Question 1

Total factor productivity is the amount of output that can be achieved with a given amount of factor inputs.

Accepted Answer

A) True 
 B)False

Question 2

Thomas Malthus:

Accepted Answer

A)  was President Reagan's primary economic adviser. 
B)  successfully predicted the nationalization of the insurance company AIG. 
C)  predicted that limited land supplies would prevent large increases in real incomes per capita. 
D)  wrote The Limits to Growth in 1972. 
A)  was President Reagan's primary economic adviser. 
B)  successfully predicted the nationalization of the insurance company AIG. 
C)  predicted that limited land supplies would prevent large increases in real incomes per capita. 
D)  wrote The Limits to Growth in 1972.

Question 3

Diminishing returns to physical capital implies that, when the human capital per worker and the state of technology remain fixed, each successive increase in physical capital leads to _____ productivity.

Accepted Answer

A)  a smaller increase in 
B)  a larger increase in 
C)  a decrease in 
D)  negative 
A)  a smaller increase in 
B)  a larger increase in 
C)  a decrease in 
D)  negative

Question 4

As a limit to economic growth, environmental problems are more difficult to solve than resource problems because:

Accepted Answer

A)  environmental problems don't automatically provide incentives for changed behavior. 
B)  resource problems don't automatically provide incentives for changed behavior. 
C)  the opportunity cost of solving environmental problems in terms of GDP sacrificed is larger. 
D)  most scientists haven't determined the relationship between greenhouse gas emissions and climate change. 
A)  environmental problems don't automatically provide incentives for changed behavior. 
B)  resource problems don't automatically provide incentives for changed behavior. 
C)  the opportunity cost of solving environmental problems in terms of GDP sacrificed is larger. 
D)  most scientists haven't determined the relationship between greenhouse gas emissions and climate change.

Question 5

In the book The Limits to Growth, The Club of Rome argued that:

Accepted Answer

A)  free trade could make world growth sustainable. 
B)  the World Bank needed to establish a global currency. 
C)  the convergence hypothesis was invalid. 
D)  limited supplies of natural resources made long-run growth unsustainable. 
A)  free trade could make world growth sustainable. 
B)  the World Bank needed to establish a global currency. 
C)  the convergence hypothesis was invalid. 
D)  limited supplies of natural resources made long-run growth unsustainable.

Question 6

If an economy has a real GDP per capita growth rate of 2%, it will take 14 years for GDP per capita to double.

Accepted Answer

A) True 
 B)False

Question 7

According to Jeff Sachs of Columbia University, Africa is politically unstable because it is poor and not the other way around.

Accepted Answer

A) True 
 B)False

Question 8

Economies with high growth rates tend to be those that have:

Accepted Answer

A)  large amounts of natural resources. 
B)  a stable government that protects property rights. 
C)  high levels of government regulation. 
D)  a large defense budget. 
A)  large amounts of natural resources. 
B)  a stable government that protects property rights. 
C)  high levels of government regulation. 
D)  a large defense budget.

Question 9

The formula for the rule of 70, where n is number of years and r is growth rate, is expressed as:

Accepted Answer

A)  n * 70 = r. 
B)  n / r = 70. 
C)  r / n = 70. 
D)  n * r = 70. 
A)  n * 70 = r. 
B)  n / r = 70. 
C)  r / n = 70. 
D)  n * r = 70.

Question 10

Investment in human capital causes _____________the aggregate production function.

Accepted Answer

A)  a downward shift of 
B)  a leftward movement along 
C)  an upward shift of 
D)  a rightward movement along 
A)  a downward shift of 
B)  a leftward movement along 
C)  an upward shift of 
D)  a rightward movement along

Question 11

Between 1980 and 1994, real per capita GDP in sub-Saharan Africa:

Accepted Answer

A)  fell by 13%. 
B)  fell by 50%. 
C)  increased by 10%. 
D)  increased by 7% per year. 
A)  fell by 13%. 
B)  fell by 50%. 
C)  increased by 10%. 
D)  increased by 7% per year.

Question 12

High rates of savings and investment and a lack of consumption spending have contributed to the recent stagnant economic growth in Latin America.

Accepted Answer

A) True 
 B)False

Question 13

A rise in real GDP that is the same as the rate of population growth leaves the average standard of living unchanged.

Accepted Answer

A) True 
 B)False

Question 14

The main reason South Korea has grown so rapidly is that, because it was so poor:

Accepted Answer

A)  it could take advantage of international financial aid for poor countries. 
B)  people left to go to more prosperous countries. 
C)  it could skip forward, or leapfrog, to use new-generation technology as it developed. 
D)  it could import highly trained engineers from other countries. 
A)  it could take advantage of international financial aid for poor countries. 
B)  people left to go to more prosperous countries. 
C)  it could skip forward, or leapfrog, to use new-generation technology as it developed. 
D)  it could import highly trained engineers from other countries.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Use the following to answer questions:  
-(Figure: Productivity) Use Figure: Productivity. An improvement in technology with everything else remaining unchanged is shown on the diagram as a movement from:

Accepted Answer

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

Question 17

In the 1980s, which factor contributed to slow growth in Latin America countries?

Accepted Answer

A)  reliance on the drug trade 
B)  excessive government intervention in the economy 
C)  an overly high birth rate 
D)  excessive reliance on the United States for foreign trade 
A)  reliance on the drug trade 
B)  excessive government intervention in the economy 
C)  an overly high birth rate 
D)  excessive reliance on the United States for foreign trade

Question 18

Which factor is the MOST widely accepted measure of economic growth over time?

Accepted Answer

A)  inflation 
B)  increases in real per capita GDP 
C)  decline in real interest rates 
D)  increases in the available labor supply 
A)  inflation 
B)  increases in real per capita GDP 
C)  decline in real interest rates 
D)  increases in the available labor supply

Question 19

Which country had the FASTEST growth rate of real GDP per capita between 1980 and 2015?

Accepted Answer

A)  the United States 
B)  Ireland 
C)  China 
D)  France 
A)  the United States 
B)  Ireland 
C)  China 
D)  France

Question 20

Long-run economic growth is:

Accepted Answer

A)  higher in countries with a weak rule of law and excessive government intervention. 
B)  lower in countries with a strong government and independent judiciary. 
C)  lower in countries whose courts enforce property rights and whose government protects its citizens. 
D)  higher in countries with a strong rule of law and political stability. 
A)  higher in countries with a weak rule of law and excessive government intervention. 
B)  lower in countries with a strong government and independent judiciary. 
C)  lower in countries whose courts enforce property rights and whose government protects its citizens. 
D)  higher in countries with a strong rule of law and political stability.

Total factor productivity is the amount of output that can be achieved with a given amount of factor inputs.

Thomas Malthus:

Diminishing returns to physical capital implies that, when the human capital per worker and the state of technology remain fixed, each successive increase in physical capital leads to _____ productivity.

As a limit to economic growth, environmental problems are more difficult to solve than resource problems because:

In the book The Limits to Growth, The Club of Rome argued that:

If an economy has a real GDP per capita growth rate of 2%, it will take 14 years for GDP per capita to double.

According to Jeff Sachs of Columbia University, Africa is politically unstable because it is poor and not the other way around.

Economies with high growth rates tend to be those that have:

The formula for the rule of 70, where n is number of years and r is growth rate, is expressed as:

Investment in human capital causes _____________the aggregate production function.

Between 1980 and 1994, real per capita GDP in sub-Saharan Africa:

High rates of savings and investment and a lack of consumption spending have contributed to the recent stagnant economic growth in Latin America.

A rise in real GDP that is the same as the rate of population growth leaves the average standard of living unchanged.

The main reason South Korea has grown so rapidly is that, because it was so poor:

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

Use the following to answer questions: -(Figure: Productivity) Use Figure: Productivity. An improvement in technology with everything else remaining unchanged is shown on the diagram as a movement from:

In the 1980s, which factor contributed to slow growth in Latin America countries?

Which factor is the MOST widely accepted measure of economic growth over time?

Which country had the FASTEST growth rate of real GDP per capita between 1980 and 2015?

Long-run economic growth is:

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

Total factor productivity is the amount of output that can be achieved with a given amount of factor inputs.

Thomas Malthus:

Diminishing returns to physical capital implies that, when the human capital per worker and the state of technology remain fixed, each successive increase in physical capital leads to _____ productivity.

As a limit to economic growth, environmental problems are more difficult to solve than resource problems because:

In the book The Limits to Growth, The Club of Rome argued that:

If an economy has a real GDP per capita growth rate of 2%, it will take 14 years for GDP per capita to double.

According to Jeff Sachs of Columbia University, Africa is politically unstable because it is poor and not the other way around.

Economies with high growth rates tend to be those that have:

The formula for the rule of 70, where n is number of years and r is growth rate, is expressed as:

Investment in human capital causes _____________the aggregate production function.

Between 1980 and 1994, real per capita GDP in sub-Saharan Africa:

High rates of savings and investment and a lack of consumption spending have contributed to the recent stagnant economic growth in Latin America.

A rise in real GDP that is the same as the rate of population growth leaves the average standard of living unchanged.

The main reason South Korea has grown so rapidly is that, because it was so poor:

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

Use the following to answer questions: -(Figure: Productivity) Use Figure: Productivity. An improvement in technology with everything else remaining unchanged is shown on the diagram as a movement from:

In the 1980s, which factor contributed to slow growth in Latin America countries?

Which factor is the MOST widely accepted measure of economic growth over time?

Which country had the FASTEST growth rate of real GDP per capita between 1980 and 2015?

Long-run economic growth is:

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