Question 1

In the United States,________ percent of its GDP is spent on R&D every year.

Accepted Answer

A)  55.2 
B)  2.79 
C)  less than 0.5 
D)  14.3 
A)  55.2 
B)  2.79 
C)  less than 0.5 
D)  14.3

Question 2

Why is physical capital accumulation alone unlikely to result in sustained growth?

Accepted Answer

A)  Because of the diminishing marginal product of physical capital. 
B)  Because of the diminishing marginal product of labor. 
C)  Because of the eventual need to replace existing physical capital. 
D)  Because high levels of physical capital will tempt other countries to steal that capital. 
A)  Because of the diminishing marginal product of physical capital. 
B)  Because of the diminishing marginal product of labor. 
C)  Because of the eventual need to replace existing physical capital. 
D)  Because high levels of physical capital will tempt other countries to steal that capital.

Question 3

What will happen to the steady-state equilibrium level of output and physical capital stock in an economy if
a)there is an increase in the saving rate
b)there is a deterioration of human capital

Accepted Answer

a)If there is an increase in the saving

Question 4

The second half of the twentieth century has seen substantial increases in international trade.What effect has this had on worldwide poverty?

Accepted Answer

A)  Poverty has decreased in most nations, at similar rates. 
B)  Poverty has increased in most nations at similar rates. 
C)  Poverty has decreased in most nations, particularly the poorer ones. 
D)  Poverty has decreased in most nations, particularly the richer ones. 
A)  Poverty has decreased in most nations, at similar rates. 
B)  Poverty has increased in most nations at similar rates. 
C)  Poverty has decreased in most nations, particularly the poorer ones. 
D)  Poverty has decreased in most nations, particularly the richer ones.

Question 5

Scenario: The depreciation rate of physical capital in an economy is 10 percent. The investment on physical capital in the current year is $500.
-Refer to the scenario above.What is the current value of the physical capital stock in the economy if the physical capital stock in the last year was $1,000?

Accepted Answer

A)  $1,200 
B)  $1,400 
C)  $1,600 
D)  $1,800 
A)  $1,200 
B)  $1,400 
C)  $1,600 
D)  $1,800

Question 6

Which of the following events opened the way for the rapid and steady technological changes that underpinned modern economic growth?

Accepted Answer

A)  The American Civil War 
B)  The Industrial Revolution 
C)  The agricultural revolution 
D)  Demographic transition in the Western world 
A)  The American Civil War 
B)  The Industrial Revolution 
C)  The agricultural revolution 
D)  Demographic transition in the Western world

Question 7

Consider a closed economy without a government.If the GDP of the economy is $25,000 and the saving rate in the economy is 25 percent,the aggregate saving in the economy is ________.

Accepted Answer

A)  $3,320 
B)  $6,250 
C)  $8,000 
D)  $8,650 
A)  $3,320 
B)  $6,250 
C)  $8,000 
D)  $8,650

Question 8

The following figure shows graphs of various types of growth.
  
-Refer to the figure above.The data in Graph B 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 9

Fertility refers to ________.

Accepted Answer

A)  the average period that an individual may be expected to live 
B)  the ability of an individual to read or write in at least one language 
C)  the ratio of deaths in an area to the population of the area 
D)  the number of children per adult or per woman of childbearing age 
A)  the average period that an individual may be expected to live 
B)  the ability of an individual to read or write in at least one language 
C)  the ratio of deaths in an area to the population of the area 
D)  the number of children per adult or per woman of childbearing age

Question 10

GDP per capita in Australia is $50,000.If Australian GDP per capita grows 6 percent per year for 2 years,which formula shows its GDP per capita after 2 years?

Accepted Answer

A)  $50,000 × 1.06 
B)  $50,000 × 1.12 
C)  $50,000 × 1.06 × 1.06 
D)  $50,000 × 1.06 × 1.12 
A)  $50,000 × 1.06 
B)  $50,000 × 1.12 
C)  $50,000 × 1.06 × 1.06 
D)  $50,000 × 1.06 × 1.12

Question 11

What is the physical capital accumulation equation used by Solow?

Accepted Answer

According to Solow,the physical capital

Question 12

If the level of investment in an economy is $4,000 and the GDP of the economy is $10,000,the saving rate in the economy must be ________.

Accepted Answer

A)  20 percent 
B)  30 percent 
C)  40 percent 
D)  44 percent 
A)  20 percent 
B)  30 percent 
C)  40 percent 
D)  44 percent

Question 13

The saving rate in an economy equals ________.

Accepted Answer

A)  GDP minus aggregate consumption 
B)  GDP divided by aggregate saving 
C)  aggregate saving multiplied by GDP 
D)  aggregate saving divided by GDP 
A)  GDP minus aggregate consumption 
B)  GDP divided by aggregate saving 
C)  aggregate saving multiplied by GDP 
D)  aggregate saving divided by GDP

Question 14

Which of the following characterized the U.S.economy in the decades following the Great Depression?

Accepted Answer

A)  The price level has decreased steadily over time. 
B)  Despite fairly constant growth, major economic downturns have produced net negative growth. 
C)  The economy was permanently and irreparably damaged by the events of the Great Depression. 
D)  Longer-run movements have indicated sustained and steady growth. 
A)  The price level has decreased steadily over time. 
B)  Despite fairly constant growth, major economic downturns have produced net negative growth. 
C)  The economy was permanently and irreparably damaged by the events of the Great Depression. 
D)  Longer-run movements have indicated sustained and steady growth.

Question 15

Which of the following statements is true?

Accepted Answer

A)  An extremely high saving rate can be counterproductive for an economy. 
B)  The greater the saving rate in an economy, the slower the rate of physical capital accumulation. 
C)  For positive growth, the consumption in an economy should always be less than the saving. 
D)  The greater the consumption expenditure in an economy, the faster the physical capital accumulation. 
A)  An extremely high saving rate can be counterproductive for an economy. 
B)  The greater the saving rate in an economy, the slower the rate of physical capital accumulation. 
C)  For positive growth, the consumption in an economy should always be less than the saving. 
D)  The greater the consumption expenditure in an economy, the faster the physical capital accumulation.

Question 16

Consider a closed economy without a government.If the GDP of the economy is $63,000 and the consumption in the economy is $45,000,the saving rate in the economy is ________.

Accepted Answer

A)  16.86 percent 
B)  24 percent 
C)  28.57 percent 
D)  35.75 percent 
A)  16.86 percent 
B)  24 percent 
C)  28.57 percent 
D)  35.75 percent

Question 17

As societies moved from rural living to living in cities,human fertility decreased.Why?

Accepted Answer

A)  The polluted environments of cities made it harder to raise children to maturity. 
B)  Children were more expensive to raise in cities, and child labor was less beneficial. 
C)  In cities, there was too little food to ensure that children would survive to adulthood. 
D)  Children working in the newly invented factories of the Industrial Revolution tended to have shorter lifespans. 
A)  The polluted environments of cities made it harder to raise children to maturity. 
B)  Children were more expensive to raise in cities, and child labor was less beneficial. 
C)  In cities, there was too little food to ensure that children would survive to adulthood. 
D)  Children working in the newly invented factories of the Industrial Revolution tended to have shorter lifespans.

Question 18

The price of a 3-pound chicken has fallen about 20 percent per decade over the past 70 years.This is an example of the ________.

Accepted Answer

A)  linear effect of technological change 
B)  exponential effect of technological change 
C)  linear effect of physical capital accumulation 
D)  exponential effect of physical capital accumulation 
A)  linear effect of technological change 
B)  exponential effect of technological change 
C)  linear effect of physical capital accumulation 
D)  exponential effect of physical capital accumulation

Question 19

Comparing GDPs over time requires the use of a ________.

Accepted Answer

A)  base year 
B)  recession and boom period 
C)  worker productivity index 
D)  linear growth model 
A)  base year 
B)  recession and boom period 
C)  worker productivity index 
D)  linear growth model

Question 20

If the saving rate in an economy is 30 percent and the level of investment in the economy is $400,the GDP of the economy must be ________.

Accepted Answer

A)  $1,111.22 
B)  $1,333.33 
C)  $1,750.50 
D)  $1,900.25 
A)  $1,111.22 
B)  $1,333.33 
C)  $1,750.50 
D)  $1,900.25

In the United States,________ percent of its GDP is spent on R&D every year.

Why is physical capital accumulation alone unlikely to result in sustained growth?

What will happen to the steady-state equilibrium level of output and physical capital stock in an economy if a)there is an increase in the saving rate b)there is a deterioration of human capital

The second half of the twentieth century has seen substantial increases in international trade.What effect has this had on worldwide poverty?

Which of the following events opened the way for the rapid and steady technological changes that underpinned modern economic growth?

Consider a closed economy without a government.If the GDP of the economy is $25,000 and the saving rate in the economy is 25 percent,the aggregate saving in the economy is ________.

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

Fertility refers to ________.

GDP per capita in Australia is $50,000.If Australian GDP per capita grows 6 percent per year for 2 years,which formula shows its GDP per capita after 2 years?

What is the physical capital accumulation equation used by Solow?

If the level of investment in an economy is $4,000 and the GDP of the economy is $10,000,the saving rate in the economy must be ________.

The saving rate in an economy equals ________.

Which of the following characterized the U.S.economy in the decades following the Great Depression?

Which of the following statements is true?

Consider a closed economy without a government.If the GDP of the economy is $63,000 and the consumption in the economy is $45,000,the saving rate in the economy is ________.

As societies moved from rural living to living in cities,human fertility decreased.Why?

The price of a 3-pound chicken has fallen about 20 percent per decade over the past 70 years.This is an example of the ________.

Comparing GDPs over time requires the use of a ________.

If the saving rate in an economy is 30 percent and the level of investment in the economy is $400,the GDP of the economy must be ________.

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

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Exam 7: Economic Growth

In the United States,________ percent of its GDP is spent on R&D every year.

Why is physical capital accumulation alone unlikely to result in sustained growth?

What will happen to the steady-state equilibrium level of output and physical capital stock in an economy if a)there is an increase in the saving rate b)there is a deterioration of human capital

The second half of the twentieth century has seen substantial increases in international trade.What effect has this had on worldwide poverty?

Which of the following events opened the way for the rapid and steady technological changes that underpinned modern economic growth?

Consider a closed economy without a government.If the GDP of the economy is $25,000 and the saving rate in the economy is 25 percent,the aggregate saving in the economy is ________.

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

Fertility refers to ________.

GDP per capita in Australia is $50,000.If Australian GDP per capita grows 6 percent per year for 2 years,which formula shows its GDP per capita after 2 years?

What is the physical capital accumulation equation used by Solow?

If the level of investment in an economy is $4,000 and the GDP of the economy is $10,000,the saving rate in the economy must be ________.

The saving rate in an economy equals ________.

Which of the following characterized the U.S.economy in the decades following the Great Depression?

Which of the following statements is true?

Consider a closed economy without a government.If the GDP of the economy is $63,000 and the consumption in the economy is $45,000,the saving rate in the economy is ________.

As societies moved from rural living to living in cities,human fertility decreased.Why?

The price of a 3-pound chicken has fallen about 20 percent per decade over the past 70 years.This is an example of the ________.

Comparing GDPs over time requires the use of a ________.

If the saving rate in an economy is 30 percent and the level of investment in the economy is $400,the GDP of the economy must be ________.

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