Question 1

Which of the following is the so-called efficiency factor of economic growth?

Accepted Answer

A) having an efficient financial system 
B) reaching full production potential 
C) having free trade 
D) enhanced quantity and quality of human resources 
A) having an efficient financial system 
B) reaching full production potential 
C) having free trade 
D) enhanced quantity and quality of human resources

Question 2

The rate of growth of labor productivity in the U.S.declined from the period 1973-1995 to the period 1995-2010.

Accepted Answer

A) True 
 B)False

Question 3

Society can increase its output and income by increasing basically one or both of two factors:

Accepted Answer

A) its spending and investment. 
B) its private and public sectors of the economy. 
C) its resources and the productivity of the resources. 
D) its markets and prices. 
A) its spending and investment. 
B) its private and public sectors of the economy. 
C) its resources and the productivity of the resources. 
D) its markets and prices.

Question 4

Between 1950 and 2015, U.S.real GDP per capita grew at an average annual rate of about

Accepted Answer

A) 5.5 percent. 
B) 4.2 percent. 
C) 3.2 percent. 
D) 2.0 percent. 
A) 5.5 percent. 
B) 4.2 percent. 
C) 3.2 percent. 
D) 2.0 percent.

Question 5

Compared with the period from 1973 to 1995, the annual rate of productivity growth from 1995 to 2010 was about

Accepted Answer

A) the same. 
B) one-and-a-half times faster. 
C) three times faster. 
D) 10 percent slower. 
A) the same. 
B) one-and-a-half times faster. 
C) three times faster. 
D) 10 percent slower.

Question 6

Improvements in technology are considered a demand factor in economic growth.

Accepted Answer

A) True 
 B)False

Question 7

From 2010 to 2050, the "inverse dependency ratio" in the U.S.is expected to

Accepted Answer

A) rise from 1.2 to 1.8. 
B) fall from 1.5 to 1.2. 
C) remain stable at 2.1. 
D) rise from 1.5 to 2.8. 
A) rise from 1.2 to 1.8. 
B) fall from 1.5 to 1.2. 
C) remain stable at 2.1. 
D) rise from 1.5 to 2.8.

Question 8

Technological advances that contribute to economic growth include the following, except

Accepted Answer

A) innovative production techniques. 
B) new managerial methods. 
C) innovative digital gadgets for consumers. 
D) new forms of business organization. 
A) innovative production techniques. 
B) new managerial methods. 
C) innovative digital gadgets for consumers. 
D) new forms of business organization.

Question 9

Increases in the value of the product to each user, including existing users, as the total number of users rises are called

Accepted Answer

A) network effects. 
B) simultaneous consumption. 
C) learning by doing. 
D) the spreading of development costs. 
A) network effects. 
B) simultaneous consumption. 
C) learning by doing. 
D) the spreading of development costs.

Question 10

Which of the following is a measure of economic growth that is most useful for comparing living standards?

Accepted Answer

A) growth in nominal GDP 
B) decreases in the rate of unemployment 
C) increases in real GDP per capita 
D) increases in real GDP 
A) growth in nominal GDP 
B) decreases in the rate of unemployment 
C) increases in real GDP per capita 
D) increases in real GDP

Question 11

Economic growth can best be portrayed as a

Accepted Answer

A) leftward shift of the production possibilities curve. 
B) movement from a point inside to a point outside the production possibilities curve. 
C) movement from a point near the vertical axis to a point near the horizontal axis on the production possibilities curve. 
D) rightward shift of the production possibilities curve. 
A) leftward shift of the production possibilities curve. 
B) movement from a point inside to a point outside the production possibilities curve. 
C) movement from a point near the vertical axis to a point near the horizontal axis on the production possibilities curve. 
D) rightward shift of the production possibilities curve.

Question 12

The largest factor that raised labor productivity in the U.S.economy since the 1950s has been the increased amount of capital available.

Accepted Answer

A) True 
 B)False

Question 13

In the period following the Great Recession, the creation of new Internet apps has

Accepted Answer

A) significantly enhanced productivity. 
B) significantly reduced productivity by creating excessive distractions for workers. 
C) had little measured effect on GDP or productivity but may create a lot of consumer surplus. 
D) led firms in these markets to expand capacity beyond what consumers demand. 
A) significantly enhanced productivity. 
B) significantly reduced productivity by creating excessive distractions for workers. 
C) had little measured effect on GDP or productivity but may create a lot of consumer surplus. 
D) led firms in these markets to expand capacity beyond what consumers demand.

Question 14

Economic growth is best defined as an increase in

Accepted Answer

A) either real GDP or real GDP per capita. 
B) nominal GDP. 
C) total consumption expenditures. 
D) wealth in the economy. 
A) either real GDP or real GDP per capita. 
B) nominal GDP. 
C) total consumption expenditures. 
D) wealth in the economy.

Question 15

Free trade

Accepted Answer

A) discourages growth by increasing competitive pressures on domestic firms. 
B) encourages growth by effectively eliminating all patent and copyright barriers to growth. 
C) discourages growth compared to situations where the government strongly controls foreign trade. 
D) encourages growth by promoting the rapid spread of new inventions and innovations. 
A) discourages growth by increasing competitive pressures on domestic firms. 
B) encourages growth by effectively eliminating all patent and copyright barriers to growth. 
C) discourages growth compared to situations where the government strongly controls foreign trade. 
D) encourages growth by promoting the rapid spread of new inventions and innovations.

Question 16

Real GDP, or total output, in any year is equal to

Accepted Answer

A) labor productivity divided by number of worker-hours. 
B) labor productivity multiplied by real output. 
C) number of worker-hours multiplied by labor productivity. 
D) number of worker-hours divided by labor productivity. 
A) labor productivity divided by number of worker-hours. 
B) labor productivity multiplied by real output. 
C) number of worker-hours multiplied by labor productivity. 
D) number of worker-hours divided by labor productivity.

Question 17

Efficient financial institutions foster the flow of

Accepted Answer

A) saving and investment. 
B) spending and income. 
C) resources and products. 
D) inventions and ideas. 
A) saving and investment. 
B) spending and income. 
C) resources and products. 
D) inventions and ideas.

Question 18

In the period 1960 to 2010, the U.S.experienced a more rapid annual growth in real GDP per capita than countries like Ireland, Singapore, and South Korea.

Accepted Answer

A) True 
 B)False

Question 19

Under what circumstances do rates of economic growth understate the growth of economic well-being?

Accepted Answer

A) Economic growth has occurred because of the increased length of the workweek. 
B) Product quality has improved. 
C) Air quality has declined as real GDP has increased. 
D) Population has grown faster than real output. 
A) Economic growth has occurred because of the increased length of the workweek. 
B) Product quality has improved. 
C) Air quality has declined as real GDP has increased. 
D) Population has grown faster than real output.

Question 20

If an economy has 800,000 work-hours employed, and its labor productivity is $16/hour, then its real GDP must be $50,000.

Accepted Answer

A) True 
 B)False

Exam 28: Economic Growth

Which of the following is the so-called efficiency factor of economic growth?

The rate of growth of labor productivity in the U.S.declined from the period 1973-1995 to the period 1995-2010.

Society can increase its output and income by increasing basically one or both of two factors:

Between 1950 and 2015, U.S.real GDP per capita grew at an average annual rate of about

Compared with the period from 1973 to 1995, the annual rate of productivity growth from 1995 to 2010 was about

Improvements in technology are considered a demand factor in economic growth.

From 2010 to 2050, the "inverse dependency ratio" in the U.S.is expected to

Technological advances that contribute to economic growth include the following, except

Increases in the value of the product to each user, including existing users, as the total number of users rises are called

Which of the following is a measure of economic growth that is most useful for comparing living standards?

Economic growth can best be portrayed as a

The largest factor that raised labor productivity in the U.S.economy since the 1950s has been the increased amount of capital available.

In the period following the Great Recession, the creation of new Internet apps has

Economic growth is best defined as an increase in

Free trade

Real GDP, or total output, in any year is equal to

Efficient financial institutions foster the flow of

In the period 1960 to 2010, the U.S.experienced a more rapid annual growth in real GDP per capita than countries like Ireland, Singapore, and South Korea.

Under what circumstances do rates of economic growth understate the growth of economic well-being?

If an economy has 800,000 work-hours employed, and its labor productivity is $16/hour, then its real GDP must be $50,000.

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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