Question 1

The economy of 1995-2010 was characterized by greater productivity growth and greater
economic growth than in the immediately preceding two decades.

Accepted Answer

A) True 
 B)False

Question 2

The size of the labor force depends on the size of the working-age population and the

Accepted Answer

A)  participation rate. 
B)  employment rate. 
C)  unemployment rate. 
D)  inﬂation rate. 
A)  participation rate. 
B)  employment rate. 
C)  unemployment rate. 
D)  inﬂation rate.

Question 3

An antigrowth view would be that there may be a signiﬁcant trade-off between productivity and

Accepted Answer

A)  education. 
B)  employment. 
C)  economies of scale. 
D)  the quality of life. 
A)  education. 
B)  employment. 
C)  economies of scale. 
D)  the quality of life.

Question 4

Technological advances that contribute to economic growth include the following, except

Accepted Answer

A)  innovative production techniques. 
B)  new managerial methods. 
C)  innovative digital gadgets for consumers. 
D)  new forms of business organization. 
A)  innovative production techniques. 
B)  new managerial methods. 
C)  innovative digital gadgets for consumers. 
D)  new forms of business organization.

Question 5

Increasing returns would be a situation where a ﬁrm increases its workforce and other inputs by

Accepted Answer

A)  8 percent and its output increases by 5 percent. 
B)  5 percent and its output increase by 8 percent. 
C)  8 percent and its output increases by 8 percent. 
D)  12 percent and its output increases by 10 percent. 
A)  8 percent and its output increases by 5 percent. 
B)  5 percent and its output increase by 8 percent. 
C)  8 percent and its output increases by 8 percent. 
D)  12 percent and its output increases by 10 percent.

Question 6

Factors that contributed to the higher U.S. labor productivity growth in 1995-2010 relative to the earlier period include the following, except

Accepted Answer

A)  microchip and information technologies. 
B)  new start-up ﬁrms and increasing returns. 
C)  global competition. 
D)  population growth. 
A)  microchip and information technologies. 
B)  new start-up ﬁrms and increasing returns. 
C)  global competition. 
D)  population growth.

Question 7

A competitive market system promotes growth by providing producers with market signals on which
to base investment and production decisions.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following does not correctly characterize modern economic growth?

Accepted Answer

A)  It spread slowly across the globe, with some societies not having experienced it yet. 
B)  It has occurred only in the last 200 or so years. 
C)  It drastically alters the culture and politics of society. 
D)  It has not affected the average lifespan of human beings. 
A)  It spread slowly across the globe, with some societies not having experienced it yet. 
B)  It has occurred only in the last 200 or so years. 
C)  It drastically alters the culture and politics of society. 
D)  It has not affected the average lifespan of human beings.

Question 9

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

Accepted Answer

A)  Japan 
B)  United States 
C)  Latin America 
D)  Western Europe 
A)  Japan 
B)  United States 
C)  Latin America 
D)  Western Europe

Question 10

Before the Industrial Revolution, living standards in the world

Accepted Answer

A)  were relatively stagnant for long periods of time. 
B)  were already rising signiﬁcantly for many decades. 
C)  are not known, for lack of reliable records from that period. 
D)  were declining because of rapid increases in population. 
A)  were relatively stagnant for long periods of time. 
B)  were already rising signiﬁcantly for many decades. 
C)  are not known, for lack of reliable records from that period. 
D)  were declining because of rapid increases in population.

Question 11

(Last Word) Rising real wages for women in the U.S. workforce since the 1960s have

Accepted Answer

A)  reduced access to job opportunities for women. 
B)  increased the opportunity cost of staying at home. 
C)  led to a rise in the number of lifetime births per woman. 
D)  reallocated labor resources from urban to rural areas of the nation. 
A)  reduced access to job opportunities for women. 
B)  increased the opportunity cost of staying at home. 
C)  led to a rise in the number of lifetime births per woman. 
D)  reallocated labor resources from urban to rural areas of the nation.

Question 12

Proponents of economic growth say that pollution

Accepted Answer

A)  is an inevitable by-product of growth. 
B)  occurs, not because of growth, but because common resources are treated as free goods. 
C)  declines as a country moves from agriculture to industry. 
D)  is detrimental to economic growth. 
A)  is an inevitable by-product of growth. 
B)  occurs, not because of growth, but because common resources are treated as free goods. 
C)  declines as a country moves from agriculture to industry. 
D)  is detrimental to economic growth.

Question 13

The Industrial Revolution and modern economic growth resulted in

Accepted Answer

A)  the average human lifespan more than doubling. 
B)  a major population shift from urban to rural areas. 
C)  increased production by local craftspeople. 
D)  all of these. 
A)  the average human lifespan more than doubling. 
B)  a major population shift from urban to rural areas. 
C)  increased production by local craftspeople. 
D)  all of these.

Question 14

The signiﬁcant increase in U.S. labor-productivity growth experienced in the period 1995-2010
continued to be observed in the period 2010-2018.

Accepted Answer

A) True 
 B)False

Question 15

Summarize the four supply factors in economic growth.

Accepted Answer

The four supply factors include increase

Question 16

Countries that have experienced modern economic growth have also tended to

Accepted Answer

A)  adopt feudalistic institutions. 
B)  restrict women and minorities from holding certain economic and political positions. 
C)  move toward more democratic forms of government. 
D)  have less leisure time for sport and artistic activities. 
A)  adopt feudalistic institutions. 
B)  restrict women and minorities from holding certain economic and political positions. 
C)  move toward more democratic forms of government. 
D)  have less leisure time for sport and artistic activities.

Question 17

"Show me a pastoral society with an untouched environment, an abundance of leisure, and non- secular values, and I will show you an underdeveloped, poverty-ridden country." This statement is
Most likely to be made by a(n)

Accepted Answer

A)  advocate of learning by doing. 
B)  advocate of network effects. 
C)  proponent of economic growth. 
D)  critic of economic growth. 
A)  advocate of learning by doing. 
B)  advocate of network effects. 
C)  proponent of economic growth. 
D)  critic of economic growth.

Question 18

Which of the following is the so-called eﬃciency factor of economic growth?

Accepted Answer

A)  having an eﬃcient ﬁnancial system 
B)  reaching full production potential 
C)  having free trade 
D)  enhanced quantity and quality of human resources 
A)  having an eﬃcient ﬁnancial system 
B)  reaching full production potential 
C)  having free trade 
D)  enhanced quantity and quality of human resources

Question 19

The largest factor that raised labor productivity in the U.S. economy since the 1950s has been the
increased amount of capital available.

Accepted Answer

A) True 
 B)False

Question 20

What is the main cause of the uneven distribution of economic growth seen around the world?

Accepted Answer

The main cause of the uneven distributio

Exam 8: Economic Growth

The economy of 1995-2010 was characterized by greater productivity growth and greater economic growth than in the immediately preceding two decades.

The size of the labor force depends on the size of the working-age population and the

An antigrowth view would be that there may be a signiﬁcant trade-off between productivity and

Technological advances that contribute to economic growth include the following, except

Increasing returns would be a situation where a ﬁrm increases its workforce and other inputs by

Factors that contributed to the higher U.S. labor productivity growth in 1995-2010 relative to the earlier period include the following, except

A competitive market system promotes growth by providing producers with market signals on which to base investment and production decisions.

Which of the following does not correctly characterize modern economic growth?

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

Before the Industrial Revolution, living standards in the world

(Last Word) Rising real wages for women in the U.S. workforce since the 1960s have

Proponents of economic growth say that pollution

The Industrial Revolution and modern economic growth resulted in

The signiﬁcant increase in U.S. labor-productivity growth experienced in the period 1995-2010 continued to be observed in the period 2010-2018.

Summarize the four supply factors in economic growth.

Countries that have experienced modern economic growth have also tended to

"Show me a pastoral society with an untouched environment, an abundance of leisure, and non- secular values, and I will show you an underdeveloped, poverty-ridden country." This statement is Most likely to be made by a(n)

Which of the following is the so-called eﬃciency factor of economic growth?

The largest factor that raised labor productivity in the U.S. economy since the 1950s has been the increased amount of capital available.

What is the main cause of the uneven distribution of economic growth seen around the world?

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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