Question 1

Which of the following is not an argument made by proponents of economic growth?

Accepted Answer

A) Growth is the basic means of improving living standards. 
B) It is easier to reduce poverty when the economy is growing than when it is not. 
C) There is a direct relationship between a growing real GDP and rising pollution. 
D) Growth provides an economic environment favorable to education and self-fulfillment. 
A) Growth is the basic means of improving living standards. 
B) It is easier to reduce poverty when the economy is growing than when it is not. 
C) There is a direct relationship between a growing real GDP and rising pollution. 
D) Growth provides an economic environment favorable to education and self-fulfillment.

Question 2

In the periods 1995-2007 and 2007-2015, U.S.real GDP grew at the average annual rates of about

Accepted Answer

A) 3.2 percent and 1.2 percent, respectively. 
B) 1.7 percent and 3.8 percent, respectively. 
C) 8.7 percent and 6.2 percent, respectively. 
D) 6.2 percent and 8.7 percent, respectively. 
A) 3.2 percent and 1.2 percent, respectively. 
B) 1.7 percent and 3.8 percent, respectively. 
C) 8.7 percent and 6.2 percent, respectively. 
D) 6.2 percent and 8.7 percent, respectively.

Question 3

Which of the following is best considered a demand factor in economic growth?

Accepted Answer

A) the quantity of human resources 
B) the quality of natural resources 
C) the stock of capital goods 
D) the full employment of resources 
A) the quantity of human resources 
B) the quality of natural resources 
C) the stock of capital goods 
D) the full employment of resources

Question 4

The shift of labor out of agriculture and into industry in the United States has tended to

Accepted Answer

A) reduce the rate of productivity growth. 
B) increase unemployment in the agriculture sector. 
C) reduce unemployment in the industrial sector. 
D) increase labor productivity. 
A) reduce the rate of productivity growth. 
B) increase unemployment in the agriculture sector. 
C) reduce unemployment in the industrial sector. 
D) increase labor productivity.

Question 5

Increases in the quantity and quality of human resources.Use the accompanying list to answer the following question.As distinct from the supply factors and demand factor of economic growth, the efficiency factor(s) of economic growth is (are)

Accepted Answer

A) 1 only. 
B) 4 only. 
C) 1 and 3 only. 
D) 3 only. 
A) 1 only. 
B) 4 only. 
C) 1 and 3 only. 
D) 3 only.

Question 6

Simultaneous consumption and network effects are sources of increasing returns and economies of scale that promote productivity growth.

Accepted Answer

A) True 
 B)False

Question 7

Because of the recent rise in the average rate of productivity growth, the business cycle is dead.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is a measure of economic growth that is most useful for measuring geopolitical preeminence or military potential?

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 9

Which of the following would not be expected to increase labor productivity?

Accepted Answer

A) technological advance 
B) the acquisition of more education and training by the labor force 
C) an increase in the size of the labor force 
D) the realization of economies of scale 
A) technological advance 
B) the acquisition of more education and training by the labor force 
C) an increase in the size of the labor force 
D) the realization of economies of scale

Question 10

One hypothesis for declining productivity growth rates since the Great Recession is that individuals and firms have focused more on paying off debt than on making productive investments.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is most accurate about the prospects for poorer ("follower") countries catching up with richer ("leader") countries?

Accepted Answer

A) Catching up is unlikely to occur because their growth rates are the same on average. 
B) Catching up is unlikely to occur because richer countries tend to grow at a faster rate. 
C) Catching up is possible, but only if growth rates in leader countries fall to zero or become negative. 
D) Catching up is possible, as "follower countries" tend to grow faster than "leader countries." 
A) Catching up is unlikely to occur because their growth rates are the same on average. 
B) Catching up is unlikely to occur because richer countries tend to grow at a faster rate. 
C) Catching up is possible, but only if growth rates in leader countries fall to zero or become negative. 
D) Catching up is possible, as "follower countries" tend to grow faster than "leader countries."

Question 12

Growth is advantageous to a nation because it

Accepted Answer

A) promotes faster population growth. 
B) lessens the burden of scarcity. 
C) eliminates the economizing problem. 
D) slows the growth of wants.Topic: Is Growth Desirable and Sustainable? 
A) promotes faster population growth. 
B) lessens the burden of scarcity. 
C) eliminates the economizing problem. 
D) slows the growth of wants.Topic: Is Growth Desirable and Sustainable?

Question 13

Leader countries tend to have higher growth rates than follower countries.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not an explanation put forward to explain the recent productivity slowdown?

Accepted Answer

A) Consumers and firms are paying down highlevels of debt instead of investing in productive projects. 
B) Overinvestment during the boom that preceded the Great Recession created overcapacity. 
C) Technological progress itself may have stalled, until invention and innovation levels bounce back. 
D) A massive influx of immigrant labor has caused the labor force to expand much faster than real GDP. 
A) Consumers and firms are paying down highlevels of debt instead of investing in productive projects. 
B) Overinvestment during the boom that preceded the Great Recession created overcapacity. 
C) Technological progress itself may have stalled, until invention and innovation levels bounce back. 
D) A massive influx of immigrant labor has caused the labor force to expand much faster than real GDP.

Question 15

Technological advance is tightly intertwined with

Accepted Answer

A) capital formation. 
B) household consumption. 
C) government spending. 
D) population growth. 
A) capital formation. 
B) household consumption. 
C) government spending. 
D) population growth.

Question 16

Labor productivity in the U.S.in the periods 1973-1995 and 1995-2010 grew at average rates of

Accepted Answer

A) 7.5 percent and 5.2 percent, respectively. 
B) 1.5 percent and 2.6 percent, respectively. 
C) 3.1 percent and 1.5 percent, respectively. 
D) 4.1 percent and 4.3 percent, respectively. 
A) 7.5 percent and 5.2 percent, respectively. 
B) 1.5 percent and 2.6 percent, respectively. 
C) 3.1 percent and 1.5 percent, respectively. 
D) 4.1 percent and 4.3 percent, respectively.

Question 17

An economy with an average growth rate of 10 percent can expect to see its real GDP double in approximately 7 years.

Accepted Answer

A) True 
 B)False

Question 18

A nation's real GDP will increase by increasing the following, except

Accepted Answer

A) number of workers. 
B) labor productivity. 
C) technological progress. 
D) average price level. 
A) number of workers. 
B) labor productivity. 
C) technological progress. 
D) average price level.

Question 19

There tends to be a positive correlation between real wages of workers and the productivity of labor in the economy.

Accepted Answer

A) True 
 B)False

Question 20

Real GDP per capita is found by dividing real GDP by the size of the labor force.

Accepted Answer

A) True 
 B)False

Exam 28: Economic Growth

Which of the following is not an argument made by proponents of economic growth?

In the periods 1995-2007 and 2007-2015, U.S.real GDP grew at the average annual rates of about

Which of the following is best considered a demand factor in economic growth?

The shift of labor out of agriculture and into industry in the United States has tended to

Increases in the quantity and quality of human resources.Use the accompanying list to answer the following question.As distinct from the supply factors and demand factor of economic growth, the efficiency factor(s) of economic growth is (are)

Simultaneous consumption and network effects are sources of increasing returns and economies of scale that promote productivity growth.

Because of the recent rise in the average rate of productivity growth, the business cycle is dead.

Which of the following is a measure of economic growth that is most useful for measuring geopolitical preeminence or military potential?

Which of the following would not be expected to increase labor productivity?

One hypothesis for declining productivity growth rates since the Great Recession is that individuals and firms have focused more on paying off debt than on making productive investments.

Which of the following statements is most accurate about the prospects for poorer ("follower") countries catching up with richer ("leader") countries?

Growth is advantageous to a nation because it

Leader countries tend to have higher growth rates than follower countries.

Which of the following is not an explanation put forward to explain the recent productivity slowdown?

Technological advance is tightly intertwined with

Labor productivity in the U.S.in the periods 1973-1995 and 1995-2010 grew at average rates of

An economy with an average growth rate of 10 percent can expect to see its real GDP double in approximately 7 years.

A nation's real GDP will increase by increasing the following, except

There tends to be a positive correlation between real wages of workers and the productivity of labor in the economy.

Real GDP per capita is found by dividing real GDP by the size of the labor force.

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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