Question 1

Productivity measures _____

Accepted Answer

A)  how efficiently resources are turned into goods and services. 
B)  how efficiently goods and services are consumed by consumers. 
C)  the level of skills embodied in a unit of labor. 
D)  the ratio of inputs to a specific amount of output. 
E)  the availability of resources in an economy. 
A)  how efficiently resources are turned into goods and services. 
B)  how efficiently goods and services are consumed by consumers. 
C)  the level of skills embodied in a unit of labor. 
D)  the ratio of inputs to a specific amount of output. 
E)  the availability of resources in an economy.

Question 2

Which of the following would increase labor productivity?

Accepted Answer

A)  a decrease in the amount of capital per unit of labor 
B)  a change in technology that improves the quality of capital 
C)  a decrease in the unemployment rate 
D)  an increase in the number of inexperienced workers entering the labor force 
E)  a decrease in the quality of capital 
A)  a decrease in the amount of capital per unit of labor 
B)  a change in technology that improves the quality of capital 
C)  a decrease in the unemployment rate 
D)  an increase in the number of inexperienced workers entering the labor force 
E)  a decrease in the quality of capital

Question 3

Which of the following is the single most important determinant of a nation's standard of living in the long run?

Accepted Answer

A)  high economic growth rates 
B)  developing a market economy of conscious design 
C)  higher prices for the necessities of life 
D)  productivity of its resources 
E)  developing agricultural self-sufficiency 
A)  high economic growth rates 
B)  developing a market economy of conscious design 
C)  higher prices for the necessities of life 
D)  productivity of its resources 
E)  developing agricultural self-sufficiency

Question 4

Between the 1880s and the early 21st century, U.S. productivity increased at a constant annual rate.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following countries has the highest output per capita?

Accepted Answer

A)  the United Kingdom 
B)  the United States 
C)  France 
D)  Italy 
E)  Germany 
A)  the United Kingdom 
B)  the United States 
C)  France 
D)  Italy 
E)  Germany

Question 6

In the long run, an economy needs applied research geared toward specific products more than it needs basic research, which is not motivated by or directed toward manufacturing.

Accepted Answer

A) True 
 B)False

Question 7

Since 1970, the unemployment rate has _____ and worker productivity has _____.

Accepted Answer

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

Question 8

Which of the following is true of basic research?

Accepted Answer

A)  Basic research is the search for knowledge that does not aim to answer a specific question. 
B)  Basic research is not complex since it addresses elementary questions. 
C)  Basic research seeks to apply scientific discoveries to the development of specific products. 
D)  Basic research is the search for knowledge to solve a particular problem. 
E)  Basic research is always funded by the central government of a country. 
A)  Basic research is the search for knowledge that does not aim to answer a specific question. 
B)  Basic research is not complex since it addresses elementary questions. 
C)  Basic research seeks to apply scientific discoveries to the development of specific products. 
D)  Basic research is the search for knowledge to solve a particular problem. 
E)  Basic research is always funded by the central government of a country.

Question 9

If the ratio of labor to capital increases, we can expect that labor productivity will increase.

Accepted Answer

A) True 
 B)False

Question 10

A water bottle manufacturing plant uses a three-step procedure to produce each unit of bottle. The first step is casting, which needs 35 workers to operate the furnace. The second step is quenching, which needs 35 workers. At the third step, bottles are prepared for dispatch in the assembly line with the help of 70 workers. If the factory produces 14,000 bottles per day, then the productivity of labor in the factory is equal to _____

Accepted Answer

A)  200 bottles per worker. 
B)  400 bottles per worker. 
C)  100 bottles per worker. 
D)  140 bottles per worker. 
E)  220 bottles per worker. 
A)  200 bottles per worker. 
B)  400 bottles per worker. 
C)  100 bottles per worker. 
D)  140 bottles per worker. 
E)  220 bottles per worker.

Question 11

If both total employment and total output in an economy grow by 2 percent each year, then the annual growth in labor productivity in the economy over a decade will be equal to _____

Accepted Answer

A)  0 percent. 
B)  2 percent. 
C)  10 percent. 
D)  20 percent. 
E)  2 percent times the size of the labor force. 
A)  0 percent. 
B)  2 percent. 
C)  10 percent. 
D)  20 percent. 
E)  2 percent times the size of the labor force.

Question 12

A decrease in the capital-labor ratio would result in _____

Accepted Answer

A)  higher labor productivity because labor does more work. 
B)  lower labor productivity because labor is working with relatively less capital. 
C)  higher labor productivity because labor is producing less capital and more of other goods. 
D)  lower labor productivity because more capital is available. 
E)  higher labor productivity because more capital is available. 
A)  higher labor productivity because labor does more work. 
B)  lower labor productivity because labor is working with relatively less capital. 
C)  higher labor productivity because labor is producing less capital and more of other goods. 
D)  lower labor productivity because more capital is available. 
E)  higher labor productivity because more capital is available.

Question 13

What percentage of the U.S. adult population had a degree in 2015?

Accepted Answer

A)  14 percent 
B)  39 percent 
C)  45 percent 
D)  50 percent 
E)  67 percent 
A)  14 percent 
B)  39 percent 
C)  45 percent 
D)  50 percent 
E)  67 percent

Question 14

An increase in the quantity of capital per worker would _____

Accepted Answer

A)  rotate the per-worker production function outward. 
B)  rotate the per-worker production function inward. 
C)  shift the per-worker production function downward. 
D)  shift the per-worker production function upward. 
E)  result in a rightward movement along the current per-worker production function. 
A)  rotate the per-worker production function outward. 
B)  rotate the per-worker production function inward. 
C)  shift the per-worker production function downward. 
D)  shift the per-worker production function upward. 
E)  result in a rightward movement along the current per-worker production function.

Question 15

In an iron and steel plant with 4 blast furnaces, 40 laborers produce 160 tons of pig iron every day. The labor productivity in the firm is equal to _____

Accepted Answer

A)  0.25 ton per worker. 
B)  4 tons per worker. 
C)  10 tons per worker. 
D)  0.1 ton per worker. 
E)  40 tons per worker 
A)  0.25 ton per worker. 
B)  4 tons per worker. 
C)  10 tons per worker. 
D)  0.1 ton per worker. 
E)  40 tons per worker

Question 16

The search for knowledge without regard to how that knowledge will be used is known as _____

Accepted Answer

A)  basic research 
B)  applied research 
C)  quality research 
D)  practical research 
E)  theoretical research 
A)  basic research 
B)  applied research 
C)  quality research 
D)  practical research 
E)  theoretical research

Question 17

The cumulative power of productivity growth _____

Accepted Answer

A)  emphasizes the importance of short-term growth. 
B)  emphasizes the importance of long-term growth. 
C)  emphasizes the importance of the capital-labor ratio. 
D)  increases poverty in an economy. 
E)  leads to capital deepening. 
A)  emphasizes the importance of short-term growth. 
B)  emphasizes the importance of long-term growth. 
C)  emphasizes the importance of the capital-labor ratio. 
D)  increases poverty in an economy. 
E)  leads to capital deepening.

Question 18

Because of the power of compounding, output per hour has jumped more than _____ since 1870.

Accepted Answer

A)  500 percent 
B)  1000 percent 
C)  2000 percent 
D)  2500 percent 
E)  3000 percent 
A)  500 percent 
B)  1000 percent 
C)  2000 percent 
D)  2500 percent 
E)  3000 percent

Question 19

In contrast to government research and development, private sector R&D has _____

Accepted Answer

A)  more impact on productivity since most government R&D focuses narrowly on military applications. 
B)  more impact on productivity since most government R&D focuses narrowly on the service sector. 
C)  more impact on productivity since most government R&D focuses narrowly on not-for-profit activities. 
D)  less impact on productivity since the government is more motivated and able to hire better people and facilities. 
E)  less impact on productivity since firms tend to hold back on research when results are easily copied. 
A)  more impact on productivity since most government R&D focuses narrowly on military applications. 
B)  more impact on productivity since most government R&D focuses narrowly on the service sector. 
C)  more impact on productivity since most government R&D focuses narrowly on not-for-profit activities. 
D)  less impact on productivity since the government is more motivated and able to hire better people and facilities. 
E)  less impact on productivity since firms tend to hold back on research when results are easily copied.

Question 20

Labor productivity in the United States has _____

Accepted Answer

A)  been growing at ever-increasing rates since World War II. 
B)  been growing but at lower rates in the last 25 years compared to the 25 years immediately after World War II. 
C)  been falling for the last 50 years. 
D)  remained largely unchanged over the last 50 years. 
E)  been growing more rapidly in the last 50 years than in most other developed economies. 
A)  been growing at ever-increasing rates since World War II. 
B)  been growing but at lower rates in the last 25 years compared to the 25 years immediately after World War II. 
C)  been falling for the last 50 years. 
D)  remained largely unchanged over the last 50 years. 
E)  been growing more rapidly in the last 50 years than in most other developed economies.

Productivity measures _____

Which of the following would increase labor productivity?

Which of the following is the single most important determinant of a nation's standard of living in the long run?

Between the 1880s and the early 21st century, U.S. productivity increased at a constant annual rate.

Which of the following countries has the highest output per capita?

In the long run, an economy needs applied research geared toward specific products more than it needs basic research, which is not motivated by or directed toward manufacturing.

Since 1970, the unemployment rate has _ and worker productivity has _.

Which of the following is true of basic research?

If the ratio of labor to capital increases, we can expect that labor productivity will increase.

If both total employment and total output in an economy grow by 2 percent each year, then the annual growth in labor productivity in the economy over a decade will be equal to _____

A decrease in the capital-labor ratio would result in _____

What percentage of the U.S. adult population had a degree in 2015?

An increase in the quantity of capital per worker would _____

In an iron and steel plant with 4 blast furnaces, 40 laborers produce 160 tons of pig iron every day. The labor productivity in the firm is equal to _____

The search for knowledge without regard to how that knowledge will be used is known as _____

The cumulative power of productivity growth _____

Because of the power of compounding, output per hour has jumped more than _____ since 1870.

In contrast to government research and development, private sector R&D has _____

Labor productivity in the United States has _____

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.

Productivity measures _____

Which of the following would increase labor productivity?

Which of the following is the single most important determinant of a nation's standard of living in the long run?

Between the 1880s and the early 21st century, U.S. productivity increased at a constant annual rate.

Which of the following countries has the highest output per capita?

In the long run, an economy needs applied research geared toward specific products more than it needs basic research, which is not motivated by or directed toward manufacturing.

Since 1970, the unemployment rate has _____ and worker productivity has _____.

Which of the following is true of basic research?

If the ratio of labor to capital increases, we can expect that labor productivity will increase.

If both total employment and total output in an economy grow by 2 percent each year, then the annual growth in labor productivity in the economy over a decade will be equal to _____

A decrease in the capital-labor ratio would result in _____

What percentage of the U.S. adult population had a degree in 2015?

An increase in the quantity of capital per worker would _____

In an iron and steel plant with 4 blast furnaces, 40 laborers produce 160 tons of pig iron every day. The labor productivity in the firm is equal to _____

The search for knowledge without regard to how that knowledge will be used is known as _____

The cumulative power of productivity growth _____

Because of the power of compounding, output per hour has jumped more than _____ since 1870.

In contrast to government research and development, private sector R&D has _____

Labor productivity in the United States has _____

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 1970, the unemployment rate has _ and worker productivity has _.