Question 1

Long-term growth in production can be explained by _____

Accepted Answer

A)  improvements in the rules of the game that facilitate production and exchange. 
B)  a gradual but consistent rise in the price level. 
C)  a rapid and accelerating increase in the price level. 
D)  a trade surplus that leads to the accumulation of gold. 
E)  the peaks and troughs of economic fluctuations. 
A)  improvements in the rules of the game that facilitate production and exchange. 
B)  a gradual but consistent rise in the price level. 
C)  a rapid and accelerating increase in the price level. 
D)  a trade surplus that leads to the accumulation of gold. 
E)  the peaks and troughs of economic fluctuations.

Question 2

Which of the following is an example of industrial policy?

Accepted Answer

A)  government imposing a high rate of taxes on the profits of large corporate houses 
B)  government spending more on the construction of roads and bridges than on education 
C)  government imposing a high rate of taxes on the import of goods and services 
D)  government imposing a low rate of taxes on the import of goods and services 
E)  government selling imported cash crops at a subsidized rate 
A)  government imposing a high rate of taxes on the profits of large corporate houses 
B)  government spending more on the construction of roads and bridges than on education 
C)  government imposing a high rate of taxes on the import of goods and services 
D)  government imposing a low rate of taxes on the import of goods and services 
E)  government selling imported cash crops at a subsidized rate

Question 3

Which of the following is a reason behind the low standards of living in developing countries?

Accepted Answer

A)  high levels of human and physical capital per worker 
B)  low levels of human and physical capital per worker 
C)  low birth rates 
D)  high tax rates 
E)  low public expenditure 
A)  high levels of human and physical capital per worker 
B)  low levels of human and physical capital per worker 
C)  low birth rates 
D)  high tax rates 
E)  low public expenditure

Question 4

Which of the following is the correct formula to calculate productivity?

Accepted Answer

A)  output + quantity of input 
B)  output ─ quantity of input 
C)  quantity of input ÷ output 
D)  output ÷ quantity of input 
E)  output × quantity of input 
A)  output + quantity of input 
B)  output ─ quantity of input 
C)  quantity of input ÷ output 
D)  output ÷ quantity of input 
E)  output × quantity of input

Question 5

The law of diminishing marginal returns states that as the quantity of capital per worker increases, other things constant, output per worker _____

Accepted Answer

A)  increases at a constant rate. 
B)  increases at a decreasing rate. 
C)  increases at an increasing rate. 
D)  decreases. 
E)  remains constant. 
A)  increases at a constant rate. 
B)  increases at a decreasing rate. 
C)  increases at an increasing rate. 
D)  decreases. 
E)  remains constant.

Question 6

Industrial market countries, or developed countries, make up about _____ of the world's population.

Accepted Answer

A)  10 percent 
B)  16 percent 
C)  25 percent 
D)  50 percent 
E)  84 percent 
A)  10 percent 
B)  16 percent 
C)  25 percent 
D)  50 percent 
E)  84 percent

Question 7

According to Simon Kuznets, _____

Accepted Answer

A)  the main force behind economic growth is increases in the quantity of labor. 
B)  the main force behind economic growth is increases in the quantity of capital. 
C)  the main force behind economic growth is increases in the quality of inputs. 
D)  government regulations increase labor productivity. 
E)  government regulations decrease labor productivity. 
A)  the main force behind economic growth is increases in the quantity of labor. 
B)  the main force behind economic growth is increases in the quantity of capital. 
C)  the main force behind economic growth is increases in the quality of inputs. 
D)  government regulations increase labor productivity. 
E)  government regulations decrease labor productivity.

Question 8

On-the-job experience causes labor productivity to increase through an improvement in human capital.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following factors pushes the per-worker production function of an economy downward?

Accepted Answer

A)  a stable political environment 
B)  a high risk of terror attack 
C)  an increase in educated workforce in the country 
D)  an increase in road networks in the country 
E)  a law encouraging foreign investment 
A)  a stable political environment 
B)  a high risk of terror attack 
C)  an increase in educated workforce in the country 
D)  an increase in road networks in the country 
E)  a law encouraging foreign investment

Question 10

A website business employs 3 people. Emma can create 2 websites in one day. Harper can create 3 websites in two days. Lee can create 6 websites in three days. Who is the most productive?

Accepted Answer

A)  Emma 
B)  Harper 
C)  Lee 
D)  Both Emma and Harper are more productive than Lee. 
E)  Both Emma and Lee are more productive than Harper. 
A)  Emma 
B)  Harper 
C)  Lee 
D)  Both Emma and Harper are more productive than Lee. 
E)  Both Emma and Lee are more productive than Harper.

Question 11

In order for society to have a rising standard of living, output must grow _____

Accepted Answer

A)  at a slower rate than the labor force. 
B)  at the same rate as the population. 
C)  faster than the population. 
D)  at a slower rate than the population. 
E)  at a slower rate than infrastructure. 
A)  at a slower rate than the labor force. 
B)  at the same rate as the population. 
C)  faster than the population. 
D)  at a slower rate than the population. 
E)  at a slower rate than infrastructure.

Question 12

Which of the following could cause the production possibilities frontier to shift to the right?

Accepted Answer

A)  more government regulation that stunts economic growth 
B)  changes in the rules of the game that stunt economic growth 
C)  lower-quality resources 
D)  fewer productive resources 
E)  production of more capital goods and fewer consumer goods 
A)  more government regulation that stunts economic growth 
B)  changes in the rules of the game that stunt economic growth 
C)  lower-quality resources 
D)  fewer productive resources 
E)  production of more capital goods and fewer consumer goods

Question 13

Industrial policy involves governments using taxes, subsidies, and regulations to nurture the development of specific industries.

Accepted Answer

A) True 
 B)False

Question 14

Over the last 100 years, the U.S. labor productivity growth rate experienced its largest declines _____

Accepted Answer

A)  during the Great Depression. 
B)  in the 1940s. 
C)  during the 1950s. 
D)  during the 1980s. 
E)  during the 1990s. 
A)  during the Great Depression. 
B)  in the 1940s. 
C)  during the 1950s. 
D)  during the 1980s. 
E)  during the 1990s.

Question 15

A group of musicians performing at a concert for charity in New York is an example of an industry cluster in economics.

Accepted Answer

A) True 
 B)False

Question 16

If Harper can create 3 websites in two days, 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 17

The most important factor in determining a nation's standard of living in the long run is the productivity of its resources.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following best describes productivity?

Accepted Answer

A)  Productivity is nominal GDP to a specific measure of output. 
B)  Productivity is real GDP to a specific measure of output. 
C)  Productivity is economic growth to a specific measure of output. 
D)  Productivity is the ratio of total output to a specific measure of input. 
E)  Productivity is the ratio of total input to a specific measure of output. 
A)  Productivity is nominal GDP to a specific measure of output. 
B)  Productivity is real GDP to a specific measure of output. 
C)  Productivity is economic growth to a specific measure of output. 
D)  Productivity is the ratio of total output to a specific measure of input. 
E)  Productivity is the ratio of total input to a specific measure of output.

Question 19

Which of the following is likely to cause a decrease in labor productivity?

Accepted Answer

A)  an increase in student achievement scores 
B)  a service sector that is growing slower than the growth rate of GDP 
C)  an increased spending on research and development 
D)  a decrease in capital formation 
E)  a low federal budget deficit 
A)  an increase in student achievement scores 
B)  a service sector that is growing slower than the growth rate of GDP 
C)  an increased spending on research and development 
D)  a decrease in capital formation 
E)  a low federal budget deficit

Question 20

Which of the following is true of small changes in productivity growth rates?

Accepted Answer

A)  Small changes in productivity growth rates decrease the productivity of workers in the short run, compounding the problem. 
B)  The effects of small changes in productivity growth rates are compounded over the years, leading to large cumulative effects. 
C)  Small increases in productivity growth rates cause output to fall. 
D)  The effects of small changes in productivity growth rates are negligible. 
E)  Small decreases in productivity growth rates cause output to increase. 
A)  Small changes in productivity growth rates decrease the productivity of workers in the short run, compounding the problem. 
B)  The effects of small changes in productivity growth rates are compounded over the years, leading to large cumulative effects. 
C)  Small increases in productivity growth rates cause output to fall. 
D)  The effects of small changes in productivity growth rates are negligible. 
E)  Small decreases in productivity growth rates cause output to increase.

Long-term growth in production can be explained by _____

Which of the following is an example of industrial policy?

Which of the following is a reason behind the low standards of living in developing countries?

Which of the following is the correct formula to calculate productivity?

The law of diminishing marginal returns states that as the quantity of capital per worker increases, other things constant, output per worker _____

Industrial market countries, or developed countries, make up about _____ of the world's population.

According to Simon Kuznets, _____

On-the-job experience causes labor productivity to increase through an improvement in human capital.

Which of the following factors pushes the per-worker production function of an economy downward?

A website business employs 3 people. Emma can create 2 websites in one day. Harper can create 3 websites in two days. Lee can create 6 websites in three days. Who is the most productive?

In order for society to have a rising standard of living, output must grow _____

Which of the following could cause the production possibilities frontier to shift to the right?

Industrial policy involves governments using taxes, subsidies, and regulations to nurture the development of specific industries.

Over the last 100 years, the U.S. labor productivity growth rate experienced its largest declines _____

A group of musicians performing at a concert for charity in New York is an example of an industry cluster in economics.

If Harper can create 3 websites in two days, what is her productivity?

The most important factor in determining a nation's standard of living in the long run is the productivity of its resources.

Which of the following best describes productivity?

Which of the following is likely to cause a decrease in labor productivity?

Which of the following is true of small changes in productivity growth rates?

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.

Long-term growth in production can be explained by _____

Which of the following is an example of industrial policy?

Which of the following is a reason behind the low standards of living in developing countries?

Which of the following is the correct formula to calculate productivity?

The law of diminishing marginal returns states that as the quantity of capital per worker increases, other things constant, output per worker _____

Industrial market countries, or developed countries, make up about _____ of the world's population.

According to Simon Kuznets, _____

On-the-job experience causes labor productivity to increase through an improvement in human capital.

Which of the following factors pushes the per-worker production function of an economy downward?

A website business employs 3 people. Emma can create 2 websites in one day. Harper can create 3 websites in two days. Lee can create 6 websites in three days. Who is the most productive?

In order for society to have a rising standard of living, output must grow _____

Which of the following could cause the production possibilities frontier to shift to the right?

Industrial policy involves governments using taxes, subsidies, and regulations to nurture the development of specific industries.

Over the last 100 years, the U.S. labor productivity growth rate experienced its largest declines _____

A group of musicians performing at a concert for charity in New York is an example of an industry cluster in economics.

If Harper can create 3 websites in two days, what is her productivity?

The most important factor in determining a nation's standard of living in the long run is the productivity of its resources.

Which of the following best describes productivity?

Which of the following is likely to cause a decrease in labor productivity?

Which of the following is true of small changes in productivity growth rates?

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