Question 1

Reducing business taxes or providing specific investment incentives can shift the demand for loanable funds curve

Accepted Answer

A)  rightward,slow the growth of the capital stock,and improve the standard of living 
B)  rightward,speed the growth of the capital stock,and improve the standard of living 
C)  leftward,speed the growth of the capital stock,and reduce the standard of living 
D)  rightward,speed the growth of the capital stock,and reduce the standard of living 
E)  leftward,slow the growth of the capital stock,and reduce the standard of living 
A)  rightward,slow the growth of the capital stock,and improve the standard of living 
B)  rightward,speed the growth of the capital stock,and improve the standard of living 
C)  leftward,speed the growth of the capital stock,and reduce the standard of living 
D)  rightward,speed the growth of the capital stock,and reduce the standard of living 
E)  leftward,slow the growth of the capital stock,and reduce the standard of living

Question 2

-Refer to Figure 9-1.If labor supply shifts from S₂ to S₁,what will happen to the real hourly wage rate?

Accepted Answer

A)  It will remain constant and employment will increase to 130 million 
B)  It will rise to $15 and employment will increase to 120 million 
C)  It will rise to $10 and employment will remain at 110 million 
D)  It will rise to $15 and employment will remain at 110 million 
E)  It will rise to $20 and employment will fall to 110 million 
A)  It will remain constant and employment will increase to 130 million 
B)  It will rise to $15 and employment will increase to 120 million 
C)  It will rise to $10 and employment will remain at 110 million 
D)  It will rise to $15 and employment will remain at 110 million 
E)  It will rise to $20 and employment will fall to 110 million

Question 3

Assume that GDP growth in a particular country is 4 percent per year.How many years it will take for GDP to double?

Accepted Answer

A)  80.0 years. 
B)  17.5 years. 
C)  10.0 years. 
D)  20.0 years. 
E)  20.5 years. 
A)  80.0 years. 
B)  17.5 years. 
C)  10.0 years. 
D)  20.0 years. 
E)  20.5 years.

Question 4

In less-developed countries with rapid population growth,

Accepted Answer

A)  the standard of living will always rise because population is the key to rising living standards 
B)  the standard of living will always fall 
C)  the standard of living will always remain constant 
D)  the standard of living will fall if population grows faster than output 
E)  will be independent of population growth due to foreign aid payments by rich countries. 
A)  the standard of living will always rise because population is the key to rising living standards 
B)  the standard of living will always fall 
C)  the standard of living will always remain constant 
D)  the standard of living will fall if population grows faster than output 
E)  will be independent of population growth due to foreign aid payments by rich countries.

Question 5

Which organization has the goal of helping to provide capital and investment assistance to less-developed nations?

Accepted Answer

A)  The World Trade Organization 
B)  The International Development Fund 
C)  The European Union 
D)  The International Monetary Fund 
E)  NATO 
A)  The World Trade Organization 
B)  The International Development Fund 
C)  The European Union 
D)  The International Monetary Fund 
E)  NATO

Question 6

The characteristics that create a vicious cycle of poverty in less developed countries are

Accepted Answer

A)  low levels of current production and a declining population 
B)  stagnant production,poor infrastructure,and a declining population 
C)  low current output per capita,high population growth rates,and poor infrastructure 
D)  inefficient governments,low current production,and low tax rates 
E)  political instability and low population growth 
A)  low levels of current production and a declining population 
B)  stagnant production,poor infrastructure,and a declining population 
C)  low current output per capita,high population growth rates,and poor infrastructure 
D)  inefficient governments,low current production,and low tax rates 
E)  political instability and low population growth

Question 7

Government budget deficits

Accepted Answer

A)  discourage household saving,which increases interest rates and reduces planned investment spending 
B)  encourage household saving,which increases the funds available for planned investment spending 
C)  reduce the demand for funds,lower interest rates,and increase planned investment spending 
D)  discourage planned investment spending by putting upward pressure on interest rates 
E)  stimulate economic growth by encouraging capital investment 
A)  discourage household saving,which increases interest rates and reduces planned investment spending 
B)  encourage household saving,which increases the funds available for planned investment spending 
C)  reduce the demand for funds,lower interest rates,and increase planned investment spending 
D)  discourage planned investment spending by putting upward pressure on interest rates 
E)  stimulate economic growth by encouraging capital investment

Question 8

By pursuing growth,some less developed countries have sacrificed other social goals,especially

Accepted Answer

A)  a clean environment 
B)  investment opportunities 
C)  human capital formation 
D)  physical capital formation 
E)  a high long-run standard of living 
A)  a clean environment 
B)  investment opportunities 
C)  human capital formation 
D)  physical capital formation 
E)  a high long-run standard of living

Question 9

If output grows faster than the population,the average standard of living will

Accepted Answer

A)  rise 
B)  fall 
C)  remain the same 
D)  stagnate 
E)  rise and then fall 
A)  rise 
B)  fall 
C)  remain the same 
D)  stagnate 
E)  rise and then fall

Question 10

The trend of shorter working days and longer vacations is expected to reversed in most wealthy countries in the future.

Accepted Answer

A) True 
 B)False

Question 11

An increasing percentage of women are in the work force.Which variable does this directly affect?

Accepted Answer

A)  The employment-population ratio 
B)  Productivity 
C)  Average hours 
D)  Population 
E)  Technology 
A)  The employment-population ratio 
B)  Productivity 
C)  Average hours 
D)  Population 
E)  Technology

Question 12

The main tradeoff to be considered when judging pro-growth policies is

Accepted Answer

A)  foregone current consumption versus the current benefits of technological progress 
B)  foregone current consumption versus the future benefits of technological progress 
C)  foregone future consumption versus the future benefits of technological progress 
D)  foregone future consumption versus the current benefits of technological progress 
E)  government surpluses versus deficits in the future. 
A)  foregone current consumption versus the current benefits of technological progress 
B)  foregone current consumption versus the future benefits of technological progress 
C)  foregone future consumption versus the future benefits of technological progress 
D)  foregone future consumption versus the current benefits of technological progress 
E)  government surpluses versus deficits in the future.

Question 13

If people work longer or harder,

Accepted Answer

A)  they are unambiguously worse off 
B)  living standards will rise but nonmarket activities must be sacrificed 
C)  living standards will fall 
D)  more output can be produced,but living standards will fall 
E)  they will have fewer consumer goods to enjoy 
A)  they are unambiguously worse off 
B)  living standards will rise but nonmarket activities must be sacrificed 
C)  living standards will fall 
D)  more output can be produced,but living standards will fall 
E)  they will have fewer consumer goods to enjoy

Question 14

Which of the following government policies might increase labor supply?

Accepted Answer

A)  Increasing transfer payments to the needy. 
B)  Decreasing income tax rates. 
C)  Increasing income tax rates. 
D)  Increasing the availability of government training programs. 
E)  Increase payroll taxes. 
A)  Increasing transfer payments to the needy. 
B)  Decreasing income tax rates. 
C)  Increasing income tax rates. 
D)  Increasing the availability of government training programs. 
E)  Increase payroll taxes.

Question 15

Growth in employment occurs only because of increases in labor demand due to government hiring.

Accepted Answer

A) True 
 B)False

Question 16

-Refer to Figure 9-9.The production possibilities frontier tells us that there is a trade-off between investment in capital and

Accepted Answer

A)  investment in human capital 
B)  research and development expenditures 
C)  leisure time available to workers 
D)  higher living standards in the future 
E)  living standards in the present 
A)  investment in human capital 
B)  research and development expenditures 
C)  leisure time available to workers 
D)  higher living standards in the future 
E)  living standards in the present

Question 17

Typically,countries with high growth rates of per-capita GDP have

Accepted Answer

A)  lower infant mortality rates 
B)  higher life expectancies 
C)  higher adult literacy 
D)  all of the above 
E)  higher unemployment rates. 
A)  lower infant mortality rates 
B)  higher life expectancies 
C)  higher adult literacy 
D)  all of the above 
E)  higher unemployment rates.

Question 18

An increase in the stock of human capital would

Accepted Answer

A)  shift the production function upward,lowering productivity and raising living standards 
B)  shift the production function upward,raising productivity and living standards 
C)  cause the economy to move along a fixed production function,increasing both productivity and living standards 
D)  cause the economy to move along a fixed production function,reducing both productivity and living standards 
E)  shift the production function downward,reducing both productivity and living standards 
A)  shift the production function upward,lowering productivity and raising living standards 
B)  shift the production function upward,raising productivity and living standards 
C)  cause the economy to move along a fixed production function,increasing both productivity and living standards 
D)  cause the economy to move along a fixed production function,reducing both productivity and living standards 
E)  shift the production function downward,reducing both productivity and living standards

Question 19

Which of the following countries achieved economic growth,in part,by reducing its population growth rate?

Accepted Answer

A)  The former Soviet Union 
B)  The United States 
C)  The United Kingdom 
D)  China 
E)  Hong Kong 
A)  The former Soviet Union 
B)  The United States 
C)  The United Kingdom 
D)  China 
E)  Hong Kong

Question 20

Which combination of government policies would be most likely increase labor demand?

Accepted Answer

A)  Increasing subsidies to education and increasing subsidies to businesses for hiring new employees 
B)  Reducing income tax rates and cutting transfer payments to the needy 
C)  Raising income tax rates and cutting transfer payments to the needy 
D)  Reducing subsidies to education and increasing subsidies to businesses for hiring new employees 
E)  Increasing subsidies to education and reducing subsidies to businesses for hiring new employees 
A)  Increasing subsidies to education and increasing subsidies to businesses for hiring new employees 
B)  Reducing income tax rates and cutting transfer payments to the needy 
C)  Raising income tax rates and cutting transfer payments to the needy 
D)  Reducing subsidies to education and increasing subsidies to businesses for hiring new employees 
E)  Increasing subsidies to education and reducing subsidies to businesses for hiring new employees

Reducing business taxes or providing specific investment incentives can shift the demand for loanable funds curve

-Refer to Figure 9-1.If labor supply shifts from S₂ to S₁,what will happen to the real hourly wage rate?

Assume that GDP growth in a particular country is 4 percent per year.How many years it will take for GDP to double?

In less-developed countries with rapid population growth,

Which organization has the goal of helping to provide capital and investment assistance to less-developed nations?

The characteristics that create a vicious cycle of poverty in less developed countries are

Government budget deficits

By pursuing growth,some less developed countries have sacrificed other social goals,especially

If output grows faster than the population,the average standard of living will

The trend of shorter working days and longer vacations is expected to reversed in most wealthy countries in the future.

An increasing percentage of women are in the work force.Which variable does this directly affect?

The main tradeoff to be considered when judging pro-growth policies is

If people work longer or harder,

Which of the following government policies might increase labor supply?

Growth in employment occurs only because of increases in labor demand due to government hiring.

-Refer to Figure 9-9.The production possibilities frontier tells us that there is a trade-off between investment in capital and

Typically,countries with high growth rates of per-capita GDP have

An increase in the stock of human capital would

Which of the following countries achieved economic growth,in part,by reducing its population growth rate?

Which combination of government policies would be most likely increase labor demand?

What is Economics?

Scarcity, Choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

What Macroeconomics Tries to Explain

Production, Income, and Employment

The Price Level and Inflation

The Classical Long run Model

Economic Fluctuations

The Short-run Macro Model

Fiscal Policy

Money, Banks, and the Federal Reserve

The Money Market and Monetary Policy

Aggregate Demand and Aggregate Supply

Inflation and Monetary Policy

Exchange Rates and Macroeconomic Policy

Filters

Exam 9: Economic Growth and Rising Living Standards

Reducing business taxes or providing specific investment incentives can shift the demand for loanable funds curve

-Refer to Figure 9-1.If labor supply shifts from S₂ to S₁,what will happen to the real hourly wage rate?

Assume that GDP growth in a particular country is 4 percent per year.How many years it will take for GDP to double?

In less-developed countries with rapid population growth,

Which organization has the goal of helping to provide capital and investment assistance to less-developed nations?

The characteristics that create a vicious cycle of poverty in less developed countries are

Government budget deficits

By pursuing growth,some less developed countries have sacrificed other social goals,especially

If output grows faster than the population,the average standard of living will

The trend of shorter working days and longer vacations is expected to reversed in most wealthy countries in the future.

An increasing percentage of women are in the work force.Which variable does this directly affect?

The main tradeoff to be considered when judging pro-growth policies is

If people work longer or harder,

Which of the following government policies might increase labor supply?

Growth in employment occurs only because of increases in labor demand due to government hiring.

-Refer to Figure 9-9.The production possibilities frontier tells us that there is a trade-off between investment in capital and

Typically,countries with high growth rates of per-capita GDP have

An increase in the stock of human capital would

Which of the following countries achieved economic growth,in part,by reducing its population growth rate?

Which combination of government policies would be most likely increase labor demand?

What is Economics?

Scarcity, Choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

What Macroeconomics Tries to Explain

Production, Income, and Employment

The Price Level and Inflation

The Classical Long run Model

Economic Fluctuations

The Short-run Macro Model

Fiscal Policy

Money, Banks, and the Federal Reserve

The Money Market and Monetary Policy

Aggregate Demand and Aggregate Supply

Inflation and Monetary Policy

Exchange Rates and Macroeconomic Policy

Filters