Question 1

According to Simon Kuznets, which of the following is likely to induce economic growth in the automobile industry of a country?

Accepted Answer

A)  an increase in the amount of labor used in the industry 
B)  a government subsidy for automobile production 
C)  an increase in the import of spare parts for the engines 
D)  an increase in the number of paint bays per factory 
E)  the replacement of manual assembly lines with robots 
A)  an increase in the amount of labor used in the industry 
B)  a government subsidy for automobile production 
C)  an increase in the import of spare parts for the engines 
D)  an increase in the number of paint bays per factory 
E)  the replacement of manual assembly lines with robots

Question 2

Since 1870, worker productivity per hour has _____, and the length of the average work week has _____.

Accepted Answer

A)  increased, decreased 
B)  increased, increased 
C)  decreased, increased 
D)  decreased, decreased 
E)  remained the same, increased 
A)  increased, decreased 
B)  increased, increased 
C)  decreased, increased 
D)  decreased, decreased 
E)  remained the same, increased

Question 3

The term industrial policy refers to _____

Accepted Answer

A)  policies that industries develop to promote growth. 
B)  policies related to marketing strategies. 
C)  the illegal activities that firms sometimes engage in to reduce competition. 
D)  government policy that aims at enhancing the competitiveness of domestic firms. 
E)  government policy that primarily aims at protecting domestic jobs. 
A)  policies that industries develop to promote growth. 
B)  policies related to marketing strategies. 
C)  the illegal activities that firms sometimes engage in to reduce competition. 
D)  government policy that aims at enhancing the competitiveness of domestic firms. 
E)  government policy that primarily aims at protecting domestic jobs.

Question 4

Which of the following will be true if employment grows faster than the population as a whole?

Accepted Answer

A)  Output per capita will increase faster than productivity per worker. 
B)  The standard of living will increase. 
C)  Output per capita and productivity per worker will grow at an equal pace. 
D)  Output per worker and productivity per worker will remain unaffected. 
E)  Output per capita will increase at a diminishing rate. 
A)  Output per capita will increase faster than productivity per worker. 
B)  The standard of living will increase. 
C)  Output per capita and productivity per worker will grow at an equal pace. 
D)  Output per worker and productivity per worker will remain unaffected. 
E)  Output per capita will increase at a diminishing rate.

Question 5

Developing countries make up about _____ of the world's population.

Accepted Answer

A)  10 percent 
B)  18 percent 
C)  25 percent 
D)  50 percent 
E)  84 percent 
A)  10 percent 
B)  18 percent 
C)  25 percent 
D)  50 percent 
E)  84 percent

Question 6

Compared to the world's poorest countries, per capita output in the United States is _____

Accepted Answer

A)  about 10 times more. 
B)  about 25 times more. 
C)  about 75 times more. 
D)  about 90 times more. 
E)  almost double. 
A)  about 10 times more. 
B)  about 25 times more. 
C)  about 75 times more. 
D)  about 90 times more. 
E)  almost double.

Question 7

If Emma can create 2 websites in one day, what is her productivity?

Accepted Answer

A)  1 day 
B)  2 websites per day 
C)  1.5 websites per day 
D)  0.5 websites per day 
E)  2 days 
A)  1 day 
B)  2 websites per day 
C)  1.5 websites per day 
D)  0.5 websites per day 
E)  2 days

Question 8

What is human capital?

Accepted Answer

A)  an increase in capital per worker that helps each worker produce more output 
B)  the conventions that encourage people to undertake productive activity 
C)  the skill, experience, and education of workers 
D)  output per hour of labor 
E)  machinery and equipment used to produce goods and services 
A)  an increase in capital per worker that helps each worker produce more output 
B)  the conventions that encourage people to undertake productive activity 
C)  the skill, experience, and education of workers 
D)  output per hour of labor 
E)  machinery and equipment used to produce goods and services

Question 9

Human capital includes the machinery, equipment, and other manufactured creations used to produce goods and services.

Accepted Answer

A) True 
 B)False

Question 10

Exhibit 8.2
  
-Refer to Exhibit 8.2, which shows three different per-worker production functions: PF₁, PF₂, and PF₃. If PF₁ is the initial per-worker production function for a farm, which of the following reflects an increase in the number of tractors per worker in the farm?

Accepted Answer

A)  a movement from point D to point C 
B)  an upward shift from PF₁ to PF₂ 
C)  a downward shift from PF₁ to PF₃ 
D)  a movement from point C to point D 
E)  a movement from point D to point B 
A)  a movement from point D to point C 
B)  an upward shift from PF₁ to PF₂ 
C)  a downward shift from PF₁ to PF₃ 
D)  a movement from point C to point D 
E)  a movement from point D to point B

Question 11

Productivity growth in the United States averaged approximately 3 percent per year between 1947 and 1973; it has averaged approximately 5 percent annually since then.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is the best indicator of standard of living?

Accepted Answer

A)  nominal GDP 
B)  real GDP 
C)  real GDP per capita 
D)  productivity per unit of capital 
E)  productivity per unit of labor 
A)  nominal GDP 
B)  real GDP 
C)  real GDP per capita 
D)  productivity per unit of capital 
E)  productivity per unit of labor

Question 13

A breakthrough in technology is most likely to _____

Accepted Answer

A)  reduce the labor needed to produce a given amount of output. 
B)  decrease the demand for all goods and services in a country. 
C)  increase the cost of production for a firm. 
D)  reduce the availability of skilled workers. 
E)  lower the standard of living in a country in the long run. 
A)  reduce the labor needed to produce a given amount of output. 
B)  decrease the demand for all goods and services in a country. 
C)  increase the cost of production for a firm. 
D)  reduce the availability of skilled workers. 
E)  lower the standard of living in a country in the long run.

Question 14

Between 1973 and 1982, productivity growth slowed to an average of just 0.9 percent per year because of _____

Accepted Answer

A)  increased literacy rates. 
B)  increased industrialization. 
C)  federal legislation to protect the environment and improve workplace safety. 
D)  the information revolution powered by the computer chip and the Internet. 
A)  increased literacy rates. 
B)  increased industrialization. 
C)  federal legislation to protect the environment and improve workplace safety. 
D)  the information revolution powered by the computer chip and the Internet.

Question 15

Exhibit 8.3
  
-Refer to Exhibit 8.3, which shows a per-worker production function. Point C in the figure below represents the level of output per worker that is unattainable with current technology.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is true of an improvement in technology?

Accepted Answer

A)  An improvement in technology shifts the per-worker production function upward. 
B)  An improvement in technology shifts the per-worker production function downward. 
C)  An improvement in technology increases the concavity of the production possibilities frontier. 
D)  An improvement in technology decreases the concavity of the production possibilities frontier. 
E)  An improvement in technology increases the quantity of input in the production process. 
A)  An improvement in technology shifts the per-worker production function upward. 
B)  An improvement in technology shifts the per-worker production function downward. 
C)  An improvement in technology increases the concavity of the production possibilities frontier. 
D)  An improvement in technology decreases the concavity of the production possibilities frontier. 
E)  An improvement in technology increases the quantity of input in the production process.

Question 17

Tyler takes 6 hours to finish 4 assignments. What is his productivity per assignment?

Accepted Answer

A)  0.7 assignments per hour 
B)  1.5 assignments per hour 
C)  4 assignments per hour 
D)  6 assignments per hour 
E)  His productivity cannot be determined from the information given. 
A)  0.7 assignments per hour 
B)  1.5 assignments per hour 
C)  4 assignments per hour 
D)  6 assignments per hour 
E)  His productivity cannot be determined from the information given.

Question 18

Basic research seeks to answer specific questions or to apply scientific discoveries to the development of specific products.

Accepted Answer

A) True 
 B)False

Question 19

The difference between basic and applied research is that _____

Accepted Answer

A)  basic research does not promote resource productivity, while applied research does. 
B)  applied research does not promote resource productivity, while basic research does. 
C)  basic research has less immediate payoff to society than applied research typically does. 
D)  basic research occurs in science, while applied research occurs in industry. 
E)  only the government promotes basic research. 
A)  basic research does not promote resource productivity, while applied research does. 
B)  applied research does not promote resource productivity, while basic research does. 
C)  basic research has less immediate payoff to society than applied research typically does. 
D)  basic research occurs in science, while applied research occurs in industry. 
E)  only the government promotes basic research.

Question 20

The difference between basic and applied research is that _____

Accepted Answer

A)  basic research does not promote resource productivity, while applied research does. 
B)  applied research does not promote resource productivity, while basic research does. 
C)  basic research yields a higher return to society as a whole than does applied research. 
D)  basic research occurs in science, while applied research occurs in industry. 
E)  only the government promotes basic research. 
A)  basic research does not promote resource productivity, while applied research does. 
B)  applied research does not promote resource productivity, while basic research does. 
C)  basic research yields a higher return to society as a whole than does applied research. 
D)  basic research occurs in science, while applied research occurs in industry. 
E)  only the government promotes basic research.

According to Simon Kuznets, which of the following is likely to induce economic growth in the automobile industry of a country?

Since 1870, worker productivity per hour has _, and the length of the average work week has _.

The term industrial policy refers to _____

Which of the following will be true if employment grows faster than the population as a whole?

Developing countries make up about _____ of the world's population.

Compared to the world's poorest countries, per capita output in the United States is _____

If Emma can create 2 websites in one day, what is her productivity?

What is human capital?

Human capital includes the machinery, equipment, and other manufactured creations used to produce goods and services.

Exhibit 8.2 -Refer to Exhibit 8.2, which shows three different per-worker production functions: PF₁, PF₂, and PF₃. If PF₁ is the initial per-worker production function for a farm, which of the following reflects an increase in the number of tractors per worker in the farm?

Productivity growth in the United States averaged approximately 3 percent per year between 1947 and 1973; it has averaged approximately 5 percent annually since then.

Which of the following is the best indicator of standard of living?

A breakthrough in technology is most likely to _____

Between 1973 and 1982, productivity growth slowed to an average of just 0.9 percent per year because of _____

Exhibit 8.3 -Refer to Exhibit 8.3, which shows a per-worker production function. Point C in the figure below represents the level of output per worker that is unattainable with current technology.

Which of the following is true of an improvement in technology?

Tyler takes 6 hours to finish 4 assignments. What is his productivity per assignment?

Basic research seeks to answer specific questions or to apply scientific discoveries to the development of specific products.

The difference between basic and applied research is that _____

The difference between basic and applied research is that _____

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.

According to Simon Kuznets, which of the following is likely to induce economic growth in the automobile industry of a country?

Since 1870, worker productivity per hour has _____, and the length of the average work week has _____.

The term industrial policy refers to _____

Which of the following will be true if employment grows faster than the population as a whole?

Developing countries make up about _____ of the world's population.

Compared to the world's poorest countries, per capita output in the United States is _____

If Emma can create 2 websites in one day, what is her productivity?

What is human capital?

Human capital includes the machinery, equipment, and other manufactured creations used to produce goods and services.

Exhibit 8.2 -Refer to Exhibit 8.2, which shows three different per-worker production functions: PF₁, PF₂, and PF₃. If PF₁ is the initial per-worker production function for a farm, which of the following reflects an increase in the number of tractors per worker in the farm?

Productivity growth in the United States averaged approximately 3 percent per year between 1947 and 1973; it has averaged approximately 5 percent annually since then.

Which of the following is the best indicator of standard of living?

A breakthrough in technology is most likely to _____

Between 1973 and 1982, productivity growth slowed to an average of just 0.9 percent per year because of _____

Exhibit 8.3 -Refer to Exhibit 8.3, which shows a per-worker production function. Point C in the figure below represents the level of output per worker that is unattainable with current technology.

Which of the following is true of an improvement in technology?

Tyler takes 6 hours to finish 4 assignments. What is his productivity per assignment?

Basic research seeks to answer specific questions or to apply scientific discoveries to the development of specific products.

The difference between basic and applied research is that _____

The difference between basic and applied research is that _____

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

Since 1870, worker productivity per hour has _, and the length of the average work week has _.