spending, and the Financial Syst

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Filters

All else equal, a nation that has a high rate of ___ will have a high rate of _ and therefore a high growth rate of ___ capital.