Question 1

What is the relevance of productive and allocative eﬃciency to the growth process?

Accepted Answer

An economy must achieve economic eﬃcienc

Question 2

Other things equal, which of the following would increase labor productivity the most?

Accepted Answer

A)  The stock of real capital and inputs of labor increase proportionately. 
B)  The increase in the stock of real capital exceeds the increase in inputs of labor. 
C)  The increase in inputs of labor exceeds the increase in the stock of real capital. 
D)  Inputs of labor increase and the stock of real capital remains constant. 
A)  The stock of real capital and inputs of labor increase proportionately. 
B)  The increase in the stock of real capital exceeds the increase in inputs of labor. 
C)  The increase in inputs of labor exceeds the increase in the stock of real capital. 
D)  Inputs of labor increase and the stock of real capital remains constant.

Question 3

Supply factors in economic growth include the following, except

Accepted Answer

A)  improvements in technology. 
B)  expansion of capital stock. 
C)  increases in purchases of output. 
D)  better education and training. 
A)  improvements in technology. 
B)  expansion of capital stock. 
C)  increases in purchases of output. 
D)  better education and training.

Question 4

$$\begin{array} { | c | c | c | } 
\hline \text { Year } & \text { Quantity of Labor } & \text { Productivity of Labor } \
\hline 1 & 2,000 & \$ 200 \
\hline 2 & 2,000 & 210 \
\hline 3 & 2,000 & 210 \
\hline
\end{array}$$ The table shows the quantity of labor (measured in hours) and the productivity of labor (measured in real GDP per hour) in a hypothetical economy in three different years. Between Year 1 and Year 2,
Real GDP increased by

Accepted Answer

A)  1.5 percent. 
B)  2.5 percent. 
C)  5.0 percent. 
D)  6.0 percent. 
A)  1.5 percent. 
B)  2.5 percent. 
C)  5.0 percent. 
D)  6.0 percent.

Question 5

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.
Which set of items in the accompanying list would move an economy from a point inside its
Production possibilities curve to a point on its production possibilities curve?

Accepted Answer

A)  1, 2, 5, and 6 only 
B)  3 and 4 only 
C)  3 only 
D)  1, 3, and 4 only 
A)  1, 2, 5, and 6 only 
B)  3 and 4 only 
C)  3 only 
D)  1, 3, and 4 only

Question 6

Global competition has tended to slow down the rate of productivity growth in the United States.

Accepted Answer

A) True 
 B)False

Question 7

Labor productivity is measured by

Accepted Answer

A)  the ratio of capital to labor. 
B)  real output per worker-hour. 
C)  real output per capita. 
D)  the ratio of worker-hours to real GDP. 
A)  the ratio of capital to labor. 
B)  real output per worker-hour. 
C)  real output per capita. 
D)  the ratio of worker-hours to real GDP.

Question 8

Modern economic growth is deﬁned as increases in real GDP over time.

Accepted Answer

A) True 
 B)False

Question 9

Critics of economic growth

Accepted Answer

A)  contend that growth and industrialization reduce pollution. 
B)  argue that economic growth does not resolve socioeconomic problems such as an unequal distribution of income and wealth. 
C)  point out that growth results in greater economic security for workers. 
D)  say that its beneﬁts accrue nearly exclusively to white males. 
A)  contend that growth and industrialization reduce pollution. 
B)  argue that economic growth does not resolve socioeconomic problems such as an unequal distribution of income and wealth. 
C)  point out that growth results in greater economic security for workers. 
D)  say that its beneﬁts accrue nearly exclusively to white males.

Question 10

Historically, the total amount of real capital per worker in the United States has

Accepted Answer

A)  provided ﬁnancing for the industrial expansion of business. 
B)  increased signiﬁcantly and made labor more productive. 
C)  been the single most important determinant of economic growth. 
D)  remained relatively constant, although the quality of capital has improved dramatically. 
A)  provided ﬁnancing for the industrial expansion of business. 
B)  increased signiﬁcantly and made labor more productive. 
C)  been the single most important determinant of economic growth. 
D)  remained relatively constant, although the quality of capital has improved dramatically.

Question 11

Human capital refers to the

Accepted Answer

A)  tools and equipment available to workers. 
B)  amount of ﬁnancing available to start-up ﬁrms. 
C)  number of workers available in the economy. 
D)  education, training, and skills of workers. 
A)  tools and equipment available to workers. 
B)  amount of ﬁnancing available to start-up ﬁrms. 
C)  number of workers available in the economy. 
D)  education, training, and skills of workers.

Question 12

Which of the following factors is projected to be the dominant source of economic growth in the U.S. from now until 2029?

Accepted Answer

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

Question 13

Real GDP = worker-hours × labor productivity.

Accepted Answer

A) True 
 B)False

Question 14

There is unanimous agreement that economic growth is both desirable and sustainable.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following economic regions has experienced the least growth in real GDP per capita since 1820?

Accepted Answer

A)  Africa 
B)  Asia excluding Japan 
C)  Latin America 
D)  Western Europe 
A)  Africa 
B)  Asia excluding Japan 
C)  Latin America 
D)  Western Europe

Question 16

Describe the change in productivity that has occurred since the Great Recession. List possible
reasons for the change.

Accepted Answer

There has been a slowdown in productivit

Question 17

One important growth-promoting institutional structure is the protection of domestic jobs against
outsourcing.

Accepted Answer

A) True 
 B)False

Question 18

Real per capita GDP in the United States in 2018 was approximately

Accepted Answer

A)  $18,571. 
B)  $47,845. 
C)  $56,793. 
D)  $18.6 trillion. 
A)  $18,571. 
B)  $47,845. 
C)  $56,793. 
D)  $18.6 trillion.

Question 19

A competitive market system

Accepted Answer

A)  encourages growth by allowing producers to make proﬁtable investment decisions based on market signals. 
B)  encourages growth by ensuring that everyone in society will receive a decent standard of living. 
C)  discourages growth because ﬁrms busy competing have no time to innovate or invest. 
D)  discourages growth unless government protects domestic ﬁrms from foreign competition. 
A)  encourages growth by allowing producers to make proﬁtable investment decisions based on market signals. 
B)  encourages growth by ensuring that everyone in society will receive a decent standard of living. 
C)  discourages growth because ﬁrms busy competing have no time to innovate or invest. 
D)  discourages growth unless government protects domestic ﬁrms from foreign competition.

Question 20

Which of the countries below ranked highest in the World Economic Forum's Global Competitiveness Ranking in 2017-2018?

Accepted Answer

A)  Japan 
B)  Switzerland 
C)  Germany 
D)  the United States 
A)  Japan 
B)  Switzerland 
C)  Germany 
D)  the United States

What is the relevance of productive and allocative eﬃciency to the growth process?

Other things equal, which of the following would increase labor productivity the most?

Supply factors in economic growth include the following, except

Global competition has tended to slow down the rate of productivity growth in the United States.

Labor productivity is measured by

Modern economic growth is deﬁned as increases in real GDP over time.

Critics of economic growth

Historically, the total amount of real capital per worker in the United States has

Human capital refers to the

Which of the following factors is projected to be the dominant source of economic growth in the U.S. from now until 2029?

Real GDP = worker-hours × labor productivity.

There is unanimous agreement that economic growth is both desirable and sustainable.

Which of the following economic regions has experienced the least growth in real GDP per capita since 1820?

Describe the change in productivity that has occurred since the Great Recession. List possible reasons for the change.

One important growth-promoting institutional structure is the protection of domestic jobs against outsourcing.

Real per capita GDP in the United States in 2018 was approximately

A competitive market system

Which of the countries below ranked highest in the World Economic Forum's Global Competitiveness Ranking in 2017-2018?

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

What is the relevance of productive and allocative eﬃciency to the growth process?

Other things equal, which of the following would increase labor productivity the most?

Supply factors in economic growth include the following, except

Global competition has tended to slow down the rate of productivity growth in the United States.

Labor productivity is measured by

Modern economic growth is deﬁned as increases in real GDP over time.

Critics of economic growth

Historically, the total amount of real capital per worker in the United States has

Human capital refers to the

Which of the following factors is projected to be the dominant source of economic growth in the U.S. from now until 2029?

Real GDP = worker-hours × labor productivity.

There is unanimous agreement that economic growth is both desirable and sustainable.

Which of the following economic regions has experienced the least growth in real GDP per capita since 1820?

Describe the change in productivity that has occurred since the Great Recession. List possible reasons for the change.

One important growth-promoting institutional structure is the protection of domestic jobs against outsourcing.

Real per capita GDP in the United States in 2018 was approximately

A competitive market system

Which of the countries below ranked highest in the World Economic Forum's Global Competitiveness Ranking in 2017-2018?

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