Question 1

The actual rate of growth of GDP is directly related to the percent of GDP devoted to
Investment if

Accepted Answer

A)  the marginal product of labor equals one. 
B)  the stock of human capital expands at an exponential rate. 
C)  noninflationary full employment is sustained with a constant capital-output ratio. 
D)  consumption is an increasing percentage of GDP. 
E)  net inventory investment rises at an accelerating rate. 
A)  the marginal product of labor equals one. 
B)  the stock of human capital expands at an exponential rate. 
C)  noninflationary full employment is sustained with a constant capital-output ratio. 
D)  consumption is an increasing percentage of GDP. 
E)  net inventory investment rises at an accelerating rate.

Question 2

Combining monetary and fiscal policies to achieve full employment can lead to a one-shot improvement in economic growth by

Accepted Answer

A)  decreasing the gap between actual and potential output. 
B)  shifting the production possibilities curve outward. 
C)  pushing to a new equilibrium where desired GDP exceeds actual GDP. 
D)  reducing government expenditures. 
E)  increasing nominal GDP faster than real GDP. 
A)  decreasing the gap between actual and potential output. 
B)  shifting the production possibilities curve outward. 
C)  pushing to a new equilibrium where desired GDP exceeds actual GDP. 
D)  reducing government expenditures. 
E)  increasing nominal GDP faster than real GDP.

Question 3

Economic growth is an increase in

Accepted Answer

A)  population. 
B)  price levels. 
C)  unemployment. 
D)  real output. 
E)  consumption. 
A)  population. 
B)  price levels. 
C)  unemployment. 
D)  real output. 
E)  consumption.

Question 4

The number of dollars of investment required to produce an extra dollar of goods or services is called the

Accepted Answer

A)  multiplier. 
B)  rate of innovation. 
C)  marginal efficiency of investment. 
D)  capital-output ratio. 
E)  rate of return. 
A)  multiplier. 
B)  rate of innovation. 
C)  marginal efficiency of investment. 
D)  capital-output ratio. 
E)  rate of return.

Question 5

Keeping the marginal productivity of capital constant while investment in plant and equipment expands requires

Accepted Answer

A)  a slowdown in the growth rate. 
B)  a decrease (shift to the left) in the marginal productivity of capital schedule. 
C)  a falling rate of return on investment. 
D)  that the productivity of existing technology be exhausted before investing in something new. 
E)  continued development of new technologies, products, and processes. 
A)  a slowdown in the growth rate. 
B)  a decrease (shift to the left) in the marginal productivity of capital schedule. 
C)  a falling rate of return on investment. 
D)  that the productivity of existing technology be exhausted before investing in something new. 
E)  continued development of new technologies, products, and processes.

Question 6

The Malthusian model seems particularly relevant for the

Accepted Answer

A)  agricultural sector. 
B)  less-developed countries. 
C)  industrialized nations. 
D)  countries of eastern Europe. 
E)  western world. 
A)  agricultural sector. 
B)  less-developed countries. 
C)  industrialized nations. 
D)  countries of eastern Europe. 
E)  western world.

Question 7

The dire predictions of the 1974 Club of Rome's The Limits of Growth report are in part discredited because

Accepted Answer

A)  the United States' mineral resources are infinite in supply. 
B)  growing populations do not consume resources at higher rates. 
C)  the U.S. economy has significantly reduced its overall consumption of resources because of its affluence. 
D)  as minerals become scarce and increase in price, it becomes cost effective for users to find substitutes. 
E)  they assumed the developing countries would industrialize more rapidly than they have. 
A)  the United States' mineral resources are infinite in supply. 
B)  growing populations do not consume resources at higher rates. 
C)  the U.S. economy has significantly reduced its overall consumption of resources because of its affluence. 
D)  as minerals become scarce and increase in price, it becomes cost effective for users to find substitutes. 
E)  they assumed the developing countries would industrialize more rapidly than they have.

Question 8

A more rapid rate of growth can often be achieved only if

Accepted Answer

A)  consumers are willing to forego current consumption. 
B)  the government runs a budget deficit in perpetuity. 
C)  the level of current investment is diminished. 
D)  government involvement is eliminated. 
E)  private saving is discouraged. 
A)  consumers are willing to forego current consumption. 
B)  the government runs a budget deficit in perpetuity. 
C)  the level of current investment is diminished. 
D)  government involvement is eliminated. 
E)  private saving is discouraged.

Question 9

The purpose of the British Corn Laws was to

Accepted Answer

A)  maintain the high profits of the British landlords. 
B)  prevent British farmers from exporting corn to other nations. 
C)  prevent British farmers from growing grain. 
D)  encourage grain imports from France and Germany. 
E)  encourage the British to substitute corn for meat. 
A)  maintain the high profits of the British landlords. 
B)  prevent British farmers from exporting corn to other nations. 
C)  prevent British farmers from growing grain. 
D)  encourage grain imports from France and Germany. 
E)  encourage the British to substitute corn for meat.

Question 10

Expenditures on education and training that raise per capita output are viewed as

Accepted Answer

A)  conspicuous consumption. 
B)  public and private transfer payments. 
C)  investments in human capital. 
D)  consumer surplus. 
E)  normative expenditures. 
A)  conspicuous consumption. 
B)  public and private transfer payments. 
C)  investments in human capital. 
D)  consumer surplus. 
E)  normative expenditures.

Question 11

The marginal product of capital decreases because of

Accepted Answer

A)  increases in population growth that decrease the average product of labor. 
B)  the law of diminishing returns. 
C)  technological advances. 
D)  rising capital productivity. 
E)  growing investment opportunities. 
A)  increases in population growth that decrease the average product of labor. 
B)  the law of diminishing returns. 
C)  technological advances. 
D)  rising capital productivity. 
E)  growing investment opportunities.

The actual rate of growth of GDP is directly related to the percent of GDP devoted to Investment if

Combining monetary and fiscal policies to achieve full employment can lead to a one-shot improvement in economic growth by

Economic growth is an increase in

The number of dollars of investment required to produce an extra dollar of goods or services is called the

Keeping the marginal productivity of capital constant while investment in plant and equipment expands requires

The Malthusian model seems particularly relevant for the

The dire predictions of the 1974 Club of Rome's The Limits of Growth report are in part discredited because

A more rapid rate of growth can often be achieved only if

The purpose of the British Corn Laws was to

Expenditures on education and training that raise per capita output are viewed as

The marginal product of capital decreases because of

What is Economics

Markets and Prices

The Business Firm: Organization,motivation,and Optimal Input Decisions

Getting Behind the Demand and Supply Curves

Market Demand and Price Elasticity

Economic Efficiency,market Supply,and Perfect Competition

Monopoly and Its Regulation

Monopolistic Competition,oligopoly,and Antitrust Policy

Pollution and the Environment

The Supply and Demand for Labor

Interest,rent,and Profit

Poverty,income Inequality,and Discrimination

Public Goods and the Role of the Government

National Income and Product

Business Fluctuations and Unemployment

The Determination of National Output and the Keynesian Multiplier

Fiscal Policy and National Output

Inflation

Money and the Banking System

The Federal Reserve and Monetary Policy

Supply Shocks and Inflation

Productivity,growth,and Technology Policy

Surpluses,deficits,public Debt,and the Federal Budget

Monetary Policy,interest Rates,and Economic Activity

Controversies Over Stabilization Policy

International Trade

Exchange Rates and the Balance of Payments

Filters

Exam 13: Economic Growth

The actual rate of growth of GDP is directly related to the percent of GDP devoted to Investment if

Combining monetary and fiscal policies to achieve full employment can lead to a one-shot improvement in economic growth by

Economic growth is an increase in

The number of dollars of investment required to produce an extra dollar of goods or services is called the

Keeping the marginal productivity of capital constant while investment in plant and equipment expands requires

The Malthusian model seems particularly relevant for the

The dire predictions of the 1974 Club of Rome's The Limits of Growth report are in part discredited because

A more rapid rate of growth can often be achieved only if

The purpose of the British Corn Laws was to

Expenditures on education and training that raise per capita output are viewed as

The marginal product of capital decreases because of

What is Economics

Markets and Prices

The Business Firm: Organization,motivation,and Optimal Input Decisions

Getting Behind the Demand and Supply Curves

Market Demand and Price Elasticity

Economic Efficiency,market Supply,and Perfect Competition

Monopoly and Its Regulation

Monopolistic Competition,oligopoly,and Antitrust Policy

Pollution and the Environment

The Supply and Demand for Labor

Interest,rent,and Profit

Poverty,income Inequality,and Discrimination

Public Goods and the Role of the Government

National Income and Product

Business Fluctuations and Unemployment

The Determination of National Output and the Keynesian Multiplier

Fiscal Policy and National Output

Inflation

Money and the Banking System

The Federal Reserve and Monetary Policy

Supply Shocks and Inflation

Productivity,growth,and Technology Policy

Surpluses,deficits,public Debt,and the Federal Budget

Monetary Policy,interest Rates,and Economic Activity

Controversies Over Stabilization Policy

International Trade

Exchange Rates and the Balance of Payments

Filters