Question 1

The productivity slowdown of the mid-1970s can be explained by which of the following?

Accepted Answer

A)  excessive use of fiscal policy 
B)  large increases in research and development 
C)  a decline in labor quality 
D)  diminishing marginal returns 
A)  excessive use of fiscal policy 
B)  large increases in research and development 
C)  a decline in labor quality 
D)  diminishing marginal returns

Question 2

Figure 22-1
  
-Refer to Figure 22-1.Suppose the per-worker production function in the figure above represents the production function for the U.S.economy.If the United States decided to double its support of university research,this would cause a movement from

Accepted Answer

A)  A to B. 
B)  B to C. 
C)  B to A. 
D)  D to C. 
A)  A to B. 
B)  B to C. 
C)  B to A. 
D)  D to C.

Question 3

How does government support of health and education programs foster economic growth?

Accepted Answer

As the health of the people in a nation

Question 4

One drawback of the patent system is that firms must disclose to the public information about the product or process.

Accepted Answer

A) True 
 B)False

Question 5

Technological improvements are more likely to occur if

Accepted Answer

A)  the economy is centrally planned. 
B)  entrepreneurs are compensated with higher profits for taking risks. 
C)  economic decisions are made by politicians rather than entrepreneurs. 
D)  companies face little competition in their markets. 
A)  the economy is centrally planned. 
B)  entrepreneurs are compensated with higher profits for taking risks. 
C)  economic decisions are made by politicians rather than entrepreneurs. 
D)  companies face little competition in their markets.

Question 6

Paul Romer,an economist at Stanford University,is most closely associated with what economic theory?

Accepted Answer

A)  new growth theory 
B)  labor productivity theory 
C)  the process of creative destruction 
D)  the Communist Manifesto 
A)  new growth theory 
B)  labor productivity theory 
C)  the process of creative destruction 
D)  the Communist Manifesto

Question 7

Foreign direct investment declined worldwide during the recession of 2007-2009.The decline in foreign direct investment in developing countries can make it more difficult for these countries to break out of the vicious cycle of low economic growth and

Accepted Answer

A)  overpopulation. 
B)  low saving and investment. 
C)  a low import/export ratio. 
D)  low government spending. 
A)  overpopulation. 
B)  low saving and investment. 
C)  a low import/export ratio. 
D)  low government spending.

Question 8

If the per-worker production function shifts down,

Accepted Answer

A)  it now takes more capital per hour worked to get the same amount of real GDP per hour worked. 
B)  an economy can increase its real GDP per hour worked without changing the level of capital per hour worked. 
C)  the per-worker production function becomes steeper. 
D)  positive technological change has occurred in the economy. 
A)  it now takes more capital per hour worked to get the same amount of real GDP per hour worked. 
B)  an economy can increase its real GDP per hour worked without changing the level of capital per hour worked. 
C)  the per-worker production function becomes steeper. 
D)  positive technological change has occurred in the economy.

Question 9

What features made England in the eighteenth century the place where the Industrial Revolution occurred?

Accepted Answer

The British Parliament had just gained c

Question 10

Table 22-2
  
-Refer to Table 22-2.Consider the statistics in the table above in describing the industrialized countries.Are these consistent with the economic growth model? Briefly explain.

Accepted Answer

These statistics for selected industrial

Question 11

One reason why many low-income countries experience low rates of growth is because of low rates of saving and investment in those countries.

Accepted Answer

A) True 
 B)False

Question 12

Compared to the previous 20 years,productivity growth in the United States increased between 1995 and 2010.

Accepted Answer

A) True 
 B)False

Question 13

The economic growth model predicts that

Accepted Answer

A)  the level of real GDP per capita in poor countries will grow faster than in rich countries. 
B)  the per-worker production function of poor countries will be flatter than the per-worker production function of rich countries. 
C)  lower-income industrial countries will forever be unable to catch up to higher-income industrial countries. 
D)  economic growth in rich countries can only be accomplished at the expense of slow or even negative growth in poor countries. 
A)  the level of real GDP per capita in poor countries will grow faster than in rich countries. 
B)  the per-worker production function of poor countries will be flatter than the per-worker production function of rich countries. 
C)  lower-income industrial countries will forever be unable to catch up to higher-income industrial countries. 
D)  economic growth in rich countries can only be accomplished at the expense of slow or even negative growth in poor countries.

Question 14

The rate of growth of productivity in the United States was positive during the 20th century.

Accepted Answer

A) True 
 B)False

Question 15

Some factors currently exist that inhibit the growth rate of the Chinese economy.The main reason given is

Accepted Answer

A)  the introduction of free-market reforms. 
B)  the introduction of the relatively new resource of entrepreneurship. 
C)  the lack of laws that predictably enforce property rights. 
D)  the total lack of governmental intervention in the market place. 
A)  the introduction of free-market reforms. 
B)  the introduction of the relatively new resource of entrepreneurship. 
C)  the lack of laws that predictably enforce property rights. 
D)  the total lack of governmental intervention in the market place.

Question 16

The developing countries have been catching up to the lower-income industrial countries in terms of economic growth.

Accepted Answer

A) True 
 B)False

Question 17

Suppose that an increase in capital per hour worked from $15,000 to $20,000 increases real GDP per hour worked by $500.If capital per hour worked increases further to $25,000,by how much would you expect real GDP per hour worked to increase if there are diminishing returns?

Accepted Answer

A)  by less than $500 
B)  by exactly $500 
C)  by more than $500 but less than $5,000 
D)  by more than $5,000 but less than $20,000 
A)  by less than $500 
B)  by exactly $500 
C)  by more than $500 but less than $5,000 
D)  by more than $5,000 but less than $20,000

Question 18

Creative destruction means that

Accepted Answer

A)  firms develop new products that replace old products in the economy, thereby encouraging economic growth. 
B)  economic growth can only be sustained if capital depreciates rapidly. 
C)  knowledge capital can be created through a system of government subsidies for education and research and development. 
D)  research and development should only be financed if research and development is incremental (a result of making small changes to existing products). 
A)  firms develop new products that replace old products in the economy, thereby encouraging economic growth. 
B)  economic growth can only be sustained if capital depreciates rapidly. 
C)  knowledge capital can be created through a system of government subsidies for education and research and development. 
D)  research and development should only be financed if research and development is incremental (a result of making small changes to existing products).

Question 19

Figure 22-2
  
-Refer to Figure 22-2.Based on the per-worker production function above,if the economy raises capital per hour worked from $35,000 to $40,000,by how much will real GDP per hour worked increase?

Accepted Answer

A)  $150 
B)  $1,850 
C)  $2,000 
D)  $5,000 
A)  $150 
B)  $1,850 
C)  $2,000 
D)  $5,000

Question 20

Recent rapid economic growth in India and China has reduced the amount of "brain drain" in those countries.

Accepted Answer

A) True 
 B)False

The productivity slowdown of the mid-1970s can be explained by which of the following?

Figure 22-1 -Refer to Figure 22-1.Suppose the per-worker production function in the figure above represents the production function for the U.S.economy.If the United States decided to double its support of university research,this would cause a movement from

How does government support of health and education programs foster economic growth?

One drawback of the patent system is that firms must disclose to the public information about the product or process.

Technological improvements are more likely to occur if

Paul Romer,an economist at Stanford University,is most closely associated with what economic theory?

Foreign direct investment declined worldwide during the recession of 2007-2009.The decline in foreign direct investment in developing countries can make it more difficult for these countries to break out of the vicious cycle of low economic growth and

If the per-worker production function shifts down,

What features made England in the eighteenth century the place where the Industrial Revolution occurred?

Table 22-2 -Refer to Table 22-2.Consider the statistics in the table above in describing the industrialized countries.Are these consistent with the economic growth model? Briefly explain.

One reason why many low-income countries experience low rates of growth is because of low rates of saving and investment in those countries.

Compared to the previous 20 years,productivity growth in the United States increased between 1995 and 2010.

The economic growth model predicts that

The rate of growth of productivity in the United States was positive during the 20th century.

Some factors currently exist that inhibit the growth rate of the Chinese economy.The main reason given is

The developing countries have been catching up to the lower-income industrial countries in terms of economic growth.

Suppose that an increase in capital per hour worked from $15,000 to $20,000 increases real GDP per hour worked by $500.If capital per hour worked increases further to $25,000,by how much would you expect real GDP per hour worked to increase if there are diminishing returns?

Creative destruction means that

Figure 22-2 -Refer to Figure 22-2.Based on the per-worker production function above,if the economy raises capital per hour worked from $35,000 to $40,000,by how much will real GDP per hour worked increase?

Recent rapid economic growth in India and China has reduced the amount of "brain drain" in those countries.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

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Exam 11: Long-Run Economic Growth: Sources and Policies

The productivity slowdown of the mid-1970s can be explained by which of the following?

Figure 22-1 -Refer to Figure 22-1.Suppose the per-worker production function in the figure above represents the production function for the U.S.economy.If the United States decided to double its support of university research,this would cause a movement from

How does government support of health and education programs foster economic growth?

One drawback of the patent system is that firms must disclose to the public information about the product or process.

Technological improvements are more likely to occur if

Paul Romer,an economist at Stanford University,is most closely associated with what economic theory?

Foreign direct investment declined worldwide during the recession of 2007-2009.The decline in foreign direct investment in developing countries can make it more difficult for these countries to break out of the vicious cycle of low economic growth and

If the per-worker production function shifts down,

What features made England in the eighteenth century the place where the Industrial Revolution occurred?

Table 22-2 -Refer to Table 22-2.Consider the statistics in the table above in describing the industrialized countries.Are these consistent with the economic growth model? Briefly explain.

One reason why many low-income countries experience low rates of growth is because of low rates of saving and investment in those countries.

Compared to the previous 20 years,productivity growth in the United States increased between 1995 and 2010.

The economic growth model predicts that

The rate of growth of productivity in the United States was positive during the 20th century.

Some factors currently exist that inhibit the growth rate of the Chinese economy.The main reason given is

The developing countries have been catching up to the lower-income industrial countries in terms of economic growth.

Suppose that an increase in capital per hour worked from $15,000 to $20,000 increases real GDP per hour worked by $500.If capital per hour worked increases further to $25,000,by how much would you expect real GDP per hour worked to increase if there are diminishing returns?

Creative destruction means that

Figure 22-2 -Refer to Figure 22-2.Based on the per-worker production function above,if the economy raises capital per hour worked from $35,000 to $40,000,by how much will real GDP per hour worked increase?

Recent rapid economic growth in India and China has reduced the amount of "brain drain" in those countries.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters