Question 1

Assume a nation's current production possibilities are represented by the curve AB in the accompanying diagram. Economic growth would best be indicated by a

Accepted Answer

A)  shift in the curve from AB to CD. 
B)  shift in the curve from AB to EF. 
C)  movement from point 1 to point 2. 
D)  movement from point 3 to point 4. 
A)  shift in the curve from AB to CD. 
B)  shift in the curve from AB to EF. 
C)  movement from point 1 to point 2. 
D)  movement from point 3 to point 4.

Question 2

Which of the following is a measure of economic growth that is most useful for measuring geopolitical preeminence or military potential?

Accepted Answer

A)  growth in nominal GDP 
B)  decreases in the rate of unemployment 
C)  increases in real GDP per capita 
D)  increases in real GDP 
A)  growth in nominal GDP 
B)  decreases in the rate of unemployment 
C)  increases in real GDP per capita 
D)  increases in real GDP

Question 3

A piece of software that beneﬁts many users at the same time would be an example of

Accepted Answer

A)  network effects. 
B)  learning by doing. 
C)  multiple production. 
D)  simultaneous consumption. 
A)  network effects. 
B)  learning by doing. 
C)  multiple production. 
D)  simultaneous consumption.

Question 4

In the growth debate, critics of economic growth deﬁne "making a better living" as identical to "the
good life."

Accepted Answer

A) True 
 B)False

Question 5

If real GDP grows at an average annual rate of 2.0 percent instead of 3.5 percent, then it would take
about 35 years-instead of 20 years-for real GDP to double.

Accepted Answer

A) True 
 B)False

Question 6

Under what circumstances do rates of economic growth understate the growth of economic well- being?

Accepted Answer

A)  Economic growth has occurred because of the increased length of the workweek. 
B)  Product quality has improved. 
C)  Air quality has declined as real GDP has increased. 
D)  Population has grown faster than real output. 
A)  Economic growth has occurred because of the increased length of the workweek. 
B)  Product quality has improved. 
C)  Air quality has declined as real GDP has increased. 
D)  Population has grown faster than real output.

Question 7

Offer a defense of economic growth.

Accepted Answer

In defense of economic growth, many beli

Question 8

An increase in total spending generates economic growth by shifting the production possibilities
curve farther from the origin.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following factors has been the dominant source of economic growth in the U.S. (except in 1973-1995)?

Accepted Answer

A)  increases in population 
B)  increases in labor productivity 
C)  increases in hours per worker 
D)  increases in the labor force 
A)  increases in population 
B)  increases in labor productivity 
C)  increases in hours per worker 
D)  increases in the labor force

Question 10

Refer to the accompanying diagram. Which of the following is the most likely cause for a shift in the production possibilities curve from AB to CD?

Accepted Answer

A)  the use of the economy's resources in a more eﬃcient way 
B)  an increase in the spending of business and consumers 
C)  an increase in government purchases of the economy's output 
D)  an increase in the quantity and quality of labor resources 
A)  the use of the economy's resources in a more eﬃcient way 
B)  an increase in the spending of business and consumers 
C)  an increase in government purchases of the economy's output 
D)  an increase in the quantity and quality of labor resources

Question 11

(Last Word) Explain the trend of the rising number of women in the workforce.

Accepted Answer

Women are better educated and more likel

Question 12

Suppose total output (real GDP) is $4,000 and labor productivity is $8. We can conclude that

Accepted Answer

A)  real GDP per capita must be $500. 
B)  the price-level index must be greater than 100. 
C)  nominal GDP must be $500. 
D)  the number of worker-hours must be 500. 
A)  real GDP per capita must be $500. 
B)  the price-level index must be greater than 100. 
C)  nominal GDP must be $500. 
D)  the number of worker-hours must be 500.

Question 13

Free trade

Accepted Answer

A)  discourages growth by increasing competitive pressures on domestic ﬁrms. 
B)  encourages growth by effectively eliminating all patent and copyright barriers to growth. 
C)  discourages growth compared to situations where the government strongly controls foreign trade. 
D)  encourages growth by promoting the rapid spread of new inventions and innovations. 
A)  discourages growth by increasing competitive pressures on domestic ﬁrms. 
B)  encourages growth by effectively eliminating all patent and copyright barriers to growth. 
C)  discourages growth compared to situations where the government strongly controls foreign trade. 
D)  encourages growth by promoting the rapid spread of new inventions and innovations.

Question 14

Which of the following will not increase the average productivity of labor?

Accepted Answer

A)  an increase in the stock of real capital 
B)  improvements in the quality of the nation's education and training system 
C)  technological progress 
D)  an increase in the size of the labor force 
A)  an increase in the stock of real capital 
B)  improvements in the quality of the nation's education and training system 
C)  technological progress 
D)  an increase in the size of the labor force

Assume a nation's current production possibilities are represented by the curve AB in the accompanying diagram. Economic growth would best be indicated by a

Which of the following is a measure of economic growth that is most useful for measuring geopolitical preeminence or military potential?

A piece of software that beneﬁts many users at the same time would be an example of

In the growth debate, critics of economic growth deﬁne "making a better living" as identical to "the good life."

If real GDP grows at an average annual rate of 2.0 percent instead of 3.5 percent, then it would take about 35 years-instead of 20 years-for real GDP to double.

Under what circumstances do rates of economic growth understate the growth of economic well- being?

Offer a defense of economic growth.

An increase in total spending generates economic growth by shifting the production possibilities curve farther from the origin.

Which of the following factors has been the dominant source of economic growth in the U.S. (except in 1973-1995)?

Refer to the accompanying diagram. Which of the following is the most likely cause for a shift in the production possibilities curve from AB to CD?

(Last Word) Explain the trend of the rising number of women in the workforce.

Suppose total output (real GDP) is $4,000 and labor productivity is $8. We can conclude that

Free trade

Which of the following will not increase the average productivity of labor?

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

Assume a nation's current production possibilities are represented by the curve AB in the accompanying diagram. Economic growth would best be indicated by a

Which of the following is a measure of economic growth that is most useful for measuring geopolitical preeminence or military potential?

A piece of software that beneﬁts many users at the same time would be an example of

In the growth debate, critics of economic growth deﬁne "making a better living" as identical to "the good life."

If real GDP grows at an average annual rate of 2.0 percent instead of 3.5 percent, then it would take about 35 years-instead of 20 years-for real GDP to double.

Under what circumstances do rates of economic growth understate the growth of economic well- being?

Offer a defense of economic growth.

An increase in total spending generates economic growth by shifting the production possibilities curve farther from the origin.

Which of the following factors has been the dominant source of economic growth in the U.S. (except in 1973-1995)?

Refer to the accompanying diagram. Which of the following is the most likely cause for a shift in the production possibilities curve from AB to CD?

(Last Word) Explain the trend of the rising number of women in the workforce.

Suppose total output (real GDP) is $4,000 and labor productivity is $8. We can conclude that

Free trade

Which of the following will not increase the average productivity of labor?

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