Question 1

Which of the following does not contribute to an improved standard of living?

Accepted Answer

A) Increases in the amount and quality of available resources 
B) Better technology 
C) Higher prices for the necessities of life 
D) Improvements in the "rules of the game" 
E) Increases in the quality of labor 
A) Increases in the amount and quality of available resources 
B) Better technology 
C) Higher prices for the necessities of life 
D) Improvements in the "rules of the game" 
E) Increases in the quality of labor

Question 2

Suppose a production possibilities frontier (PPF)has been plotted on a graph.If the horizontal axis of the graph measures the output of capital goods and the vertical axis measures the output of consumer goods,then a point inside the PPF represents:

Accepted Answer

A) a larger quantity of capital goods than that represented by a point along the PPF. 
B) an inefficient output combination of the two goods in the economy. 
C) an unattainable output combination of the two goods in the economy. 
D) an output combination of more consumer goods than capital goods. 
E) a larger quantity of consumer goods than that represented by a point along the PPF. 
A) a larger quantity of capital goods than that represented by a point along the PPF. 
B) an inefficient output combination of the two goods in the economy. 
C) an unattainable output combination of the two goods in the economy. 
D) an output combination of more consumer goods than capital goods. 
E) a larger quantity of consumer goods than that represented by a point along the PPF.

Question 3

The figure below shows a per-worker production function.The bowed shape of the per-worker production function illustrates the law of diminishing returns to scale.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following does not contribute to labor productivity growth?

Accepted Answer

A) A steepening of the per-worker production function 
B) An increase in the amount of capital per unit of labor 
C) A growth in the labor force 
D) An improvement in the quality of capital 
E) A decrease in the labor-capital ratio 
A) A steepening of the per-worker production function 
B) An increase in the amount of capital per unit of labor 
C) A growth in the labor force 
D) An improvement in the quality of capital 
E) A decrease in the labor-capital ratio

Question 5

Long-term growth in production can be explained by:

Accepted Answer

A) an improvement in the quality of resources available. 
B) a gradual but consistent rise in the price level. 
C) a rapid and accelerating increase in the price level. 
D) a trade surplus that leads to the accumulation of gold. 
E) the peaks and troughs of economic fluctuations. 
A) an improvement in the quality of resources available. 
B) a gradual but consistent rise in the price level. 
C) a rapid and accelerating increase in the price level. 
D) a trade surplus that leads to the accumulation of gold. 
E) the peaks and troughs of economic fluctuations.

Question 6

Which of the following can expand the production possibilities frontier?

Accepted Answer

A) Improved patent laws 
B) Legal reforms that increase transaction costs 
C) Reductions in the length of patent protection 
D) Stringent tax laws for R&D companies 
E) The advent of a labor deepening technology 
A) Improved patent laws 
B) Legal reforms that increase transaction costs 
C) Reductions in the length of patent protection 
D) Stringent tax laws for R&D companies 
E) The advent of a labor deepening technology

Question 7

_____ is a resource whose quality is most often enhanced by technological change.

Accepted Answer

A) Capital 
B) Land 
C) Labor 
D) Entrepreneurship 
E) Credit 
A) Capital 
B) Land 
C) Labor 
D) Entrepreneurship 
E) Credit

Question 8

An increase in the amount of capital per worker will:

Accepted Answer

A) increase labor productivity but not capital productivity. 
B) increase capital productivity but not labor productivity. 
C) increase both labor and capital productivity. 
D) shift the per-worker production function upward. 
E) increase total output but not the productivity levels of individual workers. 
A) increase labor productivity but not capital productivity. 
B) increase capital productivity but not labor productivity. 
C) increase both labor and capital productivity. 
D) shift the per-worker production function upward. 
E) increase total output but not the productivity levels of individual workers.

Question 9

Clustering:

Accepted Answer

A) occurs when government resources are diverted toward one particular sector of the economy. 
B) takes place when new firms enter regions already thick with other firms in the same or similar industries. 
C) occurs when there is a single firm in the economy that can charge different prices for the same product. 
D) implies that consumers with similar tastes and preferences tend to stay in the same region. 
E) occurs when all the firms in the industry sell identical commodities and charge identical prices for these commodities. 
A) occurs when government resources are diverted toward one particular sector of the economy. 
B) takes place when new firms enter regions already thick with other firms in the same or similar industries. 
C) occurs when there is a single firm in the economy that can charge different prices for the same product. 
D) implies that consumers with similar tastes and preferences tend to stay in the same region. 
E) occurs when all the firms in the industry sell identical commodities and charge identical prices for these commodities.

Question 10

The productivity of land is the most important factor that determines the standard of living of a country.

Accepted Answer

A) True 
 B)False

Question 11

The productivity growth slowdown of the late 1970s and early 1980s may have been due,in part,to the environmental and workplace safety regulations.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is an advantage of clustering?

Accepted Answer

A) New entrants can charge higher prices for products as compared to existing firms. 
B) New entrants can have lower cost of gathering regional information about trends in the market. 
C) New entrants can benefit from favorable terms of trade. 
D) New entrants can engage in non-price competition with other firms in the industry. 
E) New entrants can charge low prices for their products. 
A) New entrants can charge higher prices for products as compared to existing firms. 
B) New entrants can have lower cost of gathering regional information about trends in the market. 
C) New entrants can benefit from favorable terms of trade. 
D) New entrants can engage in non-price competition with other firms in the industry. 
E) New entrants can charge low prices for their products.

Question 13

In the period 2005-2012,the annual productivity growth rate was approximately _____.

Accepted Answer

A) 1.6 percent per year 
B) 3 percent per year 
C) 4.2 percent per year 
D) 5 percent per year 
E) 6 percent per year 
A) 1.6 percent per year 
B) 3 percent per year 
C) 4.2 percent per year 
D) 5 percent per year 
E) 6 percent per year

Question 14

Which of the following is the correct formula to calculate productivity?

Accepted Answer

A) Output + quantity of input 
B) Output ─ quantity of input 
C) Quantity of input ÷ output 
D) Output ÷ quantity of input 
E) Output × quantity of input 
A) Output + quantity of input 
B) Output ─ quantity of input 
C) Quantity of input ÷ output 
D) Output ÷ quantity of input 
E) Output × quantity of input

Question 15

According to some economists,firms in some industries gain a performance advantage by:

Accepted Answer

A) dumping. 
B) charging a zero price for products. 
C) clustering. 
D) reducing R&D spending. 
E) increasing labor wage. 
A) dumping. 
B) charging a zero price for products. 
C) clustering. 
D) reducing R&D spending. 
E) increasing labor wage.

Question 16

_____ is the resource whose productivity is most commonly measured.

Accepted Answer

A) Labor 
B) Capital 
C) Land 
D) Energy 
E) Money 
A) Labor 
B) Capital 
C) Land 
D) Energy 
E) Money

Question 17

The per capita output of an economy is likely to increase if:

Accepted Answer

A) the number of workers in the economy grows faster than its population. 
B) the population of the country grows faster than its labor force. 
C) the government increases the tax rates. 
D) the government controls the number of illegal immigrant workers in the economy. 
E) the government manages the foreign investment in the economy. 
A) the number of workers in the economy grows faster than its population. 
B) the population of the country grows faster than its labor force. 
C) the government increases the tax rates. 
D) the government controls the number of illegal immigrant workers in the economy. 
E) the government manages the foreign investment in the economy.

Question 18

The slope of the per-worker production function diminishes as the amount of capital per-worker increases.This is a reflection of the law of _____.

Accepted Answer

A) increasing marginal returns 
B) diminishing marginal returns 
C) constant marginal returns 
D) first diminishing then increasing marginal returns 
E) demand 
A) increasing marginal returns 
B) diminishing marginal returns 
C) constant marginal returns 
D) first diminishing then increasing marginal returns 
E) demand

Question 19

If both total employment and total output in an economy grow by 2 percent each year,then the annual growth in labor productivity in the economy over a decade will be equal to _____.

Accepted Answer

A) 0 percent 
B) 2 percent 
C) 10 percent 
D) 20 percent 
E) 2 percent times the size of the labor force 
A) 0 percent 
B) 2 percent 
C) 10 percent 
D) 20 percent 
E) 2 percent times the size of the labor force

Question 20

The diminishing slope of the per-worker production function reflects the law of diminishing marginal returns.

Accepted Answer

A) True 
 B)False

Which of the following does not contribute to an improved standard of living?

Suppose a production possibilities frontier (PPF)has been plotted on a graph.If the horizontal axis of the graph measures the output of capital goods and the vertical axis measures the output of consumer goods,then a point inside the PPF represents:

The figure below shows a per-worker production function.The bowed shape of the per-worker production function illustrates the law of diminishing returns to scale.

Which of the following does not contribute to labor productivity growth?

Long-term growth in production can be explained by:

Which of the following can expand the production possibilities frontier?

_____ is a resource whose quality is most often enhanced by technological change.

An increase in the amount of capital per worker will:

Clustering:

The productivity of land is the most important factor that determines the standard of living of a country.

The productivity growth slowdown of the late 1970s and early 1980s may have been due,in part,to the environmental and workplace safety regulations.

Which of the following is an advantage of clustering?

In the period 2005-2012,the annual productivity growth rate was approximately _____.

Which of the following is the correct formula to calculate productivity?

According to some economists,firms in some industries gain a performance advantage by:

_____ is the resource whose productivity is most commonly measured.

The per capita output of an economy is likely to increase if:

The slope of the per-worker production function diminishes as the amount of capital per-worker increases.This is a reflection of the law of _____.

If both total employment and total output in an economy grow by 2 percent each year,then the annual growth in labor productivity in the economy over a decade will be equal to _____.

The diminishing slope of the per-worker production function reflects the law of diminishing marginal returns.

The Art and Science of Economic Analysis

Some Tools of Economic Analysis

Economic Decision Makers

Demand, Supply, and Markets

Introduction to Macroeconomics

Tracking the U S Economy

Unemployment and Inflation

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

Exam 8: Us Productivity and Growth

Which of the following does not contribute to an improved standard of living?

Suppose a production possibilities frontier (PPF)has been plotted on a graph.If the horizontal axis of the graph measures the output of capital goods and the vertical axis measures the output of consumer goods,then a point inside the PPF represents:

The figure below shows a per-worker production function.The bowed shape of the per-worker production function illustrates the law of diminishing returns to scale.

Which of the following does not contribute to labor productivity growth?

Long-term growth in production can be explained by:

Which of the following can expand the production possibilities frontier?

_____ is a resource whose quality is most often enhanced by technological change.

An increase in the amount of capital per worker will:

Clustering:

The productivity of land is the most important factor that determines the standard of living of a country.

The productivity growth slowdown of the late 1970s and early 1980s may have been due,in part,to the environmental and workplace safety regulations.

Which of the following is an advantage of clustering?

In the period 2005-2012,the annual productivity growth rate was approximately _____.

Which of the following is the correct formula to calculate productivity?

According to some economists,firms in some industries gain a performance advantage by:

_____ is the resource whose productivity is most commonly measured.

The per capita output of an economy is likely to increase if:

The slope of the per-worker production function diminishes as the amount of capital per-worker increases.This is a reflection of the law of _____.

If both total employment and total output in an economy grow by 2 percent each year,then the annual growth in labor productivity in the economy over a decade will be equal to _____.

The diminishing slope of the per-worker production function reflects the law of diminishing marginal returns.

The Art and Science of Economic Analysis

Some Tools of Economic Analysis

Economic Decision Makers

Demand, Supply, and Markets

Introduction to Macroeconomics

Tracking the U S Economy

Unemployment and Inflation

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters