Question 1

In the neoclassical growth theory, economic growth eventually stops after a technological advance when

Accepted Answer

A) the return on capital falls and the incentive to invest weakens. 
B) knowledge capital is replicated. 
C) the subsistence real wage rate falls. 
D) the real wage rate increases. 
E) high population growth occurs. 
A) the return on capital falls and the incentive to invest weakens. 
B) knowledge capital is replicated. 
C) the subsistence real wage rate falls. 
D) the real wage rate increases. 
E) high population growth occurs.

Question 2

Labour productivity is

Accepted Answer

A) real GDP per hour of labour times the hours of work. 
B) real GDP per hour of labour times the population. 
C) the quantity of real GDP produced by an hour of labour. 
D) the rate of change in real GDP per hour of labour. 
E) shown as a movement along the production function. 
A) real GDP per hour of labour times the hours of work. 
B) real GDP per hour of labour times the population. 
C) the quantity of real GDP produced by an hour of labour. 
D) the rate of change in real GDP per hour of labour. 
E) shown as a movement along the production function.

Question 3

An increase in education and training

Accepted Answer

A) increases labour productivity. 
B) increases aggregate hours. 
C) decreases real GDP growth. 
D) increases the employment-to-population ratio. 
E) is an increase in physical capital. 
A) increases labour productivity. 
B) increases aggregate hours. 
C) decreases real GDP growth. 
D) increases the employment-to-population ratio. 
E) is an increase in physical capital.

Question 4

If the money wage rate is $15.00 an hour and the price level is 120, the real wage rate is

Accepted Answer

A) $8.50 an hour. 
B) $10.75 an hour. 
C) $12.50 an hour. 
D) $15.00 an hour. 
E) $18 an hour. 
A) $8.50 an hour. 
B) $10.75 an hour. 
C) $12.50 an hour. 
D) $15.00 an hour. 
E) $18 an hour.

Question 5

The gap between real GDP per person in Canada and Hong Kong has ________ since 1960. During this period, the growth rate of real GDP per person in Canada has been ________ than in Hong Kong.

Accepted Answer

A) reversed; faster 
B) increased; faster 
C) remained constant; equal 
D) reversed; slower 
E) decreased; faster 
A) reversed; faster 
B) increased; faster 
C) remained constant; equal 
D) reversed; slower 
E) decreased; faster

Question 6

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. Northland's real GDP per person in 2013 was

Accepted Answer

A) $1,545. 
B) $380. 
C) $1,413. 
D) $132. 
E) $1.41. 
A) $1,545. 
B) $380. 
C) $1,413. 
D) $132. 
E) $1.41.

Question 7

In the classical growth theory, economic growth eventually stops due to

Accepted Answer

A) diminishing returns. 
B) knowledge capital being easily replicated. 
C) the real rate of interest falling back down to its target rate. 
D) real GDP per person becoming too high. 
E) high population growth resulting from the increase in real GDP per person. 
A) diminishing returns. 
B) knowledge capital being easily replicated. 
C) the real rate of interest falling back down to its target rate. 
D) real GDP per person becoming too high. 
E) high population growth resulting from the increase in real GDP per person.

Question 8

Which of the following statements about Canada's long-term growth trends is false?

Accepted Answer

A) Economic growth rates have been steady, except for the business cycle. 
B) Economic growth rates show periods of slow and high growth. 
C) Economic growth rates were faster in the 1990s than in the 1980s. 
D) Economic growth rates have slightly faster in the United States than in Canada. 
E) African countries have fallen further behind Canada in recent years. 
A) Economic growth rates have been steady, except for the business cycle. 
B) Economic growth rates show periods of slow and high growth. 
C) Economic growth rates were faster in the 1990s than in the 1980s. 
D) Economic growth rates have slightly faster in the United States than in Canada. 
E) African countries have fallen further behind Canada in recent years.

Question 9

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

Accepted Answer

A) $16.67 an hour. 
B) $18.75 an hour. 
C) $10.00 an hour. 
D) $12.50 an hour. 
E) $6.00 an hour. 
A) $16.67 an hour. 
B) $18.75 an hour. 
C) $10.00 an hour. 
D) $12.50 an hour. 
E) $6.00 an hour.

Question 10

Which theory of economic growth concludes that technological advances are influenced by the profit motive?

Accepted Answer

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

Question 11

An increase in labour hours will lead to

Accepted Answer

A) an upward shift of the aggregate production function. 
B) a movement along the aggregate production function. 
C) both a movement along and an upward shift of the aggregate production function. 
D) neither a movement along nor a shift of the aggregate production function. 
E) a downward shift of the aggregate production function. 
A) an upward shift of the aggregate production function. 
B) a movement along the aggregate production function. 
C) both a movement along and an upward shift of the aggregate production function. 
D) neither a movement along nor a shift of the aggregate production function. 
E) a downward shift of the aggregate production function.

Question 12

According to ________ growth theory, growth of real GDP per person comes to a stop because a population explosion returns real GDP per person to the subsistence level. According to ________ growth theory, growth of real GDP per person comes to a stop when technology stops advancing.
According to ________ growth theory, growth of real GDP per person is unending.

Accepted Answer

A) classical; new; neoclassical 
B) neoclassical; classical; new 
C) new; neoclassical; classical 
D) classical; neoclassical; new 
E) new; classical; neoclassical 
A) classical; new; neoclassical 
B) neoclassical; classical; new 
C) new; neoclassical; classical 
D) classical; neoclassical; new 
E) new; classical; neoclassical

Question 13

The Industrial Revolution in England was largely the result of

Accepted Answer

A) growth in human capital. 
B) population growth. 
C) technological innovations that were financed mainly by government spending. 
D) technological innovations encouraged by the patent system. 
E) the elimination of the patent system. 
A) growth in human capital. 
B) population growth. 
C) technological innovations that were financed mainly by government spending. 
D) technological innovations encouraged by the patent system. 
E) the elimination of the patent system.

Question 14

If real GDP per person is growing at 4 percent per year, it will double in

Accepted Answer

A) 17.5 years. 
B) 25 years. 
C) 4 years. 
D) 8 years. 
E) 56 years. 
A) 17.5 years. 
B) 25 years. 
C) 4 years. 
D) 8 years. 
E) 56 years.

Question 15

A movement along the aggregate production function is the result of a change in

Accepted Answer

A) capital. 
B) technology. 
C) the quantity of labour. 
D) the interest rate. 
E) the inflation rate. 
A) capital. 
B) technology. 
C) the quantity of labour. 
D) the interest rate. 
E) the inflation rate.

Question 16

Which of the following statements regarding human capital is INCORRECT?

Accepted Answer

A) Human capital is the accumulated skill and knowledge of human beings. 
B) Education is the only vehicle for the creation of human capital because training simply reinforces what has already been learned. 
C) The accumulation of human capital is the source of both increased labour productivity and technological advance. 
D) Writing and mathematics, the most basic of human skills, are crucial elements in economic progress. 
E) Human capital is the fundamental source of labour productivity growth. 
A) Human capital is the accumulated skill and knowledge of human beings. 
B) Education is the only vehicle for the creation of human capital because training simply reinforces what has already been learned. 
C) The accumulation of human capital is the source of both increased labour productivity and technological advance. 
D) Writing and mathematics, the most basic of human skills, are crucial elements in economic progress. 
E) Human capital is the fundamental source of labour productivity growth.

Question 17

Use the table below to answer the following questions.
Table 22.3.1

-Refer to Table 22.3.1. The tables show the labour market and the aggregate production function schedule for the country of Pickett. Potential GDP is

Accepted Answer

A) $40 trillion. 
B) $6 trillion. 
C) $14 trillion. 
D) $25 trillion. 
E) $9 trillion. 
A) $40 trillion. 
B) $6 trillion. 
C) $14 trillion. 
D) $25 trillion. 
E) $9 trillion.

Question 18

The aggregate production function is graphed as

Accepted Answer

A) a downward-sloping curve. 
B) an upward-sloping straight line. 
C) an upward-sloping line that becomes flatter as the quantity of labour increases. 
D) an upward-sloping line that becomes steeper as the quantity of labour increases. 
E) a production possibilities frontier. 
A) a downward-sloping curve. 
B) an upward-sloping straight line. 
C) an upward-sloping line that becomes flatter as the quantity of labour increases. 
D) an upward-sloping line that becomes steeper as the quantity of labour increases. 
E) a production possibilities frontier.

Exam 22: Economic Growth

In the neoclassical growth theory, economic growth eventually stops after a technological advance when

Labour productivity is

An increase in education and training

If the money wage rate is $15.00 an hour and the price level is 120, the real wage rate is

The gap between real GDP per person in Canada and Hong Kong has ________ since 1960. During this period, the growth rate of real GDP per person in Canada has been ________ than in Hong Kong.

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. Northland's real GDP per person in 2013 was

In the classical growth theory, economic growth eventually stops due to

Which of the following statements about Canada's long-term growth trends is false?

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

Which theory of economic growth concludes that technological advances are influenced by the profit motive?

An increase in labour hours will lead to

The Industrial Revolution in England was largely the result of

If real GDP per person is growing at 4 percent per year, it will double in

A movement along the aggregate production function is the result of a change in

Which of the following statements regarding human capital is INCORRECT?

Use the table below to answer the following questions. Table 22.3.1 -Refer to Table 22.3.1. The tables show the labour market and the aggregate production function schedule for the country of Pickett. Potential GDP is

The aggregate production function is graphed as

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

The gap between real GDP per person in Canada and Hong Kong has since 1960. During this period, the growth rate of real GDP per person in Canada has been than in Hong Kong.