Question 1

What percentage of the U.S. adult population has a college or post-college education (as of 2018)?

Accepted Answer

A)  8 percent 
B)  35 percent 
C)  41 percent 
D)  88 percent 
A)  8 percent 
B)  35 percent 
C)  41 percent 
D)  88 percent

Question 2

Which of the following institutional arrangements is most likely to promote growth?

Accepted Answer

A)  patents and copyrights that expire quickly and are loosely enforced 
B)  strong government control over resource allocation decisions 
C)  unrestricted trade between nations 
D)  all of these 
A)  patents and copyrights that expire quickly and are loosely enforced 
B)  strong government control over resource allocation decisions 
C)  unrestricted trade between nations 
D)  all of these

Question 3

There tends to be a high positive correlation between the rate of productivity growth and the rate of
economic growth.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a main source of increasing returns in recent years?

Accepted Answer

A)  more learning by doing 
B)  the concentration of development costs 
C)  the use of less specialized inputs as ﬁrms grow 
D)  more resources devoted to agricultural production 
A)  more learning by doing 
B)  the concentration of development costs 
C)  the use of less specialized inputs as ﬁrms grow 
D)  more resources devoted to agricultural production

Question 5

Suppose that an economy is initially operating at a point on its PPC. If it then experiences an expansion in its production capacity, but its total spending does not rise as fast as its capacity, the
Economy will end up

Accepted Answer

A)  still on its production possibilities curve. 
B)  outside its production possibilities curve. 
C)  inside its production possibilities curve. 
D)  on one of the axes of its production possibilities curve. 
A)  still on its production possibilities curve. 
B)  outside its production possibilities curve. 
C)  inside its production possibilities curve. 
D)  on one of the axes of its production possibilities curve.

Question 6

Human capital refers to the amount of capital available for the economy's human resources to work
with.

Accepted Answer

A) True 
 B)False

Question 7

At an annual growth rate of 7 percent, real GDP will double in about

Accepted Answer

A)  $11_{1 / 2} \text { years. }$ 
B)  10 years. 
C)  $13_{1 / 2} \text { years. }$ 
D)  9 years. 
A)  $11_{1 / 2} \text { years. }$ 
B)  10 years. 
C)  $13_{1 / 2} \text { years. }$ 
D)  9 years.

Question 8

Total output for an economy is basically equal to total hours of work multiplied by labor productivity.

Accepted Answer

A) True 
 B)False

Question 9

A nation's real GDP was $250 billion last year and $265 billion this year. Its population was 122 million last year and 125 million this year. What is the growth rate of real GDP per capita in this year?

Accepted Answer

A)  1.1 percent 
B)  2.5 percent 
C)  5.0 percent 
D)  3.4 percent 
A)  1.1 percent 
B)  2.5 percent 
C)  5.0 percent 
D)  3.4 percent

Question 10

In 2018, what approximate percentage of adults in the U.S. were college graduates or higher?

Accepted Answer

A)  10 percent 
B)  35 percent 
C)  50 percent 
D)  70 percent 
A)  10 percent 
B)  35 percent 
C)  50 percent 
D)  70 percent

Question 11

Which of the following would not be expected to increase labor productivity?

Accepted Answer

A)  technological advance 
B)  the acquisition of more education and training by the labor force 
C)  an increase in the size of the labor force 
D)  the realization of economies of scale 
A)  technological advance 
B)  the acquisition of more education and training by the labor force 
C)  an increase in the size of the labor force 
D)  the realization of economies of scale

Question 12

Growth in well-being tends to be understated by growth in real GDP because of increases in leisure
time.

Accepted Answer

A) True 
 B)False

Question 13

Other things equal, which of the following would increase the rate of economic growth, as measured by changes in real GDP?

Accepted Answer

A)  a decline in the average length of the workweek 
B)  a decrease in the labor force participation rate 
C)  an increase in the size of the working-age population 
D)  a decline in the amount of capital per worker 
A)  a decline in the average length of the workweek 
B)  a decrease in the labor force participation rate 
C)  an increase in the size of the working-age population 
D)  a decline in the amount of capital per worker

Question 14

The number of years required for real GDP to double can be found by

Accepted Answer

A)  dividing the annual growth rate by 0.07. 
B)  multiplying the annual growth rate by 70. 
C)  dividing 70 by the annual growth rate. 
D)  adding 14 to annual growth rate. 
A)  dividing the annual growth rate by 0.07. 
B)  multiplying the annual growth rate by 70. 
C)  dividing 70 by the annual growth rate. 
D)  adding 14 to annual growth rate.

Question 15

Increased labor productivity has been less important as a source of growth than the increased labor
inputs in the U.S. economy since the 1950s.

Accepted Answer

A) True 
 B)False

Question 16

Globally, on average test scores of eighth-grade math and science students, the U.S. ranks (as of 2015)

Accepted Answer

A)  5th and 7th, respectively. 
B)  1st and 1st, respectively. 
C)  10th and 10th, respectively. 
D)  8th and 6th, respectively. 
A)  5th and 7th, respectively. 
B)  1st and 1st, respectively. 
C)  10th and 10th, respectively. 
D)  8th and 6th, respectively.

Question 17

One of the basic economic defenses of economic growth rests on the conclusion that

Accepted Answer

A)  growth makes workers less obsolete and more secure in employment. 
B)  growth reduces the cost to society of "common property" resources. 
C)  growth makes the gap between unlimited wants and scarce resources less acute. 
D)  a growth-oriented society confers a "work and look to the future" attitude on the members of society. 
A)  growth makes workers less obsolete and more secure in employment. 
B)  growth reduces the cost to society of "common property" resources. 
C)  growth makes the gap between unlimited wants and scarce resources less acute. 
D)  a growth-oriented society confers a "work and look to the future" attitude on the members of society.

Question 18

Which of the following statements is correct?

Accepted Answer

A)  Between 1953 and 2018, all growth in U.S. real GDP can be attributed to increases in labor productivity. 
B)  Between 1953 and 2018, increases in labor productivity account for more of the growth in U.S. real GDP than do increases in the quantity of labor. 
C)  Between 1953 and 2018, increases in the quantity of labor account for more of the growth in U.S. real GDP than do increases in labor productivity. 
D)  Between 1953 and 2018, increases in labor productivity and increases in the quantity of labor contributed equally to the growth in U.S. real GDP. 
A)  Between 1953 and 2018, all growth in U.S. real GDP can be attributed to increases in labor productivity. 
B)  Between 1953 and 2018, increases in labor productivity account for more of the growth in U.S. real GDP than do increases in the quantity of labor. 
C)  Between 1953 and 2018, increases in the quantity of labor account for more of the growth in U.S. real GDP than do increases in labor productivity. 
D)  Between 1953 and 2018, increases in labor productivity and increases in the quantity of labor contributed equally to the growth in U.S. real GDP.

Question 19

Assume that an economy has 1,500 workers, each working 2,000 hours per year. If the average real output per worker-hour is $20, then total output, or real GDP, will be

Accepted Answer

A)  $3 million. 
B)  $30 million. 
C)  $45 million. 
D)  $60 million. 
A)  $3 million. 
B)  $30 million. 
C)  $45 million. 
D)  $60 million.

Question 20

Increasing returns in production imply the following, except

Accepted Answer

A)  increasing labor-requirements per unit of output. 
B)  decreasing per-unit production costs. 
C)  economies of scale. 
D)  an increase in the productivity of inputs. 
A)  increasing labor-requirements per unit of output. 
B)  decreasing per-unit production costs. 
C)  economies of scale. 
D)  an increase in the productivity of inputs.

Exam 8: Economic Growth

What percentage of the U.S. adult population has a college or post-college education (as of 2018)?

Which of the following institutional arrangements is most likely to promote growth?

There tends to be a high positive correlation between the rate of productivity growth and the rate of economic growth.

Which of the following is a main source of increasing returns in recent years?

Suppose that an economy is initially operating at a point on its PPC. If it then experiences an expansion in its production capacity, but its total spending does not rise as fast as its capacity, the Economy will end up

Human capital refers to the amount of capital available for the economy's human resources to work with.

At an annual growth rate of 7 percent, real GDP will double in about

Total output for an economy is basically equal to total hours of work multiplied by labor productivity.

A nation's real GDP was $250 billion last year and $265 billion this year. Its population was 122 million last year and 125 million this year. What is the growth rate of real GDP per capita in this year?

In 2018, what approximate percentage of adults in the U.S. were college graduates or higher?

Which of the following would not be expected to increase labor productivity?

Growth in well-being tends to be understated by growth in real GDP because of increases in leisure time.

Other things equal, which of the following would increase the rate of economic growth, as measured by changes in real GDP?

The number of years required for real GDP to double can be found by

Increased labor productivity has been less important as a source of growth than the increased labor inputs in the U.S. economy since the 1950s.

Globally, on average test scores of eighth-grade math and science students, the U.S. ranks (as of 2015)

One of the basic economic defenses of economic growth rests on the conclusion that

Which of the following statements is correct?

Assume that an economy has 1,500 workers, each working 2,000 hours per year. If the average real output per worker-hour is $20, then total output, or real GDP, will be

Increasing returns in production imply the following, except

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures Caused by Externalities Asymmetric Information

Public Goods, Public Choice, and Government Failure

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

Fiscal Policy, Deficits, and Debt

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

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