Question 1

According to the rule of 70, if a country doubles its real GDP per capita every 20 years, that country must be growing at an annual rate of:

Accepted Answer

A)  2%. 
B)  3.5%. 
C)  35%. 
D)  70%. 
A)  2%. 
B)  3.5%. 
C)  35%. 
D)  70%.

Question 2

Economists say that long-run economic growth is almost entirely due to:

Accepted Answer

A)  rising productivity. 
B)  population growth. 
C)  a democratically elected government. 
D)  a balanced budget. 
A)  rising productivity. 
B)  population growth. 
C)  a democratically elected government. 
D)  a balanced budget.

Question 3

When the government invests resources in a nation's educational system, it is investing in:

Accepted Answer

A)  private property. 
B)  human capital. 
C)  political stability. 
D)  infrastructure. 
A)  private property. 
B)  human capital. 
C)  political stability. 
D)  infrastructure.

Question 4

Use the following to answer questions:  
-(Table: Kenya's Economy in 2010) Use Table: Kenya's Economy in 2010. The population at the end of 2010 was about:

Accepted Answer

A)  400 million. 
B)  41 million. 
C)  14 million. 
D)  401 million. 
A)  400 million. 
B)  41 million. 
C)  14 million. 
D)  401 million.

Question 5

Use the following to answer questions:  
-(Figure: Technological Progress and Productivity Growth) Use Figure: Technological Progress and Productivity Growth. If there is an increase in physical capital per worker (all other factors remaining unchanged), it is BEST indicated by a move from:

Accepted Answer

A)  A to B. 
B)  B to A. 
C)  C to B. 
D)  B to C. 
A)  A to B. 
B)  B to A. 
C)  C to B. 
D)  B to C.

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. What is the growth rate of productivity?

Accepted Answer

A)  5% 
B)  4% 
C)  3% 
D)  1.6% 
A)  5% 
B)  4% 
C)  3% 
D)  1.6%

Question 7

If technology advances:

Accepted Answer

A)  GDP per capita declines. 
B)  physical capital is less productive. 
C)  workers can produce more with fixed amounts of physical and human capital. 
D)  human capital is less useful. 
A)  GDP per capita declines. 
B)  physical capital is less productive. 
C)  workers can produce more with fixed amounts of physical and human capital. 
D)  human capital is less useful.

Question 8

A government policy that does NOT promote economic growth is:

Accepted Answer

A)  building infrastructure and providing public goods. 
B)  implementing a monetary policy that increases inflation. 
C)  subsidizing education. 
D)  providing political stability and protecting property rights. 
A)  building infrastructure and providing public goods. 
B)  implementing a monetary policy that increases inflation. 
C)  subsidizing education. 
D)  providing political stability and protecting property rights.

Question 9

The term human capital describes improvement:

Accepted Answer

A)  made possible by better machines and equipment. 
B)  in the technology available to the work force. 
C)  in a worker's skills made possible by education, training, and knowledge. 
D)  in the robotics technology that can substitute for a human worker. 
A)  made possible by better machines and equipment. 
B)  in the technology available to the work force. 
C)  in a worker's skills made possible by education, training, and knowledge. 
D)  in the robotics technology that can substitute for a human worker.

Question 10

Workers today are more productive than they were in the past because they:

Accepted Answer

A)  have more natural resources to use. 
B)  work a four-day week. 
C)  are better educated and so have more human capital. 
D)  are physically larger than were their parents. 
A)  have more natural resources to use. 
B)  work a four-day week. 
C)  are better educated and so have more human capital. 
D)  are physically larger than were their parents.

Question 11

Growth accounting enables us to:

Accepted Answer

A)  calculate how long it takes the economy to grow. 
B)  calculate the effects of technological progress on economic growth. 
C)  compare growth rates across countries. 
D)  better calculate real GDP per capita. 
A)  calculate how long it takes the economy to grow. 
B)  calculate the effects of technological progress on economic growth. 
C)  compare growth rates across countries. 
D)  better calculate real GDP per capita.

Question 12

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 technological progress contributed to productivity growth?

Accepted Answer

A)  1.4% 
B)  1.6% 
C)  2% 
D)  3% 
A)  1.4% 
B)  1.6% 
C)  2% 
D)  3%

Question 13

The aggregate production function shows how productivity depends on natural resources and financial capital.

Accepted Answer

A) True 
 B)False

Question 14

According to the rule of 70, a 10% annual increase in real GDP would lead to a doubling of real GDP in seven years.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)  diverge 
B)  fluctuate 
C)  remain constant 
D)  narrow 
A)  diverge 
B)  fluctuate 
C)  remain constant 
D)  narrow

Question 16

Use the following to answer questions:  
-(Figure: Technological Progress and Productivity Growth) Use Figure: Technological Progress and Productivity Growth. If there is a significant increase in human capital per worker (all other factors remaining unchanged), it is BEST indicated by a move from:

Accepted Answer

A)  A to B. 
B)  B to A. 
C)  C to B. 
D)  B to C. 
A)  A to B. 
B)  B to A. 
C)  C to B. 
D)  B to C.

Question 17

The idea that relatively poor nations should have higher rates of growth of real GDP per capita than relatively rich nations is known as the:

Accepted Answer

A)  East Asian miracle. 
B)  Industrial Revolution. 
C)  sustainable development hypothesis. 
D)  convergence hypothesis. 
A)  East Asian miracle. 
B)  Industrial Revolution. 
C)  sustainable development hypothesis. 
D)  convergence hypothesis.

Question 18

Which item CANNOT properly be called a part of infrastructure?

Accepted Answer

A)  power lines 
B)  roads and bridges 
C)  human capital 
D)  seaports 
A)  power lines 
B)  roads and bridges 
C)  human capital 
D)  seaports

Question 19

In 1798, the English economist Thomas Malthus predicted that a growing population and a fixed supply of land would eventually cause productivity to fall.

Accepted Answer

A) True 
 B)False

Question 20

The reasons for which the East Asian countries have exhibited tremendous economic growth during the past 40 years do NOT inlcude:

Accepted Answer

A)  a significant increase in physical capital per worker made possible by very high rate of saving. 
B)  a significant increase in human capital made possible by very good basic education. 
C)  a substantial achievement in technological progress. 
D)  intervening governments with lots of regulations. 
A)  a significant increase in physical capital per worker made possible by very high rate of saving. 
B)  a significant increase in human capital made possible by very good basic education. 
C)  a substantial achievement in technological progress. 
D)  intervening governments with lots of regulations.

According to the rule of 70, if a country doubles its real GDP per capita every 20 years, that country must be growing at an annual rate of:

Economists say that long-run economic growth is almost entirely due to:

When the government invests resources in a nation's educational system, it is investing in:

Use the following to answer questions: -(Table: Kenya's Economy in 2010) Use Table: Kenya's Economy in 2010. The population at the end of 2010 was about:

Use the following to answer questions: -(Figure: Technological Progress and Productivity Growth) Use Figure: Technological Progress and Productivity Growth. If there is an increase in physical capital per worker (all other factors remaining unchanged), it is BEST indicated by a move from:

If technology advances:

A government policy that does NOT promote economic growth is:

The term human capital describes improvement:

Workers today are more productive than they were in the past because they:

Growth accounting enables us to:

The aggregate production function shows how productivity depends on natural resources and financial capital.

According to the rule of 70, a 10% annual increase in real GDP would lead to a doubling of real GDP in seven years.

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

Use the following to answer questions: -(Figure: Technological Progress and Productivity Growth) Use Figure: Technological Progress and Productivity Growth. If there is a significant increase in human capital per worker (all other factors remaining unchanged), it is BEST indicated by a move from:

The idea that relatively poor nations should have higher rates of growth of real GDP per capita than relatively rich nations is known as the:

Which item CANNOT properly be called a part of infrastructure?

In 1798, the English economist Thomas Malthus predicted that a growing population and a fixed supply of land would eventually cause productivity to fall.

The reasons for which the East Asian countries have exhibited tremendous economic growth during the past 40 years do NOT inlcude:

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

According to the rule of 70, if a country doubles its real GDP per capita every 20 years, that country must be growing at an annual rate of:

Economists say that long-run economic growth is almost entirely due to:

When the government invests resources in a nation's educational system, it is investing in:

Use the following to answer questions: -(Table: Kenya's Economy in 2010) Use Table: Kenya's Economy in 2010. The population at the end of 2010 was about:

Use the following to answer questions: -(Figure: Technological Progress and Productivity Growth) Use Figure: Technological Progress and Productivity Growth. If there is an increase in physical capital per worker (all other factors remaining unchanged), it is BEST indicated by a move from:

If technology advances:

A government policy that does NOT promote economic growth is:

The term human capital describes improvement:

Workers today are more productive than they were in the past because they:

Growth accounting enables us to:

The aggregate production function shows how productivity depends on natural resources and financial capital.

According to the rule of 70, a 10% annual increase in real GDP would lead to a doubling of real GDP in seven years.

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

Use the following to answer questions: -(Figure: Technological Progress and Productivity Growth) Use Figure: Technological Progress and Productivity Growth. If there is a significant increase in human capital per worker (all other factors remaining unchanged), it is BEST indicated by a move from:

The idea that relatively poor nations should have higher rates of growth of real GDP per capita than relatively rich nations is known as the:

Which item CANNOT properly be called a part of infrastructure?

In 1798, the English economist Thomas Malthus predicted that a growing population and a fixed supply of land would eventually cause productivity to fall.

The reasons for which the East Asian countries have exhibited tremendous economic growth during the past 40 years do NOT inlcude:

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