Question 1

What is the growth in resources when total factor productivity grows by 3.5 percent and the economy grows by 2.7 percent?

Accepted Answer

A)  0.8 % 
B)  -2.7 % 
C)  3.5 % 
D)  -0.8 % 
E)  0.6% 
A)  0.8 % 
B)  -2.7 % 
C)  3.5 % 
D)  -0.8 % 
E)  0.6%

Question 2

Which of the following contributed to a slowdown in U.S. labor productivity during the 1970s?

Accepted Answer

A)  An increase in the number of skilled legal immigrant workers 
B)  An increase in the illegal employment of minors 
C)  An increase in the number of skilled illegal immigrant workers 
D)  The entry of the baby boom generation into the work force 
E)  Lower energy prices 
A)  An increase in the number of skilled legal immigrant workers 
B)  An increase in the illegal employment of minors 
C)  An increase in the number of skilled illegal immigrant workers 
D)  The entry of the baby boom generation into the work force 
E)  Lower energy prices

Question 3

Growth in total factor productivity equals the _____.

Accepted Answer

A)  sum of resource growth and economic growth 
B)  ratio of total output to total input 
C)  ratio of total input to total output 
D)  percentage change in per capita real GDP 
E)  percentage change in output minus the percentage change in resources 
A)  sum of resource growth and economic growth 
B)  ratio of total output to total input 
C)  ratio of total input to total output 
D)  percentage change in per capita real GDP 
E)  percentage change in output minus the percentage change in resources

Question 4

The baby boom of the post-World War II period had the greatest impact on the size of the U.S. labor force in _____.

Accepted Answer

A)  the 1980s 
B)  the 1970s 
C)  the 1960s 
D)  the 1950s 
E)  the late 1940s 
A)  the 1980s 
B)  the 1970s 
C)  the 1960s 
D)  the 1950s 
E)  the late 1940s

Question 5

Which of the following is true of the rule of 72?

Accepted Answer

A)  The rule of 72 is used to approximate annual real GDP. 
B)  The rule of 72 determines the time required for any value to double if it grows at a constant annual rate. 
C)  The rule of 72 is used to calculate the number of years it takes for any quantity to treble in size. 
D)  The rule of 72 refers to the fact that real GDP doubles every 6 years. 
E)  The rule of 72 refers to the fact that capital growth has consistently contributed 72 percent to the U.S. real GDP. 
A)  The rule of 72 is used to approximate annual real GDP. 
B)  The rule of 72 determines the time required for any value to double if it grows at a constant annual rate. 
C)  The rule of 72 is used to calculate the number of years it takes for any quantity to treble in size. 
D)  The rule of 72 refers to the fact that real GDP doubles every 6 years. 
E)  The rule of 72 refers to the fact that capital growth has consistently contributed 72 percent to the U.S. real GDP.

Question 6

When trying to determine the standard of living in a given country, it is not important to observe its income distribution, because what we are interested in is the income per person in the economy.

Accepted Answer

A) True 
 B)False

Question 7

If natural gas is replaced by solar power as a more efficient form of energy, we should expect _____.

Accepted Answer

A)  a leftward shift of the aggregate supply curve 
B)  higher production prices at every output level 
C)  a decline in the growth of total output 
D)  a decrease in the stock of energy-efficient capital goods 
E)  an increase in total factor productivity 
A)  a leftward shift of the aggregate supply curve 
B)  higher production prices at every output level 
C)  a decline in the growth of total output 
D)  a decrease in the stock of energy-efficient capital goods 
E)  an increase in total factor productivity

Question 8

Suppose the economy grows by 2.5 percent, the labor force rises by 3 percent, and capital rises by 1 percent. If capital takes 50 percent of real GDP and labor takes the other 50 percent of real GDP, then the growth in total factor productivity must be _____.

Accepted Answer

A)  6.5 % 
B)  4.5 % 
C)  0.5 % 
D)  6 % 
E)  10 % 
A)  6.5 % 
B)  4.5 % 
C)  0.5 % 
D)  6 % 
E)  10 %

Question 9

Other things equal, a country's long-run aggregate supply will shift to the right when the productivity of labor rises.

Accepted Answer

A) True 
 B)False

Question 10

Economic growth in any country is reflected by an increase in real GDP.

Accepted Answer

A) True 
 B)False

Question 11

If the growth rate of resources is zero and real output is growing at 4 percent, then _____.

Accepted Answer

A)  the stock of capital has fallen by 4 percent 
B)  economic growth has fallen by 4 percent 
C)  total factor productivity has risen by 4 percent 
D)  the stock of labor has fallen by 4 percent 
E)  the percentage share of real GDP received by capital has fallen by 4 percent 
A)  the stock of capital has fallen by 4 percent 
B)  economic growth has fallen by 4 percent 
C)  total factor productivity has risen by 4 percent 
D)  the stock of labor has fallen by 4 percent 
E)  the percentage share of real GDP received by capital has fallen by 4 percent

Question 12

By the late 1990s, the growth rate of total factor productivity in the United States _____.

Accepted Answer

A)  averaged about 1 % 
B)  averaged between 3 and 4 % 
C)  averaged between 6 and 8 % 
D)  averaged between 10 and 15 % 
E)  averaged above 20 % 
A)  averaged about 1 % 
B)  averaged between 3 and 4 % 
C)  averaged between 6 and 8 % 
D)  averaged between 10 and 15 % 
E)  averaged above 20 %

Question 13

If real GDP in Sweden was SEK 822 billion at the end of 1993 and SEK 950 billion at the end of 1994, we can say that the Swedish economy grew at an annual rate of 7% in 1994.

Accepted Answer

A) True 
 B)False

Question 14

Abundance of natural resources is a necessary but not sufficient condition for economic growth.

Accepted Answer

A) True 
 B)False

Question 15

The total U.S. productivity growth rate decreased during the 1990s during massive technological innovations.

Accepted Answer

A) True 
 B)False

Question 16

Economic growth is equal to:

Accepted Answer

A)  total factor productivity plus amounts of resources. 
B)  growth in total factor productivity plus growth in amounts of resources. 
C)  total factor productivity minus marginal factor productivity 
D)  real GDP plus national output 
E)  GNP plus GDP 
A)  total factor productivity plus amounts of resources. 
B)  growth in total factor productivity plus growth in amounts of resources. 
C)  total factor productivity minus marginal factor productivity 
D)  real GDP plus national output 
E)  GNP plus GDP

Question 17

Which of the following is accounted for when we measure economic growth in terms of per capita real GDP?

Accepted Answer

A)  Changes in the quality of life 
B)  Changes in income distribution 
C)  Changes in standards of living 
D)  Changes in price level 
E)  People's nonmonetary needs 
A)  Changes in the quality of life 
B)  Changes in income distribution 
C)  Changes in standards of living 
D)  Changes in price level 
E)  People's nonmonetary needs

Question 18

In economics, the term technology refers to different ways of combining resources to produce output. In this sense, technological advances make possible the production of more output from a given amount of resources.

Accepted Answer

A) True 
 B)False

Question 19

If an investment of $400 increases to $800 in 16 years, the annual interest rate of the investment must be _____.

Accepted Answer

A)  18 % 
B)  10 % 
C)  9 % 
D)  4.5 % 
E)  1.8 % 
A)  18 % 
B)  10 % 
C)  9 % 
D)  4.5 % 
E)  1.8 %

Question 20

Which of the following statements about technology is true?

Accepted Answer

A)  It is sufficient but not a necessary condition for economic growth. 
B)  Management techniques are irrelevant to technological growth. 
C)  Industrial countries follow the lead of developing countries in implementing new technology. 
D)  Technological change is inversely related to a nation's ability to save. 
E)  Low levels of education can impede technological progress. 
A)  It is sufficient but not a necessary condition for economic growth. 
B)  Management techniques are irrelevant to technological growth. 
C)  Industrial countries follow the lead of developing countries in implementing new technology. 
D)  Technological change is inversely related to a nation's ability to save. 
E)  Low levels of education can impede technological progress.

Exam 16: Economic Growth

What is the growth in resources when total factor productivity grows by 3.5 percent and the economy grows by 2.7 percent?

Which of the following contributed to a slowdown in U.S. labor productivity during the 1970s?

Growth in total factor productivity equals the _____.

The baby boom of the post-World War II period had the greatest impact on the size of the U.S. labor force in _____.

Which of the following is true of the rule of 72?

When trying to determine the standard of living in a given country, it is not important to observe its income distribution, because what we are interested in is the income per person in the economy.

If natural gas is replaced by solar power as a more efficient form of energy, we should expect _____.

Suppose the economy grows by 2.5 percent, the labor force rises by 3 percent, and capital rises by 1 percent. If capital takes 50 percent of real GDP and labor takes the other 50 percent of real GDP, then the growth in total factor productivity must be _____.

Other things equal, a country's long-run aggregate supply will shift to the right when the productivity of labor rises.

Economic growth in any country is reflected by an increase in real GDP.

If the growth rate of resources is zero and real output is growing at 4 percent, then _____.

By the late 1990s, the growth rate of total factor productivity in the United States _____.

If real GDP in Sweden was SEK 822 billion at the end of 1993 and SEK 950 billion at the end of 1994, we can say that the Swedish economy grew at an annual rate of 7% in 1994.

Abundance of natural resources is a necessary but not sufficient condition for economic growth.

The total U.S. productivity growth rate decreased during the 1990s during massive technological innovations.

Economic growth is equal to:

Which of the following is accounted for when we measure economic growth in terms of per capita real GDP?

In economics, the term technology refers to different ways of combining resources to produce output. In this sense, technological advances make possible the production of more output from a given amount of resources.

If an investment of $400 increases to $800 in 16 years, the annual interest rate of the investment must be _____.

Which of the following statements about technology is true?

Economics: the World Around You

Choice, Opportunity Costs, and Specialization

Markets, Demand and Supply, and the Price System

The Market System and the Private and Public Sector

National Income Accounting

An Introduction to the Foreign Exchange Market and the Balance of Payments

Unemployment and Inflation

Macroeconomic Equilibrium: Aggregate Demand and Supply

Aggregate Expenditures

Income and Expenditures Equilibrium

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

Development Economics

Globalization

World Trade Equilibrium

International Trade Restrictions

Exchange Rates and Financial Links Between Countries

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