Question 1

The percentage of the working-age population in the labor force (= employed + officially unemployed) is called the

Accepted Answer

A) labor force participation rate. 
B) employment-population ratio. 
C) work-activity rate. 
D) work-nonwork ratio. 
A) labor force participation rate. 
B) employment-population ratio. 
C) work-activity rate. 
D) work-nonwork ratio.

Question 2

Nation A's real GDP was $520 billion in 2015 and $550 billion in 2016.Its population was 150 million in 2015 and 155 million in 2016.On the other hand, Nation B's real GDP was $200 billion in 2015 and $210 billion in 2016; and its population was 53 million in 2015 and 55 million in 2016.Which of the following statements is true?

Accepted Answer

A) Nation A's GDP per capita increased from 2015 to 2016, while Nation B's decreased. 
B) Nation B's GDP per capita increased from 2015 to 2016, while Nation A's decreased. 
C) Nation A's and Nation B's GDP per capita both decreased from 2015 to 2016. 
D) Nation A's and Nation B's GDP per capita both increased from 2015 to 2016. 
A) Nation A's GDP per capita increased from 2015 to 2016, while Nation B's decreased. 
B) Nation B's GDP per capita increased from 2015 to 2016, while Nation A's decreased. 
C) Nation A's and Nation B's GDP per capita both decreased from 2015 to 2016. 
D) Nation A's and Nation B's GDP per capita both increased from 2015 to 2016.

Question 3

Increases in household and business spending are a demand factor in economic growth.

Accepted Answer

A) True 
 B)False

Question 4

Historically, the total amount of real capital per worker in the United States has

Accepted Answer

A) provided financing for the industrial expansion of business. 
B) increased significantly and made labor more productive. 
C) been the single most important determinant of economic growth. 
D) remained relatively constant, although the quality of capital has improved dramatically. 
A) provided financing for the industrial expansion of business. 
B) increased significantly and made labor more productive. 
C) been the single most important determinant of economic growth. 
D) remained relatively constant, although the quality of capital has improved dramatically.

Question 5

Which of the following does not correctly characterize modern economic growth?

Accepted Answer

A) It spread slowly across the globe, with some societies not having experienced it yet. 
B) It has occurred only in the last 200 or so years. 
C) It drastically alters the culture and politics of society. 
D) It has not affected the average lifespan of human beings. 
A) It spread slowly across the globe, with some societies not having experienced it yet. 
B) It has occurred only in the last 200 or so years. 
C) It drastically alters the culture and politics of society. 
D) It has not affected the average lifespan of human beings.

Question 6

Strong economic growth since 1960 has allowed nations like Singapore and Ireland to surpass nations such as the United Kingdom and France in real GDP per capita.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) real GDP remained constant. 
B) capital stock increased by 3 percent. 
C) production possibilities curve shifted inward. 
D) production possibilities curve shifted outward. 
A) real GDP remained constant. 
B) capital stock increased by 3 percent. 
C) production possibilities curve shifted inward. 
D) production possibilities curve shifted outward.

Question 8

Which of the following economic regions has experienced the most growth in real GDP per capita since 1820?

Accepted Answer

A) Japan 
B) United States 
C) Latin America 
D) Western Europe 
A) Japan 
B) United States 
C) Latin America 
D) Western Europe

Question 9

If a nation's real GDP increases from 100 billion to 106 billion and its population jumps from 200 million to 212 million, its real GDP per capita will

Accepted Answer

A) remain constant. 
B) fall by 6 percent. 
C) rise by 6 percent. 
D) fall by 12 percent. 
A) remain constant. 
B) fall by 6 percent. 
C) rise by 6 percent. 
D) fall by 12 percent.

Question 10

Modern economic growth often results in the following, except

Accepted Answer

A) less time for ordinary people to enjoy leisure activities because the primary focus is on production and work. 
B) vast increases in wealth and living standards for many groups in the economy. 
C) the spread of universal education and elimination of ancient social norms. 
D) movement toward democracy and the abolition of feudalism. 
A) less time for ordinary people to enjoy leisure activities because the primary focus is on production and work. 
B) vast increases in wealth and living standards for many groups in the economy. 
C) the spread of universal education and elimination of ancient social norms. 
D) movement toward democracy and the abolition of feudalism.

Question 11

In 2015, what approximate percentage of adults in the U.S.were college graduates or higher?

Accepted Answer

A) 10 percent 
B) 30 percent 
C) 50 percent 
D) 70 percent 
A) 10 percent 
B) 30 percent 
C) 50 percent 
D) 70 percent

Question 12

Which of the following arguments is not made by critics of growth policies?

Accepted Answer

A) Growth has resulted in resource degradation and pollution. 
B) Sociological problems like poverty have not been solved by growth. 
C) Growth may have given us the good life, but we cannot better it anymore. 
D) Rapid growth is not sustainable in the long term due to resource limitations. 
A) Growth has resulted in resource degradation and pollution. 
B) Sociological problems like poverty have not been solved by growth. 
C) Growth may have given us the good life, but we cannot better it anymore. 
D) Rapid growth is not sustainable in the long term due to resource limitations.

Question 13

Which of the following is a main source of increasing returns in recent years?

Accepted Answer

A) more learning by doing 
B) the concentration of development costs 
C) the use of less specialized inputs as firms grow 
D) more resources devoted to agricultural production 
A) more learning by doing 
B) the concentration of development costs 
C) the use of less specialized inputs as firms grow 
D) more resources devoted to agricultural production

Question 14

If the growth trend of labor productivity is 3 percent per year, the number of years that it will take for the standard of living to double will be about

Accepted Answer

A) 15 years. 
B) 17 years. 
C) 20 years. 
D) 23 years. 
A) 15 years. 
B) 17 years. 
C) 20 years. 
D) 23 years.

Question 15

Between 1953 and 2015, rising labor productivity contributed more to U.S.economic growth than did increases in inputs.

Accepted Answer

A) True 
 B)False

Question 16

One of the main arguments against further growth for industrialized nations focuses on the problem of

Accepted Answer

A) technological knowledge. 
B) environmental quality. 
C) feedback mechanisms. 
D) infrastructure. 
A) technological knowledge. 
B) environmental quality. 
C) feedback mechanisms. 
D) infrastructure.

Question 17

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

Accepted Answer

A) 2.0 percent. 
B) 3.1 percent. 
C) 5.1 percent. 
D) 8.6 percent. 
A) 2.0 percent. 
B) 3.1 percent. 
C) 5.1 percent. 
D) 8.6 percent.

Question 18

What percentage of the U.S.adult population has a college or post-college education (as of 2015)?

Accepted Answer

A) 8 percent 
B) 33 percent 
C) 41 percent 
D) 88 percent 
A) 8 percent 
B) 33 percent 
C) 41 percent 
D) 88 percent

Question 19

Real GDP per capita

Accepted Answer

A) cannot grow more rapidly than real GDP. 
B) cannot grow more slowly than real GDP. 
C) necessarily grows more rapidly than real GDP. 
D) can grow either more slowly or more rapidly than real GDP. 
A) cannot grow more rapidly than real GDP. 
B) cannot grow more slowly than real GDP. 
C) necessarily grows more rapidly than real GDP. 
D) can grow either more slowly or more rapidly than real GDP.

Question 20

The number of years required for real GDP to double can be found by

Accepted Answer

A) dividing the annual growth rate by 0.07. 
B) multiplying the annual growth rate by 70. 
C) dividing 70 by the annual growth rate. 
D) adding 14 to annual growth rate. 
A) dividing the annual growth rate by 0.07. 
B) multiplying the annual growth rate by 70. 
C) dividing 70 by the annual growth rate. 
D) adding 14 to annual growth rate.

Exam 28: Economic Growth

The percentage of the working-age population in the labor force (= employed + officially unemployed) is called the

Increases in household and business spending are a demand factor in economic growth.

Historically, the total amount of real capital per worker in the United States has

Which of the following does not correctly characterize modern economic growth?

Strong economic growth since 1960 has allowed nations like Singapore and Ireland to surpass nations such as the United Kingdom and France in real GDP per capita.

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

Which of the following economic regions has experienced the most growth in real GDP per capita since 1820?

If a nation's real GDP increases from 100 billion to 106 billion and its population jumps from 200 million to 212 million, its real GDP per capita will

Modern economic growth often results in the following, except

In 2015, what approximate percentage of adults in the U.S.were college graduates or higher?

Which of the following arguments is not made by critics of growth policies?

Which of the following is a main source of increasing returns in recent years?

If the growth trend of labor productivity is 3 percent per year, the number of years that it will take for the standard of living to double will be about

Between 1953 and 2015, rising labor productivity contributed more to U.S.economic growth than did increases in inputs.

One of the main arguments against further growth for industrialized nations focuses on the problem of

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

What percentage of the U.S.adult population has a college or post-college education (as of 2015)?

Real GDP per capita

The number of years required for real GDP to double can be found by

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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