Question 1

Capital gains are profits that you earn on the sale of your

Accepted Answer

A) labor. 
B) money. 
C) financial asset. 
D) economics textbook. 
A) labor. 
B) money. 
C) financial asset. 
D) economics textbook. C

Question 2

Identify the main reason to expect convergence in the long run.

Accepted Answer

A) Low-productivity countries learning from high-productivity countries 
B) Rapid growth in the supply of capital in low-productivity countries 
C) Educational attainment rising quickly in low-productivity countries 
D) Economic complacency and mismanagement in high-productivity countries 
A) Low-productivity countries learning from high-productivity countries 
B) Rapid growth in the supply of capital in low-productivity countries 
C) Educational attainment rising quickly in low-productivity countries 
D) Economic complacency and mismanagement in high-productivity countries A

Question 3

Compared with the U.S., developing countries

Accepted Answer

A) face geographic conditions that limit productivity. 
B) have universal health care that prevent the spread of diseases. 
C) more political stability. 
D) higher levels of educational attainment. 
A) face geographic conditions that limit productivity. 
B) have universal health care that prevent the spread of diseases. 
C) more political stability. 
D) higher levels of educational attainment. A

Question 4

Which price would you expect to rise the most in a high-income growing economy?

Accepted Answer

A) semiconductors for personal computers 
B) tickets to a ballet performance 
C) passenger automobiles 
D) Blu-ray players 
A) semiconductors for personal computers 
B) tickets to a ballet performance 
C) passenger automobiles 
D) Blu-ray players

Question 5

Which of the following would tend to shift the production function upward?

Accepted Answer

A) an increase in the number of hours worked 
B) an increase in population 
C) an increase in the size of the labor force 
D) an increase in the level of technology 
A) an increase in the number of hours worked 
B) an increase in population 
C) an increase in the size of the labor force 
D) an increase in the level of technology

Question 6

All increases in the level of human capital take place in schools.

Accepted Answer

A) True 
 B)False

Question 7

The wage premium in the United States for college graduates over high school graduates has remained constant from 1978 to 2000.

Accepted Answer

A) True 
 B)False

Question 8

In contrast to poorer countries, most residents of middle-income countries will have

Accepted Answer

A) universal primary education. 
B) universal secondary education. 
C) universal higher education. 
D) lower levels of productivity. 
A) universal primary education. 
B) universal secondary education. 
C) universal higher education. 
D) lower levels of productivity.

Question 9

Studies of data support the view that higher levels of education are associated with higher levels of real

Accepted Answer

A) interest rates. 
B) per capita GDP. 
C) price inflation. 
D) income decline. 
A) interest rates. 
B) per capita GDP. 
C) price inflation. 
D) income decline.

Question 10

The new growth theory helps attract foreign students to study in

Accepted Answer

A) the former Soviet Union. 
B) France. 
C) the United States. 
D) the Peoples Republic of China. 
A) the former Soviet Union. 
B) France. 
C) the United States. 
D) the Peoples Republic of China.

Question 11

The prices of telecommunications services have decreased due to productivity increases.

Accepted Answer

A) True 
 B)False

Question 12

Productivity growth rates in the United States have remained fairly constant from 1948 to 2000.

Accepted Answer

A) True 
 B)False

Question 13

An increase in the number of hours worked would

Accepted Answer

A) shift the production function upward. 
B) shift the production function downward. 
C) shift the production function outward. 
D) not shift the production function. 
A) shift the production function upward. 
B) shift the production function downward. 
C) shift the production function outward. 
D) not shift the production function.

Question 14

The slowing of the American economy in 2008-2009 gave businesses a strong incentive to raise capital investment.

Accepted Answer

A) True 
 B)False

Question 15

High levels of sales that spur high levels of investment spending is an example of a

Accepted Answer

A) vicious circle. 
B) virtuous circle. 
C) convergence circle. 
D) divergence circle. 
A) vicious circle. 
B) virtuous circle. 
C) convergence circle. 
D) divergence circle.

Question 16

Workforce quality can be improved by

Accepted Answer

A) years of education. 
B) on-the-job training. 
C) workplace learning. 
D) all of the above. 
A) years of education. 
B) on-the-job training. 
C) workplace learning. 
D) all of the above.

Question 17

Productivity growth rates are usually higher in rich countries than in poor countries.

Accepted Answer

A) True 
 B)False

Question 18

Explain the ways in which the government can persuade private businesses to invest more in order to speed up the process of capital formation?

Accepted Answer

Real interest rates: The amount that bus

Question 19

In the United States, the wage rates for high school graduates are growing faster than the wage rates for college graduates.

Accepted Answer

A) True 
 B)False

Question 20

For given inputs of labor and capital, if technology is more primitive, labor productivity will be

Accepted Answer

A) higher. 
B) lower. 
C) unchanged. 
D) characterized by increasing returns to scale. 
A) higher. 
B) lower. 
C) unchanged. 
D) characterized by increasing returns to scale.

Exam 24: Economic Growth: Theory and Policy

Capital gains are profits that you earn on the sale of your

Identify the main reason to expect convergence in the long run.

Compared with the U.S., developing countries

Which price would you expect to rise the most in a high-income growing economy?

Which of the following would tend to shift the production function upward?

All increases in the level of human capital take place in schools.

The wage premium in the United States for college graduates over high school graduates has remained constant from 1978 to 2000.

In contrast to poorer countries, most residents of middle-income countries will have

Studies of data support the view that higher levels of education are associated with higher levels of real

The new growth theory helps attract foreign students to study in

The prices of telecommunications services have decreased due to productivity increases.

Productivity growth rates in the United States have remained fairly constant from 1948 to 2000.

An increase in the number of hours worked would

The slowing of the American economy in 2008-2009 gave businesses a strong incentive to raise capital investment.

High levels of sales that spur high levels of investment spending is an example of a

Workforce quality can be improved by

Productivity growth rates are usually higher in rich countries than in poor countries.

Explain the ways in which the government can persuade private businesses to invest more in order to speed up the process of capital formation?

In the United States, the wage rates for high school graduates are growing faster than the wage rates for college graduates.

For given inputs of labor and capital, if technology is more primitive, labor productivity will be

What Is Economics

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: the Importance of Marginal Analysis

Securities: Business Finance and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power: Regulation and Antitrust

The Case for Free Markets: the Price System

The Shortcomings of Free Markets

Externalities, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: the Human Inputs

Poverty, Inequality, and Discrimination

Is Useconomic Leadership Threatened

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation

Bringing in the Supply Side: Unemployment and Inflation

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

He Financial Crisis and the Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder

Exchange Rates and the Macroeconomy

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