Question 1

The process by which the stock of equipment and structures available to an economy is increased by investment is referred to as ________.

Accepted Answer

A)  investment growth 
B)  output expansion 
C)  physical capital accumulation 
D)  autonomous growth 
A)  investment growth 
B)  output expansion 
C)  physical capital accumulation 
D)  autonomous growth

Question 2

In Fiji,total saving is $560 million,while GDP is $4.4 billion.In Papua New Guinea,total saving is $2.4 billion,while GDP is $16.9 billion.Which of the following is true?

Accepted Answer

A)  Fiji's saving rate is at least one percentage point higher than that of Papua New Guinea. 
B)  Papua New Guinea's saving rate is at least one percentage point higher than that of Fiji. 
C)  Fiji and Papua New Guinea have exactly the same saving rate. 
D)  Fiji and Papua New Guinea have saving rates that are less than one percentage point apart, but are not exactly equal. 
A)  Fiji's saving rate is at least one percentage point higher than that of Papua New Guinea. 
B)  Papua New Guinea's saving rate is at least one percentage point higher than that of Fiji. 
C)  Fiji and Papua New Guinea have exactly the same saving rate. 
D)  Fiji and Papua New Guinea have saving rates that are less than one percentage point apart, but are not exactly equal.

Question 3

The following figure shows graphs of various types of growth.
  
-Refer to the figure above.The data in Graph A best represent ________.

Accepted Answer

A)  linear growth 
B)  no growth 
C)  exponential growth 
D)  exponential decline 
A)  linear growth 
B)  no growth 
C)  exponential growth 
D)  exponential decline

Question 4

The advantage of using real GDP over nominal GDP is that it ________.

Accepted Answer

A)  is easier to calculate 
B)  can be compared over time 
C)  takes the distribution of income into account 
D)  takes into account changes in the ruling political party 
A)  is easier to calculate 
B)  can be compared over time 
C)  takes the distribution of income into account 
D)  takes into account changes in the ruling political party

Question 5

The term "demographic transition" refers to the ________ in fertility and number of children per family that many societies undergo as they transition ________.

Accepted Answer

A)  increase; from industry to agriculture 
B)  increase; from agriculture to industry 
C)  decrease; from agriculture to industry 
D)  decrease; from industry to agriculture 
A)  increase; from industry to agriculture 
B)  increase; from agriculture to industry 
C)  decrease; from agriculture to industry 
D)  decrease; from industry to agriculture

Question 6

If s denotes the saving rate,I denotes aggregate investment,and Y denotes GDP,then which of the following equations is correct?

Accepted Answer

A)  Y = s × I 
B)  I = s × Y 
C)  I = s/Y 
D)  I = Y/s 
A)  Y = s × I 
B)  I = s × Y 
C)  I = s/Y 
D)  I = Y/s

Question 7

The following figure shows graphs of various types of growth.
  
-Refer to the figure above.The data in Graph D best represent ________.

Accepted Answer

A)  linear growth 
B)  no growth 
C)  exponential growth 
D)  exponential decline 
A)  linear growth 
B)  no growth 
C)  exponential growth 
D)  exponential decline

Question 8

Scenario: Consider two countries, Country A and Country B. Both countries have identical aggregate production functions, populations, and efficiency units of labor, but they have different technologies. The technology used in Country B is more advanced than that used in Country A.
-Refer to the scenario above.If the size of the population is the same in both countries,at the steady-state equilibrium,________.

Accepted Answer

A)  the physical capital stock will be the same in both countries 
B)  the GDP per capita will be the same in both countries 
C)  the GDP per capita of Country A will be higher than that of Country B 
D)  the GDP per capita of Country B will be higher than that of Country A 
A)  the physical capital stock will be the same in both countries 
B)  the GDP per capita will be the same in both countries 
C)  the GDP per capita of Country A will be higher than that of Country B 
D)  the GDP per capita of Country B will be higher than that of Country A

Question 9

Most of the growth in GDP per hour worked in the United States over the past several decades can be attributed to growth resulting from ________.

Accepted Answer

A)  physical capital 
B)  human capital 
C)  government policies 
D)  technology 
A)  physical capital 
B)  human capital 
C)  government policies 
D)  technology

Question 10

Which of the following factors of production is least likely to exhibit diminishing marginal product?

Accepted Answer

A)  Land 
B)  Labor 
C)  Physical capital 
D)  Technology 
A)  Land 
B)  Labor 
C)  Physical capital 
D)  Technology

The process by which the stock of equipment and structures available to an economy is increased by investment is referred to as ________.

In Fiji,total saving is $560 million,while GDP is $4.4 billion.In Papua New Guinea,total saving is $2.4 billion,while GDP is $16.9 billion.Which of the following is true?

The following figure shows graphs of various types of growth. -Refer to the figure above.The data in Graph A best represent ________.

The advantage of using real GDP over nominal GDP is that it ________.

The term "demographic transition" refers to the in fertility and number of children per family that many societies undergo as they transition .

If s denotes the saving rate,I denotes aggregate investment,and Y denotes GDP,then which of the following equations is correct?

The following figure shows graphs of various types of growth. -Refer to the figure above.The data in Graph D best represent ________.

Most of the growth in GDP per hour worked in the United States over the past several decades can be attributed to growth resulting from ________.

Which of the following factors of production is least likely to exhibit diminishing marginal product?

The Principles and Practice of Economics

Economic Methods and Economic Questions

Optimization: Doing the Best You Can

Demand, Supply, and Equilibrium

The Wealth of Nations: Defining and Measuring Macroeconomic Aggregates

Aggregate Incomes

Why Isn't the Whole World Developed?

Employment and Unemployment

Credit Markets

The Monetary System

Short-Run Fluctuations

Countercyclical Macroeconomic Policy

Macroeconomics and International Trade

Open Economy Macroeconomics

Filters

Exam 7: Economic Growth

The process by which the stock of equipment and structures available to an economy is increased by investment is referred to as ________.

In Fiji,total saving is $560 million,while GDP is $4.4 billion.In Papua New Guinea,total saving is $2.4 billion,while GDP is $16.9 billion.Which of the following is true?

The following figure shows graphs of various types of growth. -Refer to the figure above.The data in Graph A best represent ________.

The advantage of using real GDP over nominal GDP is that it ________.

The term "demographic transition" refers to the ________ in fertility and number of children per family that many societies undergo as they transition ________.

If s denotes the saving rate,I denotes aggregate investment,and Y denotes GDP,then which of the following equations is correct?

The following figure shows graphs of various types of growth. -Refer to the figure above.The data in Graph D best represent ________.

Most of the growth in GDP per hour worked in the United States over the past several decades can be attributed to growth resulting from ________.

Which of the following factors of production is least likely to exhibit diminishing marginal product?

The Principles and Practice of Economics

Economic Methods and Economic Questions

Optimization: Doing the Best You Can

Demand, Supply, and Equilibrium

The Wealth of Nations: Defining and Measuring Macroeconomic Aggregates

Aggregate Incomes

Why Isn't the Whole World Developed?

Employment and Unemployment

Credit Markets

The Monetary System

Short-Run Fluctuations

Countercyclical Macroeconomic Policy

Macroeconomics and International Trade

Open Economy Macroeconomics

Filters

The term "demographic transition" refers to the in fertility and number of children per family that many societies undergo as they transition .