Question 1

In the U.S.economic-growth experience,

Accepted Answer

A) most capital substitutes for labor. 
B) most capital is complementary to labor. 
C) the amount of capital available per worker has been relatively constant. 
D) the amount of capital available per worker has been decreasing. 
A) most capital substitutes for labor. 
B) most capital is complementary to labor. 
C) the amount of capital available per worker has been relatively constant. 
D) the amount of capital available per worker has been decreasing. B

Question 2

Increased labor productivity has been less important as a source of growth than the increased labor inputs in the U.S.economy since the 1950s.

Accepted Answer

A) True 
 B)False  False

Question 3

Based on the annual number of hours worked per capita, labor supply in the United States exceeds that of France by about percent.

Accepted Answer

A) 20 
B) 34 
C) 51 
D) 58 
A) 20 
B) 34 
C) 51 
D) 58 B

Question 4

At what average annual rate have real GDP and real GDP per capita grown from 1950 to 2015?

Accepted Answer

A) 7.5 percent and about 5 percent, respectively 
B) 3.1 percent and about 2 percent, respectively 
C) 5.1 percent and about 3 percent, respectively 
D) 1.1 percent and about 0.5 percent, respectively 
A) 7.5 percent and about 5 percent, respectively 
B) 3.1 percent and about 2 percent, respectively 
C) 5.1 percent and about 3 percent, respectively 
D) 1.1 percent and about 0.5 percent, respectively

Question 5

The main cause for the vast differences in per capita GDP levels seen across the globe today is the

Accepted Answer

A) huge differences in the natural-resource endowments of different countries. 
B) major differences in the population sizes of various societies. 
C) different starting dates of modern economic growth in different parts of the world. 
D) differences in religions that different societies around the world believe in. 
A) huge differences in the natural-resource endowments of different countries. 
B) major differences in the population sizes of various societies. 
C) different starting dates of modern economic growth in different parts of the world. 
D) differences in religions that different societies around the world believe in.

Question 6

Reasons for the rise in productivity growth between 1995 and 2010 include the following, except

Accepted Answer

A) the microchip and information technology. 
B) new firms and increasing returns in production. 
C) global competition. 
D) a decline in population. 
A) the microchip and information technology. 
B) new firms and increasing returns in production. 
C) global competition. 
D) a decline in population.

Question 7

In the modern economic growth process, it is typical to find that

Accepted Answer

A) leader countries continue to grow faster than follower countries. 
B) follower countries can grow faster than leader countries. 
C) large countries cannot grow faster than leader countries. 
D) the gap between the leader countries and the follower countries stays constant. 
A) leader countries continue to grow faster than follower countries. 
B) follower countries can grow faster than leader countries. 
C) large countries cannot grow faster than leader countries. 
D) the gap between the leader countries and the follower countries stays constant.

Question 8

Which of the following will not increase the average productivity of labor?

Accepted Answer

A) an increase in the stock of real capital 
B) improvement in the education and health of the population 
C) technological progress 
D) an increase in the size of the labor force 
A) an increase in the stock of real capital 
B) improvement in the education and health of the population 
C) technological progress 
D) an increase in the size of the labor force

Question 9

Real GDP per capita in the United States (as of 2010) exceeds that of France primarily because

Accepted Answer

A) the United States had higher annual rates of growth than France from 1960 through 2010. 
B) the United States has a much larger population than France. 
C) the United States has a higher percentage of the working-age population in the labor force and because U.S.employees average about 14 percent more hours worked per year. 
D) European Union rules severely limit France's access to technologies developed outside the region. 
A) the United States had higher annual rates of growth than France from 1960 through 2010. 
B) the United States has a much larger population than France. 
C) the United States has a higher percentage of the working-age population in the labor force and because U.S.employees average about 14 percent more hours worked per year. 
D) European Union rules severely limit France's access to technologies developed outside the region.

Question 10

A piece of software that benefits many users at the same time would be an example of

Accepted Answer

A) network effects. 
B) learning by doing. 
C) multiple production. 
D) simultaneous consumption. 
A) network effects. 
B) learning by doing. 
C) multiple production. 
D) simultaneous consumption.

Question 11

If a country has a larger real GDP than another country, then it should also have a higher real GDP per capita than the other country.

Accepted Answer

A) True 
 B)False

Question 12

If 40,000 worker-hours produced a total output of $600,000 in an economy, then the labor productivity is

Accepted Answer

A) $10/worker-hour. 
B) $15/worker-hour. 
C) $24/worker-hour. 
D) $240/worker-hour. 
A) $10/worker-hour. 
B) $15/worker-hour. 
C) $24/worker-hour. 
D) $240/worker-hour.

Question 13

Which of the following explanations is consistent with the decline in productivity growth that followed the Great Recession?

Accepted Answer

A) High levels of debt incurred prior to the Great Recession have hindered firms' ability to make productivity-enhancing investments. 
B) The Federal Reserve kept interest rates too high, stifling investments that would increase productivity. 
C) High levels of inflation following the Great Recession created too much uncertainty for firms, discouraging productivity-enhancing investments. 
D) Consumer demand following the Great Recession exceeded firms' capacity to satisfy that demand. 
A) High levels of debt incurred prior to the Great Recession have hindered firms' ability to make productivity-enhancing investments. 
B) The Federal Reserve kept interest rates too high, stifling investments that would increase productivity. 
C) High levels of inflation following the Great Recession created too much uncertainty for firms, discouraging productivity-enhancing investments. 
D) Consumer demand following the Great Recession exceeded firms' capacity to satisfy that demand.

Question 14

Increases in the quantity and quality of human resources.Which set of items in the accompanying list would move an economy from a point inside its production possibilities curve to a point on its production possibilities curve?

Accepted Answer

A) 1, 2, 5, and 6 only 
B) 3 and 4 only 
C) 3 only 
D) 1, 3, and 4 only 
A) 1, 2, 5, and 6 only 
B) 3 and 4 only 
C) 3 only 
D) 1, 3, and 4 only

Question 15

If the secular trend of labor productivity rises from 2 percent per year to 4 percent, the number of years that it will take for the standard of living to double will decline by about

Accepted Answer

A) 5.2 years. 
B) 10.1 years. 
C) 17.5 years. 
D) 23.8 years. 
A) 5.2 years. 
B) 10.1 years. 
C) 17.5 years. 
D) 23.8 years.

Question 16

A nation's average annual real GDP growth rate is 2.5 percent.Based on the rule of 70, the approximate number of years that it would take for this nation's real GDP to double is

Accepted Answer

A) 175 years. 
B) 40 years. 
C) 28 years. 
D) 17.5 years. 
A) 175 years. 
B) 40 years. 
C) 28 years. 
D) 17.5 years.

Question 17

The annual growth of U.S.labor productivity

Accepted Answer

A) was greater between 1973 and 1995 than between 1995 and 2010. 
B) was greater between 1995 and 2010 than between 1973 and 1995. 
C) was negative in the late 1990s. 
D) averaged nearly 5 percent in the 1990s. 
A) was greater between 1973 and 1995 than between 1995 and 2010. 
B) was greater between 1995 and 2010 than between 1973 and 1995. 
C) was negative in the late 1990s. 
D) averaged nearly 5 percent in the 1990s.

Question 18

In the United States, real GDP per capita has increased more rapidly than real GDP.

Accepted Answer

A) True 
 B)False

Question 19

Suppose that an economy's labor productivity fell by 3 percent and its total worker-hours remained constant between year 1 and year 2.We could conclude that this economy's

Accepted Answer

A) real GDP declined. 
B) capital stock increased. 
C) production possibilities curve shifted outward. 
D) actual production moved from one point to another on a fixed production possibilities curve. 
A) real GDP declined. 
B) capital stock increased. 
C) production possibilities curve shifted outward. 
D) actual production moved from one point to another on a fixed production possibilities curve.

Question 20

If the number of worker-hours in an economy is 100 and its labor productivity is $5 of output per worker-hour, the economy's real GDP

Accepted Answer

A) is $20. 
B) is $500. 
C) is $5,000. 
D) cannot be calculated. 
A) is $20. 
B) is $500. 
C) is $5,000. 
D) cannot be calculated.

Exam 28: Economic Growth

In the U.S.economic-growth experience,

Increased labor productivity has been less important as a source of growth than the increased labor inputs in the U.S.economy since the 1950s.

Based on the annual number of hours worked per capita, labor supply in the United States exceeds that of France by about percent.

At what average annual rate have real GDP and real GDP per capita grown from 1950 to 2015?

The main cause for the vast differences in per capita GDP levels seen across the globe today is the

Reasons for the rise in productivity growth between 1995 and 2010 include the following, except

In the modern economic growth process, it is typical to find that

Which of the following will not increase the average productivity of labor?

Real GDP per capita in the United States (as of 2010) exceeds that of France primarily because

A piece of software that benefits many users at the same time would be an example of

If a country has a larger real GDP than another country, then it should also have a higher real GDP per capita than the other country.

If 40,000 worker-hours produced a total output of $600,000 in an economy, then the labor productivity is

Which of the following explanations is consistent with the decline in productivity growth that followed the Great Recession?

Increases in the quantity and quality of human resources.Which set of items in the accompanying list would move an economy from a point inside its production possibilities curve to a point on its production possibilities curve?

If the secular trend of labor productivity rises from 2 percent per year to 4 percent, the number of years that it will take for the standard of living to double will decline by about

A nation's average annual real GDP growth rate is 2.5 percent.Based on the rule of 70, the approximate number of years that it would take for this nation's real GDP to double is

The annual growth of U.S.labor productivity

In the United States, real GDP per capita has increased more rapidly than real GDP.

Suppose that an economy's labor productivity fell by 3 percent and its total worker-hours remained constant between year 1 and year 2.We could conclude that this economy's

If the number of worker-hours in an economy is 100 and its labor productivity is $5 of output per worker-hour, the economy's real GDP

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, Rd, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

Health Care

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

Fiscal Policy, Deficits, and Debt

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

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