Question 1

If the real wage rate is $10.00 an hour and the price level is 60, the money wage rate is

Accepted Answer

A) $16.75 an hour. 
B) $18.50 an hour. 
C) $10.00 an hour. 
D) $6.00 an hour. 
E) $16.67 an hour. 
A) $16.75 an hour. 
B) $18.50 an hour. 
C) $10.00 an hour. 
D) $6.00 an hour. 
E) $16.67 an hour.

Question 2

Use the figure below to answer the following question.
   
Figure 22.3.3
-Refer to Figure 22.3.3. As a result of the rightward shift in the demand curve for labour from LD₀ to LD₁, potential GDP ________, and potential GDP per hour of labour ________.

Accepted Answer

A) increases; increases 
B) decreases; increases 
C) increases; decreases 
D) decreases; decreases 
E) increases; does not change 
A) increases; increases 
B) decreases; increases 
C) increases; decreases 
D) decreases; decreases 
E) increases; does not change

Question 3

Slowdonia's current growth rate of real GDP per person is 2 percent a year. How long will it take to double real GDP per person?

Accepted Answer

A) half a year 
B) approximately 10 years 
C) 28.6 years 
D) 35 years 
E) 2 years 
A) half a year 
B) approximately 10 years 
C) 28.6 years 
D) 35 years 
E) 2 years

Question 4

________ fits the facts of today's world more closely than other theories.

Accepted Answer

A) Neoclassical growth theory 
B) New growth theory 
C) Classical growth theory 
D) Malthusian growth theory 
E) Doomsday growth theory 
A) Neoclassical growth theory 
B) New growth theory 
C) Classical growth theory 
D) Malthusian growth theory 
E) Doomsday growth theory

Question 5

In the labour market, an increase in labour productivity ________ the real wage rate and ________ the level of employment.

Accepted Answer

A) raises; increases 
B) raises; decreases 
C) lowers; increases 
D) lowers; decreases 
E) raises; does not change 
A) raises; increases 
B) raises; decreases 
C) lowers; increases 
D) lowers; decreases 
E) raises; does not change

Question 6

An increase in labour productivity ________ the real wage rate and an increase in population ________ the real wage rate.

Accepted Answer

A) raises; lowers 
B) raises; raises 
C) lowers; lowers 
D) lowers; raises 
E) raises; does not change 
A) raises; lowers 
B) raises; raises 
C) lowers; lowers 
D) lowers; raises 
E) raises; does not change

Question 7

In 2012, Northland had real GDP of $4.21 billion and a population of 2.98 million. In 2013, real GDP was $4.59 billion and population was 2.97 million. Between 2012 and 2013, Northland's standard of living

Accepted Answer

A) increased. 
B) decreased. 
C) did not change. 
D) might have increased, decreased, or remained unchanged. 
E) doubled. 
A) increased. 
B) decreased. 
C) did not change. 
D) might have increased, decreased, or remained unchanged. 
E) doubled.

Question 8

A movement ________ illustrates a return to full employment in a business cycle expansion.

Accepted Answer

A) from a point inside the PPF to a point on the PPF 
B) up along the PPF 
C) down along the PPF 
D) from a point on the PPF to the origin 
E) from a point outside the PPF to a point inside the PPF 
A) from a point inside the PPF to a point on the PPF 
B) up along the PPF 
C) down along the PPF 
D) from a point on the PPF to the origin 
E) from a point outside the PPF to a point inside the PPF

Question 9

The decreasing slope of the aggregate production function reflects

Accepted Answer

A) diminishing returns. 
B) rising unemployment. 
C) decreasing costs. 
D) increasing aggregate demand. 
E) a decrease in potential GDP. 
A) diminishing returns. 
B) rising unemployment. 
C) decreasing costs. 
D) increasing aggregate demand. 
E) a decrease in potential GDP.

Question 10

If capital per worker increases, labour productivity

Accepted Answer

A) decreases for a given level of technology. 
B) increases because the level of technology increases. 
C) increases for a given level of technology. 
D) decreases because the level of technology decreases. 
E) does not change unless technology advances at the same time. 
A) decreases for a given level of technology. 
B) increases because the level of technology increases. 
C) increases for a given level of technology. 
D) decreases because the level of technology decreases. 
E) does not change unless technology advances at the same time.

Question 11

If the population increases, then potential GDP ________, and potential GDP per hour of labour ________.

Accepted Answer

A) increases; decreases 
B) increases; increases 
C) decreases; increases 
D) decreases; decreases 
E) increases; does not change 
A) increases; decreases 
B) increases; increases 
C) decreases; increases 
D) decreases; decreases 
E) increases; does not change

Question 12

Use the figure below to answer the following questions.
   
Figure 22.3.2
-Refer to Figure 22.3.2. If the real wage is $20 an hour, a labour

Accepted Answer

A) shortage will occur and the real wage will rise. 
B) shortage will occur and the real wage will fall. 
C) surplus will occur and the real wage will rise. 
D) surplus will occur and the real wage will fall. 
E) surplus will occur and the demand for labour will increase. 
A) shortage will occur and the real wage will rise. 
B) shortage will occur and the real wage will fall. 
C) surplus will occur and the real wage will rise. 
D) surplus will occur and the real wage will fall. 
E) surplus will occur and the demand for labour will increase.

Question 13

Canada's economic growth rate was highest in which of the following decades?

Accepted Answer

A) the 1930s 
B) the 1960s 
C) the 1970s 
D) the 1980s 
E) the 1990s 
A) the 1930s 
B) the 1960s 
C) the 1970s 
D) the 1980s 
E) the 1990s

Question 14

Compared to growth in other countries, between 1960 and 2010 Canada

Accepted Answer

A) fell behind most other countries. 
B) dramatically caught up to and passed other countries. 
C) worsened dramatically versus the United States, but did better versus other countries. 
D) did as well or better than most countries except certain Asian countries. 
E) none of the above 
A) fell behind most other countries. 
B) dramatically caught up to and passed other countries. 
C) worsened dramatically versus the United States, but did better versus other countries. 
D) did as well or better than most countries except certain Asian countries. 
E) none of the above

Question 15

In neoclassical growth theory, if the rate of return on capital increases due to a technological advance, then

Accepted Answer

A) the rate of return on capital will eventually decline. 
B) capital per hour of labour will decrease. 
C) real GDP per hour of labour will decrease. 
D) the rate of return on capital will never decline. 
E) population growth will explode. 
A) the rate of return on capital will eventually decline. 
B) capital per hour of labour will decrease. 
C) real GDP per hour of labour will decrease. 
D) the rate of return on capital will never decline. 
E) population growth will explode.

Question 16

In which of the following decades did Canada experience the slowest economic growth?

Accepted Answer

A) 1960s 
B) 1970s 
C) 1980s 
D) 1940s 
E) 1990s 
A) 1960s 
B) 1970s 
C) 1980s 
D) 1940s 
E) 1990s

Question 17

When the population increases with no change in labour productivity, employment ________ and potential GDP ________.

Accepted Answer

A) decreases; decreases 
B) increases; increases 
C) decreases; increases 
D) increases; decreases 
E) increases; does not change 
A) decreases; decreases 
B) increases; increases 
C) decreases; increases 
D) increases; decreases 
E) increases; does not change

Question 18

Which theory of economic growth argues that, in the long run, people do not benefit from growth?

Accepted Answer

A) classical growth theory 
B) neoclassical growth theory 
C) new growth theory 
D) all of the theories 
E) none of the theories 
A) classical growth theory 
B) neoclassical growth theory 
C) new growth theory 
D) all of the theories 
E) none of the theories

Question 19

According to Thomas Robert Malthus,

Accepted Answer

A) labour productivity increases continuously. 
B) the population growth rate is fixed. 
C) technological advances lead to permanent increases in real GDP per person. 
D) increases in real GDP per person are only temporary. 
E) knowledge capital does not experience diminishing returns. 
A) labour productivity increases continuously. 
B) the population growth rate is fixed. 
C) technological advances lead to permanent increases in real GDP per person. 
D) increases in real GDP per person are only temporary. 
E) knowledge capital does not experience diminishing returns.

Question 20

Suppose a country's population grows by 2 percent a year and, at the same time, its real GDP grows by 5 percent a year. Real GDP per person is increasing by ________ a year.

Accepted Answer

A) 2 percent 
B) 5 percent 
C) 10 percent 
D) 16 percent 
E) 3 percent 
A) 2 percent 
B) 5 percent 
C) 10 percent 
D) 16 percent 
E) 3 percent

Exam 22: Economic Growth

If the real wage rate is $10.00 an hour and the price level is 60, the money wage rate is

Use the figure below to answer the following question. Figure 22.3.3 -Refer to Figure 22.3.3. As a result of the rightward shift in the demand curve for labour from LD₀ to LD₁, potential GDP ________, and potential GDP per hour of labour ________.

Slowdonia's current growth rate of real GDP per person is 2 percent a year. How long will it take to double real GDP per person?

________ fits the facts of today's world more closely than other theories.

In the labour market, an increase in labour productivity ________ the real wage rate and ________ the level of employment.

An increase in labour productivity ________ the real wage rate and an increase in population ________ the real wage rate.

In 2012, Northland had real GDP of $4.21 billion and a population of 2.98 million. In 2013, real GDP was $4.59 billion and population was 2.97 million. Between 2012 and 2013, Northland's standard of living

A movement ________ illustrates a return to full employment in a business cycle expansion.

The decreasing slope of the aggregate production function reflects

If capital per worker increases, labour productivity

If the population increases, then potential GDP ________, and potential GDP per hour of labour ________.

Use the figure below to answer the following questions. Figure 22.3.2 -Refer to Figure 22.3.2. If the real wage is $20 an hour, a labour

Canada's economic growth rate was highest in which of the following decades?

Compared to growth in other countries, between 1960 and 2010 Canada

In neoclassical growth theory, if the rate of return on capital increases due to a technological advance, then

In which of the following decades did Canada experience the slowest economic growth?

When the population increases with no change in labour productivity, employment ________ and potential GDP ________.

Which theory of economic growth argues that, in the long run, people do not benefit from growth?

According to Thomas Robert Malthus,

Suppose a country's population grows by 2 percent a year and, at the same time, its real GDP grows by 5 percent a year. Real GDP per person is increasing by ________ a year.

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Governments Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

Macro Only: International Trade Policy

Filters

Use the figure below to answer the following question. Figure 22.3.3 -Refer to Figure 22.3.3. As a result of the rightward shift in the demand curve for labour from LD₀ to LD₁, potential GDP , and potential GDP per hour of labour .

In the labour market, an increase in labour productivity the real wage rate and the level of employment.

An increase in labour productivity the real wage rate and an increase in population the real wage rate.

If the population increases, then potential GDP , and potential GDP per hour of labour .

When the population increases with no change in labour productivity, employment and potential GDP .