Question 1

In the classical theory of growth, what is the final outcome of an increase in growth and labor productivity?

Accepted Answer

In the classical growth theory, a rise i

Question 2

As the U.S.economy has grown over time, a benefit of the economic growth has been the fact that

Accepted Answer

A)  average hours have increased. 
B)  average hours have decreased. 
C)  labor productivity has decreased. 
D)  real GDP per person has decreased. 
E)  aggregate hours have decreased. 
A)  average hours have increased. 
B)  average hours have decreased. 
C)  labor productivity has decreased. 
D)  real GDP per person has decreased. 
E)  aggregate hours have decreased.

Question 3

What are the sources of human capital?

Accepted Answer

Human capital, the accumulated skills an

Question 4

Of the three economic growth theories, which is the most optimistic about the chances of real GDP per person growing indefinitely?
 Which is the most pessimistic?
 What accounts for the differences?

Accepted Answer

The most optimistic is the new growth th

Question 5

If real GDP is $6,460 billion, the population is 184.6 million people, and aggregate hours is 170 billion hours, labor productivity is

Accepted Answer

A)  $2.63 an hour. 
B)  $2.86 an hour. 
C)  $35,000. 
D)  $38.00 an hour. 
E)  920 hours. 
A)  $2.63 an hour. 
B)  $2.86 an hour. 
C)  $35,000. 
D)  $38.00 an hour. 
E)  920 hours.

Question 6

An increase in labor productivity ________ and ________ the demand for labor.

Accepted Answer

A)  leads to a movement upward along the production function; does not change 
B)  leads to a movement upward along the production function; decreases 
C)  shifts the production function upward; does not change 
D)  shifts the production function downward; increases 
E)  shifts the production function upward; increases 
A)  leads to a movement upward along the production function; does not change 
B)  leads to a movement upward along the production function; decreases 
C)  shifts the production function upward; does not change 
D)  shifts the production function downward; increases 
E)  shifts the production function upward; increases

Question 7

The presence of government corruption in some countries

Accepted Answer

A)  slows their economic growth. 
B)  speeds their economic growth. 
C)  invalidates the new growth theory's predictions. 
D)  supports the classical growth theory's predictions. 
E)  invalidates the neoclassical growth theory's predictions. 
A)  slows their economic growth. 
B)  speeds their economic growth. 
C)  invalidates the new growth theory's predictions. 
D)  supports the classical growth theory's predictions. 
E)  invalidates the neoclassical growth theory's predictions.

Question 8

One way to achieve faster growth in GDP per person is to increase the

Accepted Answer

A)  number of women working in the home rather than in the workforce. 
B)  growth rate of the quantity of money. 
C)  growth rate of human capital. 
D)  growth rate of the population. 
E)  limits on international trade in order to keep more of total spending on domestically produced goods. 
A)  number of women working in the home rather than in the workforce. 
B)  growth rate of the quantity of money. 
C)  growth rate of human capital. 
D)  growth rate of the population. 
E)  limits on international trade in order to keep more of total spending on domestically produced goods.

Question 9

Define labor productivity.Discuss the relationship between labor productivity, human capital growth, and technology change.

Accepted Answer

Labor productivity is real GDP per hour

Question 10

The new growth theory was developed by ________ and proposes that ________.

Accepted Answer

A)  Paul Romer; the desire for profits drives increases in real GDP per person 
B)  Robert Solow; increases in technology growth are responsible for economic growth 
C)  Thomas Malthus; increases in population drive wages to their subsistence level 
D)  Adam Smith; markets will determine the appropriate economic growth rate 
E)  Ben Bernanke; changes in the money supply drive economic growth 
A)  Paul Romer; the desire for profits drives increases in real GDP per person 
B)  Robert Solow; increases in technology growth are responsible for economic growth 
C)  Thomas Malthus; increases in population drive wages to their subsistence level 
D)  Adam Smith; markets will determine the appropriate economic growth rate 
E)  Ben Bernanke; changes in the money supply drive economic growth

Question 11

Place the following events in the proper sequence according to the new growth theory. i) labor demand increases
Ii) employment increases
Iii) an increase in labor productivity shifts the production function upward
Iv) the real wage increases

Accepted Answer

A)  iii, i, iv, ii. 
B)  i, ii, iii, iv. 
C)  ii, i, iii, iv. 
D)  iv, iii, ii, i. 
E)  i, ii, iv, iii. 
A)  iii, i, iv, ii. 
B)  i, ii, iii, iv. 
C)  ii, i, iii, iv. 
D)  iv, iii, ii, i. 
E)  i, ii, iv, iii.

Question 12

Labor productivity is $30 per hour and aggregate hours are 165 billion hours.What does real GDP equal?

Accepted Answer

Real GDP equals (labor product

Question 13

Labor productivity is calculated as

Accepted Answer

A)  (real GDP ÷ aggregate hours). 
B)  (real GDP ÷ aggregate hours × number of workers). 
C)  (real GDP ÷ number of workers × ratio of capital per worker). 
D)  (real GDP ÷ technology level). 
E)  (real GDP ÷ aggregate hours × number of workers) × 100. 
A)  (real GDP ÷ aggregate hours). 
B)  (real GDP ÷ aggregate hours × number of workers). 
C)  (real GDP ÷ number of workers × ratio of capital per worker). 
D)  (real GDP ÷ technology level). 
E)  (real GDP ÷ aggregate hours × number of workers) × 100.

Question 14

According to neoclassical growth theory, real GDP per person will

Accepted Answer

A)  equal the subsistence level in the long run. 
B)  grow as long as technology advances. 
C)  grow as long as the population increases. 
D)  grow as long as physical capital decreases and human capital increases. 
E)  grow indefinitely because of people's pursuit of profit. 
A)  equal the subsistence level in the long run. 
B)  grow as long as technology advances. 
C)  grow as long as the population increases. 
D)  grow as long as physical capital decreases and human capital increases. 
E)  grow indefinitely because of people's pursuit of profit.

Question 15

According to new growth theory, growth ________.

Accepted Answer

A)  occurs when real GDP greater than the subsistence level 
B)  is unending 
C)  ends when competition disappears 
D)  depends on the population growth rate 
E)  cannot be sustained without government help 
A)  occurs when real GDP greater than the subsistence level 
B)  is unending 
C)  ends when competition disappears 
D)  depends on the population growth rate 
E)  cannot be sustained without government help

Question 16

Economic growth is slow or absent in some economies because those lack

Accepted Answer

A)  political freedom. 
B)  economic freedom. 
C)  democracy. 
D)  cultural freedom. 
E)  a strong government. 
A)  political freedom. 
B)  economic freedom. 
C)  democracy. 
D)  cultural freedom. 
E)  a strong government.

Question 17

Why are the governments of developed countries concerned about the quality of education in their countries?
 What effect does education play in determining the country's economic growth rate and its standard of living?
 Why does it have this effect?

Accepted Answer

Improving the quality of education is an

Question 18

Why is growth in GDP different from growth in a nation's standard of living?
 Is it possible for a nation's GDP to grow while its standard of living falls?

Accepted Answer

The standard of living is measured by re

Question 19

The rule of ________ can be used to calculate the number of years that it takes for the level of a variable to ________.

Accepted Answer

A)  20; double 
B)  70; triple 
C)  70; double 
D)  20; triple 
E)  thumb; double 
A)  20; double 
B)  70; triple 
C)  70; double 
D)  20; triple 
E)  thumb; double

Question 20

Growth in the quantity of labor depends on the labor force participation rate, average hours, and the population growth rate.Explain the effect each of the three can be expected to have on the quantity of labor in the United States in the future.

Accepted Answer

Average hours tends to decrease with eco

In the classical theory of growth, what is the final outcome of an increase in growth and labor productivity?

As the U.S.economy has grown over time, a benefit of the economic growth has been the fact that

What are the sources of human capital?

Of the three economic growth theories, which is the most optimistic about the chances of real GDP per person growing indefinitely? Which is the most pessimistic? What accounts for the differences?

If real GDP is $6,460 billion, the population is 184.6 million people, and aggregate hours is 170 billion hours, labor productivity is

An increase in labor productivity and the demand for labor.

The presence of government corruption in some countries

One way to achieve faster growth in GDP per person is to increase the

Define labor productivity.Discuss the relationship between labor productivity, human capital growth, and technology change.

The new growth theory was developed by and proposes that .

Place the following events in the proper sequence according to the new growth theory. i) labor demand increases Ii) employment increases Iii) an increase in labor productivity shifts the production function upward Iv) the real wage increases

Labor productivity is $30 per hour and aggregate hours are 165 billion hours.What does real GDP equal?

Labor productivity is calculated as

According to neoclassical growth theory, real GDP per person will

According to new growth theory, growth ________.

Economic growth is slow or absent in some economies because those lack

Why are the governments of developed countries concerned about the quality of education in their countries? What effect does education play in determining the country's economic growth rate and its standard of living? Why does it have this effect?

Why is growth in GDP different from growth in a nation's standard of living? Is it possible for a nation's GDP to grow while its standard of living falls?

The rule of can be used to calculate the number of years that it takes for the level of a variable to .

Growth in the quantity of labor depends on the labor force participation rate, average hours, and the population growth rate.Explain the effect each of the three can be expected to have on the quantity of labor in the United States in the future.

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

Exam 9: Economic Growth

In the classical theory of growth, what is the final outcome of an increase in growth and labor productivity?

As the U.S.economy has grown over time, a benefit of the economic growth has been the fact that

What are the sources of human capital?

Of the three economic growth theories, which is the most optimistic about the chances of real GDP per person growing indefinitely? Which is the most pessimistic? What accounts for the differences?

If real GDP is $6,460 billion, the population is 184.6 million people, and aggregate hours is 170 billion hours, labor productivity is

An increase in labor productivity ________ and ________ the demand for labor.

The presence of government corruption in some countries

One way to achieve faster growth in GDP per person is to increase the

Define labor productivity.Discuss the relationship between labor productivity, human capital growth, and technology change.

The new growth theory was developed by ________ and proposes that ________.

Place the following events in the proper sequence according to the new growth theory. i) labor demand increases Ii) employment increases Iii) an increase in labor productivity shifts the production function upward Iv) the real wage increases

Labor productivity is $30 per hour and aggregate hours are 165 billion hours.What does real GDP equal?

Labor productivity is calculated as

According to neoclassical growth theory, real GDP per person will

According to new growth theory, growth ________.

Economic growth is slow or absent in some economies because those lack

Why are the governments of developed countries concerned about the quality of education in their countries? What effect does education play in determining the country's economic growth rate and its standard of living? Why does it have this effect?

Why is growth in GDP different from growth in a nation's standard of living? Is it possible for a nation's GDP to grow while its standard of living falls?

The rule of ________ can be used to calculate the number of years that it takes for the level of a variable to ________.

Growth in the quantity of labor depends on the labor force participation rate, average hours, and the population growth rate.Explain the effect each of the three can be expected to have on the quantity of labor in the United States in the future.

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

An increase in labor productivity and the demand for labor.

The new growth theory was developed by and proposes that .

The rule of can be used to calculate the number of years that it takes for the level of a variable to .