Question 1

Infrastructure includes:

Accepted Answer

A)  the water supply system. 
B)  government bonds. 
C)  corporate stock. 
D)  household savings. 
A)  the water supply system. 
B)  government bonds. 
C)  corporate stock. 
D)  household savings.

Question 2

The improvement in labor made possible by education and knowledge that is embodied in the work force is known as _____ capital.

Accepted Answer

A)  physical 
B)  human 
C)  financial 
D)  real 
A)  physical 
B)  human 
C)  financial 
D)  real

Question 3

Growth accounting estimates the:

Accepted Answer

A)  increase in the population rate over time. 
B)  increase in the inflation rate over time. 
C)  contribution of each major factor in the aggregate production function to economic growth. 
D)  contribution of the technology factor in the aggregate production function to economic growth. 
A)  increase in the population rate over time. 
B)  increase in the inflation rate over time. 
C)  contribution of each major factor in the aggregate production function to economic growth. 
D)  contribution of the technology factor in the aggregate production function to economic growth.

Question 4

The standard of living in a country can be BEST measured by:

Accepted Answer

A)  nominal GDP per capita. 
B)  real GDP per capita. 
C)  the productivity growth rate. 
D)  the business cycles. 
A)  nominal GDP per capita. 
B)  real GDP per capita. 
C)  the productivity growth rate. 
D)  the business cycles.

Question 5

During the latter half of the twentieth century, the Soviet Union made more physical capital available to its workers, but this increase resulted in successively smaller increases in productivity. This example illustrates:

Accepted Answer

A)  diminishing returns to human capital. 
B)  a decline in technology. 
C)  a declining standard of living. 
D)  diminishing returns to physical capital. 
A)  diminishing returns to human capital. 
B)  a decline in technology. 
C)  a declining standard of living. 
D)  diminishing returns to physical capital.

Question 6

Use the following to answer question 94:  
-(Table: Hypothetical Relationship) Use Table: Hypothetical Relationship. This economy is undergoing:

Accepted Answer

A)  increasing returns to physical capital per worker. 
B)  decreasing total productivity. 
C)  constant total productivity. 
D)  diminishing returns to physical capital per worker. 
A)  increasing returns to physical capital per worker. 
B)  decreasing total productivity. 
C)  constant total productivity. 
D)  diminishing returns to physical capital per worker.

Question 7

To acquire human capital a person would:

Accepted Answer

A)  save to buy a printing press. 
B)  purchase a printing press rather than a very large television. 
C)  learn to use a printing press. 
D)  sell the books that the printing press produces. 
A)  save to buy a printing press. 
B)  purchase a printing press rather than a very large television. 
C)  learn to use a printing press. 
D)  sell the books that the printing press produces.

Question 8

Use the following to answer questions:  
-(Table: Kenya's Economy in 2010) Use Table: Kenya's Economy in 2010. During 2010, assuming no changes in the price level, aggregate output per capita in Kenya grew at a rate of:

Accepted Answer

A)  0.6%. 
B)  2.6%. 
C)  5.2%. 
D)  7.8%. 
A)  0.6%. 
B)  2.6%. 
C)  5.2%. 
D)  7.8%.

Question 9

An example of human capital is a person's:

Accepted Answer

A)  money. 
B)  job skills. 
C)  capital goods or machines. 
D)  stocks and bonds. 
A)  money. 
B)  job skills. 
C)  capital goods or machines. 
D)  stocks and bonds.

Question 10

According to the rule of 70, if real GDP per capita is growing at 2% a year, in 100 years it will have increased by:

Accepted Answer

A)  about 4 times. 
B)  about 7 times. 
C)  almost 30 times. 
D)  almost 60 times. 
A)  about 4 times. 
B)  about 7 times. 
C)  almost 30 times. 
D)  almost 60 times.

Question 11

The rule of 70 is MOST useful in:

Accepted Answer

A)  identifying the causes of economic growth. 
B)  identifying the sources of economic growth. 
C)  estimating the productivity of labor. 
D)  estimating the doubling time of real GDP for a given growth rate. 
A)  identifying the causes of economic growth. 
B)  identifying the sources of economic growth. 
C)  estimating the productivity of labor. 
D)  estimating the doubling time of real GDP for a given growth rate.

Question 12

U.S. real GDP per capita in 2015 was _____% as much per person as it was in 1900.

Accepted Answer

A)  16 
B)  189 
C)  46 
D)  804 
A)  16 
B)  189 
C)  46 
D)  804

Question 13

Which change will NOT increase the productivity of labor?

Accepted Answer

A)  technological improvements 
B)  an increase in the capital stock 
C)  improvements in education 
D)  an increase in the size of the labor force 
A)  technological improvements 
B)  an increase in the capital stock 
C)  improvements in education 
D)  an increase in the size of the labor force

Question 14

The fundamental argument in the Essay on the Principle of Population was that improvements in technology or increases in physical capital would lead to only temporary improvements in productivity because they would always be offset by:

Accepted Answer

A)  rising human capital demands. 
B)  falling land values. 
C)  the pressure of rising population and more workers on the supply of land. 
D)  falling birthrates. 
A)  rising human capital demands. 
B)  falling land values. 
C)  the pressure of rising population and more workers on the supply of land. 
D)  falling birthrates.

Question 15

During the 1990s in the U.S.:

Accepted Answer

A)  high oil prices encouraged consumers to buy small, fuel-efficient cars. 
B)  low oil prices encouraged consumers to buy large cars and SUVs that were generally not fuel-efficient. 
C)  high oil prices encouraged the development of alternative energy sources. 
D)  low oil prices led to decreases in real GDP. 
A)  high oil prices encouraged consumers to buy small, fuel-efficient cars. 
B)  low oil prices encouraged consumers to buy large cars and SUVs that were generally not fuel-efficient. 
C)  high oil prices encouraged the development of alternative energy sources. 
D)  low oil prices led to decreases in real GDP.

Question 16

Ireland's recent economic growth and improving living standard are due primarily to:

Accepted Answer

A)  its refusal to join the European Union and abandon its own currency for the euro. 
B)  the capture and imprisonment of Sinn Fein leader Gerry Adams. 
C)  the large number of immigrants from Eastern Europe. 
D)  an excellent physical and human infrastructure, including a good education system, airports, telecommunications, and shipping facilities. 
A)  its refusal to join the European Union and abandon its own currency for the euro. 
B)  the capture and imprisonment of Sinn Fein leader Gerry Adams. 
C)  the large number of immigrants from Eastern Europe. 
D)  an excellent physical and human infrastructure, including a good education system, airports, telecommunications, and shipping facilities.

Question 17

Which factor has contributed to the lack of economic growth in Latin America? I. low rates of savings and investment
II) low value on education
III) political instability

Accepted Answer

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

Question 18

Long-run economic growth will be sustainable:

Accepted Answer

A)  because pollution and urban sprawl are not real problems. 
B)  because there are plenty of natural resources left to be consumed in the future. 
C)  if it can continue in spite of the limited supply of natural resources and the impact of growth on environment. 
D)  because the natural resource scarcity and other environmental issues are not really as serious as they seem. 
A)  because pollution and urban sprawl are not real problems. 
B)  because there are plenty of natural resources left to be consumed in the future. 
C)  if it can continue in spite of the limited supply of natural resources and the impact of growth on environment. 
D)  because the natural resource scarcity and other environmental issues are not really as serious as they seem.

Question 19

If technology improves, then it takes more inputs to produce the same output as the last period.

Accepted Answer

A) True 
 B)False

Question 20

Suppose that a panel of economists predicts that a nation's real GDP per capita will double in approximately 20 years. According to the rule of 70, what must be the predicted annual growth rate of real GDP per capita?

Accepted Answer

A)  140% 
B)  3.5% 
C)  2.85% 
D)  14% 
A)  140% 
B)  3.5% 
C)  2.85% 
D)  14%

Infrastructure includes:

The improvement in labor made possible by education and knowledge that is embodied in the work force is known as _____ capital.

Growth accounting estimates the:

The standard of living in a country can be BEST measured by:

During the latter half of the twentieth century, the Soviet Union made more physical capital available to its workers, but this increase resulted in successively smaller increases in productivity. This example illustrates:

Use the following to answer question 94: -(Table: Hypothetical Relationship) Use Table: Hypothetical Relationship. This economy is undergoing:

To acquire human capital a person would:

Use the following to answer questions: -(Table: Kenya's Economy in 2010) Use Table: Kenya's Economy in 2010. During 2010, assuming no changes in the price level, aggregate output per capita in Kenya grew at a rate of:

An example of human capital is a person's:

According to the rule of 70, if real GDP per capita is growing at 2% a year, in 100 years it will have increased by:

The rule of 70 is MOST useful in:

U.S. real GDP per capita in 2015 was _____% as much per person as it was in 1900.

Which change will NOT increase the productivity of labor?

The fundamental argument in the Essay on the Principle of Population was that improvements in technology or increases in physical capital would lead to only temporary improvements in productivity because they would always be offset by:

During the 1990s in the U.S.:

Ireland's recent economic growth and improving living standard are due primarily to:

Which factor has contributed to the lack of economic growth in Latin America? I. low rates of savings and investment II) low value on education III) political instability

Long-run economic growth will be sustainable:

If technology improves, then it takes more inputs to produce the same output as the last period.

Suppose that a panel of economists predicts that a nation's real GDP per capita will double in approximately 20 years. According to the rule of 70, what must be the predicted annual growth rate of real GDP per capita?

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

Infrastructure includes:

The improvement in labor made possible by education and knowledge that is embodied in the work force is known as _____ capital.

Growth accounting estimates the:

The standard of living in a country can be BEST measured by:

During the latter half of the twentieth century, the Soviet Union made more physical capital available to its workers, but this increase resulted in successively smaller increases in productivity. This example illustrates:

Use the following to answer question 94: -(Table: Hypothetical Relationship) Use Table: Hypothetical Relationship. This economy is undergoing:

To acquire human capital a person would:

Use the following to answer questions: -(Table: Kenya's Economy in 2010) Use Table: Kenya's Economy in 2010. During 2010, assuming no changes in the price level, aggregate output per capita in Kenya grew at a rate of:

An example of human capital is a person's:

According to the rule of 70, if real GDP per capita is growing at 2% a year, in 100 years it will have increased by:

The rule of 70 is MOST useful in:

U.S. real GDP per capita in 2015 was _____% as much per person as it was in 1900.

Which change will NOT increase the productivity of labor?

The fundamental argument in the Essay on the Principle of Population was that improvements in technology or increases in physical capital would lead to only temporary improvements in productivity because they would always be offset by:

During the 1990s in the U.S.:

Ireland's recent economic growth and improving living standard are due primarily to:

Which factor has contributed to the lack of economic growth in Latin America? I. low rates of savings and investment II) low value on education III) political instability

Long-run economic growth will be sustainable:

If technology improves, then it takes more inputs to produce the same output as the last period.

Suppose that a panel of economists predicts that a nation's real GDP per capita will double in approximately 20 years. According to the rule of 70, what must be the predicted annual growth rate of real GDP per capita?

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