Question 1

If Q is total real output, K is capital in use, and L is labor employed, then _____ is the formula to calculate the productivity of labor.

Accepted Answer

A)  K/L 
B)  L/K 
C)  Q/L 
D)  Q/K 
E)  (Q + K)/L 
A)  K/L 
B)  L/K 
C)  Q/L 
D)  Q/K 
E)  (Q + K)/L

Question 2

_____ had the highest level of per capita real output in 2015.

Accepted Answer

A)  Canada 
B)  The United States 
C)  Italy 
D)  France 
E)  Germany 
A)  Canada 
B)  The United States 
C)  Italy 
D)  France 
E)  Germany

Question 3

Ethan takes 7 hours to finish 3 assignments. What is his productivity per assignment?

Accepted Answer

A)  0.4 assignments per hour. 
B)  1.5 assignments per hour. 
C)  2.3 assignments per hour. 
D)  3 assignments per hour. 
E)  His productivity cannot be determined from the information given. 
A)  0.4 assignments per hour. 
B)  1.5 assignments per hour. 
C)  2.3 assignments per hour. 
D)  3 assignments per hour. 
E)  His productivity cannot be determined from the information given.

Question 4

The diminishing slope of the per-worker production function reflects the law of diminishing marginal returns.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following does not contribute to labor productivity growth?

Accepted Answer

A)  a steepening of the per-worker production function 
B)  an increase in the amount of capital per unit of labor 
C)  a growth in the labor force 
D)  an improvement in the quality of capital 
E)  an improvement in labor skills 
A)  a steepening of the per-worker production function 
B)  an increase in the amount of capital per unit of labor 
C)  a growth in the labor force 
D)  an improvement in the quality of capital 
E)  an improvement in labor skills

Question 6

Basic research has less immediate payoff to society.

Accepted Answer

A) True 
 B)False

Question 7

_____ is/are an example of an industrial cluster.

Accepted Answer

A)  The International Trade Union Confederation 
B)  The International Workers Association 
C)  The International Transport Workers' Federation 
D)  Silicon Valley software makers 
E)  The International Affiliation of Writers Guilds 
A)  The International Trade Union Confederation 
B)  The International Workers Association 
C)  The International Transport Workers' Federation 
D)  Silicon Valley software makers 
E)  The International Affiliation of Writers Guilds

Question 8

Which of the following does not contribute to an improved standard of living?

Accepted Answer

A)  increases in the amount of available resources 
B)  better technology 
C)  higher prices for the necessities of life 
D)  improvements in the "rules of the game" 
E)  improvements in the quality of labor 
A)  increases in the amount of available resources 
B)  better technology 
C)  higher prices for the necessities of life 
D)  improvements in the "rules of the game" 
E)  improvements in the quality of labor

Question 9

An example of technological change is _____

Accepted Answer

A)  firms substituting labor for capital. 
B)  robots displacing workers. 
C)  hiring more wait staff in a busy restaurant. 
D)  teaching materials in a class instead of online. 
E)  higher costs of manufacturing labor. 
A)  firms substituting labor for capital. 
B)  robots displacing workers. 
C)  hiring more wait staff in a busy restaurant. 
D)  teaching materials in a class instead of online. 
E)  higher costs of manufacturing labor.

Question 10

From 2010 to 2016, U.S. labor productivity growth has _____

Accepted Answer

A)  increased. 
B)  been constant, on average. 
C)  grown at about 0.9 percent per year. 
D)  grown at about 3 percent per year. 
E)  grown at about 5 percent per year. 
A)  increased. 
B)  been constant, on average. 
C)  grown at about 0.9 percent per year. 
D)  grown at about 3 percent per year. 
E)  grown at about 5 percent per year.

Question 11

Applied research is the search for knowledge without a clue about the end of the research.

Accepted Answer

A) True 
 B)False

Question 12

The rules of the game refer to _____

Accepted Answer

A)  any factor that facilitates production and exchange, such as tax laws and property rights. 
B)  a gradual but consistent change in the price level until a fair price is attained. 
C)  the set of election laws that ensure that all elections are fair. 
D)  the rules that a firm must follow in order to earn a profit. 
E)  the requirement that households must supply labor to firms. 
A)  any factor that facilitates production and exchange, such as tax laws and property rights. 
B)  a gradual but consistent change in the price level until a fair price is attained. 
C)  the set of election laws that ensure that all elections are fair. 
D)  the rules that a firm must follow in order to earn a profit. 
E)  the requirement that households must supply labor to firms.

Question 13

Exhibit 8.2
  
-Refer to Exhibit 8.2, which shows three different per-worker production functions: PF₁, PF₂, and PF₃. The diminishing slopes of the curves reflect _____

Accepted Answer

A)  increasing returns to scale. 
B)  increasing marginal returns from capital. 
C)  diminishing marginal returns from capital. 
D)  decreasing returns to scale. 
E)  diminishing marginal returns from labor. 
A)  increasing returns to scale. 
B)  increasing marginal returns from capital. 
C)  diminishing marginal returns from capital. 
D)  decreasing returns to scale. 
E)  diminishing marginal returns from labor.

Question 14

Joe runs a pizzeria at a busy place in a city. Around 125 customers visit every day, and they each buy 3 pizzas on average. Joe has employed 20 workers to make pizzas. The per-day productivity of workers in the pizzeria is equal to _____

Accepted Answer

A)  6.25 pizzas per worker. 
B)  18.75 pizzas per worker. 
C)  6.67 pizzas per worker. 
D)  41.67 pizzas per worker. 
E)  20.75 pizzas per worker. 
A)  6.25 pizzas per worker. 
B)  18.75 pizzas per worker. 
C)  6.67 pizzas per worker. 
D)  41.67 pizzas per worker. 
E)  20.75 pizzas per worker.

Question 15

An increase in the production of capital goods and a reduction in the production of consumer goods would most likely lead to a faster rate of future economic growth.

Accepted Answer

A) True 
 B)False

Question 16

Gulmirah, a small underdeveloped country, has an adult population of 16.8 million, and the remaining 13.75 million of the population is below 18 years of age. The approximate output per capita of this country is $644.80. The GDP of Gulmirah is equal to approximately _____

Accepted Answer

A)  $8.87 billion. 
B)  $10.08 billion. 
C)  $20.30 billion. 
D)  $13.22 billion. 
E)  $19.70 billion. 
A)  $8.87 billion. 
B)  $10.08 billion. 
C)  $20.30 billion. 
D)  $13.22 billion. 
E)  $19.70 billion.

Question 17

An economy's standard of living grows over the long run because of _____

Accepted Answer

A)  better protection of domestic industries from foreign competition. 
B)  centralized planning and decision making. 
C)  technological improvements. 
D)  stringent foreign trade policies. 
E)  a high-growth rate of population. 
A)  better protection of domestic industries from foreign competition. 
B)  centralized planning and decision making. 
C)  technological improvements. 
D)  stringent foreign trade policies. 
E)  a high-growth rate of population.

Question 18

An increase in the amount of capital per worker is known as _____

Accepted Answer

A)  the production function. 
B)  capital deepening. 
C)  productivity. 
D)  production. 
E)  labor productivity. 
A)  the production function. 
B)  capital deepening. 
C)  productivity. 
D)  production. 
E)  labor productivity.

Question 19

Exhibit 8.3
  
-Refer to Exhibit 8.3, which shows a per-worker production function. A technological improvement would make point C attainable.

Accepted Answer

A) True 
 B)False

Question 20

Clustering _____

Accepted Answer

A)  occurs when government resources are diverted toward one particular sector of an economy. 
B)  takes place when new firms enter regions already thick with other firms in the same or similar industries. 
C)  occurs when there is a single firm in an economy that can charge different prices for the same product. 
D)  implies that consumers with similar tastes and preferences tend to stay in the same region. 
E)  occurs when all the firms in the industry sell identical commodities and charge identical prices for these commodities. 
A)  occurs when government resources are diverted toward one particular sector of an economy. 
B)  takes place when new firms enter regions already thick with other firms in the same or similar industries. 
C)  occurs when there is a single firm in an economy that can charge different prices for the same product. 
D)  implies that consumers with similar tastes and preferences tend to stay in the same region. 
E)  occurs when all the firms in the industry sell identical commodities and charge identical prices for these commodities.

If Q is total real output, K is capital in use, and L is labor employed, then _____ is the formula to calculate the productivity of labor.

_____ had the highest level of per capita real output in 2015.

Ethan takes 7 hours to finish 3 assignments. What is his productivity per assignment?

The diminishing slope of the per-worker production function reflects the law of diminishing marginal returns.

Which of the following does not contribute to labor productivity growth?

Basic research has less immediate payoff to society.

_____ is/are an example of an industrial cluster.

Which of the following does not contribute to an improved standard of living?

An example of technological change is _____

From 2010 to 2016, U.S. labor productivity growth has _____

Applied research is the search for knowledge without a clue about the end of the research.

The rules of the game refer to _____

Exhibit 8.2 -Refer to Exhibit 8.2, which shows three different per-worker production functions: PF₁, PF₂, and PF₃. The diminishing slopes of the curves reflect _____

Joe runs a pizzeria at a busy place in a city. Around 125 customers visit every day, and they each buy 3 pizzas on average. Joe has employed 20 workers to make pizzas. The per-day productivity of workers in the pizzeria is equal to _____

An increase in the production of capital goods and a reduction in the production of consumer goods would most likely lead to a faster rate of future economic growth.

Gulmirah, a small underdeveloped country, has an adult population of 16.8 million, and the remaining 13.75 million of the population is below 18 years of age. The approximate output per capita of this country is $644.80. The GDP of Gulmirah is equal to approximately _____

An economy's standard of living grows over the long run because of _____

An increase in the amount of capital per worker is known as _____

Exhibit 8.3 -Refer to Exhibit 8.3, which shows a per-worker production function. A technological improvement would make point C attainable.

Clustering _____

The Art and Science of Economic Analysis.

Economic Tools and Economic Systems.

Economic Decision Makers.

Demand, Supply, and Markets.

Introduction to Macroeconomics.

Tracking the U. S. Economy.

Unemployment and Inflation.

Aggregate Demand.

Aggregate Supply.

Fiscal Policy.

Federal Budgets and Public Policy.

Money and the Financial System.

Banking and the Money Supply.

Monetary Theory and Policy.

Macro Policy Debate: Active or Passive?

International Trade.

International Finance.

Economic Development.

Filters

Exam 8: Productivity and Growth.

If Q is total real output, K is capital in use, and L is labor employed, then _____ is the formula to calculate the productivity of labor.

_____ had the highest level of per capita real output in 2015.

Ethan takes 7 hours to finish 3 assignments. What is his productivity per assignment?

The diminishing slope of the per-worker production function reflects the law of diminishing marginal returns.

Which of the following does not contribute to labor productivity growth?

Basic research has less immediate payoff to society.

_____ is/are an example of an industrial cluster.

Which of the following does not contribute to an improved standard of living?

An example of technological change is _____

From 2010 to 2016, U.S. labor productivity growth has _____

Applied research is the search for knowledge without a clue about the end of the research.

The rules of the game refer to _____

Exhibit 8.2 -Refer to Exhibit 8.2, which shows three different per-worker production functions: PF₁, PF₂, and PF₃. The diminishing slopes of the curves reflect _____

Joe runs a pizzeria at a busy place in a city. Around 125 customers visit every day, and they each buy 3 pizzas on average. Joe has employed 20 workers to make pizzas. The per-day productivity of workers in the pizzeria is equal to _____

An increase in the production of capital goods and a reduction in the production of consumer goods would most likely lead to a faster rate of future economic growth.

Gulmirah, a small underdeveloped country, has an adult population of 16.8 million, and the remaining 13.75 million of the population is below 18 years of age. The approximate output per capita of this country is $644.80. The GDP of Gulmirah is equal to approximately _____

An economy's standard of living grows over the long run because of _____

An increase in the amount of capital per worker is known as _____

Exhibit 8.3 -Refer to Exhibit 8.3, which shows a per-worker production function. A technological improvement would make point C attainable.

Clustering _____

The Art and Science of Economic Analysis.

Economic Tools and Economic Systems.

Economic Decision Makers.

Demand, Supply, and Markets.

Introduction to Macroeconomics.

Tracking the U. S. Economy.

Unemployment and Inflation.

Aggregate Demand.

Aggregate Supply.

Fiscal Policy.

Federal Budgets and Public Policy.

Money and the Financial System.

Banking and the Money Supply.

Monetary Theory and Policy.

Macro Policy Debate: Active or Passive?

International Trade.

International Finance.

Economic Development.

Filters