Question 1

In the periods 1953-73 and 1973-95, U.S.real GDP grew at the average annual rates of about

Accepted Answer

A) 5.1 percent and 7.4 percent, respectively. 
B) 2.8 percent and 3.6 percent, respectively. 
C) 7.4 percent and 5.1 percent, respectively. 
D) 3.6 percent and 2.8 percent, respectively. 
A) 5.1 percent and 7.4 percent, respectively. 
B) 2.8 percent and 3.6 percent, respectively. 
C) 7.4 percent and 5.1 percent, respectively. 
D) 3.6 percent and 2.8 percent, respectively.

Question 2

One of the basic economic defenses of economic growth rests on the conclusion that

Accepted Answer

A) growth makes workers less obsolete and more secure in employment. 
B) growth reduces the cost to society of "common property" resources. 
C) growth makes the gap between unlimited wants and scarce resources less acute. 
D) a growth-oriented society confers a "work and look to the future" attitude on the members of society. 
A) growth makes workers less obsolete and more secure in employment. 
B) growth reduces the cost to society of "common property" resources. 
C) growth makes the gap between unlimited wants and scarce resources less acute. 
D) a growth-oriented society confers a "work and look to the future" attitude on the members of society.

Question 3

Empirical studies suggest that

Accepted Answer

A) labor productivity has declined throughout U.S.history. 
B) technological advances account for about 40 percent of U.S.productivity growth. 
C) achieving economies of scale is the most important factor in U.S.economic growth. 
D) all U.S.economic growth from between 2001 and 2007 can be attributed to increases in the quantity of labor. 
A) labor productivity has declined throughout U.S.history. 
B) technological advances account for about 40 percent of U.S.productivity growth. 
C) achieving economies of scale is the most important factor in U.S.economic growth. 
D) all U.S.economic growth from between 2001 and 2007 can be attributed to increases in the quantity of labor.

Question 4

The period in the U.S.economy from 1995 to 2010 is characterized by

Accepted Answer

A) a higher trend rate of saving. 
B) a higher natural rate of unemployment. 
C) a higher trend rate of productivity growth. 
D) the end of the business cycle. 
A) a higher trend rate of saving. 
B) a higher natural rate of unemployment. 
C) a higher trend rate of productivity growth. 
D) the end of the business cycle.

Question 5

An outward shift of a nation's production possibilities curve

Accepted Answer

A) ensures the nation of an increase in real GDP per capita. 
B) ensures the nation of an increase in real GDP, but not of real GDP per capita. 
C) ensures a nation neither of an increase in real GDP nor of an increase in real GDP per capita. 
D) ensures a nation of an increase in both real GDP and real GDP per capita. 
A) ensures the nation of an increase in real GDP per capita. 
B) ensures the nation of an increase in real GDP, but not of real GDP per capita. 
C) ensures a nation neither of an increase in real GDP nor of an increase in real GDP per capita. 
D) ensures a nation of an increase in both real GDP and real GDP per capita.

Question 6

Human capital refers to the amount of capital available for the economy's human resources to work with.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is correct?

Accepted Answer

A) The U.S.population has increased more rapidly than real GDP in recent decades. 
B) Improved education and training of labor is the most important source of U.S.productivity growth. 
C) The average American factory worker has about 16 years of formal education. 
D) The amount of real capital used per worker has increased historically in the United States. 
A) The U.S.population has increased more rapidly than real GDP in recent decades. 
B) Improved education and training of labor is the most important source of U.S.productivity growth. 
C) The average American factory worker has about 16 years of formal education. 
D) The amount of real capital used per worker has increased historically in the United States.

Question 8

Measured productivity growth for the United States declined following the Great Recession.Which of the following explanations for that phenomenon suggests that measured productivity has failed to account for actual gains?

Accepted Answer

A) high debt levels, accumulated prior to the Great Recession 
B) creation of new products that are essentially free to consumers 
C) overcapacity of firms, implying a greater ability to produce than is currently measured 
D) stalled technological progress that has encouraged greater consumption of leisure activities 
A) high debt levels, accumulated prior to the Great Recession 
B) creation of new products that are essentially free to consumers 
C) overcapacity of firms, implying a greater ability to produce than is currently measured 
D) stalled technological progress that has encouraged greater consumption of leisure activities

Question 9

For a nation's real GDP per capita to rise during a year,

Accepted Answer

A) consumption spending must increase. 
B) real GDP must increase more rapidly than population. 
C) population must increase more rapidly than real GDP. 
D) investment spending must increase. 
A) consumption spending must increase. 
B) real GDP must increase more rapidly than population. 
C) population must increase more rapidly than real GDP. 
D) investment spending must increase.

Question 10

Increasing returns would be a situation where a firm increases its workforce and other inputs by

Accepted Answer

A) 8 percent and its output increases by 5 percent. 
B) 5 percent and its output increase by 8 percent. 
C) 8 percent and its output increases by 8 percent. 
D) 12 percent and its output increases by 10 percent. 
A) 8 percent and its output increases by 5 percent. 
B) 5 percent and its output increase by 8 percent. 
C) 8 percent and its output increases by 8 percent. 
D) 12 percent and its output increases by 10 percent.

Question 11

One concern regarding educational attainment in the U.S.is that

Accepted Answer

A) the percentage of adults finishing college is falling. 
B) there are fewer college graduates in science and engineering. 
C) students are graduating later and later. 
D) fewer high school graduates are going on to college. 
A) the percentage of adults finishing college is falling. 
B) there are fewer college graduates in science and engineering. 
C) students are graduating later and later. 
D) fewer high school graduates are going on to college.

Question 12

Proponents of economic growth say that pollution

Accepted Answer

A) is an inevitable by-product of growth. 
B) occurs, not because of growth, but because common resources are treated as free goods. 
C) declines as a country moves from agriculture to industry. 
D) is detrimental to economic growth. 
A) is an inevitable by-product of growth. 
B) occurs, not because of growth, but because common resources are treated as free goods. 
C) declines as a country moves from agriculture to industry. 
D) is detrimental to economic growth.

Question 13

A nation's real GDP was $250 billion in 2015 and $265 billion in 2016.Its population was 120 million in 2015 and 125 million in 2016.What is its real GDP per capita in 2016?

Accepted Answer

A) $2,120 per person 
B) $212 per person 
C) $21,200 per person 
D) $205 per person 
A) $2,120 per person 
B) $212 per person 
C) $21,200 per person 
D) $205 per person

Question 14

Productivity growth was greater between 1973 and 1995 than between 1995 and 2010.

Accepted Answer

A) True 
 B)False

Question 15

There are two common measures of economic growth: (1) increases in real GDP over some period of time and (2) increases in real GDP per capita over some time period.

Accepted Answer

A) True 
 B)False

Question 16

The following factors tend to make the real GDP growth rate understate the growth of economic well-being, except

Accepted Answer

A) improved product quality. 
B) added leisure. 
C) debasement of the environment. 
D) a lower-stress lifestyle. 
A) improved product quality. 
B) added leisure. 
C) debasement of the environment. 
D) a lower-stress lifestyle.

Question 17

The "inverse dependency ratio" is defined as the ratio of

Accepted Answer

A) the average number of dependents per head of household. 
B) the working-age population to the number of dependents. 
C) the number of dependents to the number of the total population. 
D) the number of parents and grandparents to the number of children. 
A) the average number of dependents per head of household. 
B) the working-age population to the number of dependents. 
C) the number of dependents to the number of the total population. 
D) the number of parents and grandparents to the number of children.

Question 18

Which of the following is the largest contributor to the growth of labor productivity in the United States?

Accepted Answer

A) technological advance 
B) education and training of labor 
C) economies of scale 
D) improved resource allocation 
A) technological advance 
B) education and training of labor 
C) economies of scale 
D) improved resource allocation

Question 19

The entry of women into the workforce since the 1960s resulted in

Accepted Answer

A) a shift outward in the production possibilities curve of the United States. 
B) a shift inward in the production possibilities curve of the United States. 
C) a movement along the existing production possibilities curve of the United States. 
D) a falling real wage for female workers in the United States. 
A) a shift outward in the production possibilities curve of the United States. 
B) a shift inward in the production possibilities curve of the United States. 
C) a movement along the existing production possibilities curve of the United States. 
D) a falling real wage for female workers in the United States.

Question 20

A nation's infrastructure refers to

Accepted Answer

A) its ability to realize economies of scale. 
B) its stock of technological knowledge. 
C) public capital goods such as highways and sanitation systems. 
D) the productivity of its labor force. 
A) its ability to realize economies of scale. 
B) its stock of technological knowledge. 
C) public capital goods such as highways and sanitation systems. 
D) the productivity of its labor force.

Exam 28: Economic Growth

In the periods 1953-73 and 1973-95, U.S.real GDP grew at the average annual rates of about

One of the basic economic defenses of economic growth rests on the conclusion that

Empirical studies suggest that

The period in the U.S.economy from 1995 to 2010 is characterized by

An outward shift of a nation's production possibilities curve

Human capital refers to the amount of capital available for the economy's human resources to work with.

Which of the following statements is correct?

Measured productivity growth for the United States declined following the Great Recession.Which of the following explanations for that phenomenon suggests that measured productivity has failed to account for actual gains?

For a nation's real GDP per capita to rise during a year,

Increasing returns would be a situation where a firm increases its workforce and other inputs by

One concern regarding educational attainment in the U.S.is that

Proponents of economic growth say that pollution

A nation's real GDP was $250 billion in 2015 and $265 billion in 2016.Its population was 120 million in 2015 and 125 million in 2016.What is its real GDP per capita in 2016?

Productivity growth was greater between 1973 and 1995 than between 1995 and 2010.

There are two common measures of economic growth: (1) increases in real GDP over some period of time and (2) increases in real GDP per capita over some time period.

The following factors tend to make the real GDP growth rate understate the growth of economic well-being, except

The "inverse dependency ratio" is defined as the ratio of

Which of the following is the largest contributor to the growth of labor productivity in the United States?

The entry of women into the workforce since the 1960s resulted in

A nation's infrastructure refers to

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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