Question 1

Information technology industries such as computers, mobile phones, computer programming and software:

Accepted Answer

A) significantly increased labour productivity in the 1990s in Australia. 
B) have significantly reduced labour productivity as they have created distractions at work. 
C) are unlikely to increase labour productivity into the future, as their benefits have already been gained. 
D) increased labour productivity in the 1980s in Australia, but led to a slowdown in labour productivity in the 1990s. 
A) significantly increased labour productivity in the 1990s in Australia. 
B) have significantly reduced labour productivity as they have created distractions at work. 
C) are unlikely to increase labour productivity into the future, as their benefits have already been gained. 
D) increased labour productivity in the 1980s in Australia, but led to a slowdown in labour productivity in the 1990s.

Question 2

Given the fact that the productivity slowdown affected all industrial countries, which of the following explanations for the productivity slowdown in Australia is not likely to be correct?

Accepted Answer

A) a deterioration of Australia's education system causing a decline in the quality of labour 
B) tariff protection 
C) lack of sufficient technological change 
D) highly regulated markets 
A) a deterioration of Australia's education system causing a decline in the quality of labour 
B) tariff protection 
C) lack of sufficient technological change 
D) highly regulated markets

Question 3

The productivity slowdown experienced in Australia from the mid-1970s to the mid-1990s was actually a global phenomenon.

Accepted Answer

A) True 
 B)False

Question 4

Describe the pattern of growth in GDP per capita in the world before the Industrial Revolution.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

Records seem to indicate that

Question 5

Since the world began, most records show that little or no increases in real GDP per capita occurred until around the 1800s.

Accepted Answer

A) True 
 B)False

Question 6

If the per-worker production function shifts up:

Accepted Answer

A) it now takes more capital per hour worked to get the same amount of real GDP per hour worked. 
B) an economy can increase its real GDP per hour worked without changing the level of capital per hour worked. 
C) the per-worker production function becomes flatter. 
D) negative technological change has occurred in the economy. 
A) it now takes more capital per hour worked to get the same amount of real GDP per hour worked. 
B) an economy can increase its real GDP per hour worked without changing the level of capital per hour worked. 
C) the per-worker production function becomes flatter. 
D) negative technological change has occurred in the economy.

Question 7

Which of the following is a normative statement about economic growth?

Accepted Answer

A) Economic growth is associated with higher labour productivity growth. 
B) Economic growth increases GDP per capita. 
C) Economic growth hurts developing countries. 
D) Foreign direct investment stimulates economic growth. 
A) Economic growth is associated with higher labour productivity growth. 
B) Economic growth increases GDP per capita. 
C) Economic growth hurts developing countries. 
D) Foreign direct investment stimulates economic growth.

Question 8

What reasons explain the increase in productivity growth rates that occurred in Australia from the early 1990s to the early 2000s?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

Contributing factors include: the rapid

Question 9

Consider the statistics describing the developing countries in the following table:
   
Are these consistent with the economic growth model? Briefly explain.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

These statistics for developing countrie

Question 10

Which of the following policies does not promote savings in an economy?

Accepted Answer

A) deferring taxes on interest earned 
B) making the interest on bonds tax-free 
C) establishing a program of investment tax credits 
D) lowering a sales tax 
A) deferring taxes on interest earned 
B) making the interest on bonds tax-free 
C) establishing a program of investment tax credits 
D) lowering a sales tax

Question 11

During which of the following periods was global growth in GDP per capita the strongest?

Accepted Answer

A) Prior to 500 AD. 
B) 500 AD to 1800 AD. 
C) 1800-1900 AD. 
D) 1900-2000 AD. 
A) Prior to 500 AD. 
B) 500 AD to 1800 AD. 
C) 1800-1900 AD. 
D) 1900-2000 AD.

Question 12

Robert Lucas argues that there are ________ returns to human capital, and any productivity increases are not completely captured by individuals as they decide how much education to purchase. As a result, the market produces ________ education and training.

Accepted Answer

A) increasing; too much 
B) decreasing; too much 
C) increasing; too little 
D) decreasing; too little 
A) increasing; too much 
B) decreasing; too much 
C) increasing; too little 
D) decreasing; too little

Question 13

In the long run, a country will experience an increasing standard of living only if it experiences:

Accepted Answer

A) a high rate of consumption. 
B) continuous technological change. 
C) a high rate of labour force growth. 
D) a slow rate of population growth. 
A) a high rate of consumption. 
B) continuous technological change. 
C) a high rate of labour force growth. 
D) a slow rate of population growth.

Question 14

Which of the following accurately describes the impact of the rule of law on a country's economic growth rate?

Accepted Answer

A) Countries with a strong rule of law have faster economic growth. 
B) Countries with a weak rule of law have faster economic growth. 
C) Countries that enforce property rights through law suits have slower economic growth. 
D) Countries where favouritism and bribery are common have stronger rates of growth. 
A) Countries with a strong rule of law have faster economic growth. 
B) Countries with a weak rule of law have faster economic growth. 
C) Countries that enforce property rights through law suits have slower economic growth. 
D) Countries where favouritism and bribery are common have stronger rates of growth.

Question 15

If a book, film, or piece of software was created today, for how long would Australian copyright law guarantee exclusive legal rights to the creator to use the creation?

Accepted Answer

A) 10 years 
B) 20 years 
C) the creator's lifetime plus 50 years for the creator's heirs 
D) the creator's lifetime plus 70 years for the creator's heirs 
A) 10 years 
B) 20 years 
C) the creator's lifetime plus 50 years for the creator's heirs 
D) the creator's lifetime plus 70 years for the creator's heirs

Question 16

Which of the following was not experienced in the Australian economy from the mid- to late-1800s?

Accepted Answer

A) an expansion of the labour force 
B) a booming export market 
C) an increase in capital per hour worked 
D) a general decline in labour productivity due to a lack of capital 
A) an expansion of the labour force 
B) a booming export market 
C) an increase in capital per hour worked 
D) a general decline in labour productivity due to a lack of capital

Question 17

One of the results of Paul Romer's new growth theory is that investment in research and development will be too low in an economy. Explain how he comes to this conclusion.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

According to Romer, knowledge capital is

Question 18

Which of the following is true about technological change?

Accepted Answer

A) It will shift down the per-worker production function. 
B) It will shift up the per-worker production function. 
C) It will move the economy to a point beneath the per-worker production function. 
D) It will move the economy along a given per-worker production function. 
A) It will shift down the per-worker production function. 
B) It will shift up the per-worker production function. 
C) It will move the economy to a point beneath the per-worker production function. 
D) It will move the economy along a given per-worker production function.

Question 19

'New growth theory' states that increases in ________ capital will result in ________ at the ________ level.

Accepted Answer

A) knowledge; increasing returns to scale; firm 
B) physical; decreasing returns to scale; firm 
C) knowledge; decreasing returns to scale; economy 
D) knowledge; increasing returns to scale; economy 
A) knowledge; increasing returns to scale; firm 
B) physical; decreasing returns to scale; firm 
C) knowledge; decreasing returns to scale; economy 
D) knowledge; increasing returns to scale; economy

Question 20

An increase in ________ shifts ________ the production function, and makes it possible to produce a higher level of GDP with ________ capital per hour worked.

Accepted Answer

A) technology; down; the same amount of 
B) technology; up; the same amount of 
C) consumption; up; a lesser amount 
D) labour productivity; down; the same amount of 
A) technology; down; the same amount of 
B) technology; up; the same amount of 
C) consumption; up; a lesser amount 
D) labour productivity; down; the same amount of

Information technology industries such as computers, mobile phones, computer programming and software:

Given the fact that the productivity slowdown affected all industrial countries, which of the following explanations for the productivity slowdown in Australia is not likely to be correct?

The productivity slowdown experienced in Australia from the mid-1970s to the mid-1990s was actually a global phenomenon.

Describe the pattern of growth in GDP per capita in the world before the Industrial Revolution. _ _

Since the world began, most records show that little or no increases in real GDP per capita occurred until around the 1800s.

If the per-worker production function shifts up:

Which of the following is a normative statement about economic growth?

What reasons explain the increase in productivity growth rates that occurred in Australia from the early 1990s to the early 2000s? _ _

Consider the statistics describing the developing countries in the following table: Are these consistent with the economic growth model? Briefly explain. _ _

Which of the following policies does not promote savings in an economy?

During which of the following periods was global growth in GDP per capita the strongest?

Robert Lucas argues that there are returns to human capital, and any productivity increases are not completely captured by individuals as they decide how much education to purchase. As a result, the market produces education and training.

In the long run, a country will experience an increasing standard of living only if it experiences:

Which of the following accurately describes the impact of the rule of law on a country's economic growth rate?

If a book, film, or piece of software was created today, for how long would Australian copyright law guarantee exclusive legal rights to the creator to use the creation?

Which of the following was not experienced in the Australian economy from the mid- to late-1800s?

One of the results of Paul Romer's new growth theory is that investment in research and development will be too low in an economy. Explain how he comes to this conclusion. _ _

Which of the following is true about technological change?

'New growth theory' states that increases in capital will result in at the level.

An increase in shifts the production function, and makes it possible to produce a higher level of GDP with capital per hour worked.

Economics: Foundations and Models

Choices and Trade Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Gdp: Measuring Total Production, Income and Economic Growth

Economic Growth, the Financial System and Business Cycles

Unemployment

Inflation

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 6: Long-Run Economic Growth: Sources and Policies

Information technology industries such as computers, mobile phones, computer programming and software:

Given the fact that the productivity slowdown affected all industrial countries, which of the following explanations for the productivity slowdown in Australia is not likely to be correct?

The productivity slowdown experienced in Australia from the mid-1970s to the mid-1990s was actually a global phenomenon.

Describe the pattern of growth in GDP per capita in the world before the Industrial Revolution. _____________________________________________________________________________________________ _____________________________________________________________________________________________

Since the world began, most records show that little or no increases in real GDP per capita occurred until around the 1800s.

If the per-worker production function shifts up:

Which of the following is a normative statement about economic growth?

Which of the following policies does not promote savings in an economy?

During which of the following periods was global growth in GDP per capita the strongest?

Robert Lucas argues that there are ________ returns to human capital, and any productivity increases are not completely captured by individuals as they decide how much education to purchase. As a result, the market produces ________ education and training.

In the long run, a country will experience an increasing standard of living only if it experiences:

Which of the following accurately describes the impact of the rule of law on a country's economic growth rate?

If a book, film, or piece of software was created today, for how long would Australian copyright law guarantee exclusive legal rights to the creator to use the creation?

Which of the following was not experienced in the Australian economy from the mid- to late-1800s?

Which of the following is true about technological change?

'New growth theory' states that increases in ________ capital will result in ________ at the ________ level.

An increase in ________ shifts ________ the production function, and makes it possible to produce a higher level of GDP with ________ capital per hour worked.

Economics: Foundations and Models

Choices and Trade Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Gdp: Measuring Total Production, Income and Economic Growth

Economic Growth, the Financial System and Business Cycles

Unemployment

Inflation

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Describe the pattern of growth in GDP per capita in the world before the Industrial Revolution. _ _

Robert Lucas argues that there are returns to human capital, and any productivity increases are not completely captured by individuals as they decide how much education to purchase. As a result, the market produces education and training.

'New growth theory' states that increases in capital will result in at the level.

An increase in shifts the production function, and makes it possible to produce a higher level of GDP with capital per hour worked.