Question 1

In the U.S. economy, a large portion of investment decisions are made by

Accepted Answer

A)  households. 
B)  the private sector. 
C)  the public sector. 
D)  international organizations. 
A)  households. 
B)  the private sector. 
C)  the public sector. 
D)  international organizations.

Question 2

The fastest growing productivity increases in the United States have occurred in the personal services sector.

Accepted Answer

A) True 
 B)False

Question 3

Human capital does not improve with

Accepted Answer

A)  higher learning. 
B)  on-the-job training. 
C)  higher wages. 
D)  learning on the job. 
A)  higher learning. 
B)  on-the-job training. 
C)  higher wages. 
D)  learning on the job.

Question 4

All other things being equal, a greater supply of scientists and engineers will increase the level of technology.

Accepted Answer

A) True 
 B)False

Question 5

Capital investment becomes more profitable for a business firm as the real interest rate decreases.

Accepted Answer

A) True 
 B)False

Question 6

Which furniture production process would have the highest furniture prices?

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 7

Productivity levels are higher in rich countries compared to poor countries.

Accepted Answer

A) True 
 B)False

Question 8

Give some possible explanations of the productivity slowdown in the United States that occurred in the 1973-1995 period.

Accepted Answer

Several possible explanations have been

Question 9

Stable property rights

Accepted Answer

A)  are conducive to investment. 
B)  are found in countries with dictatorships. 
C)  are not necessary for rapid growth. 
D)  exist in all economies. 
A)  are conducive to investment. 
B)  are found in countries with dictatorships. 
C)  are not necessary for rapid growth. 
D)  exist in all economies.

Question 10

The graph that relates hours of labor input to output is called the

Accepted Answer

A)  consumption function. 
B)  conjunction function. 
C)  capital function. 
D)  production function. 
A)  consumption function. 
B)  conjunction function. 
C)  capital function. 
D)  production function.

Question 11

Workforce quality arguments are very difficult to prove for the period of 1970-1990 because during that period SAT scores

Accepted Answer

A)  and graduation rates increased. 
B)  increased and graduation rates decreased. 
C)  and school attendance rates decreased. 
D)  decreased and school attendance rates increased. 
A)  and graduation rates increased. 
B)  increased and graduation rates decreased. 
C)  and school attendance rates decreased. 
D)  decreased and school attendance rates increased.

Question 12

In contrast to richer countries, most residents of poorer nations will have

Accepted Answer

A)  only some primary education. 
B)  primary and secondary education. 
C)  higher education. 
D)  higher levels of productivity. 
A)  only some primary education. 
B)  primary and secondary education. 
C)  higher education. 
D)  higher levels of productivity.

Question 13

Draw a production function and illustrate the effects of capital investment and technological improvement on labor productivity.

Accepted Answer

A production function is drawn with the

Question 14

The primary use of development assistance is to

Accepted Answer

A)  encourage economic development through low-interest loans. 
B)  restrict the outflow of foreign direct investment. 
C)  invest in natural resources. 
D)  allow developing countries imitate rather than innovate technologies. 
A)  encourage economic development through low-interest loans. 
B)  restrict the outflow of foreign direct investment. 
C)  invest in natural resources. 
D)  allow developing countries imitate rather than innovate technologies.

Question 15

Service sector outputs could be expected to increase in price less than industrial sector outputs as an economy grows.

Accepted Answer

A) True 
 B)False

Question 16

A productivity increase is 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 17

Describe the three pillars of productivity growth.

Accepted Answer

The three pillars of productivity growth

Question 18

Devoting more of a country's resources for producing consumer goods means

Accepted Answer

A)  economy is using its resources for future production. 
B)  fewer resources to producing investment goods. 
C)  country will grow more rapidly in the future. 
D)  productivity of the invested capital is extremely high. 
A)  economy is using its resources for future production. 
B)  fewer resources to producing investment goods. 
C)  country will grow more rapidly in the future. 
D)  productivity of the invested capital is extremely high.

Question 19

The ability to read, write, and run calculations are examples of human capital.

Accepted Answer

A) True 
 B)False

Question 20

Properly enforced property rights will usually cause

Accepted Answer

A)  lower levels of investment spending. 
B)  lower levels of real interest rates. 
C)  higher levels of investment spending. 
D)  higher levels of real interest rates. 
A)  lower levels of investment spending. 
B)  lower levels of real interest rates. 
C)  higher levels of investment spending. 
D)  higher levels of real interest rates.

Exam 23: Economic Growth: Theory and Policy

In the U.S. economy, a large portion of investment decisions are made by

The fastest growing productivity increases in the United States have occurred in the personal services sector.

Human capital does not improve with

All other things being equal, a greater supply of scientists and engineers will increase the level of technology.

Capital investment becomes more profitable for a business firm as the real interest rate decreases.

Which furniture production process would have the highest furniture prices?

Productivity levels are higher in rich countries compared to poor countries.

Give some possible explanations of the productivity slowdown in the United States that occurred in the 1973-1995 period.

Stable property rights

The graph that relates hours of labor input to output is called the

Workforce quality arguments are very difficult to prove for the period of 1970-1990 because during that period SAT scores

In contrast to richer countries, most residents of poorer nations will have

Draw a production function and illustrate the effects of capital investment and technological improvement on labor productivity.

The primary use of development assistance is to

Service sector outputs could be expected to increase in price less than industrial sector outputs as an economy grows.

A productivity increase is illustrated by a shift in the production function

Describe the three pillars of productivity growth.

Devoting more of a country's resources for producing consumer goods means

The ability to read, write, and run calculations are examples of human capital.

Properly enforced property rights will usually cause

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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