Question 1

_____ is a resource whose quality is most often enhanced by technological change.

Accepted Answer

A)  Capital 
B)  Land 
C)  Labor 
D)  Entrepreneurship 
E)  Credit 
A)  Capital 
B)  Land 
C)  Labor 
D)  Entrepreneurship 
E)  Credit

Question 2

Productivity is defined as _____

Accepted Answer

A)  the ratio of a specific measure of output to a specific measure of input. 
B)  the production of worthwhile goods and services. 
C)  the market value of goods, services, and resources produced per time period (e.g., per year). 
D)  average input divided by average output. 
E)  total input divided by average output. 
A)  the ratio of a specific measure of output to a specific measure of input. 
B)  the production of worthwhile goods and services. 
C)  the market value of goods, services, and resources produced per time period (e.g., per year). 
D)  average input divided by average output. 
E)  total input divided by average output.

Question 3

The gross domestic product of Solvasa, a small island country, is $68 billion. The adult population of the country is 8.7 million, and 11.3 million citizens are below 18 years of age. The output per capita of Solvasa is approximately equal to _____

Accepted Answer

A)  $7,800. 
B)  $3,400. 
C)  $6,017. 
D)  $5,201. 
E)  $6,950. 
A)  $7,800. 
B)  $3,400. 
C)  $6,017. 
D)  $5,201. 
E)  $6,950.

Question 4

Exhibit 8.3
  
-Refer to Exhibit 8.3, which shows a per-worker production function. The shape of the per-worker production function illustrates the law of diminishing marginal returns to labor.

Accepted Answer

A) True 
 B)False

Question 5

Productivity growth is important because _____

Accepted Answer

A)  it is the only way an economy can increase GDP. 
B)  a small decrease in productivity growth causes a large decline in GDP. 
C)  a large increase in productivity growth causes a small decrease in GDP. 
D)  it causes an increase in the quantity of all resources available in an economy. 
E)  it ultimately increases a nation's standard of living. 
A)  it is the only way an economy can increase GDP. 
B)  a small decrease in productivity growth causes a large decline in GDP. 
C)  a large increase in productivity growth causes a small decrease in GDP. 
D)  it causes an increase in the quantity of all resources available in an economy. 
E)  it ultimately increases a nation's standard of living.

Question 6

Basic research _____

Accepted Answer

A)  usually has a larger immediate payoff than applied research. 
B)  is more practical than applied research. 
C)  is the search for general knowledge without a specific product or procedure in mind. 
D)  is research done by a firm to market a good. 
E)  is research done by a firm during the production of a good. 
A)  usually has a larger immediate payoff than applied research. 
B)  is more practical than applied research. 
C)  is the search for general knowledge without a specific product or procedure in mind. 
D)  is research done by a firm to market a good. 
E)  is research done by a firm during the production of a good.

Question 7

According to Simon Kuznets, how much of the increase in economic growth can be attributed to changes in the qualities of labor and capital?

Accepted Answer

A)  all of the increase in economic growth 
B)  one-third of the increase in economic growth 
C)  half of the increase in economic growth 
D)  one-tenth of the increase in economic growth 
E)  nine-tenths of the increase in economic growth 
A)  all of the increase in economic growth 
B)  one-third of the increase in economic growth 
C)  half of the increase in economic growth 
D)  one-tenth of the increase in economic growth 
E)  nine-tenths of the increase in economic growth

Question 8

In the period 2000-2010, the annual productivity growth rate was approximately _____

Accepted Answer

A)  1.6 percent per year. 
B)  2.5 percent per year. 
C)  4.2 percent per year. 
D)  5 percent per year. 
E)  6 percent per year. 
A)  1.6 percent per year. 
B)  2.5 percent per year. 
C)  4.2 percent per year. 
D)  5 percent per year. 
E)  6 percent per year.

Question 9

The ratio of total output to a specific measure of input 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 10

Which of the following best describes the impact of technological change on labor?

Accepted Answer

A)  Technology causes unemployment in the short run and lower incomes in the long run. 
B)  Technology causes unemployment in the short run and higher incomes in the long run. 
C)  Technology causes unemployment in the long run and higher incomes in the short run. 
D)  Technology causes unemployment in the long run and lower incomes in the short run. 
E)  Technology causes unemployment and lower incomes in both the long run and the short run. 
A)  Technology causes unemployment in the short run and lower incomes in the long run. 
B)  Technology causes unemployment in the short run and higher incomes in the long run. 
C)  Technology causes unemployment in the long run and higher incomes in the short run. 
D)  Technology causes unemployment in the long run and lower incomes in the short run. 
E)  Technology causes unemployment and lower incomes in both the long run and the short run.

Question 11

_____ is the resource whose productivity is most commonly measured.

Accepted Answer

A)  Labor 
B)  Capital 
C)  Land 
D)  Energy 
E)  Money supply 
A)  Labor 
B)  Capital 
C)  Land 
D)  Energy 
E)  Money supply

Question 12

Which of the following factors can influence the production possibilities frontier in the future?

Accepted Answer

A)  the amount of capital produced 
B)  a fall in the rate of inflation 
C)  a decrease in consumption in an economy 
D)  an increase in the tax rate 
E)  a legal reform that increases transaction costs 
A)  the amount of capital produced 
B)  a fall in the rate of inflation 
C)  a decrease in consumption in an economy 
D)  an increase in the tax rate 
E)  a legal reform that increases transaction costs

Question 13

Suppose the production possibilities frontier (PPF) of an economy has been plotted on a graph. If the horizontal axis of the graph measures the output of capital goods and the vertical axis measures the output of consumer goods, then a point inside the PPF represents _____

Accepted Answer

A)  a larger quantity of capital goods than that represented by a point along the PPF. 
B)  an inefficient output combination of the two goods in the economy. 
C)  an unattainable output combination of the two goods in the economy. 
D)  an output combination of more consumer goods than capital goods. 
E)  a larger quantity of consumer goods than that represented by a point along the PPF. 
A)  a larger quantity of capital goods than that represented by a point along the PPF. 
B)  an inefficient output combination of the two goods in the economy. 
C)  an unattainable output combination of the two goods in the economy. 
D)  an output combination of more consumer goods than capital goods. 
E)  a larger quantity of consumer goods than that represented by a point along the PPF.

Question 14

Education makes workers aware of the latest production techniques and more receptive to new approaches and methods.

Accepted Answer

A) True 
 B)False

Question 15

According to Simon Kuznets, how much of the increase in economic growth can be attributed to changes in the quantities of labor and capital?

Accepted Answer

A)  all of the increase in economic growth 
B)  one-third of the increase in economic growth 
C)  half of the increase in economic growth 
D)  one-tenth of the increase in economic growth 
E)  nine-tenths of the increase in economic growth 
A)  all of the increase in economic growth 
B)  one-third of the increase in economic growth 
C)  half of the increase in economic growth 
D)  one-tenth of the increase in economic growth 
E)  nine-tenths of the increase in economic growth

Question 16

Over the long run, technological change increases both labor productivity and unemployment rates.

Accepted Answer

A) True 
 B)False

Question 17

If population increases, which of the following will be true?

Accepted Answer

A)  GDP will increase. 
B)  GDP per capita will fall at a faster rate than the increase in population. 
C)  GDP must increase if the same standard of living is to be maintained. 
D)  The labor force must increase if the same standard of living is to be maintained. 
E)  Overall demand will increase, but per capita aggregate demand will remain constant. 
A)  GDP will increase. 
B)  GDP per capita will fall at a faster rate than the increase in population. 
C)  GDP must increase if the same standard of living is to be maintained. 
D)  The labor force must increase if the same standard of living is to be maintained. 
E)  Overall demand will increase, but per capita aggregate demand will remain constant.

Question 18

Exhibit 8.1
  
-Refer to Exhibit 8.1. The movement from point A to point B in the figure illustrates the effect of _____

Accepted Answer

A)  an increase in the capital stock relative to the workforce. 
B)  an increase in the labor productivity growth rate. 
C)  an increase in labor productivity because of higher quality capital. 
D)  a decrease in labor productivity. 
E)  a decrease in the capital stock. 
A)  an increase in the capital stock relative to the workforce. 
B)  an increase in the labor productivity growth rate. 
C)  an increase in labor productivity because of higher quality capital. 
D)  a decrease in labor productivity. 
E)  a decrease in the capital stock.

Question 19

Which of the following is the prime objective of an industrial policy for any country?

Accepted Answer

A)  to secure a leading global role for selected domestic industries 
B)  to promote and encourage the import of goods and services 
C)  to secure the interests of migrant workers 
D)  to encourage specialization of labor 
E)  to ensure a high level of competition for domestic firms 
A)  to secure a leading global role for selected domestic industries 
B)  to promote and encourage the import of goods and services 
C)  to secure the interests of migrant workers 
D)  to encourage specialization of labor 
E)  to ensure a high level of competition for domestic firms

Question 20

Per capita GDP in the United States has declined since 1950.

Accepted Answer

A) True 
 B)False

_____ is a resource whose quality is most often enhanced by technological change.

Productivity is defined as _____

The gross domestic product of Solvasa, a small island country, is $68 billion. The adult population of the country is 8.7 million, and 11.3 million citizens are below 18 years of age. The output per capita of Solvasa is approximately equal to _____

Exhibit 8.3 -Refer to Exhibit 8.3, which shows a per-worker production function. The shape of the per-worker production function illustrates the law of diminishing marginal returns to labor.

Productivity growth is important because _____

Basic research _____

According to Simon Kuznets, how much of the increase in economic growth can be attributed to changes in the qualities of labor and capital?

In the period 2000-2010, the annual productivity growth rate was approximately _____

The ratio of total output to a specific measure of input is known as _____

Which of the following best describes the impact of technological change on labor?

_____ is the resource whose productivity is most commonly measured.

Which of the following factors can influence the production possibilities frontier in the future?

Suppose the production possibilities frontier (PPF) of an economy has been plotted on a graph. If the horizontal axis of the graph measures the output of capital goods and the vertical axis measures the output of consumer goods, then a point inside the PPF represents _____

Education makes workers aware of the latest production techniques and more receptive to new approaches and methods.

According to Simon Kuznets, how much of the increase in economic growth can be attributed to changes in the quantities of labor and capital?

Over the long run, technological change increases both labor productivity and unemployment rates.

If population increases, which of the following will be true?

Exhibit 8.1 -Refer to Exhibit 8.1. The movement from point A to point B in the figure illustrates the effect of _____

Which of the following is the prime objective of an industrial policy for any country?

Per capita GDP in the United States has declined since 1950.

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.

_____ is a resource whose quality is most often enhanced by technological change.

Productivity is defined as _____

The gross domestic product of Solvasa, a small island country, is $68 billion. The adult population of the country is 8.7 million, and 11.3 million citizens are below 18 years of age. The output per capita of Solvasa is approximately equal to _____

Exhibit 8.3 -Refer to Exhibit 8.3, which shows a per-worker production function. The shape of the per-worker production function illustrates the law of diminishing marginal returns to labor.

Productivity growth is important because _____

Basic research _____

According to Simon Kuznets, how much of the increase in economic growth can be attributed to changes in the qualities of labor and capital?

In the period 2000-2010, the annual productivity growth rate was approximately _____

The ratio of total output to a specific measure of input is known as _____

Which of the following best describes the impact of technological change on labor?

_____ is the resource whose productivity is most commonly measured.

Which of the following factors can influence the production possibilities frontier in the future?

Suppose the production possibilities frontier (PPF) of an economy has been plotted on a graph. If the horizontal axis of the graph measures the output of capital goods and the vertical axis measures the output of consumer goods, then a point inside the PPF represents _____

Education makes workers aware of the latest production techniques and more receptive to new approaches and methods.

According to Simon Kuznets, how much of the increase in economic growth can be attributed to changes in the quantities of labor and capital?

Over the long run, technological change increases both labor productivity and unemployment rates.

If population increases, which of the following will be true?

Exhibit 8.1 -Refer to Exhibit 8.1. The movement from point A to point B in the figure illustrates the effect of _____

Which of the following is the prime objective of an industrial policy for any country?

Per capita GDP in the United States has declined since 1950.

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