Question 1

The productivity growth rates of richer countries tend to be ____ than those of poorer countries.

Accepted Answer

A) higher 
B) lower 
C) increasing faster 
D) decreasing faster 
A) higher 
B) lower 
C) increasing faster 
D) decreasing faster

Question 2

Falling energy prices could explain rising labor productivity in the 1990s

Accepted Answer

A) and the 1980s. 
B) and the 1970s. 
C) but not the 1980s. 
D) but not the 1970s. 
A) and the 1980s. 
B) and the 1970s. 
C) but not the 1980s. 
D) but not the 1970s.

Question 3

Which retail operation would have the highest costs per book sold?

Accepted Answer

A) A small independent bookstore 
B) A large retail bookstore chain 
C) An Internet seller of books 
D) The Internet seller and retailer 
A) A small independent bookstore 
B) A large retail bookstore chain 
C) An Internet seller of books 
D) The Internet seller and retailer

Question 4

A country's level of well-being is determined primarily by its level of

Accepted Answer

A) population growth. 
B) educational attainment. 
C) capital stock growth. 
D) natural resource growth. 
A) population growth. 
B) educational attainment. 
C) capital stock growth. 
D) natural resource growth.

Question 5

Explain the ways in which the government can persuade private businesses to invest more in order to speed up the process of capital formation?

Accepted Answer

Real interest rates: The amount that bus

Question 6

Devoting more of a country's resources for producing consumer goods means

Accepted Answer

A) economy is using its resources for future production. 
B) fewer resources to producing investment goods. 
C) country will grow more rapidly in the future. 
D) productivity of the invested capital is extremely high. 
A) economy is using its resources for future production. 
B) fewer resources to producing investment goods. 
C) country will grow more rapidly in the future. 
D) productivity of the invested capital is extremely high.

Question 7

In contrast to richer countries, most residents of poorer nations will have

Accepted Answer

A) only some primary education. 
B) primary and secondary education. 
C) higher education. 
D) higher levels of productivity. 
A) only some primary education. 
B) primary and secondary education. 
C) higher education. 
D) higher levels of productivity.

Question 8

Describe the three pillars of productivity growth.

Accepted Answer

The three pillars of productivity growth

Question 9

Laws that assign owners the rights to use assets as they see fit are called

Accepted Answer

A) human rights. 
B) economic rights. 
C) property rights. 
D) government rights. 
A) human rights. 
B) economic rights. 
C) property rights. 
D) government rights.

Question 10

Which of the following would not be classified as capital by economists?

Accepted Answer

A) Laptop computers at a technology company 
B) Sewing machines at a clothing factory 
C) A corporate bond from IBM 
D) Gym equipment at a local fitness center 
A) Laptop computers at a technology company 
B) Sewing machines at a clothing factory 
C) A corporate bond from IBM 
D) Gym equipment at a local fitness center

Question 11

The term "human capital" refers to how many people must work to produce a product.

Accepted Answer

A) True 
 B)False

Question 12

A quick strategy used by developing countries to acquire new technology is through

Accepted Answer

A) imitation. 
B) innovation. 
C) tariffs. 
D) acquisition. 
A) imitation. 
B) innovation. 
C) tariffs. 
D) acquisition.

Question 13

The productivity slowdown in the United States from 1973 to 1995

Accepted Answer

A) can be explained easily with economic theory. 
B) continued into the third millennium. 
C) still confuses economists. 
D) was a continuation of the slowdown from 1948 to 1973. 
A) can be explained easily with economic theory. 
B) continued into the third millennium. 
C) still confuses economists. 
D) was a continuation of the slowdown from 1948 to 1973.

Question 14

A constant contributor to labor productivity growth during the entire 1948-2000 period was

Accepted Answer

A) capital formation. 
B) technological change. 
C) labor force growth. 
D) government spending. 
A) capital formation. 
B) technological change. 
C) labor force growth. 
D) government spending.

Question 15

A nation's capital consists mainly of stocks, bonds, and other financial assets.

Accepted Answer

A) True 
 B)False

Question 16

The three pillars of productivity growth does not include an

Accepted Answer

A) increase in the rate at which the economy builds up its stock of capital. 
B) increase in population. 
C) increase in the rate at which technology improves. 
D) increase in the rate at which workforce quality improves. 
A) increase in the rate at which the economy builds up its stock of capital. 
B) increase in population. 
C) increase in the rate at which technology improves. 
D) increase in the rate at which workforce quality improves.

Question 17

Improvements in human capital and education played a major role in the productivity improvements of the U.S.economy from 1995 to 2009.

Accepted Answer

A) True 
 B)False

Question 18

Imitation, rather than innovation, is a way for poorer countries to achieve growth.

Accepted Answer

A) True 
 B)False

Question 19

One reason given for the U.S.productivity slowdown in the period from 1973 to 1995 was

Accepted Answer

A) declining energy prices. 
B) increasing energy prices. 
C) increasing investment spending. 
D) increasing government spending. 
A) declining energy prices. 
B) increasing energy prices. 
C) increasing investment spending. 
D) increasing government spending.

Question 20

The expansion of information technology and the increasing complexity of the economy should make the wage premium

Accepted Answer

A) continue rising. 
B) continue falling. 
C) rise. 
D) fall. 
A) continue rising. 
B) continue falling. 
C) rise. 
D) fall.

Exam 23: Economic Growth: Theory and Policy

The productivity growth rates of richer countries tend to be ____ than those of poorer countries.

Falling energy prices could explain rising labor productivity in the 1990s

Which retail operation would have the highest costs per book sold?

A country's level of well-being is determined primarily by its level of

Explain the ways in which the government can persuade private businesses to invest more in order to speed up the process of capital formation?

Devoting more of a country's resources for producing consumer goods means

In contrast to richer countries, most residents of poorer nations will have

Describe the three pillars of productivity growth.

Laws that assign owners the rights to use assets as they see fit are called

Which of the following would not be classified as capital by economists?

The term "human capital" refers to how many people must work to produce a product.

A quick strategy used by developing countries to acquire new technology is through

The productivity slowdown in the United States from 1973 to 1995

A constant contributor to labor productivity growth during the entire 1948-2000 period was

A nation's capital consists mainly of stocks, bonds, and other financial assets.

The three pillars of productivity growth does not include an

Improvements in human capital and education played a major role in the productivity improvements of the U.S.economy from 1995 to 2009.

Imitation, rather than innovation, is a way for poorer countries to achieve growth.

One reason given for the U.S.productivity slowdown in the period from 1973 to 1995 was

The expansion of information technology and the increasing complexity of the economy should make the wage premium

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

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