Question 1

A nation's supply of capital refers to its level of

Accepted Answer

A) common stocks and corporate bonds. 
B) financial wealth. 
C) production equipment. 
D) monetary balances. 
A) common stocks and corporate bonds. 
B) financial wealth. 
C) production equipment. 
D) monetary balances.

Question 2

In general, countries with lower rates of growth of labor productivity have

Accepted Answer

A) lower levels of productivity. 
B) higher levels of productivity. 
C) lower levels of educational attainment. 
D) higher levels of natural resource endowments. 
A) lower levels of productivity. 
B) higher levels of productivity. 
C) lower levels of educational attainment. 
D) higher levels of natural resource endowments.

Question 3

On the job training:

Accepted Answer

A) ​is an important component for building human capital 
B) ​may be just as important as formal education in raising productivity 
C) ​is less amenable to influence by the government 
D) ​All of the above are correct. 
A) ​is an important component for building human capital 
B) ​may be just as important as formal education in raising productivity 
C) ​is less amenable to influence by the government 
D) ​All of the above are correct.

Question 4

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

Accepted Answer

A) improvements in labor force quality. 
B) falling energy prices. 
C) rising rates of domestic saving. 
D) advances in information technology. 
A) improvements in labor force quality. 
B) falling energy prices. 
C) rising rates of domestic saving. 
D) advances in information technology.

Question 5

The Human Genome Project is a useful example of

Accepted Answer

A) private sector research and development. 
B) government-conducted research. 
C) household research. 
D) a and b. 
A) private sector research and development. 
B) government-conducted research. 
C) household research. 
D) a and b.

Question 6

Imitation as a strategy for acquiring new technology is based on the difference in effort between

Accepted Answer

A) creating it and thinking of it. 
B) creating it and looking it up. 
C) looking it up and writing it down. 
D) discovering it and innovating it. 
A) creating it and thinking of it. 
B) creating it and looking it up. 
C) looking it up and writing it down. 
D) discovering it and innovating it.

Question 7

In the United States, the wage premium for college education has been

Accepted Answer

A) decreasing since 1980. 
B) increasing since 1980. 
C) higher for males. 
D) decreasing since 1990. 
A) decreasing since 1980. 
B) increasing since 1980. 
C) higher for males. 
D) decreasing since 1990.

Question 8

The wealthy nations of the world have

Accepted Answer

A) the largest populations. 
B) more supplies of natural resources. 
C) more supplies of capital. 
D) larger labor forces. 
A) the largest populations. 
B) more supplies of natural resources. 
C) more supplies of capital. 
D) larger labor forces.

Question 9

In 2008-2009 the U.S.economy provided a

Accepted Answer

A) healthy climate for investment spending. 
B) change in aggregate demand that fostered more capital formation. 
C) sluggish climate for investment spending. 
D) booming economy that spurred investment spending. 
A) healthy climate for investment spending. 
B) change in aggregate demand that fostered more capital formation. 
C) sluggish climate for investment spending. 
D) booming economy that spurred investment spending.

Question 10

Because the Soviet Union educated more scientists and engineers than the United States, their level of economic growth was higher.

Accepted Answer

A) True 
 B)False

Question 11

A nation's capital consists mainly of stocks, bonds, and other financial assets.

Accepted Answer

A) True 
 B)False

Question 12

Economists are still puzzled why growth rates in the United States fell from 1973 to 1995.

Accepted Answer

A) True 
 B)False

Question 13

The productivity growth rates of richer countries tend to be ____ than those of poorer countries.

Accepted Answer

A) higher 
B) lower 
C) increasing faster 
D) decreasing faster 
A) higher 
B) lower 
C) increasing faster 
D) decreasing faster

Question 14

The graph that relates hours of labor input to output is called the

Accepted Answer

A) consumption function. 
B) conjunction function. 
C) capital function. 
D) production function. 
A) consumption function. 
B) conjunction function. 
C) capital function. 
D) production function.

Question 15

Labor productivity rises as the amount of capital available to workers increases.

Accepted Answer

A) True 
 B)False

Question 16

If a larger percentage of Americans attended college, the wage premium would probably

Accepted Answer

A) continue rising. 
B) continue falling. 
C) rise. 
D) fall. 
A) continue rising. 
B) continue falling. 
C) rise. 
D) fall.

Question 17

Capital investment becomes more profitable for a business firm as the real interest rate decreases.

Accepted Answer

A) True 
 B)False

Question 18

Which department in a modern university would most likely advertise itself as a promoter of modern growth theory?

Accepted Answer

A) computer science 
B) accounting 
C) economics 
D) history 
A) computer science 
B) accounting 
C) economics 
D) history

Question 19

The act of discovering a new production process would be called

Accepted Answer

A) invention. 
B) innovation. 
C) investment. 
D) development. 
A) invention. 
B) innovation. 
C) investment. 
D) development.

Question 20

What is the price of investment?
 How are they related?
 What has to be done to increase investment?

Accepted Answer

The real interest rate is the price of i

Exam 24: Economic Growth: Theory and Policy

A nation's supply of capital refers to its level of

In general, countries with lower rates of growth of labor productivity have

On the job training:

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

The Human Genome Project is a useful example of

Imitation as a strategy for acquiring new technology is based on the difference in effort between

In the United States, the wage premium for college education has been

The wealthy nations of the world have

In 2008-2009 the U.S.economy provided a

Because the Soviet Union educated more scientists and engineers than the United States, their level of economic growth was higher.

A nation's capital consists mainly of stocks, bonds, and other financial assets.

Economists are still puzzled why growth rates in the United States fell from 1973 to 1995.

The productivity growth rates of richer countries tend to be ____ than those of poorer countries.

The graph that relates hours of labor input to output is called the

Labor productivity rises as the amount of capital available to workers increases.

If a larger percentage of Americans attended college, the wage premium would probably

Capital investment becomes more profitable for a business firm as the real interest rate decreases.

Which department in a modern university would most likely advertise itself as a promoter of modern growth theory?

The act of discovering a new production process would be called

What is the price of investment? How are they related? What has to be done to increase investment?

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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