Question 1

Because it is a market economy,in the United States all research and development is done by private business firms.

Accepted Answer

A) True 
 B)False

Question 2

Compared to workers in poor countries,workers in richer countries have

Accepted Answer

A)  lower productivity but higher wages. 
B)  higher productivity and higher wages. 
C)  higher productivity but lower wages. 
D)  the same productivity but higher wages. 
A)  lower productivity but higher wages. 
B)  higher productivity and higher wages. 
C)  higher productivity but lower wages. 
D)  the same productivity but higher wages.

Question 3

In general,as the amount of labor input decreases,the amount of output

Accepted Answer

A)  increases. 
B)  decreases. 
C)  remains constant. 
D)  decreases only if the capital stock also decreases. 
A)  increases. 
B)  decreases. 
C)  remains constant. 
D)  decreases only if the capital stock also decreases.

Question 4

More education and training usually lead to higher levels of

Accepted Answer

A)  productivity. 
B)  population. 
C)  pollution. 
D)  import protectionism. 
A)  productivity. 
B)  population. 
C)  pollution. 
D)  import protectionism.

Question 5

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 6

What is the "cost disease of personal services" phenomenon and why does it help explain why tuition rates keep going up so fast?

Accepted Answer

One of the curious developments in moder

Question 7

From 1979,which country had the highest growth rate of GDP per hour of work?

Accepted Answer

A)  Singapore 
B)  United Kingdom 
C)  France 
D)  Japan 
A)  Singapore 
B)  United Kingdom 
C)  France 
D)  Japan

Question 8

The profit earned from selling an asset for more than you paid for it is called

Accepted Answer

A)  capital gains. 
B)  the real interest rate. 
C)  depreciation. 
D)  appreciation. 
A)  capital gains. 
B)  the real interest rate. 
C)  depreciation. 
D)  appreciation.

Question 9

The school of engineering at a modern university would be a supporter of the new

Accepted Answer

A)  consumption theory. 
B)  growth theory. 
C)  monetary theory. 
D)  construction theory. 
A)  consumption theory. 
B)  growth theory. 
C)  monetary theory. 
D)  construction theory.

Question 10

What is convergence hypothesis? Why should we expect convergence in the long run?

Accepted Answer

The convergence hypothesis holds that na

Question 11

Studies of data support the view that higher levels of education are associated with higher levels of real

Accepted Answer

A)  interest rates. 
B)  per capita GDP. 
C)  price inflation. 
D)  income decline. 
A)  interest rates. 
B)  per capita GDP. 
C)  price inflation. 
D)  income decline.

Question 12

Which of the following would not be classified as capital formation?

Accepted Answer

A)  buying shares of stock 
B)  building a new warehouse 
C)  purchasing new construction equipment 
D)  All would be considered capital formation. 
A)  buying shares of stock 
B)  building a new warehouse 
C)  purchasing new construction equipment 
D)  All would be considered capital formation.

Question 13

The term "capital formation" actually implies adding new equipment to a nation's factories.

Accepted Answer

A) True 
 B)False

Question 14

Economists are still puzzled why growth rates in the United States fell from 1973 to 1995.

Accepted Answer

A) True 
 B)False

Question 15

The invention of the Internet should make poorer countries

Accepted Answer

A)  poorer due to the expense of new technology. 
B)  poorer because the Internet is primarily in richer countries. 
C)  richer because technology adoption is easier. 
D)  richer because they can distribute information without costs. 
A)  poorer due to the expense of new technology. 
B)  poorer because the Internet is primarily in richer countries. 
C)  richer because technology adoption is easier. 
D)  richer because they can distribute information without costs.

Question 16

Several countries in the world have failed to "converge" with industrialized countries.What does this mean about their economic growth rates? Explain why poorer countries have failed to "catch up",in terms of the pillars of economic growth.Are there any special problems facing these countries?

Accepted Answer

If a poor country fails to converge,this

Question 17

The productivity slowdown in the U.S.from 1973 to 1995

Accepted Answer

A)  can be explained easily with economic theory. 
B)  continued into the third millennium. 
C)  still confuses economists. 
D)  was a continuation of the slowdown from 1948 to 1973. 
A)  can be explained easily with economic theory. 
B)  continued into the third millennium. 
C)  still confuses economists. 
D)  was a continuation of the slowdown from 1948 to 1973.

Question 18

When actual GDP does not rise as fast as potential GDP,the economy most likely will experience

Accepted Answer

A)  inflation. 
B)  recession. 
C)  economic growth. 
D)  falling unemployment. 
A)  inflation. 
B)  recession. 
C)  economic growth. 
D)  falling unemployment.

Question 19

The productivity slowdown in the U.S.can be explained by geographic limitations and instability in the government.

Accepted Answer

A) True 
 B)False

Question 20

From the late 1960s to the late 1980s,SAT scores in the United States

Accepted Answer

A)  help explain the productivity increases. 
B)  rose consistently throughout the period. 
C)  declined throughout the period. 
D)  indicated improving workforce quality. 
A)  help explain the productivity increases. 
B)  rose consistently throughout the period. 
C)  declined throughout the period. 
D)  indicated improving workforce quality.

Because it is a market economy,in the United States all research and development is done by private business firms.

Compared to workers in poor countries,workers in richer countries have

In general,as the amount of labor input decreases,the amount of output

More education and training usually lead to higher levels of

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

What is the "cost disease of personal services" phenomenon and why does it help explain why tuition rates keep going up so fast?

From 1979,which country had the highest growth rate of GDP per hour of work?

The profit earned from selling an asset for more than you paid for it is called

The school of engineering at a modern university would be a supporter of the new

What is convergence hypothesis? Why should we expect convergence in the long run?

Studies of data support the view that higher levels of education are associated with higher levels of real

Which of the following would not be classified as capital formation?

The term "capital formation" actually implies adding new equipment to a nation's factories.

Economists are still puzzled why growth rates in the United States fell from 1973 to 1995.

The invention of the Internet should make poorer countries

Several countries in the world have failed to "converge" with industrialized countries.What does this mean about their economic growth rates? Explain why poorer countries have failed to "catch up",in terms of the pillars of economic growth.Are there any special problems facing these countries?

The productivity slowdown in the U.S.from 1973 to 1995

When actual GDP does not rise as fast as potential GDP,the economy most likely will experience

The productivity slowdown in the U.S.can be explained by geographic limitations and instability in the government.

From the late 1960s to the late 1980s,SAT scores in the United States

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

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Exam 7: Economic Growth: Theory and Policy

Because it is a market economy,in the United States all research and development is done by private business firms.

Compared to workers in poor countries,workers in richer countries have

In general,as the amount of labor input decreases,the amount of output

More education and training usually lead to higher levels of

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

What is the "cost disease of personal services" phenomenon and why does it help explain why tuition rates keep going up so fast?

From 1979,which country had the highest growth rate of GDP per hour of work?

The profit earned from selling an asset for more than you paid for it is called

The school of engineering at a modern university would be a supporter of the new

What is convergence hypothesis? Why should we expect convergence in the long run?

Studies of data support the view that higher levels of education are associated with higher levels of real

Which of the following would not be classified as capital formation?

The term "capital formation" actually implies adding new equipment to a nation's factories.

Economists are still puzzled why growth rates in the United States fell from 1973 to 1995.

The invention of the Internet should make poorer countries

Several countries in the world have failed to "converge" with industrialized countries.What does this mean about their economic growth rates? Explain why poorer countries have failed to "catch up",in terms of the pillars of economic growth.Are there any special problems facing these countries?

The productivity slowdown in the U.S.from 1973 to 1995

When actual GDP does not rise as fast as potential GDP,the economy most likely will experience

The productivity slowdown in the U.S.can be explained by geographic limitations and instability in the government.

From the late 1960s to the late 1980s,SAT scores in the United States

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

Filters