Question 1

Large productivity increases are most likely to be achieved by

Accepted Answer

A)  emergency room nurses. 
B)  professional basketball players. 
C)  symphony orchestras. 
D)  automobile manufacturers. 
A)  emergency room nurses. 
B)  professional basketball players. 
C)  symphony orchestras. 
D)  automobile manufacturers.

Question 2

In 2010, in order to stimulate capital investment, President Obama proposed

Accepted Answer

A)  a reduction in real interest rates. 
B)  an increase in the money supply. 
C)  increased write-offs for businesses purchasing equipment. 
D)  an increase in the tax on capital gains. 
A)  a reduction in real interest rates. 
B)  an increase in the money supply. 
C)  increased write-offs for businesses purchasing equipment. 
D)  an increase in the tax on capital gains.

Question 3

Which of these countries have higher levels of human capital?

Accepted Answer

A)  Asian countries 
B)  European countries 
C)  Developing countries 
D)  Developed countries 
A)  Asian countries 
B)  European countries 
C)  Developing countries 
D)  Developed countries

Question 4

Which of the following is not one of the three pillars of productivity growth?

Accepted Answer

A)  Rate of capacity utilization 
B)  Rate of technological improvement 
C)  Rate of improvement in workforce quality 
D)  Rate of capital expansion 
A)  Rate of capacity utilization 
B)  Rate of technological improvement 
C)  Rate of improvement in workforce quality 
D)  Rate of capital expansion

Question 5

U.S. government policy to stimulate research and development activities would be most likely to succeed if it involved

Accepted Answer

A)  interest rate policy. 
B)  corporate tax policy. 
C)  personal income tax policy. 
D)  payroll tax policy. 
A)  interest rate policy. 
B)  corporate tax policy. 
C)  personal income tax policy. 
D)  payroll tax policy.

Question 6

The three pillars of productivity growth does not include an

Accepted Answer

A)  increase in the rate at which the economy builds up its stock of capital. 
B)  increase in population. 
C)  increase in the rate at which technology improves. 
D)  increase in the rate at which workforce quality improves. 
A)  increase in the rate at which the economy builds up its stock of capital. 
B)  increase in population. 
C)  increase in the rate at which technology improves. 
D)  increase in the rate at which workforce quality improves.

Question 7

The productivity growth rates of richer countries tend to be ____ than those of poorer countries.

Accepted Answer

A)  higher 
B)  lower 
C)  increasing faster 
D)  decreasing faster 
A)  higher 
B)  lower 
C)  increasing faster 
D)  decreasing faster

Question 8

Private sector investment is usually done through borrowing. The economic variable that influences the level of investment is the

Accepted Answer

A)  inflation rate. 
B)  per capita GDP. 
C)  the real interest rate. 
D)  employment rate. 
A)  inflation rate. 
B)  per capita GDP. 
C)  the real interest rate. 
D)  employment rate.

Question 9

Higher energy prices can be used to adequately explain the productivity slowdown in

Accepted Answer

A)  the United States and the rest of the world. 
B)  the United States but not the rest of the world. 
C)  the rest of the world but not the United States. 
D)  neither the United States nor the rest of the world. 
A)  the United States and the rest of the world. 
B)  the United States but not the rest of the world. 
C)  the rest of the world but not the United States. 
D)  neither the United States nor the rest of the world.

Question 10

What is convergence hypothesis? Why should we expect convergence in the long run?

Accepted Answer

The convergence hypothesis holds that na

Question 11

What is the price of investment? How are they related? What has to be done to increase investment?

Accepted Answer

The real interest rate is the price of i

Question 12

The process of invention is the act of

Accepted Answer

A)  introducing a new product into the market. 
B)  applying a process in a new area of the market. 
C)  discovering a new process or product. 
D)  adopting an innovation to a profitable use. 
A)  introducing a new product into the market. 
B)  applying a process in a new area of the market. 
C)  discovering a new process or product. 
D)  adopting an innovation to a profitable use.

Question 13

Workforce explanations of the productivity changes in the 1973-1995 period include

Accepted Answer

A)  rising SAT scores. 
B)  declining SAT scores. 
C)  rising educational attainment. 
D)  falling levels of average educational attainment. 
A)  rising SAT scores. 
B)  declining SAT scores. 
C)  rising educational attainment. 
D)  falling levels of average educational attainment.

Question 14

Consumer expectations and a positive business sentiment would boost

Accepted Answer

A)  investment through aggregate supply. 
B)  investment through aggregate demand. 
C)  government spending. 
D)  investment through aggregate demand and aggregate supply. 
A)  investment through aggregate supply. 
B)  investment through aggregate demand. 
C)  government spending. 
D)  investment through aggregate demand and aggregate supply.

Question 15

The Soviet Union heavily invested in higher education and

Accepted Answer

A)  achieved higher per capita GDP growth. 
B)  had high returns to its investment. 
C)  failed to achieve higher per capita GDP growth. 
D)  had a direct relationship between Olympic medals and productivity growth. 
A)  achieved higher per capita GDP growth. 
B)  had high returns to its investment. 
C)  failed to achieve higher per capita GDP growth. 
D)  had a direct relationship between Olympic medals and productivity growth.

Question 16

The convergence hypothesis explains

Accepted Answer

A)  the shrinking gap between income levels of poor and rich countries. 
B)  the ability of firms to profit maximize and cost minimize. 
C)  the willingness of countries to reduce environmental damage after an income level has been attained. 
D)  the similarities between cultures. 
A)  the shrinking gap between income levels of poor and rich countries. 
B)  the ability of firms to profit maximize and cost minimize. 
C)  the willingness of countries to reduce environmental damage after an income level has been attained. 
D)  the similarities between cultures.

Question 17

In order for a country to achieve more consumer goods in the future, it must

Accepted Answer

A)  allocate more resources toward investment today. 
B)  devote more resources toward consumer goods today. 
C)  have a faster economic growth rate in the future. 
D)  devote more resources to consumer goods in the future. 
A)  allocate more resources toward investment today. 
B)  devote more resources toward consumer goods today. 
C)  have a faster economic growth rate in the future. 
D)  devote more resources to consumer goods in the future.

Question 18

The profitability of an investment project will decrease if

Accepted Answer

A)  tax rates decrease. 
B)  real interest rates increase. 
C)  real interest rates decrease. 
D)  business tax deductions increase. 
A)  tax rates decrease. 
B)  real interest rates increase. 
C)  real interest rates decrease. 
D)  business tax deductions increase.

Question 19

Improvements in the level of technology will generally shift the production function downward.

Accepted Answer

A) True 
 B)False

Question 20

According to the convergence hypothesis, as the rate of technological adoption rises in poorer countries,

Accepted Answer

A)  the gap between rich and poor countries increase. 
B)  income inequality rises. 
C)  the flow of net exports can be reduced. 
D)  the gap between wealthy and poor countries close. 
A)  the gap between rich and poor countries increase. 
B)  income inequality rises. 
C)  the flow of net exports can be reduced. 
D)  the gap between wealthy and poor countries close.

Exam 23: Economic Growth: Theory and Policy

Large productivity increases are most likely to be achieved by

In 2010, in order to stimulate capital investment, President Obama proposed

Which of these countries have higher levels of human capital?

Which of the following is not one of the three pillars of productivity growth?

U.S. government policy to stimulate research and development activities would be most likely to succeed if it involved

The three pillars of productivity growth does not include an

The productivity growth rates of richer countries tend to be ____ than those of poorer countries.

Private sector investment is usually done through borrowing. The economic variable that influences the level of investment is the

Higher energy prices can be used to adequately explain the productivity slowdown in

What is convergence hypothesis? Why should we expect convergence in the long run?

What is the price of investment? How are they related? What has to be done to increase investment?

The process of invention is the act of

Workforce explanations of the productivity changes in the 1973-1995 period include

Consumer expectations and a positive business sentiment would boost

The Soviet Union heavily invested in higher education and

The convergence hypothesis explains

In order for a country to achieve more consumer goods in the future, it must

The profitability of an investment project will decrease if

Improvements in the level of technology will generally shift the production function downward.

According to the convergence hypothesis, as the rate of technological adoption rises in poorer countries,

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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