Question 1

The improvement in human capital can be shown by a(n)

Accepted Answer

A)  increase along the production function. 
B)  decrease along the production function. 
C)  shift up of the production function. 
D)  shift down of the production function. 
A)  increase along the production function. 
B)  decrease along the production function. 
C)  shift up of the production function. 
D)  shift down of the production function.

Question 2

Which furniture production process would have the highest wage rates?

Accepted Answer

A)  Furniture made by handsaw and hammer 
B)  Furniture made with power equipment 
C)  Furniture with a mix of handmade and automated labor 
D)  Furniture made in an automated furniture factory 
A)  Furniture made by handsaw and hammer 
B)  Furniture made with power equipment 
C)  Furniture with a mix of handmade and automated labor 
D)  Furniture made in an automated furniture factory

Question 3

One reason given for the U.S. productivity slowdown in the period from 1973 to 1995 was

Accepted Answer

A)  declining energy prices. 
B)  increasing energy prices. 
C)  increasing investment spending. 
D)  increasing government spending. 
A)  declining energy prices. 
B)  increasing energy prices. 
C)  increasing investment spending. 
D)  increasing government spending.

Question 4

There is no general agreement among economists regarding the sources of the U.S. productivity slowdown that occurred between 1973 and 1995.

Accepted Answer

A) True 
 B)False

Question 5

The application of new technology refers to

Accepted Answer

A)  imitation. 
B)  investment. 
C)  innovation. 
D)  education. 
A)  imitation. 
B)  investment. 
C)  innovation. 
D)  education.

Question 6

For given inputs of labor and capital, if technology is better, labor productivity will be

Accepted Answer

A)  higher. 
B)  lower. 
C)  unchanged. 
D)  characterized by increasing returns to scale. 
A)  higher. 
B)  lower. 
C)  unchanged. 
D)  characterized by increasing returns to scale.

Question 7

Compared to workers in poor countries, workers in richer countries have

Accepted Answer

A)  lower productivity but higher wages. 
B)  higher productivity and higher wages. 
C)  higher productivity but lower wages. 
D)  the same productivity but higher wages. 
A)  lower productivity but higher wages. 
B)  higher productivity and higher wages. 
C)  higher productivity but lower wages. 
D)  the same productivity but higher wages.

Question 8

During the mid- to late 1990s, the incentives for investment spending resulted in boosts in

Accepted Answer

A)  aggregate demand. 
B)  personal consumption expenditures. 
C)  corporate tax revenue. 
D)  capital gain tax revenue. 
A)  aggregate demand. 
B)  personal consumption expenditures. 
C)  corporate tax revenue. 
D)  capital gain tax revenue.

Question 9

All of the following are reasonable explanations of the labor productivity speed-up in the United States except

Accepted Answer

A)  labor force quality. 
B)  technological change. 
C)  investment spending. 
D)  research and development. 
A)  labor force quality. 
B)  technological change. 
C)  investment spending. 
D)  research and development.

Question 10

The productivity speed-up of the 1950s and the 1960s could have been caused by

Accepted Answer

A)  wartime innovations. 
B)  civilian innovations after World War II. 
C)  industrial innovations spurred by the Korean and Vietnam conflicts. 
D)  decreases in the rate of population growth. 
A)  wartime innovations. 
B)  civilian innovations after World War II. 
C)  industrial innovations spurred by the Korean and Vietnam conflicts. 
D)  decreases in the rate of population growth.

Question 11

Leaps in productivity growth experienced by China are attributed to

Accepted Answer

A)  loans provided by the Asia Development Bank. 
B)  a high savings rate, human and capital investment and foreign direct investment. 
C)  foreign aid received from industrialized countries. 
D)  the enforcement of intellectual property rights. 
A)  loans provided by the Asia Development Bank. 
B)  a high savings rate, human and capital investment and foreign direct investment. 
C)  foreign aid received from industrialized countries. 
D)  the enforcement of intellectual property rights.

Question 12

Real wages in the United States tend to rise at the same rate as

Accepted Answer

A)  prices. 
B)  tax rates. 
C)  average productivity levels. 
D)  inflation. 
A)  prices. 
B)  tax rates. 
C)  average productivity levels. 
D)  inflation.

Question 13

Laws that assign owners the rights to use assets as they see fit are called

Accepted Answer

A)  human rights. 
B)  economic rights. 
C)  property rights. 
D)  government rights. 
A)  human rights. 
B)  economic rights. 
C)  property rights. 
D)  government rights.

Question 14

In the United States, the average level of educational attainment is approximately a

Accepted Answer

A)  primary education. 
B)  secondary education. 
C)  higher education. 
D)  graduate-level education. 
A)  primary education. 
B)  secondary education. 
C)  higher education. 
D)  graduate-level education.

Question 15

Which of the following would not be classified as capital by economists?

Accepted Answer

A)  Laptop computers at a technology company 
B)  Sewing machines at a clothing factory 
C)  A corporate bond from IBM 
D)  Gym equipment at a local fitness center 
A)  Laptop computers at a technology company 
B)  Sewing machines at a clothing factory 
C)  A corporate bond from IBM 
D)  Gym equipment at a local fitness center

Question 16

Which of the following is an explanation for why some poor countries suffer from lower productivity growth?

Accepted Answer

A)  Too much saving has led to the accumulation of capital in poor countries. 
B)  The adoption of technology too quickly hurts the labor force in poor countries. 
C)  Primary education is universal in poor countries. 
D)  Poor countries have lower capital stocks. 
A)  Too much saving has led to the accumulation of capital in poor countries. 
B)  The adoption of technology too quickly hurts the labor force in poor countries. 
C)  Primary education is universal in poor countries. 
D)  Poor countries have lower capital stocks.

Question 17

The U.S. business sector has the most purview over

Accepted Answer

A)  tax revenues. 
B)  on-the-job training. 
C)  educational outcomes. 
D)  university education. 
A)  tax revenues. 
B)  on-the-job training. 
C)  educational outcomes. 
D)  university education.

Question 18

Some politicians argue that reducing the corporate income tax will increase business investment spending.

Accepted Answer

A) True 
 B)False

Question 19

One of the main drivers of industrialization in South Korea was

Accepted Answer

A)  an increase in human capital. 
B)  decreased trade with developed countries. 
C)  the accumulation of new technology. 
D)  trade with North Korea. 
A)  an increase in human capital. 
B)  decreased trade with developed countries. 
C)  the accumulation of new technology. 
D)  trade with North Korea.

Question 20

Human capital includes the tools and equipment that human beings work with.

Accepted Answer

A) True 
 B)False

Exam 23: Economic Growth: Theory and Policy

The improvement in human capital can be shown by a(n)

Which furniture production process would have the highest wage rates?

One reason given for the U.S. productivity slowdown in the period from 1973 to 1995 was

There is no general agreement among economists regarding the sources of the U.S. productivity slowdown that occurred between 1973 and 1995.

The application of new technology refers to

For given inputs of labor and capital, if technology is better, labor productivity will be

Compared to workers in poor countries, workers in richer countries have

During the mid- to late 1990s, the incentives for investment spending resulted in boosts in

All of the following are reasonable explanations of the labor productivity speed-up in the United States except

The productivity speed-up of the 1950s and the 1960s could have been caused by

Leaps in productivity growth experienced by China are attributed to

Real wages in the United States tend to rise at the same rate as

Laws that assign owners the rights to use assets as they see fit are called

In the United States, the average level of educational attainment is approximately a

Which of the following would not be classified as capital by economists?

Which of the following is an explanation for why some poor countries suffer from lower productivity growth?

The U.S. business sector has the most purview over

Some politicians argue that reducing the corporate income tax will increase business investment spending.

One of the main drivers of industrialization in South Korea was

Human capital includes the tools and equipment that human beings work with.

What Is Economics

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation

Bringing in the Supply Side: Unemployment and Inflation

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder

Exchange Rates and the Macroeconomy

Contemporary Issues in the Us Economy

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