Question 1

An increase in labor productivity shifts the labor ________ curve ________.

Accepted Answer

A)  demand; rightward 
B)  demand; leftward 
C)  supply; rightward 
D)  supply; leftward 
A)  demand; rightward 
B)  demand; leftward 
C)  supply; rightward 
D)  supply; leftward A

Question 2

List and explain the factors that can increase labor productivity.

Accepted Answer

The three factors that can increase labor productivity are saving and investment in physical capital, expansion of human capital, and discovery of new technology. Saving and investing in physical capital increases the amount of capital per worker and thereby increases workers' productivity. Increasing the amount of human capital means that workers' skills, knowledge, and talents increase, which thereby increases their productivity. And, the discovery and use of new technologies allows workers to produce more goods and services than before, which increases their productivity.

Question 3

Greater labor force participation for households at higher real wage rate is one reason that

Accepted Answer

A)  the demand for labor curve is upward sloping. 
B)  the demand for labor curve is downward sloping. 
C)  the supply of labor curve is upward sloping. 
D)  the supply of labor curve is downward sloping. 
A)  the demand for labor curve is upward sloping. 
B)  the demand for labor curve is downward sloping. 
C)  the supply of labor curve is upward sloping. 
D)  the supply of labor curve is downward sloping. C

Question 4

The aggregate production function is graphed as

Accepted Answer

A)  a downward sloping curve. 
B)  an upward sloping straight line. 
C)  an upward sloping line that becomes flatter as the quantity of labor increases. 
D)  an upward sloping line that becomes steeper as the quantity of labor increases. 
A)  a downward sloping curve. 
B)  an upward sloping straight line. 
C)  an upward sloping line that becomes flatter as the quantity of labor increases. 
D)  an upward sloping line that becomes steeper as the quantity of labor increases.

Question 5

All of the following contribute to labor productivity growth EXCEPT

Accepted Answer

A)  population growth. 
B)  physical capital growth. 
C)  human capital growth. 
D)  technological advancements. 
A)  population growth. 
B)  physical capital growth. 
C)  human capital growth. 
D)  technological advancements.

Question 6

Neoclassical growth theory proposes that

Accepted Answer

A)  technological progress increases the population growth rate and drives down real wages. 
B)  real GDP per person grows because technological change increases profit opportunities. 
C)  real GDP growth is caused by growth in the population. 
D)  discoveries result from choices that increase profits. 
A)  technological progress increases the population growth rate and drives down real wages. 
B)  real GDP per person grows because technological change increases profit opportunities. 
C)  real GDP growth is caused by growth in the population. 
D)  discoveries result from choices that increase profits.

Question 7

If the price level rises faster than the money wage rate, the real wage rate falls.

Accepted Answer

A) True 
 B)False

Question 8

Classical growth theory states that

Accepted Answer

A)  growth is maximized when everyone is fully employed. 
B)  growth is followed by increases in the population, eventually leaving real GDP per person unchanged. 
C)  growth in real GDP per person is difficult in the beginning but easier in the later stages. 
D)  advances in technology will always insure a permanent increase in real GDP per person. 
A)  growth is maximized when everyone is fully employed. 
B)  growth is followed by increases in the population, eventually leaving real GDP per person unchanged. 
C)  growth in real GDP per person is difficult in the beginning but easier in the later stages. 
D)  advances in technology will always insure a permanent increase in real GDP per person.

Question 9

During 2017, the country of Economia had a real GDP of $115 billion and the population was 0.9 billion. In 2016, real GDP was 105 billion and the population was 0.85 billion. In 2017, real GDP per person was

Accepted Answer

A)  $128. 
B)  $124. 
C)  $135. 
D)  $117. 
A)  $128. 
B)  $124. 
C)  $135. 
D)  $117.

Question 10

Which of the following statements is CORRECT?

Accepted Answer

A)  When the real wage increases, the labor supply curve shifts rightward. 
B)  When the real wage increases, the labor supply curve shifts leftward. 
C)  When the real wage decreases, the labor supply curve shifts leftward. 
D)  None of the above statements are correct. 
A)  When the real wage increases, the labor supply curve shifts rightward. 
B)  When the real wage increases, the labor supply curve shifts leftward. 
C)  When the real wage decreases, the labor supply curve shifts leftward. 
D)  None of the above statements are correct.

Question 11

Moving along the aggregate production function, all of the following are held constant EXCEPT

Accepted Answer

A)  labor. 
B)  capital. 
C)  human capital. 
D)  technology. 
A)  labor. 
B)  capital. 
C)  human capital. 
D)  technology.

Question 12

Economic growth tends to be higher in a country that

Accepted Answer

A)  has a low savings rate. 
B)  has an economy open to international trade. 
C)  has an undeveloped system of property rights. 
D)  does not grant patents to inventors. 
A)  has a low savings rate. 
B)  has an economy open to international trade. 
C)  has an undeveloped system of property rights. 
D)  does not grant patents to inventors.

Question 13

An increase in the population and hence the supply of labor causes a

Accepted Answer

A)  shortage of labor at the original real wage rate and the real wage rate will fall. 
B)  surplus of labor at the original real wage rate and the real wage rate will rise. 
C)  surplus of labor at the original real wage rate and the real wage rate will fall. 
D)  shortage of labor at the original real wage rate and the real wage rate will rise. 
A)  shortage of labor at the original real wage rate and the real wage rate will fall. 
B)  surplus of labor at the original real wage rate and the real wage rate will rise. 
C)  surplus of labor at the original real wage rate and the real wage rate will fall. 
D)  shortage of labor at the original real wage rate and the real wage rate will rise.

Question 14

New growth theory claims that economic growth occurs because firms reap profits from research and add to the stock of capital.

Accepted Answer

A) True 
 B)False

Question 15

In the classical theory of growth, what is the final outcome of an increase in growth and labor productivity?

Accepted Answer

In the classical growth theory, a rise i

Question 16

Explain the role played by technological change in classical growth theory, neoclassical growth theory, and new growth theory.

Accepted Answer

Technology plays a secondary role in cla

Question 17

If real GDP is $11,750 billion and aggregate hours are 175 billion, labor productivity equals

Accepted Answer

A)  $23.50 per hour. 
B)  $52 per hour. 
C)  $67 per hour. 
D)  $235 per hour. 
A)  $23.50 per hour. 
B)  $52 per hour. 
C)  $67 per hour. 
D)  $235 per hour.

Question 18

Over the last 100 years, real GDP per person in the United States has grown at an average rate of approximately 2 percent per year.

Accepted Answer

A) True 
 B)False

Question 19

The notion that technological change is not random but instead is driven by the pursuit of profits is an essential element of

Accepted Answer

A)  classical growth theory. 
B)  neoclassical growth theory. 
C)  the new growth theory. 
D)  perpetual growth theory. 
A)  classical growth theory. 
B)  neoclassical growth theory. 
C)  the new growth theory. 
D)  perpetual growth theory.

Question 20

Which of following was a period of below-average economic growth in the United States?

Accepted Answer

A)  the 1920s 
B)  the 1960s 
C)  the 1930s 
D)  all of the above 
A)  the 1920s 
B)  the 1960s 
C)  the 1930s 
D)  all of the above

An increase in labor productivity shifts the labor curve .

List and explain the factors that can increase labor productivity.

Greater labor force participation for households at higher real wage rate is one reason that

The aggregate production function is graphed as

All of the following contribute to labor productivity growth EXCEPT

Neoclassical growth theory proposes that

If the price level rises faster than the money wage rate, the real wage rate falls.

Classical growth theory states that

During 2017, the country of Economia had a real GDP of $115 billion and the population was 0.9 billion. In 2016, real GDP was 105 billion and the population was 0.85 billion. In 2017, real GDP per person was

Which of the following statements is CORRECT?

Moving along the aggregate production function, all of the following are held constant EXCEPT

Economic growth tends to be higher in a country that

An increase in the population and hence the supply of labor causes a

New growth theory claims that economic growth occurs because firms reap profits from research and add to the stock of capital.

In the classical theory of growth, what is the final outcome of an increase in growth and labor productivity?

Explain the role played by technological change in classical growth theory, neoclassical growth theory, and new growth theory.

If real GDP is $11,750 billion and aggregate hours are 175 billion, labor productivity equals

Over the last 100 years, real GDP per person in the United States has grown at an average rate of approximately 2 percent per year.

The notion that technological change is not random but instead is driven by the pursuit of profits is an essential element of

Which of following was a period of below-average economic growth in the United States?

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 6: Economic Growth

An increase in labor productivity shifts the labor ________ curve ________.

List and explain the factors that can increase labor productivity.

Greater labor force participation for households at higher real wage rate is one reason that

The aggregate production function is graphed as

All of the following contribute to labor productivity growth EXCEPT

Neoclassical growth theory proposes that

If the price level rises faster than the money wage rate, the real wage rate falls.

Classical growth theory states that

During 2017, the country of Economia had a real GDP of $115 billion and the population was 0.9 billion. In 2016, real GDP was 105 billion and the population was 0.85 billion. In 2017, real GDP per person was

Which of the following statements is CORRECT?

Moving along the aggregate production function, all of the following are held constant EXCEPT

Economic growth tends to be higher in a country that

An increase in the population and hence the supply of labor causes a

New growth theory claims that economic growth occurs because firms reap profits from research and add to the stock of capital.

In the classical theory of growth, what is the final outcome of an increase in growth and labor productivity?

Explain the role played by technological change in classical growth theory, neoclassical growth theory, and new growth theory.

If real GDP is $11,750 billion and aggregate hours are 175 billion, labor productivity equals

Over the last 100 years, real GDP per person in the United States has grown at an average rate of approximately 2 percent per year.

The notion that technological change is not random but instead is driven by the pursuit of profits is an essential element of

Which of following was a period of below-average economic growth in the United States?

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

An increase in labor productivity shifts the labor curve .