Question 1

Labor productivity is defined as

Accepted Answer

A)  total output attributable to labor. 
B)  total real GDP. 
C)  the growth rate of the labor force. 
D)  real GDP per hour of labor. 
A)  total output attributable to labor. 
B)  total real GDP. 
C)  the growth rate of the labor force. 
D)  real GDP per hour of labor.

Question 2

When the quantity of labor demanded exceeds the quantity of labor supplied, the real wage rate

Accepted Answer

A)  rises to eliminate the labor-market shortage. 
B)  falls to eliminate the labor-market surplus. 
C)  rises to eliminate the labor-market surplus. 
D)  falls to eliminate the labor-market shortage. 
A)  rises to eliminate the labor-market shortage. 
B)  falls to eliminate the labor-market surplus. 
C)  rises to eliminate the labor-market surplus. 
D)  falls to eliminate the labor-market shortage.

Question 3

An increase in education and training

Accepted Answer

A)  increases labor productivity. 
B)  increases aggregate hours. 
C)  decreases real GDP growth. 
D)  increases the employment-to-population ratio. 
A)  increases labor productivity. 
B)  increases aggregate hours. 
C)  decreases real GDP growth. 
D)  increases the employment-to-population ratio.

Question 4

If the price level falls by 5 percent and workers' money wage rates remain constant, firms'

Accepted Answer

A)  quantity of labor demanded will decrease. 
B)  quantity of labor demanded will increase. 
C)  supply of jobs will increase. 
D)  None of the above answers are correct. 
A)  quantity of labor demanded will decrease. 
B)  quantity of labor demanded will increase. 
C)  supply of jobs will increase. 
D)  None of the above answers are correct.

Question 5

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. Economia's growth rate of real GDP per person is

Accepted Answer

A)  3.23 percent. 
B)  5 percent. 
C)  5.88 percent. 
D)  9.52 percent. 
A)  3.23 percent. 
B)  5 percent. 
C)  5.88 percent. 
D)  9.52 percent.

Question 6

People base their labor supply on the ________ because they care about ________.

Accepted Answer

A)  real wage; what their earnings will buy 
B)  real wage; the equality of money wages and the price level 
C)  money wage; a surplus of labor 
D)  money wage; the amount of labor firms demand 
A)  real wage; what their earnings will buy 
B)  real wage; the equality of money wages and the price level 
C)  money wage; a surplus of labor 
D)  money wage; the amount of labor firms demand

Question 7

Define labor productivity. Discuss the relationship between labor productivity, human capital growth, and technology change.

Accepted Answer

Labor productivity is real GDP per hour

Question 8

Saving and investment that increase a nation's capital lead to

Accepted Answer

A)  slower growth because there is a lack of consumption. 
B)  a decrease in labor productivity as capital is used to replace labor. 
C)  a decrease in the amount of capital per worker. 
D)  an increase in labor productivity. 
A)  slower growth because there is a lack of consumption. 
B)  a decrease in labor productivity as capital is used to replace labor. 
C)  a decrease in the amount of capital per worker. 
D)  an increase in labor productivity.

Question 9

In 2016, Armenia had a real GDP of approximately $4.21 billion and a population of 2.98 million. In 2017, real GDP was $4.59 billion and population was 2.97 million. From 2016 to 2017, Armenia's standard of living

Accepted Answer

A)  increased. 
B)  decreased. 
C)  did not change. 
D)  might have increased, decreased, or remained unchanged but more information is needed to determine which. 
A)  increased. 
B)  decreased. 
C)  did not change. 
D)  might have increased, decreased, or remained unchanged but more information is needed to determine which.

Question 10

Which of the following statements is CORRECT?

Accepted Answer

A)  When workers become more productive, the demand for labor curve shifts rightward. 
B)  When technology decreases, the supply of labor curve shifts leftward. 
C)  When labor force participation increases, the supply of labor curve shifts leftward. 
D)  When human capital increases, the demand for labor curve shifts leftward. 
A)  When workers become more productive, the demand for labor curve shifts rightward. 
B)  When technology decreases, the supply of labor curve shifts leftward. 
C)  When labor force participation increases, the supply of labor curve shifts leftward. 
D)  When human capital increases, the demand for labor curve shifts leftward.

Question 11

Slowdonia's current growth rate of real GDP per person is 1 percent a year. Approximately how long will it take to double real GDP per person?

Accepted Answer

A)  10 years 
B)  35 years 
C)  70 years 
D)  100 years 
A)  10 years 
B)  35 years 
C)  70 years 
D)  100 years

Question 12

According to the law of diminishing returns, an additional unit of

Accepted Answer

A)  capital produces more output than an additional unit of labor. 
B)  labor decreases output. 
C)  labor produces more output than the previous unit. 
D)  labor produces less output than the previous unit. 
A)  capital produces more output than an additional unit of labor. 
B)  labor decreases output. 
C)  labor produces more output than the previous unit. 
D)  labor produces less output than the previous unit.

Question 13

As the real wage rate increases, the

Accepted Answer

A)  quantity of labor supplied increases. 
B)  supply of labor curve shifts rightward. 
C)  supply of labor curve shifts leftward. 
D)  quantity of labor supplied increases and the supply of labor shifts rightward. 
A)  quantity of labor supplied increases. 
B)  supply of labor curve shifts rightward. 
C)  supply of labor curve shifts leftward. 
D)  quantity of labor supplied increases and the supply of labor shifts rightward.

Question 14

Along the aggregate production function, as the quantity of labor rises, real GDP

Accepted Answer

A)  rises. 
B)  falls. 
C)  stays the same. 
D)  may fall, rise, or stay the same. 
A)  rises. 
B)  falls. 
C)  stays the same. 
D)  may fall, rise, or stay the same.

Question 15

If the price level rises by 2 percent and workers' money wages increase by 2 percent, then the

Accepted Answer

A)  quantity of labor supply decreases. 
B)  quantity of labor supply increases. 
C)  quantity of labor supplied does not change because there is no change in the real wage rate. 
D)  More information about the dollar change in the price level and money wage rate are needed to answer the question. 
A)  quantity of labor supply decreases. 
B)  quantity of labor supply increases. 
C)  quantity of labor supplied does not change because there is no change in the real wage rate. 
D)  More information about the dollar change in the price level and money wage rate are needed to answer the question.

Question 16

Which of the following statements regarding U.S. economic growth is NOT correct?

Accepted Answer

A)  Over the past 100 years, on the average real GDP per person grew 2 percent a year. 
B)  The average annual growth rate of real GDP per person in the United States was rapid during World War II. 
C)  In the 1930s, real GDP fell well below its trend. 
D)  The growth rate of real GDP per person accelerated between 1973 to 1984. 
A)  Over the past 100 years, on the average real GDP per person grew 2 percent a year. 
B)  The average annual growth rate of real GDP per person in the United States was rapid during World War II. 
C)  In the 1930s, real GDP fell well below its trend. 
D)  The growth rate of real GDP per person accelerated between 1973 to 1984.

Question 17

A higher savings rate that leads to an increase in the capital stock

Accepted Answer

A)  leads to higher interest rates. 
B)  leads to increases in labor productivity. 
C)  immediately decreases investment. 
D)  is associated with a decrease in the rate of growth of the population. 
A)  leads to higher interest rates. 
B)  leads to increases in labor productivity. 
C)  immediately decreases investment. 
D)  is associated with a decrease in the rate of growth of the population.

Question 18

Which growth theory models growth as a perpetual motion machine?

Accepted Answer

A)  new growth theory 
B)  classical growth theory 
C)  neoclassical growth theory 
D)  all growth theories model growth as a perpetual motion machine 
A)  new growth theory 
B)  classical growth theory 
C)  neoclassical growth theory 
D)  all growth theories model growth as a perpetual motion machine

Question 19

Neoclassical growth theory predicts that

Accepted Answer

A)  population growth rates slow as employment opportunities for women increase. 
B)  population explosions decrease real GDP per person. 
C)  economic growth leads to technological change. 
D)  the pursuit of profit creates perpetual growth. 
A)  population growth rates slow as employment opportunities for women increase. 
B)  population explosions decrease real GDP per person. 
C)  economic growth leads to technological change. 
D)  the pursuit of profit creates perpetual growth.

Question 20

How does the new growth theory explain economic growth?

Accepted Answer

The new growth theory explains growth as

Labor productivity is defined as

When the quantity of labor demanded exceeds the quantity of labor supplied, the real wage rate

An increase in education and training

If the price level falls by 5 percent and workers' money wage rates remain constant, firms'

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. Economia's growth rate of real GDP per person is

People base their labor supply on the because they care about .

Define labor productivity. Discuss the relationship between labor productivity, human capital growth, and technology change.

Saving and investment that increase a nation's capital lead to

In 2016, Armenia had a real GDP of approximately $4.21 billion and a population of 2.98 million. In 2017, real GDP was $4.59 billion and population was 2.97 million. From 2016 to 2017, Armenia's standard of living

Which of the following statements is CORRECT?

Slowdonia's current growth rate of real GDP per person is 1 percent a year. Approximately how long will it take to double real GDP per person?

According to the law of diminishing returns, an additional unit of

As the real wage rate increases, the

Along the aggregate production function, as the quantity of labor rises, real GDP

If the price level rises by 2 percent and workers' money wages increase by 2 percent, then the

Which of the following statements regarding U.S. economic growth is NOT correct?

A higher savings rate that leads to an increase in the capital stock

Which growth theory models growth as a perpetual motion machine?

Neoclassical growth theory predicts that

How does the new growth theory explain economic growth?

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

Labor productivity is defined as

When the quantity of labor demanded exceeds the quantity of labor supplied, the real wage rate

An increase in education and training

If the price level falls by 5 percent and workers' money wage rates remain constant, firms'

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. Economia's growth rate of real GDP per person is

People base their labor supply on the ________ because they care about ________.

Define labor productivity. Discuss the relationship between labor productivity, human capital growth, and technology change.

Saving and investment that increase a nation's capital lead to

In 2016, Armenia had a real GDP of approximately $4.21 billion and a population of 2.98 million. In 2017, real GDP was $4.59 billion and population was 2.97 million. From 2016 to 2017, Armenia's standard of living

Which of the following statements is CORRECT?

Slowdonia's current growth rate of real GDP per person is 1 percent a year. Approximately how long will it take to double real GDP per person?

According to the law of diminishing returns, an additional unit of

As the real wage rate increases, the

Along the aggregate production function, as the quantity of labor rises, real GDP

If the price level rises by 2 percent and workers' money wages increase by 2 percent, then the

Which of the following statements regarding U.S. economic growth is NOT correct?

A higher savings rate that leads to an increase in the capital stock

Which growth theory models growth as a perpetual motion machine?

Neoclassical growth theory predicts that

How does the new growth theory explain economic growth?

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

People base their labor supply on the because they care about .