Question 1

Technology is defined as "the humanly devised constraints that shape human interaction."

Accepted Answer

A) True 
 B)False

Question 2

The Real GDP of country X doubled in 20 years. It follows that the annual growth rate in country X during this time period was

Accepted Answer

A) 4.0 percent. 
B) 5.0 percent. 
C) 2.8 percent. 
D) 3.5 percent. 
A) 4.0 percent. 
B) 5.0 percent. 
C) 2.8 percent. 
D) 3.5 percent.

Question 3

Exhibit 17-1
Production Function
Real GDP = T (L, K), such that Real GDP = T(L + K)
Assume that the technology coefficient is equal to 0.40.
-Refer to Exhibit 17-1. If this production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis, and capital rises from 4 units to 6 units it would cause a

Accepted Answer

A) shift upward in the production function to a higher level of Real GDP. 
B) shift downward in the production function to a lower level of Real GDP. 
C) movement down along the same production function to a lower level of Real GDP. 
D) movement up along the same production function to a higher level of Real GDP. 
A) shift upward in the production function to a higher level of Real GDP. 
B) shift downward in the production function to a lower level of Real GDP. 
C) movement down along the same production function to a lower level of Real GDP. 
D) movement up along the same production function to a higher level of Real GDP.

Question 4

Exhibit 17-1
Production Function
Real GDP = T (L, K), such that Real GDP = T(L + K)
Assume that the technology coefficient is equal to 0.40.
-Refer to Exhibit 17-1. If this production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis, the resulting graph would be

Accepted Answer

A) upward sloping. 
B) downward sloping. 
C) vertical. 
D) horizontal. 
A) upward sloping. 
B) downward sloping. 
C) vertical. 
D) horizontal.

Question 5

An economy growing at a steady rate of 1.8 percent per year doubles in size approximately every __________ years.

Accepted Answer

A) 56 
B) 39 
C) 32 
D) 18 
A) 56 
B) 39 
C) 32 
D) 18

Question 6

The term human capital refers to education, training and experience.

Accepted Answer

A) True 
 B)False

Question 7

List and describe four factors that can contribute to economic growth.

Accepted Answer

The determinants of economic growth incl

Question 8

__________ rights refer to the range of laws, rules, and regulations that define rights for the use and transfer of resources.

Accepted Answer

A) Individual 
B) Constitutional 
C) Property 
D) Economic 
E) none of the above 
A) Individual 
B) Constitutional 
C) Property 
D) Economic 
E) none of the above

Question 9

Changes in the tax treatment of capital returns can result in a change in the amount of capital employed in the production process.

Accepted Answer

A) True 
 B)False

Question 10

If a country's economic growth rate is 4 percent a year, approximately how many years will it take to double its Real GDP?

Accepted Answer

A) 22.2 
B) 25.0 
C) 15.6 
D) 17.5 
E) 8.8 
A) 22.2 
B) 25.0 
C) 15.6 
D) 17.5 
E) 8.8

Question 11

According to new growth theory, technological advances can be promoted

Accepted Answer

A) from within the economy. 
B) if only the right fiscal and monetary policies are in place. 
C) in a few rare cases. 
D) through industrial policy. 
E) none of the above 
A) from within the economy. 
B) if only the right fiscal and monetary policies are in place. 
C) in a few rare cases. 
D) through industrial policy. 
E) none of the above

Question 12

A production function specifies the relation between ____________ and the ___________ to ____________________.

Accepted Answer

A) technology; output; Real GDP 
B) technology; the factor inputs; Real GDP 
C) price; quantity; Real GDP 
D) Real GDP; the factor inputs; the price level 
A) technology; output; Real GDP 
B) technology; the factor inputs; Real GDP 
C) price; quantity; Real GDP 
D) Real GDP; the factor inputs; the price level

Question 13

Exhibit 17-2

-Refer to Exhibit 17-2. Assume that the starting point is always point 1. Which of the production function graphs shown, (a) or (b), represents an increase in the quantity of labor, and which represents an increase in the technology coefficient, respectively?

Accepted Answer

A) (a); (b) 
B) (b); (a) 
C) (a); (a) 
D) (b); (b) 
A) (a); (b) 
B) (b); (a) 
C) (a); (a) 
D) (b); (b)

Question 14

Real GDP in a small country is worth $8 billion. The population of the country is 200,000. What is per capita Real GDP?

Accepted Answer

A) $30,000 
B) $40,000 
C) $60,000 
D) $300,000 
A) $30,000 
B) $40,000 
C) $60,000 
D) $300,000

Question 15

Lower interest rates cause a(n) ____________in capital utilization, which shifts the production function __________and thereby shifts the LRAS curve ______________.

Accepted Answer

A) decrease; upward; rightward 
B) decrease; downward; leftward 
C) increase; upward; rightward 
D) increase; downward; leftward 
E) increase; downward; rightward 
A) decrease; upward; rightward 
B) decrease; downward; leftward 
C) increase; upward; rightward 
D) increase; downward; leftward 
E) increase; downward; rightward

Question 16

Exhibit 17-1
Production Function
Real GDP = T (L, K), such that Real GDP = T(L + K)
Assume that the technology coefficient is equal to 0.40.
-Refer to Exhibit 17-1. If there are 20 units of capital and 16 units of labor, ________ units of output (Real GDP) will be produced.

Accepted Answer

A) 36 
B) ​5.6 
C) 4 
D) 14.4 
A) 36 
B) ​5.6 
C) 4 
D) 14.4

Question 17

Suppose the population of a country falls, but its Real GDP remains constant. As a result, there is __________ economic growth.

Accepted Answer

A) both absolute economic growth and per-capita real 
B) absolute economic growth, but not per-capita real 
C) per-capita real economic growth, but not absolute 
D) neither absolute economic growth nor per-capita real 
A) both absolute economic growth and per-capita real 
B) absolute economic growth, but not per-capita real 
C) per-capita real economic growth, but not absolute 
D) neither absolute economic growth nor per-capita real

Question 18

An increase in nominal GDP

Accepted Answer

A) is absolute real economic growth. 
B) is per capita real economic growth. 
C) is both per capita and absolute real economic growth. 
D) does not necessarily mean either absolute or per capita real economic growth. 
A) is absolute real economic growth. 
B) is per capita real economic growth. 
C) is both per capita and absolute real economic growth. 
D) does not necessarily mean either absolute or per capita real economic growth.

Question 19

New growth theory holds that technology is __________ and that the more resources that go to develop technology, the __________ technology that is produced.

Accepted Answer

A) exogenous; more and better 
B) exogenous; less 
C) endogenous; more and better 
D) endogenous; less 
A) exogenous; more and better 
B) exogenous; less 
C) endogenous; more and better 
D) endogenous; less

Question 20

Exhibit 17-4

-Refer to Exhibit 17-4 Assume that the starting point in graphs (a) and (b) in Exhibit 17-4 is point 1. After a decrease in income taxes, there would be a ______________________ which would cause a movement along the production function from point 1 to point ______________. The result would be a shift of the LRAS curve from LRAS1 to _______________ resulting in _______________..

Accepted Answer

A) leftward shift of the labor supply curve from SL1 to SL3; movement along the production function to point 3; LRAS3; a shrinking economy 
B) rightward shift of the labor supply curve from SL1 to SL2; movement along the production function to point 3; LRAS3; a shrinking economy 
C) leftward shift of the labor supply curve from SL1 to SL3; movement along the production function to point 2; LRAS2; economic growth 
D) rightward shift of the labor supply curve from SL1 to SL2; movement along the production function to point 2; LRAS2; economic growth 
A) leftward shift of the labor supply curve from SL1 to SL3; movement along the production function to point 3; LRAS3; a shrinking economy 
B) rightward shift of the labor supply curve from SL1 to SL2; movement along the production function to point 3; LRAS3; a shrinking economy 
C) leftward shift of the labor supply curve from SL1 to SL3; movement along the production function to point 2; LRAS2; economic growth 
D) rightward shift of the labor supply curve from SL1 to SL2; movement along the production function to point 2; LRAS2; economic growth

Exam 17: Economic Growth Resources Technology Ideas and Institutions

Technology is defined as "the humanly devised constraints that shape human interaction."

The Real GDP of country X doubled in 20 years. It follows that the annual growth rate in country X during this time period was

An economy growing at a steady rate of 1.8 percent per year doubles in size approximately every __________ years.

The term human capital refers to education, training and experience.

List and describe four factors that can contribute to economic growth.

__________ rights refer to the range of laws, rules, and regulations that define rights for the use and transfer of resources.

Changes in the tax treatment of capital returns can result in a change in the amount of capital employed in the production process.

If a country's economic growth rate is 4 percent a year, approximately how many years will it take to double its Real GDP?

According to new growth theory, technological advances can be promoted

A production function specifies the relation between ____________ and the ___________ to ____________________.

Exhibit 17-2 -Refer to Exhibit 17-2. Assume that the starting point is always point 1. Which of the production function graphs shown, (a) or (b), represents an increase in the quantity of labor, and which represents an increase in the technology coefficient, respectively?

Real GDP in a small country is worth $8 billion. The population of the country is 200,000. What is per capita Real GDP?

Lower interest rates cause a(n) ____________in capital utilization, which shifts the production function __________and thereby shifts the LRAS curve ______________.

Exhibit 17-1 Production Function Real GDP = T (L, K), such that Real GDP = T(L + K) Assume that the technology coefficient is equal to 0.40. -Refer to Exhibit 17-1. If there are 20 units of capital and 16 units of labor, ________ units of output (Real GDP) will be produced.

Suppose the population of a country falls, but its Real GDP remains constant. As a result, there is __________ economic growth.

An increase in nominal GDP

New growth theory holds that technology is __________ and that the more resources that go to develop technology, the __________ technology that is produced.

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand Theory

Prices Free Controlled and Relative

Supply Demand and Price Applications

Macroeconomic Measurements Part I Prices and Unemployment

Macroeconomic Measurements Part II Gdp and Real Gdp

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self Regulating Economy

Keynesian Macroeconomics and Economic Instability a Critique of the Self Regulating Economy

Fiscal Policy and the Federal Budget

Money Banking and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Debates in Macroeconomics Over the Role and Effects of Government

Elasticity

Consumer Choice and Behavioral Economics

Production and Costs

Perfect Competition

Monopoly

Monopolistic Competition Oligopoly and Game Theory

Government and Product Markets Antitrust and Regulation

Factor Markets With Emphasis on the Labor Market

Wages Unions and Labor

The Distribution of Income and Poverty

Interest Rent and Profit

Market Failure Externalities Public Goods and Asymmetric Information

Public Choice and Special Interest Group Politics

Building Theories to Explain Everyday Life From Observations to Questions to Theories to Predictions

International Trade

International Finance

The Economic Case for and Against Government Five Topics Considered

Stocks Bonds Futures and Options

Filters

A production function specifies the relation between ______ and the _ to ________________.

Lower interest rates cause a(n) in capital utilization, which shifts the production function and thereby shifts the LRAS curve ____.

New growth theory holds that technology is and that the more resources that go to develop technology, the technology that is produced.