Question 1

What is the real wage rate?

Accepted Answer

The real wage rate is the money wage rat

Question 2

If the price level rises 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 decrease. 
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 decrease. 
D)  None of the above answers are correct.

Question 3

If the price level rises by 3 percent and workers' money wage rates increase by 2 percent, then the

Accepted Answer

A)  quantity of labor demanded will decrease. 
B)  quantity of labor demanded will increase. 
C)  quantity of labor demanded does not change because there is no change in the real wage rate. 
D)  real wage rate increases. 
A)  quantity of labor demanded will decrease. 
B)  quantity of labor demanded will increase. 
C)  quantity of labor demanded does not change because there is no change in the real wage rate. 
D)  real wage rate increases.

Question 4

New growth theory holds that choices, and the discoveries that result from them, result in growth that is temporary in nature.

Accepted Answer

A) True 
 B)False

Question 5

An increase in saving that leads to more capital accumulation ________ labor productivity.

Accepted Answer

A)  increases 
B)  does not change 
C)  decreases 
D)  probably changes but in an ambiguous direction 
A)  increases 
B)  does not change 
C)  decreases 
D)  probably changes but in an ambiguous direction

Question 6

Technological change

Accepted Answer

A)  lowers the real wage rate. 
B)  decreases labor productivity. 
C)  has no effect on employment. 
D)  increases potential GDP. 
A)  lowers the real wage rate. 
B)  decreases labor productivity. 
C)  has no effect on employment. 
D)  increases potential GDP.

Question 7

An increase in a nation's population results in

Accepted Answer

A)  a rightward shift in the labor demand curve. 
B)  a movement along the nation's production function. 
C)  a decrease in the full-employment quantity of labor. 
D)  an upward shift of the nation's production function. 
A)  a rightward shift in the labor demand curve. 
B)  a movement along the nation's production function. 
C)  a decrease in the full-employment quantity of labor. 
D)  an upward shift of the nation's production function.

Question 8

Since 1980, which of the following had the lowest level of real GDP per person?

Accepted Answer

A)  Nigeria 
B)  Mexico 
C)  United States 
D)  Russia 
A)  Nigeria 
B)  Mexico 
C)  United States 
D)  Russia

Question 9

An assumption of neoclassical growth theory is that

Accepted Answer

A)  technological change is random. 
B)  technological change can be influenced by savings. 
C)  more growth encourages more technological change. 
D)  None of the above answers is correct. 
A)  technological change is random. 
B)  technological change can be influenced by savings. 
C)  more growth encourages more technological change. 
D)  None of the above answers is correct.

Question 10

Full employment corresponds to

Accepted Answer

A)  equilibrium in the labor market, with actual GDP being equal to potential GDP. 
B)  labor demand being greater than labor supply and actual GDP being equal to potential GDP. 
C)  being at the point where the marginal product of labor equals zero. 
D)  equilibrium in the labor market, and actual GDP exceeding potential GDP. 
A)  equilibrium in the labor market, with actual GDP being equal to potential GDP. 
B)  labor demand being greater than labor supply and actual GDP being equal to potential GDP. 
C)  being at the point where the marginal product of labor equals zero. 
D)  equilibrium in the labor market, and actual GDP exceeding potential GDP.

Question 11

According to empirical evidence

Accepted Answer

A)  providing international aid to developing nations stimulates economic growth. 
B)  providing international aid to developing nations does not have a positive effect on economic growth. 
C)  international trade stimulates economic growth in richer nations, but actually slows economic growth in developing economies. 
D)  international trade stimulates economic growth in developing economies, but actually slows economic growth in richer nations. 
A)  providing international aid to developing nations stimulates economic growth. 
B)  providing international aid to developing nations does not have a positive effect on economic growth. 
C)  international trade stimulates economic growth in richer nations, but actually slows economic growth in developing economies. 
D)  international trade stimulates economic growth in developing economies, but actually slows economic growth in richer nations.

Question 12

Which of the following is NOT associated with the new growth theory?

Accepted Answer

A)  natural resources 
B)  research 
C)  technology 
D)  innovation 
A)  natural resources 
B)  research 
C)  technology 
D)  innovation

Question 13

-The tables above show the labor market and the production function schedule for the country of Pickett. Potential GDP is

Accepted Answer

A)  $40 trillion. 
B)  $9 trillion. 
C)  $14 trillion. 
D)  $25 trillion. 
A)  $40 trillion. 
B)  $9 trillion. 
C)  $14 trillion. 
D)  $25 trillion.

Question 14

We are interested in long-term growth primarily because it brings

Accepted Answer

A)  higher price levels. 
B)  lower price levels. 
C)  higher standards of living. 
D)  trade wars with our trading partners. 
A)  higher price levels. 
B)  lower price levels. 
C)  higher standards of living. 
D)  trade wars with our trading partners.

Question 15

All of the following would increase the growth rate of the economy EXCEPT

Accepted Answer

A)  raising the saving rate. 
B)  stimulating research and development. 
C)  discouraging international trade. 
D)  None of the above answers is correct because they all would increase the growth rate. 
A)  raising the saving rate. 
B)  stimulating research and development. 
C)  discouraging international trade. 
D)  None of the above answers is correct because they all would increase the growth rate.

Question 16

What are the basic arguments of the classical growth theory?

Accepted Answer

The classical growth theory originated d

Question 17

Which of the following contributes to an increase in labor productivity?

Accepted Answer

A)  increased consumption expenditure 
B)  decreased investment 
C)  increased capital stock 
D)  All of the above contribute to an increase in labor productivity. 
A)  increased consumption expenditure 
B)  decreased investment 
C)  increased capital stock 
D)  All of the above contribute to an increase in labor productivity.

Question 18

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 ________ the equilibrium quantity of labor 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 19

Real GDP grows when
I. the quantities of the factors of production grow.
II. persistent advances in technology make factors of production increasingly productive.
III. human capital grows.

Accepted Answer

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

Question 20

Which of the following is TRUE regarding the labor market?
I. The labor supply curve slopes upward because firms maximize profits as they hire more workers.
II. If the real wage rate falls, the quantity of labor firms demand increases.
III. The demand for labor curve slopes downward because as the real wage rate falls, workers demand to work fewer hours.

Accepted Answer

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

What is the real wage rate?

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

If the price level rises by 3 percent and workers' money wage rates increase by 2 percent, then the

New growth theory holds that choices, and the discoveries that result from them, result in growth that is temporary in nature.

An increase in saving that leads to more capital accumulation ________ labor productivity.

Technological change

An increase in a nation's population results in

Since 1980, which of the following had the lowest level of real GDP per person?

An assumption of neoclassical growth theory is that

Full employment corresponds to

According to empirical evidence

Which of the following is NOT associated with the new growth theory?

-The tables above show the labor market and the production function schedule for the country of Pickett. Potential GDP is

We are interested in long-term growth primarily because it brings

All of the following would increase the growth rate of the economy EXCEPT

What are the basic arguments of the classical growth theory?

Which of the following contributes to an increase in labor productivity?

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 the equilibrium quantity of labor and potential GDP.

Real GDP grows when I. the quantities of the factors of production grow. II. persistent advances in technology make factors of production increasingly productive. III. human capital grows.

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

What is the real wage rate?

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

If the price level rises by 3 percent and workers' money wage rates increase by 2 percent, then the

New growth theory holds that choices, and the discoveries that result from them, result in growth that is temporary in nature.

An increase in saving that leads to more capital accumulation ________ labor productivity.

Technological change

An increase in a nation's population results in

Since 1980, which of the following had the lowest level of real GDP per person?

An assumption of neoclassical growth theory is that

Full employment corresponds to

According to empirical evidence

Which of the following is NOT associated with the new growth theory?

-The tables above show the labor market and the production function schedule for the country of Pickett. Potential GDP is

We are interested in long-term growth primarily because it brings

All of the following would increase the growth rate of the economy EXCEPT

What are the basic arguments of the classical growth theory?

Which of the following contributes to an increase in labor productivity?

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 ________ the equilibrium quantity of labor and ________ potential GDP.

Real GDP grows when I. the quantities of the factors of production grow. II. persistent advances in technology make factors of production increasingly productive. III. human capital grows.

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

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 the equilibrium quantity of labor and potential GDP.