Question 1

New growth theory assumes that

Accepted Answer

A)  all inputs experience diminishing returns. 
B)  only random technological advances produce growth. 
C)  knowledge does not experience diminishing returns. 
D)  None of the above answers is correct. 
A)  all inputs experience diminishing returns. 
B)  only random technological advances produce growth. 
C)  knowledge does not experience diminishing returns. 
D)  None of the above answers is correct.

Question 2

In the neoclassical theory of growth, growth in ________ is the result of luck.

Accepted Answer

A)  saving 
B)  income 
C)  technology 
D)  the real interest rate 
A)  saving 
B)  income 
C)  technology 
D)  the real interest rate

Question 3

A higher saving rate leads to faster growth because

Accepted Answer

A)  more saving produces greater additions to capital per hour of labor, raising real GDP per person. 
B)  capital would wear out faster. 
C)  people could consume more of an economy's output. 
D)  population growth would accelerate. 
A)  more saving produces greater additions to capital per hour of labor, raising real GDP per person. 
B)  capital would wear out faster. 
C)  people could consume more of an economy's output. 
D)  population growth would accelerate.

Question 4

By measuring ________ we can see that the economies of Hong Kong and Singapore are catching up to the United States but that the economies of Canada and Mexico are not.

Accepted Answer

A)  inflation per person 
B)  real GDP per person 
C)  the population 
D)  real GDP 
A)  inflation per person 
B)  real GDP per person 
C)  the population 
D)  real GDP

Question 5

Which of the following statements are TRUE regarding the demand for labor?
I. The quantity of labor demanded depends on the real wage rate.
II. If the money wage rate increases and the price level remains the same, the quantity of labor demanded decreases.

Accepted Answer

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

Question 6

If a rich country grows at a faster rate than a poor one, then

Accepted Answer

A)  the gap in their standard of living will widen over time. 
B)  the gap in their standard of living will close over time. 
C)  the difference in their living standards will not change over time. 
D)  whether or not the living standards gap widens or closes over time depends on the absolute size of the relative growth rates. 
A)  the gap in their standard of living will widen over time. 
B)  the gap in their standard of living will close over time. 
C)  the difference in their living standards will not change over time. 
D)  whether or not the living standards gap widens or closes over time depends on the absolute size of the relative growth rates.

Question 7

Which theory of economic growth concludes that growth can continue indefinitely?

Accepted Answer

A)  the classical theory 
B)  the neoclassical theory 
C)  the new theory 
D)  all of the theories 
A)  the classical theory 
B)  the neoclassical theory 
C)  the new theory 
D)  all of the theories

Question 8

Most ________ is embodied in physical capital.

Accepted Answer

A)  human capital 
B)  technological change 
C)  labor productivity 
D)  economic growth 
A)  human capital 
B)  technological change 
C)  labor productivity 
D)  economic growth

Question 9

Suppose the money wage rate and the price level both fall by 5 percent. As a result

Accepted Answer

A)  the quantity of labor demanded increases. 
B)  the quantity of labor demanded decreases. 
C)  the quantity of labor demanded does not change because there is no change in the real wage. 
D)  people are worse off and there is more unemployment. 
A)  the quantity of labor demanded increases. 
B)  the quantity of labor demanded decreases. 
C)  the quantity of labor demanded does not change because there is no change in the real wage. 
D)  people are worse off and there is more unemployment.

Question 10

The decreasing slope of a production function reflects

Accepted Answer

A)  diminishing returns. 
B)  rising unemployment. 
C)  decreasing costs. 
D)  increasing aggregate demand. 
A)  diminishing returns. 
B)  rising unemployment. 
C)  decreasing costs. 
D)  increasing aggregate demand.

Question 11

Using the Rule of 70, if China's current growth rate of real GDP per person was 7 percent a year, how long would it take the country's real GDP per person to double?

Accepted Answer

A)  35 years 
B)  14 years 
C)  10 years 
D)  49 years 
A)  35 years 
B)  14 years 
C)  10 years 
D)  49 years

Question 12

How has U.S. real GDP per person changed over the last 100 years?

Accepted Answer

Although the U.S. economy usually displa

Question 13

Labor productivity, real GDP per labor hour, increases if

Accepted Answer

A)  saving and investment cause an increase in the quantity of capital per worker. 
B)  there is an increase in the accumulation of human capital. 
C)  new technologies are continuously discovered. 
D)  All of the above answers are correct. 
A)  saving and investment cause an increase in the quantity of capital per worker. 
B)  there is an increase in the accumulation of human capital. 
C)  new technologies are continuously discovered. 
D)  All of the above answers are correct.

Question 14

In 2016, of the following ________ had the highest real GDP per person.

Accepted Answer

A)  Japan 
B)  Canada 
C)  the Europe Big 4 countries 
D)  the United States 
A)  Japan 
B)  Canada 
C)  the Europe Big 4 countries 
D)  the United States

Question 15

In neoclassical growth theory, technological progress is the key to continuous growth in labor productivity.

Accepted Answer

A) True 
 B)False

Question 16

In the labor market, an increase in labor productivity ________ the real wage rate and ________ the level of employment.

Accepted Answer

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

Question 17

Using the Rule of 70, if the country of Huttodom's current growth rate of real GDP per person was 10 percent a year, how long would it take the country's real GDP per person to double?

Accepted Answer

A)  0.7 years 
B)  20 years 
C)  7 years 
D)  10 years 
A)  0.7 years 
B)  20 years 
C)  7 years 
D)  10 years

Question 18

The classical growth theory shows how technology changes continually generate economic growth.

Accepted Answer

A) True 
 B)False

Question 19

Ongoing economic growth in real GDP per person requires all of the following EXCEPT

Accepted Answer

A)  investment in human capital. 
B)  the discovery of new technologies. 
C)  saving and investment in new capital. 
D)  population growth. 
A)  investment in human capital. 
B)  the discovery of new technologies. 
C)  saving and investment in new capital. 
D)  population growth.

Question 20

The gaps between the United States and the Asian countries of Honk Kong, Singapore, Korea and China have been

Accepted Answer

A)  decreasing. 
B)  increasing. 
C)  remaining fairly constant. 
D)  There are no gaps between these Asian countries and the United States. 
A)  decreasing. 
B)  increasing. 
C)  remaining fairly constant. 
D)  There are no gaps between these Asian countries and the United States.

New growth theory assumes that

In the neoclassical theory of growth, growth in ________ is the result of luck.

A higher saving rate leads to faster growth because

By measuring ________ we can see that the economies of Hong Kong and Singapore are catching up to the United States but that the economies of Canada and Mexico are not.

Which of the following statements are TRUE regarding the demand for labor? I. The quantity of labor demanded depends on the real wage rate. II. If the money wage rate increases and the price level remains the same, the quantity of labor demanded decreases.

If a rich country grows at a faster rate than a poor one, then

Which theory of economic growth concludes that growth can continue indefinitely?

Most ________ is embodied in physical capital.

Suppose the money wage rate and the price level both fall by 5 percent. As a result

The decreasing slope of a production function reflects

Using the Rule of 70, if China's current growth rate of real GDP per person was 7 percent a year, how long would it take the country's real GDP per person to double?

How has U.S. real GDP per person changed over the last 100 years?

Labor productivity, real GDP per labor hour, increases if

In 2016, of the following ________ had the highest real GDP per person.

In neoclassical growth theory, technological progress is the key to continuous growth in labor productivity.

In the labor market, an increase in labor productivity the real wage rate and the level of employment.

Using the Rule of 70, if the country of Huttodom's current growth rate of real GDP per person was 10 percent a year, how long would it take the country's real GDP per person to double?

The classical growth theory shows how technology changes continually generate economic growth.

Ongoing economic growth in real GDP per person requires all of the following EXCEPT

The gaps between the United States and the Asian countries of Honk Kong, Singapore, Korea and China have been

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

New growth theory assumes that

In the neoclassical theory of growth, growth in ________ is the result of luck.

A higher saving rate leads to faster growth because

By measuring ________ we can see that the economies of Hong Kong and Singapore are catching up to the United States but that the economies of Canada and Mexico are not.

Which of the following statements are TRUE regarding the demand for labor? I. The quantity of labor demanded depends on the real wage rate. II. If the money wage rate increases and the price level remains the same, the quantity of labor demanded decreases.

If a rich country grows at a faster rate than a poor one, then

Which theory of economic growth concludes that growth can continue indefinitely?

Most ________ is embodied in physical capital.

Suppose the money wage rate and the price level both fall by 5 percent. As a result

The decreasing slope of a production function reflects

Using the Rule of 70, if China's current growth rate of real GDP per person was 7 percent a year, how long would it take the country's real GDP per person to double?

How has U.S. real GDP per person changed over the last 100 years?

Labor productivity, real GDP per labor hour, increases if

In 2016, of the following ________ had the highest real GDP per person.

In neoclassical growth theory, technological progress is the key to continuous growth in labor productivity.

In the labor market, an increase in labor productivity ________ the real wage rate and ________ the level of employment.

Using the Rule of 70, if the country of Huttodom's current growth rate of real GDP per person was 10 percent a year, how long would it take the country's real GDP per person to double?

The classical growth theory shows how technology changes continually generate economic growth.

Ongoing economic growth in real GDP per person requires all of the following EXCEPT

The gaps between the United States and the Asian countries of Honk Kong, Singapore, Korea and China have been

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

In the labor market, an increase in labor productivity the real wage rate and the level of employment.