Question 1

Factors that influence labor productivity include

Accepted Answer

A)  the inflation rate, the real wage rate, and the exchange rate. 
B)  the labor demand curve. 
C)  physical capital, the real wage rate, and technology. 
D)  physical capital, human capital, and technology. 
A)  the inflation rate, the real wage rate, and the exchange rate. 
B)  the labor demand curve. 
C)  physical capital, the real wage rate, and technology. 
D)  physical capital, human capital, and technology.

Question 2

The gap between real GDP per person in Mexico and real GDP per person in the United States has been

Accepted Answer

A)  increasing. 
B)  decreasing. 
C)  remaining fairly constant. 
D)  there is no gap in real GDP per person between Mexico and the United States. 
A)  increasing. 
B)  decreasing. 
C)  remaining fairly constant. 
D)  there is no gap in real GDP per person between Mexico and the United States.

Question 3

The Industrial Revolution in England in large was the result of

Accepted Answer

A)  growth in human capital. 
B)  technological innovations encouraged by the patent system. 
C)  population growth. 
D)  technological innovations that were financed mainly by government spending. 
A)  growth in human capital. 
B)  technological innovations encouraged by the patent system. 
C)  population growth. 
D)  technological innovations that were financed mainly by government spending.

Question 4

The relationship between the labor employed by a firm and the real wage rate is shown by the

Accepted Answer

A)  supply of labor curve. 
B)  supply of jobs curve. 
C)  demand for jobs curve. 
D)  demand for labor curve. 
A)  supply of labor curve. 
B)  supply of jobs curve. 
C)  demand for jobs curve. 
D)  demand for labor curve.

Question 5

Because of the choices people make in the pursuit of profit, new growth theory argues that

Accepted Answer

A)  technology growth slows down in the long-run. 
B)  population growth increases will bring real GDP per person back to subsistence level. 
C)  the capital stock experiences diminishing returns. 
D)  the economy can enjoy persisting economic growth. 
A)  technology growth slows down in the long-run. 
B)  population growth increases will bring real GDP per person back to subsistence level. 
C)  the capital stock experiences diminishing returns. 
D)  the economy can enjoy persisting economic growth.

Question 6

Over the last 100 years, the average U.S. growth rate in real GDP per person was about

Accepted Answer

A)  2 percent per year. 
B)  6 percent per year. 
C)  12.5 percent per year. 
D)  1 percent per year. 
A)  2 percent per year. 
B)  6 percent per year. 
C)  12.5 percent per year. 
D)  1 percent per year.

Question 7

-As a result of the rightward shift in the demand curve for labor from LD0 to LD1, the equilibrium level of employment ________ and potential GDP ________.

Accepted Answer

A)  increases; increases 
B)  increases; decreases 
C)  decreases; increases 
D)  decreases; decreases 
A)  increases; increases 
B)  increases; decreases 
C)  decreases; increases 
D)  decreases; decreases

Question 8

-The figure above shows the U.S. production function. From 1986 to 2008 the United States experienced major advances in technology as well as an increase in the working-age population. The combined effect can best be shown by a

Accepted Answer

A)  movement from point W to point X. 
B)  movement from point Y to point Z. 
C)  movement from point Y to point X. 
D)  movement from point W to point Z. 
A)  movement from point W to point X. 
B)  movement from point Y to point Z. 
C)  movement from point Y to point X. 
D)  movement from point W to point Z.

Question 9

If real GDP per person is growing at 4 percent per year, approximately how many years will it take to double?

Accepted Answer

A)  17.5 
B)  25 
C)  4 
D)  8 
A)  17.5 
B)  25 
C)  4 
D)  8

Question 10

Because the productivity of labor decreases as the quantity of labor employed increases

Accepted Answer

A)  the quantity of labor a firm demands increases as the real wage rate decreases. 
B)  the quantity of labor a firm demands increases as the money wage rate decreases. 
C)  the labor demand curve shifts right as the real wage rate decreases. 
D)  the aggregate production function shifts upward as the real wage rate decreases. 
A)  the quantity of labor a firm demands increases as the real wage rate decreases. 
B)  the quantity of labor a firm demands increases as the money wage rate decreases. 
C)  the labor demand curve shifts right as the real wage rate decreases. 
D)  the aggregate production function shifts upward as the real wage rate decreases.

Question 11

If the real wage rate is such that the quantity of labor supplied by workers is less than the quantity of labor demanded by firms

Accepted Answer

A)  the economy is at full employment. 
B)  there is a shortage of labor. 
C)  the real wage rate will fall to restore equilibrium. 
D)  actual real GDP equals potential GDP because firms make the decision about how many workers to hire. 
A)  the economy is at full employment. 
B)  there is a shortage of labor. 
C)  the real wage rate will fall to restore equilibrium. 
D)  actual real GDP equals potential GDP because firms make the decision about how many workers to hire.

Question 12

The neoclassical growth theory is based on a subsistence real wage rate.

Accepted Answer

A) True 
 B)False

Question 13

If real GDP is $13,000 billion and aggregate hours are 270 billion, labor productivity equals

Accepted Answer

A)  $6.50 per hour. 
B)  $45 per hour. 
C)  $48 per hour. 
D)  $650 per hour. 
A)  $6.50 per hour. 
B)  $45 per hour. 
C)  $48 per hour. 
D)  $650 per hour.

Question 14

Of the three economic growth theories, which is the most optimistic about the chances of real GDP per person growing indefinitely? Which is the most pessimistic? What accounts for the differences?

Accepted Answer

The most optimistic is the new growth th

Question 15

-The table above shows the labor market for the country of Pickett. When the labor market is in equilibrium, the real wage rate is ________ and ________ of labor a year are employed.

Accepted Answer

A)  any value less than $25 an hour; any value greater than 40 billion hours 
B)  any value greater than $30 an hour; any value more than 40 billion hours 
C)  any value greater than or equal to $25 an hour; any value less than 40 billion hours 
D)  $30 an hour; 40 billion hours 
A)  any value less than $25 an hour; any value greater than 40 billion hours 
B)  any value greater than $30 an hour; any value more than 40 billion hours 
C)  any value greater than or equal to $25 an hour; any value less than 40 billion hours 
D)  $30 an hour; 40 billion hours

Question 16

According to the new growth theory

Accepted Answer

A)  the rate of technological progress is determined by chance. 
B)  knowledge is not subject to diminishing returns. 
C)  the labor demand curve does not shift rightward over time. 
D)  the concept of a labor market is not necessary. 
A)  the rate of technological progress is determined by chance. 
B)  knowledge is not subject to diminishing returns. 
C)  the labor demand curve does not shift rightward over time. 
D)  the concept of a labor market is not necessary.

Question 17

Several factors are important for achieving faster economic growth. Which of the following is one of those factors?

Accepted Answer

A)  expansion of international trade 
B)  increased government expenditure 
C)  increased taxes on saving 
D)  promotion of consumption expenditure 
A)  expansion of international trade 
B)  increased government expenditure 
C)  increased taxes on saving 
D)  promotion of consumption expenditure

Question 18

According to the Economic Times (09/2012), Standard & Poor's forecast for India's GDP growth rate was cut by 1 percentage point to 5.5 percent as the entire Asia Pacific region feels the pressure of ongoing economic uncertainty. India has averaged 7 percent growth in GDP since 1997. Based on this story, it is most likely that the slowdown reflects a

Accepted Answer

A)  temporary business cycle slowdown. 
B)  temporary business cycle expansion. 
C)  change to India's long-term economic growth rate. 
D)  shrinkage of India's economy. 
A)  temporary business cycle slowdown. 
B)  temporary business cycle expansion. 
C)  change to India's long-term economic growth rate. 
D)  shrinkage of India's economy.

Question 19

"IT Policy Can Spur Economic Growth, Industry Says" As staffers on Capitol Hill know all too well, the growth of technology has created an economy increasingly reliant on energy consumption, as BlackBerrys, laptops, and other devices become everyday necessities. The right policies, however, can make IT growth a part of the energy solution rather than the problem, IT representatives said Monday at a forum, in a congressional office, hosted by the Information Technology & Innovation Foundation.
Information technology could reduce the expected growth in carbon emissions by one third over 10 years, said Daniel Castro, a senior analyst with the ITIF.
Information and communication technology has "great promise in driving economic growth as well as reducing emissions," added David Isaacs, director of government affairs for Hewlett-Packard, but "policy should drive these results."
Www)news.cnet.com 11/17/2008
In order to drive economic growth in real GDP per person, the changes in information technology that the article addresses must

Accepted Answer

A)  cause a movement along the aggregate production function. 
B)  increase labor productivity. 
C)  increase labor supply. 
D)  decrease the demand for labor. 
A)  cause a movement along the aggregate production function. 
B)  increase labor productivity. 
C)  increase labor supply. 
D)  decrease the demand for labor.

Question 20

Classical growth theory proposes that real GDP growth is ________ and that real GDP per person will ________ the subsistence level.

Accepted Answer

A)  permanent; temporarily be above 
B)  permanent; always be above 
C)  temporary; temporarily be above 
D)  temporary; be above and below 
A)  permanent; temporarily be above 
B)  permanent; always be above 
C)  temporary; temporarily be above 
D)  temporary; be above and below

Factors that influence labor productivity include

The gap between real GDP per person in Mexico and real GDP per person in the United States has been

The Industrial Revolution in England in large was the result of

The relationship between the labor employed by a firm and the real wage rate is shown by the

Because of the choices people make in the pursuit of profit, new growth theory argues that

Over the last 100 years, the average U.S. growth rate in real GDP per person was about

-As a result of the rightward shift in the demand curve for labor from LD₀ to LD₁, the equilibrium level of employment and potential GDP .

-The figure above shows the U.S. production function. From 1986 to 2008 the United States experienced major advances in technology as well as an increase in the working-age population. The combined effect can best be shown by a

If real GDP per person is growing at 4 percent per year, approximately how many years will it take to double?

Because the productivity of labor decreases as the quantity of labor employed increases

If the real wage rate is such that the quantity of labor supplied by workers is less than the quantity of labor demanded by firms

The neoclassical growth theory is based on a subsistence real wage rate.

If real GDP is $13,000 billion and aggregate hours are 270 billion, labor productivity equals

Of the three economic growth theories, which is the most optimistic about the chances of real GDP per person growing indefinitely? Which is the most pessimistic? What accounts for the differences?

-The table above shows the labor market for the country of Pickett. When the labor market is in equilibrium, the real wage rate is and of labor a year are employed.

According to the new growth theory

Several factors are important for achieving faster economic growth. Which of the following is one of those factors?

Classical growth theory proposes that real GDP growth is and that real GDP per person will the subsistence level.

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

Factors that influence labor productivity include

The gap between real GDP per person in Mexico and real GDP per person in the United States has been

The Industrial Revolution in England in large was the result of

The relationship between the labor employed by a firm and the real wage rate is shown by the

Because of the choices people make in the pursuit of profit, new growth theory argues that

Over the last 100 years, the average U.S. growth rate in real GDP per person was about

-As a result of the rightward shift in the demand curve for labor from LD0 to LD1, the equilibrium level of employment ________ and potential GDP ________.

-The figure above shows the U.S. production function. From 1986 to 2008 the United States experienced major advances in technology as well as an increase in the working-age population. The combined effect can best be shown by a

If real GDP per person is growing at 4 percent per year, approximately how many years will it take to double?

Because the productivity of labor decreases as the quantity of labor employed increases

If the real wage rate is such that the quantity of labor supplied by workers is less than the quantity of labor demanded by firms

The neoclassical growth theory is based on a subsistence real wage rate.

If real GDP is $13,000 billion and aggregate hours are 270 billion, labor productivity equals

Of the three economic growth theories, which is the most optimistic about the chances of real GDP per person growing indefinitely? Which is the most pessimistic? What accounts for the differences?

-The table above shows the labor market for the country of Pickett. When the labor market is in equilibrium, the real wage rate is ________ and ________ of labor a year are employed.

According to the new growth theory

Several factors are important for achieving faster economic growth. Which of the following is one of those factors?

Classical growth theory proposes that real GDP growth is ________ and that real GDP per person will ________ the subsistence level.

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

-As a result of the rightward shift in the demand curve for labor from LD₀ to LD₁, the equilibrium level of employment and potential GDP .

-The table above shows the labor market for the country of Pickett. When the labor market is in equilibrium, the real wage rate is and of labor a year are employed.

Classical growth theory proposes that real GDP growth is and that real GDP per person will the subsistence level.