Question 1

The financing of investment spending is often made possible by

Accepted Answer

A) consumer spending. 
B) money supply creation. 
C) borrowing. 
D) tax reductions. 
A) consumer spending. 
B) money supply creation. 
C) borrowing. 
D) tax reductions.

Question 2

The wage premium in the United States has risen consistently starting in

Accepted Answer

A) 1973 
B) 1975 
C) 1978 
D) 1983 
A) 1973 
B) 1975 
C) 1978 
D) 1983

Question 3

More consumption rather than investment leads to stagnant growth in developing countries.

Accepted Answer

A) True 
 B)False

Question 4

Development assistance is designed to spur population growth in poor countries.

Accepted Answer

A) True 
 B)False

Question 5

Investment is a(n) ____ and capital is a ____ variable.

Accepted Answer

A) physical; financial 
B) stock; flow 
C) asset; liability 
D) flow; stock 
A) physical; financial 
B) stock; flow 
C) asset; liability 
D) flow; stock

Question 6

For a given technology, a higher capital stock will decrease labor productivity.

Accepted Answer

A) True 
 B)False

Question 7

The argument that rising energy prices caused the decline in U.S.productivity in the 1970s is made less believable due to the

Accepted Answer

A) falling level of saving in the 1970s. 
B) falling level of energy prices in the 1980s. 
C) rising level of energy prices in the 1980s. 
D) rising level of energy prices in the 1990s. 
A) falling level of saving in the 1970s. 
B) falling level of energy prices in the 1980s. 
C) rising level of energy prices in the 1980s. 
D) rising level of energy prices in the 1990s.

Question 8

The Soviet Union heavily invested in higher education and

Accepted Answer

A) achieved higher per capita GDP growth. 
B) had high returns to its investment. 
C) failed to achieve higher per capita GDP growth. 
D) had a direct relationship between Olympic medals and productivity growth. 
A) achieved higher per capita GDP growth. 
B) had high returns to its investment. 
C) failed to achieve higher per capita GDP growth. 
D) had a direct relationship between Olympic medals and productivity growth.

Question 9

Technology can be defined as the

Accepted Answer

A) ability to get more output from a given amount of inputs. 
B) act of putting new methods into effect. 
C) discovery of new ways of making products. 
D) result of savings. 
A) ability to get more output from a given amount of inputs. 
B) act of putting new methods into effect. 
C) discovery of new ways of making products. 
D) result of savings.

Question 10

Increases in the supply of scientists and engineers can increase the level of

Accepted Answer

A) investment. 
B) consumption. 
C) government spending. 
D) technology. 
A) investment. 
B) consumption. 
C) government spending. 
D) technology.

Question 11

Public sector and private sector collaboration is one way to support R&D.

Accepted Answer

A) True 
 B)False

Question 12

Compared with the United States, developing countries

Accepted Answer

A) face geographic conditions that limit productivity. 
B) have universal health care that prevent the spread of diseases. 
C) have more political stability. 
D) have higher levels of educational attainment. 
A) face geographic conditions that limit productivity. 
B) have universal health care that prevent the spread of diseases. 
C) have more political stability. 
D) have higher levels of educational attainment.

Question 13

Workforce explanations of the productivity changes in the 1973-1995 period include

Accepted Answer

A) rising SAT scores. 
B) declining SAT scores. 
C) rising educational attainment. 
D) falling levels of average educational attainment. 
A) rising SAT scores. 
B) declining SAT scores. 
C) rising educational attainment. 
D) falling levels of average educational attainment.

Question 14

Which of the following countries would have the most difficulty raising its level of average educational attainment?

Accepted Answer

A) Canada 
B) Italy 
C) India 
D) Sudan 
A) Canada 
B) Italy 
C) India 
D) Sudan

Question 15

One of the factors causing the shrinking gap between rich and poor countries is

Accepted Answer

A) learning by poor countries. 
B) increasing resource discoveries. 
C) increasing populations in poor countries. 
D) transfers of income from rich countries. 
A) learning by poor countries. 
B) increasing resource discoveries. 
C) increasing populations in poor countries. 
D) transfers of income from rich countries.

Question 16

What determines the productivity growth rates of a country?

Accepted Answer

A) Amount of working capital currently available 
B) Rates of increase of capital, technology, and workforce quality 
C) Current level of gross domestic product 
D) Current levels of human capital, physical capital, and technology 
A) Amount of working capital currently available 
B) Rates of increase of capital, technology, and workforce quality 
C) Current level of gross domestic product 
D) Current levels of human capital, physical capital, and technology

Question 17

Compared to workers in richer countries, workers in developing countries have

Accepted Answer

A) lower productivity and lower wages. 
B) higher productivity and higher wages. 
C) higher productivity but lower wages. 
D) the same productivity but lower wages. 
A) lower productivity and lower wages. 
B) higher productivity and higher wages. 
C) higher productivity but lower wages. 
D) the same productivity but lower wages.

Question 18

Productivity growth rates in the United States have remained fairly constant from 1948 to 2000.

Accepted Answer

A) True 
 B)False

Question 19

A nation's capital stock is increased by increases in

Accepted Answer

A) consumption spending. 
B) government spending. 
C) investment spending. 
D) net exports. 
A) consumption spending. 
B) government spending. 
C) investment spending. 
D) net exports.

Question 20

Workforce quality arguments are very difficult to prove for the period of 1970-1990 because during that period SAT scores

Accepted Answer

A) and graduation rates increased. 
B) increased and graduation rates decreased. 
C) and school attendance rates decreased. 
D) decreased and school attendance rates increased. 
A) and graduation rates increased. 
B) increased and graduation rates decreased. 
C) and school attendance rates decreased. 
D) decreased and school attendance rates increased.

Exam 23: Economic Growth: Theory and Policy

The financing of investment spending is often made possible by

The wage premium in the United States has risen consistently starting in

More consumption rather than investment leads to stagnant growth in developing countries.

Development assistance is designed to spur population growth in poor countries.

Investment is a(n) ____ and capital is a ____ variable.

For a given technology, a higher capital stock will decrease labor productivity.

The argument that rising energy prices caused the decline in U.S.productivity in the 1970s is made less believable due to the

The Soviet Union heavily invested in higher education and

Technology can be defined as the

Increases in the supply of scientists and engineers can increase the level of

Public sector and private sector collaboration is one way to support R&D.

Compared with the United States, developing countries

Workforce explanations of the productivity changes in the 1973-1995 period include

Which of the following countries would have the most difficulty raising its level of average educational attainment?

One of the factors causing the shrinking gap between rich and poor countries is

What determines the productivity growth rates of a country?

Compared to workers in richer countries, workers in developing countries have

Productivity growth rates in the United States have remained fairly constant from 1948 to 2000.

A nation's capital stock is increased by increases in

Workforce quality arguments are very difficult to prove for the period of 1970-1990 because during that period SAT scores

What Is Economics

The Economony: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: the Importance of Marginal Analysis

The Financial Markets and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

The Case for Free Markets: the Price System

Monopoly

Between Competition and Monopoly

Limiting Market Power: Antitrust and Regulation

The Shortcomings of Free Markets

The Economics of the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: the Human Inputs

Poverty, Inequality, and Discrimination

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation

Bringing in the Supply Side: Unemployment and Inflation

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder

Exchange Rates and the Macroeconomy

Contemporary Issues in the Useconomy

Filters

Investment is a(n) and capital is a variable.