Question 1

An increase in the quantity and quality of natural resources is an example of a demand factor of
economic growth.

Accepted Answer

A) True 
 B)False

Question 2

Labor productivity = worker-hours/real GDP.

Accepted Answer

A) True 
 B)False

Question 3

Refer to the diagram. The most likely cause of a shift from AB to CD would be a(n)

Accepted Answer

A)  increase in productivity. 
B)  increase in the price level. 
C)  decrease in the size of the labor force. 
D)  increase in government spending. 
A)  increase in productivity. 
B)  increase in the price level. 
C)  decrease in the size of the labor force. 
D)  increase in government spending.

Question 4

If a nation's productivity grows by 3 percent rather than 1.5 percent over many years, what will be
the difference in the nation's standard of living? Explain.

Accepted Answer

A nation with a 3 percent growth rate wi

Question 5

The invention of the steam engine ushered in the following developments, except

Accepted Answer

A)  mass-production in industrial factories, for the ﬁrst time. 
B)  much easier and cheaper transportation of resources and products. 
C)  a sharp reduction in trade as many societies specialized. 
D)  major population shifts, from farms to towns and cities. 
A)  mass-production in industrial factories, for the ﬁrst time. 
B)  much easier and cheaper transportation of resources and products. 
C)  a sharp reduction in trade as many societies specialized. 
D)  major population shifts, from farms to towns and cities.

Question 6

Follower countries achieve high rates of growth by adopting technologies developed by leader
countries.

Accepted Answer

A) True 
 B)False

Question 7

$$\begin{array} { | c | c | c | c | c | } 
\hline \text { Year } & \text { Alta (Real GDP) } & \text { Zorn (Real GDP) } & \text { Alta (Population) } & \text { Zorn (Population) } \
\hline 1 & \$ 2,000 & \$ 150,000 & 200 & 500 \
\hline 2 & 2,100 & 152,000 & 202 & 505 \
\hline 3 & 2,200 & 154,000 & 210 & 508 \
\hline
\end{array}$$ Refer to the table. Per capita GDP was about

Accepted Answer

A)  $105 in year 3 in Alta. 
B)  $303 in year 3 in Zorn. 
C)  $200 in year 1 in Zorn. 
D)  $5 in year 2 in Alta. 
A)  $105 in year 3 in Alta. 
B)  $303 in year 3 in Zorn. 
C)  $200 in year 1 in Zorn. 
D)  $5 in year 2 in Alta.

Question 8

Measured productivity growth for the United States declined following the Great Recession. Which of the following explanations for that phenomenon suggests that measured productivity has failed
To account for actual gains?

Accepted Answer

A)  high debt levels, accumulated prior to the Great Recession 
B)  creation of new products that are essentially free to consumers 
C)  overcapacity of ﬁrms, implying a greater ability to produce than is currently measured 
D)  stalled technological progress that has encouraged greater consumption of leisure activities 
A)  high debt levels, accumulated prior to the Great Recession 
B)  creation of new products that are essentially free to consumers 
C)  overcapacity of ﬁrms, implying a greater ability to produce than is currently measured 
D)  stalled technological progress that has encouraged greater consumption of leisure activities

Question 9

Refer to the diagram. Increases in the quantity and quality of human resources and capital are best represented by a

Accepted Answer

A)  shift in the production possibilities curve from AB to CD. 
B)  move from Y on CD to X on AB. 
C)  shift in the production possibilities curve from CD to AB. 
D)  move from X to Z along AB. 
A)  shift in the production possibilities curve from AB to CD. 
B)  move from Y on CD to X on AB. 
C)  shift in the production possibilities curve from CD to AB. 
D)  move from X to Z along AB.

Question 10

If the economy's real GDP doubles in 18 years, we can

Accepted Answer

A)  not say anything about the average annual rate of growth. 
B)  conclude that its average annual rate of growth is about 5.5 percent. 
C)  conclude that its average annual rate of growth is about 2.4 percent. 
D)  conclude that its average annual rate of growth is about 3.9 percent. 
A)  not say anything about the average annual rate of growth. 
B)  conclude that its average annual rate of growth is about 5.5 percent. 
C)  conclude that its average annual rate of growth is about 2.4 percent. 
D)  conclude that its average annual rate of growth is about 3.9 percent.

Question 11

The ability to expand production is suﬃcient for a nation to achieve maximum possible growth.

Accepted Answer

A) True 
 B)False

Question 12

Growth is a widely held economic goal primarily because it creates a more equal distribution of
wealth and income.

Accepted Answer

A) True 
 B)False

Question 13

If the working-age population in an economy shrinks, real GDP can still grow if

Accepted Answer

A)  work hours per week decreases, to spread work among more workers. 
B)  labor productivity increases rapidly enough. 
C)  consumption by households increases rapidly. 
D)  spending by ﬁrms and the government increases. 
A)  work hours per week decreases, to spread work among more workers. 
B)  labor productivity increases rapidly enough. 
C)  consumption by households increases rapidly. 
D)  spending by ﬁrms and the government increases.

Question 14

Suppose total output (real GDP) is $10,000 and worker-hours are 20,000. We can conclude that

Accepted Answer

A)  real GDP per capita must be $200,000. 
B)  the price-level index must be less than 100. 
C)  labor productivity must be $0.50. 
D)  nominal GDP must be between $10,000 and $20,000. 
A)  real GDP per capita must be $200,000. 
B)  the price-level index must be less than 100. 
C)  labor productivity must be $0.50. 
D)  nominal GDP must be between $10,000 and $20,000.

Question 15

In the growth debate, critics of economic growth say that it will deplete our ﬁnite economic
resources.

Accepted Answer

A) True 
 B)False

Question 16

Nation A's real GDP was $520 billion in Year 1 and $550 billion in Year 2. Its population was 150 million in Year 1 and 155 million in Year 2. On the other hand, Nation B's real GDP was $200 billion in
Year 1 and $210 billion in Year 2; and its population was 53 million in Year 1 and 55 million in Year 2.
Which of the following statements is true?

Accepted Answer

A)  Nation A's real GDP growth in Year 2 is higher than Nation B's. 
B)  Nation B's real GDP growth in Year 2 is higher than Nation A's. 
C)  Nation A's real GDP growth in Year 2 is identical to Nation B's. 
D)  Nation A's and Nation B's real GDP growth rates in Year 2 are both higher than 10 percent. 
A)  Nation A's real GDP growth in Year 2 is higher than Nation B's. 
B)  Nation B's real GDP growth in Year 2 is higher than Nation A's. 
C)  Nation A's real GDP growth in Year 2 is identical to Nation B's. 
D)  Nation A's and Nation B's real GDP growth rates in Year 2 are both higher than 10 percent.

Question 17

Which of the following is best considered a demand factor in economic growth?

Accepted Answer

A)  the quantity of human resources 
B)  the quality of natural resources 
C)  the stock of capital goods 
D)  expanded purchases of goods and services 
A)  the quantity of human resources 
B)  the quality of natural resources 
C)  the stock of capital goods 
D)  expanded purchases of goods and services

Question 18

A nation's infrastructure refers to

Accepted Answer

A)  its ability to realize economies of scale. 
B)  its stock of technological knowledge. 
C)  public capital goods such as highways and sanitation systems. 
D)  the productivity of its labor force. 
A)  its ability to realize economies of scale. 
B)  its stock of technological knowledge. 
C)  public capital goods such as highways and sanitation systems. 
D)  the productivity of its labor force.

Question 19

The historical reallocation of labor from agriculture to manufacturing in the United States has

Accepted Answer

A)  been inﬂationary. 
B)  had no effect on the average productivity of labor. 
C)  increased the average productivity of labor. 
D)  reduced the average productivity of labor. 
A)  been inﬂationary. 
B)  had no effect on the average productivity of labor. 
C)  increased the average productivity of labor. 
D)  reduced the average productivity of labor.

Question 20

Improvements in technology are considered a demand factor in economic growth.

Accepted Answer

A) True 
 B)False

An increase in the quantity and quality of natural resources is an example of a demand factor of economic growth.

Labor productivity = worker-hours/real GDP.

Refer to the diagram. The most likely cause of a shift from AB to CD would be a(n)

If a nation's productivity grows by 3 percent rather than 1.5 percent over many years, what will be the difference in the nation's standard of living? Explain.

The invention of the steam engine ushered in the following developments, except

Follower countries achieve high rates of growth by adopting technologies developed by leader countries.

Year Alta (Real GDP) Zorn (Real GDP) Alta (Population) Zorn (Population) 1 \ 2,000 \ 150,000 200 500 2 2,100 152,000 202 505 3 2,200 154,000 210 508 Refer to the table. Per capita GDP was about

Measured productivity growth for the United States declined following the Great Recession. Which of the following explanations for that phenomenon suggests that measured productivity has failed To account for actual gains?

Refer to the diagram. Increases in the quantity and quality of human resources and capital are best represented by a

If the economy's real GDP doubles in 18 years, we can

The ability to expand production is suﬃcient for a nation to achieve maximum possible growth.

Growth is a widely held economic goal primarily because it creates a more equal distribution of wealth and income.

If the working-age population in an economy shrinks, real GDP can still grow if

Suppose total output (real GDP) is $10,000 and worker-hours are 20,000. We can conclude that

In the growth debate, critics of economic growth say that it will deplete our ﬁnite economic resources.

Which of the following is best considered a demand factor in economic growth?

A nation's infrastructure refers to

The historical reallocation of labor from agriculture to manufacturing in the United States has

Improvements in technology are considered a demand factor in 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

An increase in the quantity and quality of natural resources is an example of a demand factor of economic growth.

Labor productivity = worker-hours/real GDP.

Refer to the diagram. The most likely cause of a shift from AB to CD would be a(n)

If a nation's productivity grows by 3 percent rather than 1.5 percent over many years, what will be the difference in the nation's standard of living? Explain.

The invention of the steam engine ushered in the following developments, except

Follower countries achieve high rates of growth by adopting technologies developed by leader countries.

Year Alta (Real GDP) Zorn (Real GDP) Alta (Population) Zorn (Population) 1 \ 2,000 \ 150,000 200 500 2 2,100 152,000 202 505 3 2,200 154,000 210 508 Refer to the table. Per capita GDP was about

Measured productivity growth for the United States declined following the Great Recession. Which of the following explanations for that phenomenon suggests that measured productivity has failed To account for actual gains?

Refer to the diagram. Increases in the quantity and quality of human resources and capital are best represented by a

If the economy's real GDP doubles in 18 years, we can

The ability to expand production is suﬃcient for a nation to achieve maximum possible growth.

Growth is a widely held economic goal primarily because it creates a more equal distribution of wealth and income.

If the working-age population in an economy shrinks, real GDP can still grow if

Suppose total output (real GDP) is $10,000 and worker-hours are 20,000. We can conclude that

In the growth debate, critics of economic growth say that it will deplete our ﬁnite economic resources.

Which of the following is best considered a demand factor in economic growth?

A nation's infrastructure refers to

The historical reallocation of labor from agriculture to manufacturing in the United States has

Improvements in technology are considered a demand factor in 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