Question 1

The U.S.government attempts to spur research and development activities through

Accepted Answer

A) monetary policy. 
B) interest rate policy. 
C) export subsidy policy. 
D) tax policy. 
A) monetary policy. 
B) interest rate policy. 
C) export subsidy policy. 
D) tax policy.

Question 2

The argument that rising energy prices caused the decline in U.S.productivity in the 1970s is made less believable due to the

Accepted Answer

A) falling level of saving in the 1970s. 
B) falling level of energy prices in the 1980s. 
C) rising level of energy prices in the 1980s. 
D) rising level of energy prices in the 1990s. 
A) falling level of saving in the 1970s. 
B) falling level of energy prices in the 1980s. 
C) rising level of energy prices in the 1980s. 
D) rising level of energy prices in the 1990s.

Question 3

More education and training usually lead to higher levels of

Accepted Answer

A) productivity. 
B) population. 
C) pollution. 
D) import protectionism. 
A) productivity. 
B) population. 
C) pollution. 
D) import protectionism.

Question 4

One reason given for the U.S.productivity slowdown in the period from 1973-1995 was

Accepted Answer

A) declining energy prices. 
B) increasing energy prices. 
C) increasing investment spending. 
D) increasing government spending. 
A) declining energy prices. 
B) increasing energy prices. 
C) increasing investment spending. 
D) increasing government spending.

Question 5

The application of new technology refers to

Accepted Answer

A) imitation. 
B) investment. 
C) innovation. 
D) education. 
A) imitation. 
B) investment. 
C) innovation. 
D) education.

Question 6

A country's level of productivity determines its

Accepted Answer

A) productivity growth rate. 
B) rate of population growth. 
C) current standard of living. 
D) future income potential. 
A) productivity growth rate. 
B) rate of population growth. 
C) current standard of living. 
D) future income potential.

Question 7

Mandated on-the-job training is seen in the United States mainly as a(n)

Accepted Answer

A) useful spur to economic growth. 
B) proper use of legislative power. 
C) unwarranted governmental interference. 
D) necessary requirement for increased productivity. 
A) useful spur to economic growth. 
B) proper use of legislative power. 
C) unwarranted governmental interference. 
D) necessary requirement for increased productivity.

Question 8

By enjoying more consumer goods today, the economy spurs growth in future consumer goods.

Accepted Answer

A) True 
 B)False

Question 9

A nation's capital stock is increased by increases in

Accepted Answer

A) consumption spending. 
B) government spending. 
C) investment spending. 
D) net exports. 
A) consumption spending. 
B) government spending. 
C) investment spending. 
D) net exports.

Question 10

On a graph with time on the horizontal axis and real GDP per capita on the vertical axis, the income levels of poorer countries are

Accepted Answer

A) diverging more from the incomes of rich countries. 
B) maintaining a constant gap with the incomes of richer countries. 
C) crossing the line representing richer countries. 
D) coming closer to the line representing richer countries. 
A) diverging more from the incomes of rich countries. 
B) maintaining a constant gap with the incomes of richer countries. 
C) crossing the line representing richer countries. 
D) coming closer to the line representing richer countries.

Question 11

The labor productivity speed-up in the United States could be explained by a delayed

Accepted Answer

A) educational benefit. 
B) technology benefit. 
C) military spending benefit. 
D) baby boom benefit. 
A) educational benefit. 
B) technology benefit. 
C) military spending benefit. 
D) baby boom benefit.

Question 12

For a given technology, a higher capital stock will decrease labor productivity.

Accepted Answer

A) True 
 B)False

Question 13

Productivity levels are higher in rich countries compared to poor countries.

Accepted Answer

A) True 
 B)False

Question 14

The productivity slowdown in the U.S.can be explained by geographic limitations and instability in the government.

Accepted Answer

A) True 
 B)False

Question 15

From the late 1960s to the late 1980s, in the United States SAT scores

Accepted Answer

A) and graduation rates increased. 
B) and graduation rates decreased. 
C) and school attendance rates decreased. 
D) decreased and school attendance rates increased. 
A) and graduation rates increased. 
B) and graduation rates decreased. 
C) and school attendance rates decreased. 
D) decreased and school attendance rates increased.

Question 16

As the level of real interest rates rise, the amount of new investment will rise also.

Accepted Answer

A) True 
 B)False

Question 17

Give some possible explanations of the productivity slowdown in the United States that occurred in the 1973-1995 period.

Accepted Answer

Several possible explanations have been

Question 18

Human capital is the amount of

Accepted Answer

A) capital available to workforce. 
B) skill embodied in the workforce. 
C) output the labor force can produce. 
D) healthy work force in the total population. 
A) capital available to workforce. 
B) skill embodied in the workforce. 
C) output the labor force can produce. 
D) healthy work force in the total population.

Question 19

A productivity increase is illustrated by a shift in the production function

Accepted Answer

A) downward. 
B) leftward. 
C) upward. 
D) rightward. 
A) downward. 
B) leftward. 
C) upward. 
D) rightward.

Question 20

What is the "cost disease of personal services" phenomenon and why does it help explain why tuition rates keep going up so fast?

Accepted Answer

One of the curious developments in moder

Exam 24: Economic Growth: Theory and Policy

The U.S.government attempts to spur research and development activities through

The argument that rising energy prices caused the decline in U.S.productivity in the 1970s is made less believable due to the

More education and training usually lead to higher levels of

One reason given for the U.S.productivity slowdown in the period from 1973-1995 was

The application of new technology refers to

A country's level of productivity determines its

Mandated on-the-job training is seen in the United States mainly as a(n)

By enjoying more consumer goods today, the economy spurs growth in future consumer goods.

A nation's capital stock is increased by increases in

On a graph with time on the horizontal axis and real GDP per capita on the vertical axis, the income levels of poorer countries are

The labor productivity speed-up in the United States could be explained by a delayed

For a given technology, a higher capital stock will decrease labor productivity.

Productivity levels are higher in rich countries compared to poor countries.

The productivity slowdown in the U.S.can be explained by geographic limitations and instability in the government.

From the late 1960s to the late 1980s, in the United States SAT scores

As the level of real interest rates rise, the amount of new investment will rise also.

Give some possible explanations of the productivity slowdown in the United States that occurred in the 1973-1995 period.

Human capital is the amount of

A productivity increase is illustrated by a shift in the production function

What is the "cost disease of personal services" phenomenon and why does it help explain why tuition rates keep going up so fast?

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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