Question 1

What is the Rule of 70?

Accepted Answer

The Rule of 70 is that the num

Question 2

Human capital is acquired

Accepted Answer

A)  only in school. 
B)  only through on-the-job training. 
C)  only through job experience. 
D)  through schooling, job training, and experience. 
E)  only at birth, that is, it's people's inborn talents. 
A)  only in school. 
B)  only through on-the-job training. 
C)  only through job experience. 
D)  through schooling, job training, and experience. 
E)  only at birth, that is, it's people's inborn talents.

Question 3

Property rights

Accepted Answer

A)  don't include intellectual property. 
B)  don't include financial property. 
C)  don't include physical property. 
D)  include physical, financial, and intellectual property. 
E)  slow the economic growth by placing limits on who can use what. 
A)  don't include intellectual property. 
B)  don't include financial property. 
C)  don't include physical property. 
D)  include physical, financial, and intellectual property. 
E)  slow the economic growth by placing limits on who can use what.

Question 4

Which of the following variables is used to determine a country's economic growth?
i. real GDP
ii. wages
iii. inflation

Accepted Answer

A)  i and ii only. 
B)  i, ii and iii. 
C)  ii and iii. 
D)  i only. 
E)  i and iii. 
A)  i and ii only. 
B)  i, ii and iii. 
C)  ii and iii. 
D)  i only. 
E)  i and iii.

Question 5

According to classical growth theory, as capital per hour and technology increase,

Accepted Answer

A)  the population grows and eventually real GDP returns to the subsistence level. 
B)  the population grows but more slowly than real GDP so that people's incomes are permanently higher. 
C)  the pursuit of profit causes further increases in capital per hour and technology and economic growth continues indefinitely. 
D)  the growth rate of real GDP per person permanently increases. 
E)  people save more, which increases the capital per hour even more, and so economic growth continues indefinitely. 
A)  the population grows and eventually real GDP returns to the subsistence level. 
B)  the population grows but more slowly than real GDP so that people's incomes are permanently higher. 
C)  the pursuit of profit causes further increases in capital per hour and technology and economic growth continues indefinitely. 
D)  the growth rate of real GDP per person permanently increases. 
E)  people save more, which increases the capital per hour even more, and so economic growth continues indefinitely.

Question 6

Real GDP is $700 billion, average hours worked per week is 42 and aggregate hours 150 billion hours.What is the economy's labor productivity?

Accepted Answer

A)  $1.80 per hour 
B)  $3.75 per hour 
C)  $16.67 per hour 
D)  $46.67 per hour 
E)  $4.50 per hour 
A)  $1.80 per hour 
B)  $3.75 per hour 
C)  $16.67 per hour 
D)  $46.67 per hour 
E)  $4.50 per hour

Question 7

Economic growth is defined as

Accepted Answer

A)  a decrease in the rate of inflation. 
B)  an increase in employment. 
C)  a sustained expansion of production possibilities. 
D)  an increase in the wage rate. 
E)  an increase in the nation's population. 
A)  a decrease in the rate of inflation. 
B)  an increase in employment. 
C)  a sustained expansion of production possibilities. 
D)  an increase in the wage rate. 
E)  an increase in the nation's population.

Question 8

The only source of growth in the quantity of labor that is sustainable over long periods of time is

Accepted Answer

A)  an increase in the labor force participation rate. 
B)  population growth. 
C)  a decrease in labor productivity. 
D)  a decrease in the unemployment rate. 
E)  an increase in labor productivity. 
A)  an increase in the labor force participation rate. 
B)  population growth. 
C)  a decrease in labor productivity. 
D)  a decrease in the unemployment rate. 
E)  an increase in labor productivity.

Question 9

Suppose France's real GDP grew from $750 billion in 2008 to $821 billion in 2009.What was the growth rate of France's real GDP?

Accepted Answer

A)  10 percent 
B)  9.5 percent 
C)  9.1 percent 
D)  8.6 percent 
E)  $71 billion 
A)  10 percent 
B)  9.5 percent 
C)  9.1 percent 
D)  8.6 percent 
E)  $71 billion

Question 10

In which theory of economic growth does an increase in productivity lead to no long run improvement in living standards?
i. Classical growth theory
ii. Neoclassical growth theory
iii. New growth theory

Accepted Answer

A)  i only 
B)  ii only 
C)  iii only 
D)  ii and iii 
E)  i and ii 
A)  i only 
B)  ii only 
C)  iii only 
D)  ii and iii 
E)  i and ii

Question 11

Property rights assure people that

Accepted Answer

A)  the government will not confiscate their income or savings. 
B)  the government will provide a minimum standard of living. 
C)  the factors of production and goods are owned jointly by the government and the people. 
D)  economic growth will enhance government involvement in the economy. 
E)  international trade will be limited. 
A)  the government will not confiscate their income or savings. 
B)  the government will provide a minimum standard of living. 
C)  the factors of production and goods are owned jointly by the government and the people. 
D)  economic growth will enhance government involvement in the economy. 
E)  international trade will be limited.

Question 12

What economic growth theory assigns a key role to technological growth but has no theory about why technology grows?

Accepted Answer

A)  Classical growth theory 
B)  Sustained growth theory 
C)  Neoclassical growth theory 
D)  New growth theory 
E)  Keynesian growth theory 
A)  Classical growth theory 
B)  Sustained growth theory 
C)  Neoclassical growth theory 
D)  New growth theory 
E)  Keynesian growth theory

Question 13

Human capital is

Accepted Answer

A)  the same as labor productivity. 
B)  a measure of the number of labor hours available. 
C)  the accumulated skills and knowledge of workers. 
D)  the average number of years of schooling of the labor force. 
E)  is what people are born with and cannot be changed. 
A)  the same as labor productivity. 
B)  a measure of the number of labor hours available. 
C)  the accumulated skills and knowledge of workers. 
D)  the average number of years of schooling of the labor force. 
E)  is what people are born with and cannot be changed.

Question 14

If a country experiences a real GDP growth rate of 6 percent, real GDP will double in

Accepted Answer

A)  10 years. 
B)  11.67 years. 
C)  14 years. 
D)  17.5 years. 
E)  16.67 years. 
A)  10 years. 
B)  11.67 years. 
C)  14 years. 
D)  17.5 years. 
E)  16.67 years.

Question 15

Retirement savings accounts, such as IRAs, help increase economic growth because

Accepted Answer

A)  people have an incentive to work harder and longer hours to save for the future. 
B)  they keep the interest rates high. 
C)  savings finances investment. 
D)  government invests them. 
E)  they encourage international trade. 
A)  people have an incentive to work harder and longer hours to save for the future. 
B)  they keep the interest rates high. 
C)  savings finances investment. 
D)  government invests them. 
E)  they encourage international trade.

Question 16

The data show that in the long run, sustained growth in the quantity of labor will come from

Accepted Answer

A)  continual increases in average hours. 
B)  constant increases in the labor force participation rate. 
C)  constant decreases in the unemployment rate. 
D)  increases in the population. 
E)  increases in labor productivity. 
A)  continual increases in average hours. 
B)  constant increases in the labor force participation rate. 
C)  constant decreases in the unemployment rate. 
D)  increases in the population. 
E)  increases in labor productivity.

Question 17

In this year, Country A has a real GDP per person that is 4 times greater than that of Country B.Country B's growth rate of real GDP per person is 3.5 percent per year.How many years will it take for Country B's real GDP per person to reach the same level that Country A had in this year?

Accepted Answer

A)  10 years 
B)  20 years 
C)  40 years 
D)  60 years 
E)  56 years 
A)  10 years 
B)  20 years 
C)  40 years 
D)  60 years 
E)  56 years

Question 18

Economic freedom requires

Accepted Answer

A)  that there are no regulations and restrictions set on businesses and households by the government. 
B)  the rule of law and the ability to enforce the laws. 
C)  strong labor unions. 
D)  freedom to bribe government officials. 
E)  that the government be a democracy. 
A)  that there are no regulations and restrictions set on businesses and households by the government. 
B)  the rule of law and the ability to enforce the laws. 
C)  strong labor unions. 
D)  freedom to bribe government officials. 
E)  that the government be a democracy.

Question 19

If real income is above the subsistence level then, according to classical growth theory,

Accepted Answer

A)  the population will increase. 
B)  the population will decrease. 
C)  the standard of living will continue to improve. 
D)  labor productivity will increase. 
E)  more technological advances occur. 
A)  the population will increase. 
B)  the population will decrease. 
C)  the standard of living will continue to improve. 
D)  labor productivity will increase. 
E)  more technological advances occur.

Question 20

If labor productivity rises above the subsistence level then, according to classical growth theory,

Accepted Answer

A)  population growth will slow down. 
B)  a population explosion will occur. 
C)  labor productivity growth permanently increases. 
D)  real GDP per person will remain above the subsistence level. 
E)  real GDP per person will fall below the subsistence level. 
A)  population growth will slow down. 
B)  a population explosion will occur. 
C)  labor productivity growth permanently increases. 
D)  real GDP per person will remain above the subsistence level. 
E)  real GDP per person will fall below the subsistence level.

What is the Rule of 70?

Human capital is acquired

Property rights

Which of the following variables is used to determine a country's economic growth? i. real GDP ii. wages iii. inflation

According to classical growth theory, as capital per hour and technology increase,

Real GDP is $700 billion, average hours worked per week is 42 and aggregate hours 150 billion hours.What is the economy's labor productivity?

Economic growth is defined as

The only source of growth in the quantity of labor that is sustainable over long periods of time is

Suppose France's real GDP grew from $750 billion in 2008 to $821 billion in 2009.What was the growth rate of France's real GDP?

In which theory of economic growth does an increase in productivity lead to no long run improvement in living standards? i. Classical growth theory ii. Neoclassical growth theory iii. New growth theory

Property rights assure people that

What economic growth theory assigns a key role to technological growth but has no theory about why technology grows?

Human capital is

If a country experiences a real GDP growth rate of 6 percent, real GDP will double in

Retirement savings accounts, such as IRAs, help increase economic growth because

The data show that in the long run, sustained growth in the quantity of labor will come from

In this year, Country A has a real GDP per person that is 4 times greater than that of Country B.Country B's growth rate of real GDP per person is 3.5 percent per year.How many years will it take for Country B's real GDP per person to reach the same level that Country A had in this year?

Economic freedom requires

If real income is above the subsistence level then, according to classical growth theory,

If labor productivity rises above the subsistence level then, according to classical growth theory,

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

What is the Rule of 70?

Human capital is acquired

Property rights

Which of the following variables is used to determine a country's economic growth? i. real GDP ii. wages iii. inflation

According to classical growth theory, as capital per hour and technology increase,

Real GDP is $700 billion, average hours worked per week is 42 and aggregate hours 150 billion hours.What is the economy's labor productivity?

Economic growth is defined as

The only source of growth in the quantity of labor that is sustainable over long periods of time is

Suppose France's real GDP grew from $750 billion in 2008 to $821 billion in 2009.What was the growth rate of France's real GDP?

In which theory of economic growth does an increase in productivity lead to no long run improvement in living standards? i. Classical growth theory ii. Neoclassical growth theory iii. New growth theory

Property rights assure people that

What economic growth theory assigns a key role to technological growth but has no theory about why technology grows?

Human capital is

If a country experiences a real GDP growth rate of 6 percent, real GDP will double in

Retirement savings accounts, such as IRAs, help increase economic growth because

The data show that in the long run, sustained growth in the quantity of labor will come from

In this year, Country A has a real GDP per person that is 4 times greater than that of Country B.Country B's growth rate of real GDP per person is 3.5 percent per year.How many years will it take for Country B's real GDP per person to reach the same level that Country A had in this year?

Economic freedom requires

If real income is above the subsistence level then, according to classical growth theory,

If labor productivity rises above the subsistence level then, according to classical growth theory,

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