Question 1

If at the prevailing real wage rate, the quantity of labor supplied exceeds the quantity demanded

Accepted Answer

A)  there is a shortage of labor. 
B)  the real wage rate will rise to restore equilibrium. 
C)  the real wage rate is greater than the equilibrium real wage rate. 
D)  None of the above answers is correct. 
A)  there is a shortage of labor. 
B)  the real wage rate will rise to restore equilibrium. 
C)  the real wage rate is greater than the equilibrium real wage rate. 
D)  None of the above answers is correct.

Question 2

Labor growth depends mainly on ________ and labor productivity growth depends mainly on ________.

Accepted Answer

A)  population growth; increases in real GDP 
B)  population growth; technological advances 
C)  growth in real GDP per person; growth rate of capital 
D)  growth in real GDP per person; technological advances 
A)  population growth; increases in real GDP 
B)  population growth; technological advances 
C)  growth in real GDP per person; growth rate of capital 
D)  growth in real GDP per person; technological advances

Question 3

Which of the following ideas are included in classical growth theory?
I. Subsistence real GDP per person
II. Growth in real GDP per person is temporary.
III. Technological change induces investment.

Accepted Answer

A)  I only 
B)  I and II 
C)  II and III 
D)  I, II and III 
A)  I only 
B)  I and II 
C)  II and III 
D)  I, II and III

Question 4

Population increases are the limiting factor in the growth process in

Accepted Answer

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

Question 5

The historical record for the United States for the past 100 years shows

Accepted Answer

A)  growth in real GDP per person during most years. 
B)  economic growth for about half the years and economic decline for the other half. 
C)  growth until 1970 and then a period of constant per person real GDP. 
D)  continuous economic growth, although at different rates, throughout the entire century. 
A)  growth in real GDP per person during most years. 
B)  economic growth for about half the years and economic decline for the other half. 
C)  growth until 1970 and then a period of constant per person real GDP. 
D)  continuous economic growth, although at different rates, throughout the entire century.

Question 6

Slowdonia's current growth rate of real GDP per person is 2 percent a year. How long will it take to double real GDP per person?

Accepted Answer

A)  half a year 
B)  approximately 10 years 
C)  28.6 years 
D)  35 years 
A)  half a year 
B)  approximately 10 years 
C)  28.6 years 
D)  35 years

Question 7

"According to the neoclassical growth theory, national incentives to save, invest, accumulate human capital, and develop new technology influence the country's growth rate of real GDP." Comment on the accuracy of the previous statement.

Accepted Answer

The sentence is inaccurate. The neoclass

Question 8

According to new growth theory, technological change is driven by

Accepted Answer

A)  random chance. 
B)  government policies. 
C)  foreign firms' attempts to increase their sales in the domestic market. 
D)  firms' attempts to increase their profit. 
A)  random chance. 
B)  government policies. 
C)  foreign firms' attempts to increase their sales in the domestic market. 
D)  firms' attempts to increase their profit.

Question 9

All of the following lead to more rapid economic growth EXCEPT

Accepted Answer

A)  restricting international trade. 
B)  encouraging higher rates of saving. 
C)  supporting more research and development. 
D)  encouraging higher quality education. 
A)  restricting international trade. 
B)  encouraging higher rates of saving. 
C)  supporting more research and development. 
D)  encouraging higher quality education.

Question 10

The U.S. employment-to-population ratio peaked in 2000 and by 2016 it had fallen to 60 percent, a level not seen since the early 1980s. This fall in the employment-to-population ratio shifts the ________ curve ________.

Accepted Answer

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

Question 11

-In the above figure, the equilibrium real wage rate is

Accepted Answer

A)  $10 per hour. 
B)  $15 per hour. 
C)  $20 per hour. 
D)  none of the above 
A)  $10 per hour. 
B)  $15 per hour. 
C)  $20 per hour. 
D)  none of the above

Question 12

Equilibrium in the labor market

Accepted Answer

A)  cannot occur if the production function is shifting upward. 
B)  can happen only when actual GDP exceeds potential GDP. 
C)  means that resources are allocated inefficiently. 
D)  occurs when actual GDP is equal to potential GDP. 
A)  cannot occur if the production function is shifting upward. 
B)  can happen only when actual GDP exceeds potential GDP. 
C)  means that resources are allocated inefficiently. 
D)  occurs when actual GDP is equal to potential GDP.

Question 13

In addition to saving and investment in capital, making an even larger contribution to long-term economic growth in real GDP per person

Accepted Answer

A)  are technological advances. 
B)  is lower current consumption. 
C)  is higher current consumption. 
D)  is a larger work force. 
A)  are technological advances. 
B)  is lower current consumption. 
C)  is higher current consumption. 
D)  is a larger work force.

Question 14

Over the past 100 years real GDP per person in the United States, on average, has

Accepted Answer

A)  decreased by about 5 percent per year. 
B)  increased by about 2 percent per year. 
C)  increased by about 5 percent per year. 
D)  increased by about 10 percent per year. 
A)  decreased by about 5 percent per year. 
B)  increased by about 2 percent per year. 
C)  increased by about 5 percent per year. 
D)  increased by about 10 percent per year.

Question 15

-In the above figure, at the real wage rate of $50

Accepted Answer

A)  there is a surplus of 100 billion hours per year. 
B)  there is a shortage of 100 billion hours per year. 
C)  there is a surplus of 60 billion hours per year. 
D)  there is shortage of 20 billion hours per year. 
A)  there is a surplus of 100 billion hours per year. 
B)  there is a shortage of 100 billion hours per year. 
C)  there is a surplus of 60 billion hours per year. 
D)  there is shortage of 20 billion hours per year.

Question 16

If the real wage rate is such that the quantity of labor supplied is greater than the quantity of labor demanded

Accepted Answer

A)  the economy is at full employment. 
B)  actual real GDP will not equal potential GDP. 
C)  job search decreases. 
D)  labor resources are allocated efficiently. 
A)  the economy is at full employment. 
B)  actual real GDP will not equal potential GDP. 
C)  job search decreases. 
D)  labor resources are allocated efficiently.

Question 17

New growth theory

Accepted Answer

A)  dates from the 18th century. 
B)  concludes that economic growth is temporary. 
C)  states that economic growth arises from people's choices. 
D)  asserts that population growth is the source of economic growth. 
A)  dates from the 18th century. 
B)  concludes that economic growth is temporary. 
C)  states that economic growth arises from people's choices. 
D)  asserts that population growth is the source of economic growth.

Question 18

Labor productivity equals

Accepted Answer

A)  real GDP divided by the capital stock. 
B)  real GDP divided by the working-age population. 
C)  total wages divided by real GDP. 
D)  real GDP divided by aggregate labor hours. 
A)  real GDP divided by the capital stock. 
B)  real GDP divided by the working-age population. 
C)  total wages divided by real GDP. 
D)  real GDP divided by aggregate labor hours.

Question 19

Which of the following is TRUE regarding the real wage rate? The real wage rate
I. is always greater than the money wage.
II. measures the quantity of goods and services an hour's work can buy.

Accepted Answer

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

Question 20

A decrease in the real wage rate

Accepted Answer

A)  shifts the labor demand curve rightward. 
B)  shifts the labor demand curve leftward. 
C)  shifts the labor supply curve leftward. 
D)  none of the above because a change in the real wage rate does not shift either the labor demand or labor supply curve. 
A)  shifts the labor demand curve rightward. 
B)  shifts the labor demand curve leftward. 
C)  shifts the labor supply curve leftward. 
D)  none of the above because a change in the real wage rate does not shift either the labor demand or labor supply curve.

If at the prevailing real wage rate, the quantity of labor supplied exceeds the quantity demanded

Labor growth depends mainly on and labor productivity growth depends mainly on .

Which of the following ideas are included in classical growth theory? I. Subsistence real GDP per person II. Growth in real GDP per person is temporary. III. Technological change induces investment.

Population increases are the limiting factor in the growth process in

The historical record for the United States for the past 100 years shows

Slowdonia's current growth rate of real GDP per person is 2 percent a year. How long will it take to double real GDP per person?

"According to the neoclassical growth theory, national incentives to save, invest, accumulate human capital, and develop new technology influence the country's growth rate of real GDP." Comment on the accuracy of the previous statement.

According to new growth theory, technological change is driven by

All of the following lead to more rapid economic growth EXCEPT

The U.S. employment-to-population ratio peaked in 2000 and by 2016 it had fallen to 60 percent, a level not seen since the early 1980s. This fall in the employment-to-population ratio shifts the curve .

-In the above figure, the equilibrium real wage rate is

Equilibrium in the labor market

In addition to saving and investment in capital, making an even larger contribution to long-term economic growth in real GDP per person

Over the past 100 years real GDP per person in the United States, on average, has

-In the above figure, at the real wage rate of $50

If the real wage rate is such that the quantity of labor supplied is greater than the quantity of labor demanded

New growth theory

Labor productivity equals

Which of the following is TRUE regarding the real wage rate? The real wage rate I. is always greater than the money wage. II. measures the quantity of goods and services an hour's work can buy.

A decrease in the real wage rate

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

If at the prevailing real wage rate, the quantity of labor supplied exceeds the quantity demanded

Labor growth depends mainly on ________ and labor productivity growth depends mainly on ________.

Which of the following ideas are included in classical growth theory? I. Subsistence real GDP per person II. Growth in real GDP per person is temporary. III. Technological change induces investment.

Population increases are the limiting factor in the growth process in

The historical record for the United States for the past 100 years shows

Slowdonia's current growth rate of real GDP per person is 2 percent a year. How long will it take to double real GDP per person?

"According to the neoclassical growth theory, national incentives to save, invest, accumulate human capital, and develop new technology influence the country's growth rate of real GDP." Comment on the accuracy of the previous statement.

According to new growth theory, technological change is driven by

All of the following lead to more rapid economic growth EXCEPT

The U.S. employment-to-population ratio peaked in 2000 and by 2016 it had fallen to 60 percent, a level not seen since the early 1980s. This fall in the employment-to-population ratio shifts the ________ curve ________.

-In the above figure, the equilibrium real wage rate is

Equilibrium in the labor market

In addition to saving and investment in capital, making an even larger contribution to long-term economic growth in real GDP per person

Over the past 100 years real GDP per person in the United States, on average, has

-In the above figure, at the real wage rate of $50

If the real wage rate is such that the quantity of labor supplied is greater than the quantity of labor demanded

New growth theory

Labor productivity equals

Which of the following is TRUE regarding the real wage rate? The real wage rate I. is always greater than the money wage. II. measures the quantity of goods and services an hour's work can buy.

A decrease in the real wage rate

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

Labor growth depends mainly on and labor productivity growth depends mainly on .

The U.S. employment-to-population ratio peaked in 2000 and by 2016 it had fallen to 60 percent, a level not seen since the early 1980s. This fall in the employment-to-population ratio shifts the curve .