Question 1

In 2011, which country had the highest level of GDP per hour of work?

Accepted Answer

A)  Spain 
B)  The United Kingdom 
C)  France 
D)  Japan 
A)  Spain 
B)  The United Kingdom 
C)  France 
D)  Japan

Question 2

The act of discovering a new production process would be called

Accepted Answer

A)  invention. 
B)  innovation. 
C)  investment. 
D)  development. 
A)  invention. 
B)  innovation. 
C)  investment. 
D)  development.

Question 3

A productivity decrease would be illustrated by a shift in the production function

Accepted Answer

A)  downward. 
B)  leftward. 
C)  upward. 
D)  rightward. 
A)  downward. 
B)  leftward. 
C)  upward. 
D)  rightward.

Question 4

Labor productivity growth in the United States during the 1973-1995 period could be explained by a ____ slowdown.

Accepted Answer

A)  labor force 
B)  capital formation 
C)  technological 
D)  population growth 
A)  labor force 
B)  capital formation 
C)  technological 
D)  population growth

Question 5

Investment spending, capital formation, and rapid technological progress are directly related.

Accepted Answer

A) True 
 B)False

Question 6

The productivity slowdown in the United States can be explained by the use of social media, many are used for personal enjoyment rather than industrial productivity.

Accepted Answer

A) True 
 B)False

Question 7

Compared to wages of professional athletes, the prices of automobiles in the United States have

Accepted Answer

A)  fallen. 
B)  risen. 
C)  stayed the same. 
D)  risen at the same rate as the CPI. 
A)  fallen. 
B)  risen. 
C)  stayed the same. 
D)  risen at the same rate as the CPI.

Question 8

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

Accepted Answer

A)  1948 to 1973. 
B)  1973 to 1995. 
C)  1973 to 1980. 
D)  1995 to 2000. 
A)  1948 to 1973. 
B)  1973 to 1995. 
C)  1973 to 1980. 
D)  1995 to 2000.

Question 9

For a given technology, a higher capital stock will decrease labor productivity.

Accepted Answer

A) True 
 B)False

Question 10

Falling energy prices could explain rising labor productivity in the 1990s

Accepted Answer

A)  and the 1980s. 
B)  and the 1970s. 
C)  but not the 1980s. 
D)  but not the 1970s. 
A)  and the 1980s. 
B)  and the 1970s. 
C)  but not the 1980s. 
D)  but not the 1970s.

Question 11

An increase in the number of hours worked would

Accepted Answer

A)  shift the production function upward. 
B)  shift the production function downward. 
C)  shift the production function outward. 
D)  not shift the production function. 
A)  shift the production function upward. 
B)  shift the production function downward. 
C)  shift the production function outward. 
D)  not shift the production function.

Question 12

The process of research and development

Accepted Answer

A)  always leads to useful products. 
B)  almost never leads to useful products. 
C)  often involves a waste of resources. 
D)  is usually conducted in governmental laboratories. 
A)  always leads to useful products. 
B)  almost never leads to useful products. 
C)  often involves a waste of resources. 
D)  is usually conducted in governmental laboratories.

Question 13

In most countries, primary and secondary education is the responsibility of the

Accepted Answer

A)  private business sector. 
B)  religious institutions. 
C)  government sector. 
D)  household. 
A)  private business sector. 
B)  religious institutions. 
C)  government sector. 
D)  household.

Question 14

Invention is

Accepted Answer

A)  the act of discovering new products or new ways of making products. 
B)  the act of putting new ideas into effect. 
C)  the collaboration of land, labor, and capital to bring to market goods and services. 
D)  the act of reducing the number of inputs to increase the amount of output. 
A)  the act of discovering new products or new ways of making products. 
B)  the act of putting new ideas into effect. 
C)  the collaboration of land, labor, and capital to bring to market goods and services. 
D)  the act of reducing the number of inputs to increase the amount of output.

Question 15

From 1996 to 1998, the fall in energy prices could be used

Accepted Answer

A)  to explain why productivity growth increased. 
B)  to indicate improvements in workforce quality. 
C)  to indicate the lack of investment. 
D)  to explain why productivity growth fell. 
A)  to explain why productivity growth increased. 
B)  to indicate improvements in workforce quality. 
C)  to indicate the lack of investment. 
D)  to explain why productivity growth fell.

Question 16

Some years ago, the World Bank surveyed the ways in which countries encouraged or discouraged market activity. Its conclusion was

Accepted Answer

A)  when poor people are allowed access to the institutions richer people enjoy, they are ill equipped to take advantage of those benefits. 
B)  when poor people are allowed access to the institutions richer people enjoy, they can thrive and help themselves. 
C)  that there was no measurable difference between the countries that actively encouraged market activity from those that discouraged it. 
D)  without the proper resources, encouraging market activity had no effect. 
A)  when poor people are allowed access to the institutions richer people enjoy, they are ill equipped to take advantage of those benefits. 
B)  when poor people are allowed access to the institutions richer people enjoy, they can thrive and help themselves. 
C)  that there was no measurable difference between the countries that actively encouraged market activity from those that discouraged it. 
D)  without the proper resources, encouraging market activity had no effect.

Question 17

Define the following terms: 
a. human capital 
b. investment 
c. capital formation 
d. property rights

Accepted Answer

a. Human capital is the amount of skill

Question 18

A nation's capital stock is increased by increases in

Accepted Answer

A)  consumption spending. 
B)  government spending. 
C)  investment spending. 
D)  net exports. 
A)  consumption spending. 
B)  government spending. 
C)  investment spending. 
D)  net exports.

Question 19

Which business would have the lowest costs per record album sold?

Accepted Answer

A)  An independently operated local music shop 
B)  A large retailer selling electronics, music, and appliances 
C)  An online seller of music and books 
D)  Only the music shop and large retailer 
A)  An independently operated local music shop 
B)  A large retailer selling electronics, music, and appliances 
C)  An online seller of music and books 
D)  Only the music shop and large retailer

Question 20

As the level of real interest rates rise, the amount of new investment will rise also.

Accepted Answer

A) True 
 B)False

Exam 23: Economic Growth: Theory and Policy

In 2011, which country had the highest level of GDP per hour of work?

The act of discovering a new production process would be called

A productivity decrease would be illustrated by a shift in the production function

Labor productivity growth in the United States during the 1973-1995 period could be explained by a ____ slowdown.

Investment spending, capital formation, and rapid technological progress are directly related.

The productivity slowdown in the United States can be explained by the use of social media, many are used for personal enjoyment rather than industrial productivity.

Compared to wages of professional athletes, the prices of automobiles in the United States have

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

For a given technology, a higher capital stock will decrease labor productivity.

Falling energy prices could explain rising labor productivity in the 1990s

An increase in the number of hours worked would

The process of research and development

In most countries, primary and secondary education is the responsibility of the

Invention is

From 1996 to 1998, the fall in energy prices could be used

Some years ago, the World Bank surveyed the ways in which countries encouraged or discouraged market activity. Its conclusion was

Define the following terms: a. human capital b. investment c. capital formation d. property rights

A nation's capital stock is increased by increases in

Which business would have the lowest costs per record album sold?

As the level of real interest rates rise, the amount of new investment will rise also.

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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