Question 1

The achievement of full employment through time will

Accepted Answer

A)  diminish labor productivity. 
B)  reduce the level of investment as a percentage of GDP. 
C)  increase the realized rate of economic growth. 
D)  have no impact on the rate of economic growth. 
A)  diminish labor productivity. 
B)  reduce the level of investment as a percentage of GDP. 
C)  increase the realized rate of economic growth. 
D)  have no impact on the rate of economic growth. C

Question 2

All of the following are sources of increasing returns and economies of scale except

Accepted Answer

A)  network effects. 
B)  the multiplier effect. 
C)  learning by doing. 
D)  simultaneous consumption. 
A)  network effects. 
B)  the multiplier effect. 
C)  learning by doing. 
D)  simultaneous consumption. B

Question 3

In the periods 1953-73 and 1973-95, U.S. real GDP grew at the average annual rates of about

Accepted Answer

A)  5.1 percent and 7.4 percent, respectively. 
B)  2.8 percent and 3.6 percent, respectively. 
C)  7.4 percent and 5.1 percent, respectively. 
D)  3.6 percent and 2.8 percent, respectively. 
A)  5.1 percent and 7.4 percent, respectively. 
B)  2.8 percent and 3.6 percent, respectively. 
C)  7.4 percent and 5.1 percent, respectively. 
D)  3.6 percent and 2.8 percent, respectively. D

Question 4

A nation's average annual real GDP growth rate is 2.5 percent. Based on the rule of 70, the approximate number of years that it would take for this nation's real GDP to double is

Accepted Answer

A)  175 years. 
B)  40 years. 
C)  28 years. 
D)  17.5 years. 
A)  175 years. 
B)  40 years. 
C)  28 years. 
D)  17.5 years.

Question 5

Give the importance of productivity as a source of economic growth in the United States, and list the
various sources that account for this productivity growth and their relative importance.

Accepted Answer

Productivity growth is projected to acco

Question 6

There are two common measures of economic growth: (1) increases in real GDP over some period
of time and (2) increases in real GDP per capita over some time period.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following trends have we not seen in the U.S. in the past six decades or so?

Accepted Answer

A)  The average length of the workweek remained relatively constant. 
B)  The size of the labor force expanded. 
C)  Rising birthrates kept the native-born population growing at a steady rate. 
D)  Women's labor-force participation rate surged. 
A)  The average length of the workweek remained relatively constant. 
B)  The size of the labor force expanded. 
C)  Rising birthrates kept the native-born population growing at a steady rate. 
D)  Women's labor-force participation rate surged.

Question 8

Patents and copyrights foster the ﬂow of

Accepted Answer

A)  saving and investment. 
B)  spending and income. 
C)  resources and products. 
D)  inventions and ideas. 
A)  saving and investment. 
B)  spending and income. 
C)  resources and products. 
D)  inventions and ideas.

Question 9

The supply factors of economic growth are those factors that shift a country's production
possibilities curve.

Accepted Answer

A) True 
 B)False

Question 10

(Last Word) The entry of women into the workforce since the 1960s resulted in

Accepted Answer

A)  a shift outward in the production possibilities curve of the United States. 
B)  a shift inward in the production possibilities curve of the United States. 
C)  a movement along the existing production possibilities curve of the United States. 
D)  a falling real wage for female workers in the United States. 
A)  a shift outward in the production possibilities curve of the United States. 
B)  a shift inward in the production possibilities curve of the United States. 
C)  a movement along the existing production possibilities curve of the United States. 
D)  a falling real wage for female workers in the United States.

Question 11

What factors lead to labor productivity?

Accepted Answer

Some of the factors that determine labor

Question 12

Strong property rights inhibit economic growth by strictly regulating economic behavior.

Accepted Answer

A) True 
 B)False

Question 13

What are the main characteristics of modern economic growth? What is the effect of modern
economic growth on the cultural, social, and political arrangements of our times?

Accepted Answer

Modern economic growth is characterized

Question 14

Proponents of economic growth claim that rising living standards can lead to environmental
improvements as people can afford to care more about the environment.

Accepted Answer

A) True 
 B)False

Question 15

Proponents of economic growth claim that growth leads to greater equality of income in an
economy.

Accepted Answer

A) True 
 B)False

Question 16

Economic growth can best be portrayed as a

Accepted Answer

A)  leftward shift of the production possibilities curve. 
B)  movement from a point inside to a point outside the production possibilities curve. 
C)  movement from a point near the vertical axis to a point near the horizontal axis on the production possibilities curve. 
D)  rightward shift of the production possibilities curve. 
A)  leftward shift of the production possibilities curve. 
B)  movement from a point inside to a point outside the production possibilities curve. 
C)  movement from a point near the vertical axis to a point near the horizontal axis on the production possibilities curve. 
D)  rightward shift of the production possibilities curve.

Question 17

The number of worker-hours available in an economy is determined by the following, except

Accepted Answer

A)  size of the labor force. 
B)  length of the average workweek. 
C)  unemployment rate of the workforce. 
D)  labor force participation rate. 
A)  size of the labor force. 
B)  length of the average workweek. 
C)  unemployment rate of the workforce. 
D)  labor force participation rate.

Question 18

For a nation's real GDP per capita to rise during a year,

Accepted Answer

A)  consumption spending must increase. 
B)  real GDP must increase more rapidly than the population. 
C)  the population must increase more rapidly than real GDP. 
D)  investment spending must increase. 
A)  consumption spending must increase. 
B)  real GDP must increase more rapidly than the population. 
C)  the population must increase more rapidly than real GDP. 
D)  investment spending must increase.

Question 19

Reasons for the rise in productivity growth between 1995 and 2010 include the following, except

Accepted Answer

A)  the microchip and information technology. 
B)  new ﬁrms and increasing returns in production. 
C)  global competition. 
D)  a decline in population. 
A)  the microchip and information technology. 
B)  new ﬁrms and increasing returns in production. 
C)  global competition. 
D)  a decline in population.

Question 20

If a nation's real GDP increases from 100 billion to 106 billion and its population jumps from 200 million to 212 million, its real GDP per capita will

Accepted Answer

A)  remain constant. 
B)  fall by 6 percent. 
C)  rise by 6 percent. 
D)  fall by 12 percent. 
A)  remain constant. 
B)  fall by 6 percent. 
C)  rise by 6 percent. 
D)  fall by 12 percent.

Exam 8: Economic Growth

The achievement of full employment through time will

All of the following are sources of increasing returns and economies of scale except

In the periods 1953-73 and 1973-95, U.S. real GDP grew at the average annual rates of about

A nation's average annual real GDP growth rate is 2.5 percent. Based on the rule of 70, the approximate number of years that it would take for this nation's real GDP to double is

Give the importance of productivity as a source of economic growth in the United States, and list the various sources that account for this productivity growth and their relative importance.

There are two common measures of economic growth: (1) increases in real GDP over some period of time and (2) increases in real GDP per capita over some time period.

Which of the following trends have we not seen in the U.S. in the past six decades or so?

Patents and copyrights foster the ﬂow of

The supply factors of economic growth are those factors that shift a country's production possibilities curve.

(Last Word) The entry of women into the workforce since the 1960s resulted in

What factors lead to labor productivity?

Strong property rights inhibit economic growth by strictly regulating economic behavior.

What are the main characteristics of modern economic growth? What is the effect of modern economic growth on the cultural, social, and political arrangements of our times?

Proponents of economic growth claim that rising living standards can lead to environmental improvements as people can afford to care more about the environment.

Proponents of economic growth claim that growth leads to greater equality of income in an economy.

Economic growth can best be portrayed as a

The number of worker-hours available in an economy is determined by the following, except

For a nation's real GDP per capita to rise during a year,

Reasons for the rise in productivity growth between 1995 and 2010 include the following, except

If a nation's real GDP increases from 100 billion to 106 billion and its population jumps from 200 million to 212 million, its real GDP per capita will

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