Question 1

If the number of worker-hours in an economy is 100 and its labor productivity is $5 of output per worker-hour, the economy's real GDP

Accepted Answer

A)  is $20. 
B)  is $500. 
C)  is $5,000. 
D)  cannot be calculated. 
A)  is $20. 
B)  is $500. 
C)  is $5,000. 
D)  cannot be calculated.

Question 2

Given the annual rate of economic growth, the "rule of 70" allows one to

Accepted Answer

A)  determine the accompanying rate of inﬂation. 
B)  calculate the size of the GDP gap. 
C)  calculate the number of years required for real GDP to double. 
D)  determine the growth rate of per capita GDP. 
A)  determine the accompanying rate of inﬂation. 
B)  calculate the size of the GDP gap. 
C)  calculate the number of years required for real GDP to double. 
D)  determine the growth rate of per capita GDP.

Question 3

Trends in educational attainment in the U.S. since 1960 indicate that the percentage of adults

Accepted Answer

A)  completing high school has been rising, and so has the percentage who do not go to high school nor complete elementary school. 
B)  completing college has been rising, and so has the percentage completing high school. 
C)  completing college has been constant, but the percentage completing high school has been rising. 
D)  who do not go to high school has been falling, but the percentage who do not complete elementary school has been rising. 
A)  completing high school has been rising, and so has the percentage who do not go to high school nor complete elementary school. 
B)  completing college has been rising, and so has the percentage completing high school. 
C)  completing college has been constant, but the percentage completing high school has been rising. 
D)  who do not go to high school has been falling, but the percentage who do not complete elementary school has been rising.

Question 4

In the growth debate, defenders of economic growth believe that it is the primary path to raising
living standards.

Accepted Answer

A) True 
 B)False

Question 5

Refer to the accompanying diagram. If the production possibilities curve of an economy shifts from AB to CD, it is most likely the result of what type of factor affecting economic growth?

Accepted Answer

A)  a supply factor 
B)  a demand factor 
C)  an eﬃciency factor 
D)  an allocation factor 
A)  a supply factor 
B)  a demand factor 
C)  an eﬃciency factor 
D)  an allocation factor

Question 6

Between 1950 and 2018, U.S. real GDP grew at an average annual rate of about

Accepted Answer

A)  2.0 percent. 
B)  3.1 percent. 
C)  5.1 percent. 
D)  8.6 percent. 
A)  2.0 percent. 
B)  3.1 percent. 
C)  5.1 percent. 
D)  8.6 percent.

Question 7

Empirical studies suggest that

Accepted Answer

A)  labor productivity has declined throughout U.S. history. 
B)  technological advances account for about 40 percent of U.S. productivity growth. 
C)  achieving economies of scale is the most important factor in U.S. economic growth. 
D)  all U.S. economic growth from between 2001 and 2007 can be attributed to increases in the quantity of labor. 
A)  labor productivity has declined throughout U.S. history. 
B)  technological advances account for about 40 percent of U.S. productivity growth. 
C)  achieving economies of scale is the most important factor in U.S. economic growth. 
D)  all U.S. economic growth from between 2001 and 2007 can be attributed to increases in the quantity of labor.

Question 8

Critics of economic growth say studies show that people are not interested in achieving higher
standards of living.

Accepted Answer

A) True 
 B)False

Question 9

The annual growth of U.S. labor productivity

Accepted Answer

A)  was greater between 1973 and 1995 than between 1995 and 2010. 
B)  was greater between 1995 and 2010 than between 1973 and 1995. 
C)  was negative in the late 1990s. 
D)  averaged nearly 5 percent in the 1990s. 
A)  was greater between 1973 and 1995 than between 1995 and 2010. 
B)  was greater between 1995 and 2010 than between 1973 and 1995. 
C)  was negative in the late 1990s. 
D)  averaged nearly 5 percent in the 1990s.

Question 10

If the growth trend of labor productivity is 3 percent per year, the number of years that it will take for the standard of living to double will be about

Accepted Answer

A)  15 years. 
B)  17 years. 
C)  20 years. 
D)  23 years. 
A)  15 years. 
B)  17 years. 
C)  20 years. 
D)  23 years.

Question 11

Economic growth is best deﬁned as an increase in

Accepted Answer

A)  either real GDP or real GDP per capita. 
B)  nominal GDP. 
C)  total consumption expenditures. 
D)  wealth in the economy. 
A)  either real GDP or real GDP per capita. 
B)  nominal GDP. 
C)  total consumption expenditures. 
D)  wealth in the economy.

Question 12

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

Accepted Answer

A)  a well-enforced system of patents and copyrights 
B)  a tightly regulated market system 
C)  a system of tariffs and other trade barriers to protect domestic companies 
D)  all of these 
A)  a well-enforced system of patents and copyrights 
B)  a tightly regulated market system 
C)  a system of tariffs and other trade barriers to protect domestic companies 
D)  all of these

Question 13

Improvements in education and training explain about 80 percent of the historical growth of U.S.
labor productivity.

Accepted Answer

A) True 
 B)False

Question 14

1. Improvements in technology. 2. Increases in the supply (stock) of capital goods.
3) Purchases of expanding output.
4) Obtaining the optimal combination of goods, each at least-cost production.
5) Increases in the quantity and quality of natural resources.
6) Increases in the quantity and quality of human resources.
Use the accompanying list to answer the following question. As distinct from the supply factors and
Demand factor of economic growth, the eﬃciency factor(s) of economic growth is (are)

Accepted Answer

A)  1 only. 
B)  4 only. 
C)  1 and 3 only. 
D)  3 only. 
A)  1 only. 
B)  4 only. 
C)  1 and 3 only. 
D)  3 only.

Question 15

One concern regarding educational attainment in the U.S. is that

Accepted Answer

A)  the percentage of adults ﬁnishing college is falling. 
B)  there are fewer college graduates in science and engineering. 
C)  students are graduating later and later. 
D)  fewer high school graduates are going on to college. 
A)  the percentage of adults ﬁnishing college is falling. 
B)  there are fewer college graduates in science and engineering. 
C)  students are graduating later and later. 
D)  fewer high school graduates are going on to college.

Question 16

Network effects are

Accepted Answer

A)  increases in the value of a product to each user, including existing users, as the total number of users rises. 
B)  reductions in per-unit production cost as ﬁrms learn by doing. 
C)  increases in demand resulting from products being mentioned positively in a television program. 
D)  the change in real GDP resulting from a change in investment or government spending. 
A)  increases in the value of a product to each user, including existing users, as the total number of users rises. 
B)  reductions in per-unit production cost as ﬁrms learn by doing. 
C)  increases in demand resulting from products being mentioned positively in a television program. 
D)  the change in real GDP resulting from a change in investment or government spending.

Question 17

Explain the demand factor in economic growth.

Accepted Answer

The demand factor is a condition that st

Question 18

One of the main arguments against further growth for industrialized nations focuses on the problem of

Accepted Answer

A)  technological knowledge. 
B)  environmental quality. 
C)  feedback mechanisms. 
D)  infrastructure. 
A)  technological knowledge. 
B)  environmental quality. 
C)  feedback mechanisms. 
D)  infrastructure.

Question 19

If a country has a larger real GDP than another country, then it should also have a higher real GDP
per capita than the other country.

Accepted Answer

A) True 
 B)False

Question 20

Strong patent laws encourage innovation and promote economic growth.

Accepted Answer

A) True 
 B)False

If the number of worker-hours in an economy is 100 and its labor productivity is $5 of output per worker-hour, the economy's real GDP

Given the annual rate of economic growth, the "rule of 70" allows one to

Trends in educational attainment in the U.S. since 1960 indicate that the percentage of adults

In the growth debate, defenders of economic growth believe that it is the primary path to raising living standards.

Refer to the accompanying diagram. If the production possibilities curve of an economy shifts from AB to CD, it is most likely the result of what type of factor affecting economic growth?

Between 1950 and 2018, U.S. real GDP grew at an average annual rate of about

Empirical studies suggest that

Critics of economic growth say studies show that people are not interested in achieving higher standards of living.

The annual growth of U.S. labor productivity

If the growth trend of labor productivity is 3 percent per year, the number of years that it will take for the standard of living to double will be about

Economic growth is best deﬁned as an increase in

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

Improvements in education and training explain about 80 percent of the historical growth of U.S. labor productivity.

One concern regarding educational attainment in the U.S. is that

Network effects are

Explain the demand factor in economic growth.

One of the main arguments against further growth for industrialized nations focuses on the problem of

If a country has a larger real GDP than another country, then it should also have a higher real GDP per capita than the other country.

Strong patent laws encourage innovation and promote economic growth.

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

Filters

Exam 8: Economic Growth

If the number of worker-hours in an economy is 100 and its labor productivity is $5 of output per worker-hour, the economy's real GDP

Given the annual rate of economic growth, the "rule of 70" allows one to

Trends in educational attainment in the U.S. since 1960 indicate that the percentage of adults

In the growth debate, defenders of economic growth believe that it is the primary path to raising living standards.

Refer to the accompanying diagram. If the production possibilities curve of an economy shifts from AB to CD, it is most likely the result of what type of factor affecting economic growth?

Between 1950 and 2018, U.S. real GDP grew at an average annual rate of about

Empirical studies suggest that

Critics of economic growth say studies show that people are not interested in achieving higher standards of living.

The annual growth of U.S. labor productivity

If the growth trend of labor productivity is 3 percent per year, the number of years that it will take for the standard of living to double will be about

Economic growth is best deﬁned as an increase in

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

Improvements in education and training explain about 80 percent of the historical growth of U.S. labor productivity.

One concern regarding educational attainment in the U.S. is that

Network effects are

Explain the demand factor in economic growth.

One of the main arguments against further growth for industrialized nations focuses on the problem of

If a country has a larger real GDP than another country, then it should also have a higher real GDP per capita than the other country.

Strong patent laws encourage innovation and promote economic growth.

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

Filters