Question 1

Potential GDP per labor hour can increase due to

Accepted Answer

A)  increases in labor productivity. 
B)  increases in the quantity of money. 
C)  increases in population. 
D)  decreases in the quantity of capital. 
A)  increases in labor productivity. 
B)  increases in the quantity of money. 
C)  increases in population. 
D)  decreases in the quantity of capital.

Question 2

The aggregate production function relating real GDP to labor hours

Accepted Answer

A)  has a constant slope. 
B)  has a negative slope. 
C)  has a positive slope and becomes steeper as employment increases. 
D)  has a positive slope and becomes less steep as employment increases. 
A)  has a constant slope. 
B)  has a negative slope. 
C)  has a positive slope and becomes steeper as employment increases. 
D)  has a positive slope and becomes less steep as employment increases.

Question 3

Which of the following is consistent with the classical theory of growth?

Accepted Answer

A)  permanent increases in real wages 
B)  permanent growth in productivity 
C)  rapid population growth in poor countries 
D)  permanent increases in living standards 
A)  permanent increases in real wages 
B)  permanent growth in productivity 
C)  rapid population growth in poor countries 
D)  permanent increases in living standards

Question 4

Which of the following statements are CORRECT?
I. The average economic growth rate in real GDP per person in the United States over the last century was 5 percent per year.
II. The United States has the highest economic growth rate of any nation.

Accepted Answer

A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II 
A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II

Question 5

Which of the following policies improves prospects for more rapid economic growth?

Accepted Answer

A)  policies to increase government expenditure 
B)  limitations on international trade 
C)  policies to increase the educational attainment of the labor force 
D)  encouragement of political instability 
A)  policies to increase government expenditure 
B)  limitations on international trade 
C)  policies to increase the educational attainment of the labor force 
D)  encouragement of political instability

Question 6

With no change in labor productivity, what would happen to the real wage rate and potential GDP if the population increased?

Accepted Answer

An increase in population increases the

Question 7

According to the neoclassical growth theory

Accepted Answer

A)  increases in labor productivity are only temporary. 
B)  technological change depends on people's choices. 
C)  forces other than GDP growth determine population growth. 
D)  higher saving rates generate permanently faster growth in GDP per person. 
A)  increases in labor productivity are only temporary. 
B)  technological change depends on people's choices. 
C)  forces other than GDP growth determine population growth. 
D)  higher saving rates generate permanently faster growth in GDP per person.

Question 8

A recent survey by India's central bank reported that spending plans by firms on large new projects fell by 46 percent in the year ending March 2012, compared with the prior year. This decrease will most directly impact

Accepted Answer

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

Question 9

Human capital is

Accepted Answer

A)  the saving done by human beings. 
B)  people's knowledge and skills. 
C)  a measure of the labor productivity of workers. 
D)  the investment people make in industries that make capital goods. 
A)  the saving done by human beings. 
B)  people's knowledge and skills. 
C)  a measure of the labor productivity of workers. 
D)  the investment people make in industries that make capital goods.

Question 10

Which of the following predicts that there can be no sustained rise in real GDP per person above the subsistence level?

Accepted Answer

A)  classical growth theory 
B)  neoclassical growth theory 
C)  new growth theory 
D)  None of the above because all predict that there will be a sustained rise above the subsistence level. 
A)  classical growth theory 
B)  neoclassical growth theory 
C)  new growth theory 
D)  None of the above because all predict that there will be a sustained rise above the subsistence level.

Question 11

What are the sources of human capital?

Accepted Answer

Human capital, the accumulated skills an

Question 12

Economic growth is measured by

Accepted Answer

A)  changes in real GDP. 
B)  changes in nominal GDP. 
C)  changes in the employment rate. 
D)  All of the above are used to measure economic growth. 
A)  changes in real GDP. 
B)  changes in nominal GDP. 
C)  changes in the employment rate. 
D)  All of the above are used to measure economic growth.

Question 13

Neoclassical growth theory is based on the proposition that real GDP per person grows when

Accepted Answer

A)  the population growth rate increases. 
B)  the population growth rate decreases. 
C)  technological advances occur. 
D)  saving decreases. 
A)  the population growth rate increases. 
B)  the population growth rate decreases. 
C)  technological advances occur. 
D)  saving decreases.

Question 14

What is the main difference between classical economists' ideas about economic growth versus what modern evidence suggests?

Accepted Answer

Classical economists assumed that as rea

Question 15

The aggregate production function

Accepted Answer

A)  measures the productivity of labor as leisure decreases. 
B)  increases only with increases in productivity. 
C)  shows that real GDP can increase because of increased productivity as well as increased labor hours. 
D)  cannot show the impacts of productivity improvements. 
A)  measures the productivity of labor as leisure decreases. 
B)  increases only with increases in productivity. 
C)  shows that real GDP can increase because of increased productivity as well as increased labor hours. 
D)  cannot show the impacts of productivity improvements.

Question 16

The table below shows data for China.   The economic growth rate in China between 2000 and 2003 was ________ percent.

Accepted Answer

A)  30 
B)  37 
C)  1.97 
D)  98 
A)  30 
B)  37 
C)  1.97 
D)  98

Question 17

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 2016, real GDP per person was

Accepted Answer

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

Question 18

Human capital is the

Accepted Answer

A)  machinery used by humans to produce GDP. 
B)  technology used by humans to produce GDP. 
C)  skill and knowledge accumulated by humans. 
D)  plant and equipment produced by humans and not by machines. 
A)  machinery used by humans to produce GDP. 
B)  technology used by humans to produce GDP. 
C)  skill and knowledge accumulated by humans. 
D)  plant and equipment produced by humans and not by machines.

Question 19

The table below shows data for China.   The standard of living between 2003 and 2006 increased by

Accepted Answer

A)  55.3 percent. 
B)  1.8 percent. 
C)  35 percent. 
D)  32.7 percent. 
A)  55.3 percent. 
B)  1.8 percent. 
C)  35 percent. 
D)  32.7 percent.

Question 20

Hu Tells Leaders China Growth Will Help World Economy Chinese President Hu Jintao told world leaders that his country "has taken an active part in the international cooperation to deal with the financial crisis'' by providing a "$586 billion economic stimulus, focused on building low-rent housing, roads, railways and airports. The package also allows tax deductions for fixed assets such as machinery to stimulate investment. Farmers will also benefit from more subsidies."
Hu stated that "China is in itself an important contribution to international financial stability and world economic growth.''
Www)bloomberg.com 11/15/2008
China wants to increase investment because this change will

Accepted Answer

A)  increase the growth in physical capital and speed up economic growth. 
B)  increase human capital. 
C)  cause an increase in the supply of labor. 
D)  not cause the real wage rate to increase so employment will increase. 
A)  increase the growth in physical capital and speed up economic growth. 
B)  increase human capital. 
C)  cause an increase in the supply of labor. 
D)  not cause the real wage rate to increase so employment will increase.

Potential GDP per labor hour can increase due to

The aggregate production function relating real GDP to labor hours

Which of the following is consistent with the classical theory of growth?

Which of the following statements are CORRECT? I. The average economic growth rate in real GDP per person in the United States over the last century was 5 percent per year. II. The United States has the highest economic growth rate of any nation.

Which of the following policies improves prospects for more rapid economic growth?

With no change in labor productivity, what would happen to the real wage rate and potential GDP if the population increased?

According to the neoclassical growth theory

A recent survey by India's central bank reported that spending plans by firms on large new projects fell by 46 percent in the year ending March 2012, compared with the prior year. This decrease will most directly impact

Human capital is

Which of the following predicts that there can be no sustained rise in real GDP per person above the subsistence level?

What are the sources of human capital?

Economic growth is measured by

Neoclassical growth theory is based on the proposition that real GDP per person grows when

What is the main difference between classical economists' ideas about economic growth versus what modern evidence suggests?

The aggregate production function

The table below shows data for China. The economic growth rate in China between 2000 and 2003 was ________ percent.

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 2016, real GDP per person was

Human capital is the

The table below shows data for China. The standard of living between 2003 and 2006 increased by

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

Potential GDP per labor hour can increase due to

The aggregate production function relating real GDP to labor hours

Which of the following is consistent with the classical theory of growth?

Which of the following statements are CORRECT? I. The average economic growth rate in real GDP per person in the United States over the last century was 5 percent per year. II. The United States has the highest economic growth rate of any nation.

Which of the following policies improves prospects for more rapid economic growth?

With no change in labor productivity, what would happen to the real wage rate and potential GDP if the population increased?

According to the neoclassical growth theory

A recent survey by India's central bank reported that spending plans by firms on large new projects fell by 46 percent in the year ending March 2012, compared with the prior year. This decrease will most directly impact

Human capital is

Which of the following predicts that there can be no sustained rise in real GDP per person above the subsistence level?

What are the sources of human capital?

Economic growth is measured by

Neoclassical growth theory is based on the proposition that real GDP per person grows when

What is the main difference between classical economists' ideas about economic growth versus what modern evidence suggests?

The aggregate production function

The table below shows data for China. The economic growth rate in China between 2000 and 2003 was ________ percent.

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 2016, real GDP per person was

Human capital is the

The table below shows data for China. The standard of living between 2003 and 2006 increased by

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