Question 1

Which of the following factors will increase labor productivity in the United States?

Accepted Answer

A)  An aging labor force 
B)  A decline in the number of women entering the workforce 
C)  An increase in unskilled workers 
D)  An increase in the average level of education 
E)  A decrease in the number of educated immigrants 
A)  An aging labor force 
B)  A decline in the number of women entering the workforce 
C)  An increase in unskilled workers 
D)  An increase in the average level of education 
E)  A decrease in the number of educated immigrants

Question 2

Contrary to popular belief, U.S. productivity growth did not actually improve in the mid 1990s despite the massive growth in technological innovation.

Accepted Answer

A) True 
 B)False

Question 3

Other things equal, advances in technology make resources more productive.

Accepted Answer

A) True 
 B)False

Question 4

To calculate the time required for real GDP to double, we _____.

Accepted Answer

A)  divide the annual growth rate by 72 
B)  divide 72 by nominal GDP 
C)  divide real output by 72 
D)  divide 72 by the annual growth rate 
E)  multiply real GDP by 72 
A)  divide the annual growth rate by 72 
B)  divide 72 by nominal GDP 
C)  divide real output by 72 
D)  divide 72 by the annual growth rate 
E)  multiply real GDP by 72

Question 5

When you are calculating how long it will take your initial bank deposit to double, the rule of 72 prescribes that you divide the annual interest rate paid on the deposit by 72.

Accepted Answer

A) True 
 B)False

Question 6

Per capita real GDP does not give us information about the distribution of income in a country or about the nonmonetary quality of life.

Accepted Answer

A) True 
 B)False

Question 7

If the per capita real GDP in a country grows, it definitely implies that the average citizen of that country is better off.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true of the rule of 72?

Accepted Answer

A)  The rule of 72 is used to approximate annual real GDP. 
B)  The rule of 72 determines the time required for any value to double if it grows at a constant annual rate. 
C)  The rule of 72 is used to calculate the number of years it takes for any quantity to treble in size. 
D)  The rule of 72 refers to the fact that real GDP doubles every 6 years. 
E)  The rule of 72 refers to the fact that capital growth has consistently contributed 72 percent to the U.S. real GDP. 
A)  The rule of 72 is used to approximate annual real GDP. 
B)  The rule of 72 determines the time required for any value to double if it grows at a constant annual rate. 
C)  The rule of 72 is used to calculate the number of years it takes for any quantity to treble in size. 
D)  The rule of 72 refers to the fact that real GDP doubles every 6 years. 
E)  The rule of 72 refers to the fact that capital growth has consistently contributed 72 percent to the U.S. real GDP.

Question 9

The ability of a country to invest in capital goods is tied to _____.

Accepted Answer

A)  its ability to save 
B)  the size of its labor force 
C)  its abundance of natural resources 
D)  the quality of its labor force 
E)  the level of inflation 
A)  its ability to save 
B)  the size of its labor force 
C)  its abundance of natural resources 
D)  the quality of its labor force 
E)  the level of inflation

Question 10

If the real GDP of a developed country doubles in 48 years, the average annual growth rate in real GDP must be _____.

Accepted Answer

A)  1.5% 
B)  3.5% 
C)  0.67% 
D)  0.012% 
E)  24% 
A)  1.5% 
B)  3.5% 
C)  0.67% 
D)  0.012% 
E)  24%

Question 11

In 2000, the real GDP for Malaysia was 93.15 trillion ringgit (MYR) and the population size was 20.5 million, then per capita real GDP for the year was approximately equal to _____.

Accepted Answer

A)  MYR 4.54 million 
B)  MYR 45.9 million 
C)  MYR 1,909.5 million 
D)  MYR 191 million 
E)  MYR 9,315 million 
A)  MYR 4.54 million 
B)  MYR 45.9 million 
C)  MYR 1,909.5 million 
D)  MYR 191 million 
E)  MYR 9,315 million

Question 12

Productivity in the services industry may be underestimated because ____ may not be taken into account.

Accepted Answer

A)  the labor costs of providing a service 
B)  the quantity of the service produced 
C)  the capital costs of providing a service 
D)  the prices charged by service industries 
E)  the quality of the service provided 
A)  the labor costs of providing a service 
B)  the quantity of the service produced 
C)  the capital costs of providing a service 
D)  the prices charged by service industries 
E)  the quality of the service provided

Question 13

If an investment of $400 increases to $800 in 16 years, the annual interest rate of the investment must be _____.

Accepted Answer

A)  18% 
B)  10% 
C)  9% 
D)  4.5% 
E)  1.8% 
A)  18% 
B)  10% 
C)  9% 
D)  4.5% 
E)  1.8%

Question 14

The income of the town of Kennebunkport has been growing by 2 percent per year. If this growth continues into the future, how long will it take until the town's income has doubled?

Accepted Answer

A)  About 36 years 
B)  About 24 years 
C)  About 96 years 
D)  About 50 years 
E)  About 144 years 
A)  About 36 years 
B)  About 24 years 
C)  About 96 years 
D)  About 50 years 
E)  About 144 years

Question 15

Which of the following statements about the economic concept of land is not true?

Accepted Answer

A)  Land includes forests, minerals, and other natural resources. 
B)  Countries that are rich in natural resources are not always successful in exploiting these resources to produce goods and services. 
C)  Land can be combined with labor and capital to produce goods and services. 
D)  Abundant natural resources are necessary for economic growth. 
E)  Countries that lack natural resources need not be characterized by limited economic growth. 
A)  Land includes forests, minerals, and other natural resources. 
B)  Countries that are rich in natural resources are not always successful in exploiting these resources to produce goods and services. 
C)  Land can be combined with labor and capital to produce goods and services. 
D)  Abundant natural resources are necessary for economic growth. 
E)  Countries that lack natural resources need not be characterized by limited economic growth.

Which of the following factors will increase labor productivity in the United States?

Contrary to popular belief, U.S. productivity growth did not actually improve in the mid 1990s despite the massive growth in technological innovation.

Other things equal, advances in technology make resources more productive.

To calculate the time required for real GDP to double, we _____.

When you are calculating how long it will take your initial bank deposit to double, the rule of 72 prescribes that you divide the annual interest rate paid on the deposit by 72.

Per capita real GDP does not give us information about the distribution of income in a country or about the nonmonetary quality of life.

If the per capita real GDP in a country grows, it definitely implies that the average citizen of that country is better off.

Which of the following is true of the rule of 72?

The ability of a country to invest in capital goods is tied to _____.

If the real GDP of a developed country doubles in 48 years, the average annual growth rate in real GDP must be _____.

In 2000, the real GDP for Malaysia was 93.15 trillion ringgit (MYR) and the population size was 20.5 million, then per capita real GDP for the year was approximately equal to _____.

Productivity in the services industry may be underestimated because ____ may not be taken into account.

If an investment of $400 increases to $800 in 16 years, the annual interest rate of the investment must be _____.

The income of the town of Kennebunkport has been growing by 2 percent per year. If this growth continues into the future, how long will it take until the town's income has doubled?

Which of the following statements about the economic concept of land is not true?

The Wealth of Nations: Ownership and Economic Freedom

Scarcity and Opportunity Costs

The Market and Price System

The Aggregate Economy

National Income Accounting

An Introduction to the Foreign Exchapterange Market and the Balance of Payments

Unemployment and Inflation

Macroeconomic Equilibrium: Aggregate Demand and Supply

Aggregate Expenditures

Income and Expenditures Equilibrium

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

Development Economics

Globalization

World Trade Equilibrium

International Trade Restrictions

Exchapterange Rates and Financial Links Between Countries

Filters

Exam 16: Economic Growth

Which of the following factors will increase labor productivity in the United States?

Contrary to popular belief, U.S. productivity growth did not actually improve in the mid 1990s despite the massive growth in technological innovation.

Other things equal, advances in technology make resources more productive.

To calculate the time required for real GDP to double, we _____.

When you are calculating how long it will take your initial bank deposit to double, the rule of 72 prescribes that you divide the annual interest rate paid on the deposit by 72.

Per capita real GDP does not give us information about the distribution of income in a country or about the nonmonetary quality of life.

If the per capita real GDP in a country grows, it definitely implies that the average citizen of that country is better off.

Which of the following is true of the rule of 72?

The ability of a country to invest in capital goods is tied to _____.

If the real GDP of a developed country doubles in 48 years, the average annual growth rate in real GDP must be _____.

In 2000, the real GDP for Malaysia was 93.15 trillion ringgit (MYR) and the population size was 20.5 million, then per capita real GDP for the year was approximately equal to _____.

Productivity in the services industry may be underestimated because ____ may not be taken into account.

If an investment of $400 increases to $800 in 16 years, the annual interest rate of the investment must be _____.

The income of the town of Kennebunkport has been growing by 2 percent per year. If this growth continues into the future, how long will it take until the town's income has doubled?

Which of the following statements about the economic concept of land is not true?

The Wealth of Nations: Ownership and Economic Freedom

Scarcity and Opportunity Costs

The Market and Price System

The Aggregate Economy

National Income Accounting

An Introduction to the Foreign Exchapterange Market and the Balance of Payments

Unemployment and Inflation

Macroeconomic Equilibrium: Aggregate Demand and Supply

Aggregate Expenditures

Income and Expenditures Equilibrium

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

Development Economics

Globalization

World Trade Equilibrium

International Trade Restrictions

Exchapterange Rates and Financial Links Between Countries

Filters