Question 1

If a country lacks _______, economic growth ________.

Accepted Answer

A)  a democratic form of government; cannot occur 
B)  a proper incentive system; cannot occur 
C)  pure capitalism; will be slower compared to other countries 
D)  a proper incentive system; will occur at a pace suggested by the new growth theory 
E)  economic freedom; will increase at a faster pace 
A)  a democratic form of government; cannot occur 
B)  a proper incentive system; cannot occur 
C)  pure capitalism; will be slower compared to other countries 
D)  a proper incentive system; will occur at a pace suggested by the new growth theory 
E)  economic freedom; will increase at a faster pace

Question 2

Jose and Julia were discussing the necessary components to achieve economic growth.Jose stated that the economy must include free markets, specialization and trade, and an ethical judicial system.Julia reminded Jose that another key component is

Accepted Answer

A)  freedom of speech. 
B)  freedom of religion. 
C)  a guaranteed high rate of return on savings. 
D)  property rights. 
E)  democracy. 
A)  freedom of speech. 
B)  freedom of religion. 
C)  a guaranteed high rate of return on savings. 
D)  property rights. 
E)  democracy.

Question 3

Economic growth is defined as equal to the increase in

Accepted Answer

A)  employment. 
B)  population. 
C)  real GDP. 
D)  the price level. 
E)  the inflation rate. 
A)  employment. 
B)  population. 
C)  real GDP. 
D)  the price level. 
E)  the inflation rate.

Question 4

Sustained growth in the quantity of labor hours worked depends on

Accepted Answer

A)  saving and investment. 
B)  technological change. 
C)  population growth. 
D)  government purchases. 
E)  sustained increases in labor force participation. 
A)  saving and investment. 
B)  technological change. 
C)  population growth. 
D)  government purchases. 
E)  sustained increases in labor force participation.

Question 5

Labor productivity is $20 per hour and aggregate hours are 400 billion hours.
a. What does real GDP equal?
b. Because of technological advances, labor productivity doubles to $40 per hour.Furthermore, assume that aggregate hours decrease to 300 billion hours.What does real GDP equal?

Accepted Answer

a. Real GDP equals (labor prod

Question 6

Workers in the United States are ________ productive than workers in China because ________.

Accepted Answer

A)  more; workers in the U.S.have more capital per worker. 
B)  more; there are more college-educated workers in the United States. 
C)  less; there are fewer workers in the United States. 
D)  less; the labor force participation rate is lower in the United States. 
E)  equally as; China's real GDP per person equals the U.S.real GDP per person. 
A)  more; workers in the U.S.have more capital per worker. 
B)  more; there are more college-educated workers in the United States. 
C)  less; there are fewer workers in the United States. 
D)  less; the labor force participation rate is lower in the United States. 
E)  equally as; China's real GDP per person equals the U.S.real GDP per person.

Question 7

The new growth theory states that

Accepted Answer

A)  technological advances are the result of random chance. 
B)  technological advances are the result of discoveries and choices. 
C)  technological advances are the responsibility of the government. 
D)  the subsistence level income leads to technological advances. 
E)  it is impossible to replicate production activities. 
A)  technological advances are the result of random chance. 
B)  technological advances are the result of discoveries and choices. 
C)  technological advances are the responsibility of the government. 
D)  the subsistence level income leads to technological advances. 
E)  it is impossible to replicate production activities.

Question 8

Neoclassical growth theory predicts that real GDP will

Accepted Answer

A)  remain at the subsistence level. 
B)  grow at a rate that is determined by the pace of technological change. 
C)  grow but at a rate that will slow as time progresses and population growth increases. 
D)  continue to grow because of the choices people make in the pursuit of profit. 
E)  grow only when the population grows. 
A)  remain at the subsistence level. 
B)  grow at a rate that is determined by the pace of technological change. 
C)  grow but at a rate that will slow as time progresses and population growth increases. 
D)  continue to grow because of the choices people make in the pursuit of profit. 
E)  grow only when the population grows.

Question 9

One possible way of achieving faster economic growth is to

Accepted Answer

A)  regulate the amount of international trade and limit it so that not too much occurs. 
B)  limit research and development because research and development does not contribute anything to today's production. 
C)  assign the government ownership of all capital. 
D)  protect property rights and free markets. 
E)  tax saving so that people spend more and firms' profits are higher. 
A)  regulate the amount of international trade and limit it so that not too much occurs. 
B)  limit research and development because research and development does not contribute anything to today's production. 
C)  assign the government ownership of all capital. 
D)  protect property rights and free markets. 
E)  tax saving so that people spend more and firms' profits are higher.

Question 10

According to the new growth theory, which of the following promote economic growth?
i. discoveries that bring profit
ii. choices that expand human capital
iii. random events that create technology change

Accepted Answer

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

Question 11

Neoclassical growth theory predicts that growth in real GDP is determined by

Accepted Answer

A)  population growth and the pace of technological change. 
B)  population growth only. 
C)  choices and the pursuit of wealth. 
D)  technological change only. 
E)  the government's actions. 
A)  population growth and the pace of technological change. 
B)  population growth only. 
C)  choices and the pursuit of wealth. 
D)  technological change only. 
E)  the government's actions.

Question 12

The growth rate of real GDP per person equals the

Accepted Answer

A)  population growth rate plus the growth rate of real GDP. 
B)  change in the economic growth rate divided by the change in the population growth rate. 
C)  the economic growth rate per person divided by the change in the population growth rate. 
D)  growth rate of real GDP minus the growth rate of the population. 
E)  population growth rate plus the growth rate of real GDP then divided by the initial level of real GDP. 
A)  population growth rate plus the growth rate of real GDP. 
B)  change in the economic growth rate divided by the change in the population growth rate. 
C)  the economic growth rate per person divided by the change in the population growth rate. 
D)  growth rate of real GDP minus the growth rate of the population. 
E)  population growth rate plus the growth rate of real GDP then divided by the initial level of real GDP.

Question 13

In the neoclassical growth theory, growth stops when ________.

Accepted Answer

A)  the population grows faster than capital 
B)  real GDP per hour of labor equals subsistence income 
C)  technology stops advancing 
D)  incentives to make innovations disappear 
E)  competition disappears 
A)  the population grows faster than capital 
B)  real GDP per hour of labor equals subsistence income 
C)  technology stops advancing 
D)  incentives to make innovations disappear 
E)  competition disappears

Question 14

List and explain the three factors that can increase labor productivity.

Accepted Answer

The three factors that can increase labo

Question 15

Labor productivity is equal to the quantity of

Accepted Answer

A)  real GDP produced by one hour of labor. 
B)  workers employed during one hour. 
C)  real GDP consumed by the total population in one hour. 
D)  real GDP. 
E)  workers who are gainfully employed. 
A)  real GDP produced by one hour of labor. 
B)  workers employed during one hour. 
C)  real GDP consumed by the total population in one hour. 
D)  real GDP. 
E)  workers who are gainfully employed.

Question 16

Increases in human capital can come

Accepted Answer

A)  only from formal schooling. 
B)  from employing more machinery. 
C)  only from on-the-job experience. 
D)  from formal education and on-the-job learning. 
E)  from nowhere because whatever human capital an individual possesses is what he or she was born with. 
A)  only from formal schooling. 
B)  from employing more machinery. 
C)  only from on-the-job experience. 
D)  from formal education and on-the-job learning. 
E)  from nowhere because whatever human capital an individual possesses is what he or she was born with.

Question 17

Which of the following are important for countries to promote with property rights and incentives if economic growth is to occur?
i. specialization
ii. saving and investment
iii. increases in human capital
iv. discovery of new technology

Accepted Answer

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

Question 18

If a country experiences a real GDP growth rate of 1 percent and population growth of 2 percent, then the growth rate of real GDP per person is

Accepted Answer

A)  3 percent. 
B)  2 percent. 
C)  1 percent. 
D)  -1 percent. 
E)  0 percent. 
A)  3 percent. 
B)  2 percent. 
C)  1 percent. 
D)  -1 percent. 
E)  0 percent.

Question 19

Economic growth is a sustained expansion of production possibilities, as measured by the increase in ________ over time.

Accepted Answer

A)  real GDP 
B)  population 
C)  inflation 
D)  the price level 
E)  employment 
A)  real GDP 
B)  population 
C)  inflation 
D)  the price level 
E)  employment

Question 20

Iceland's real GDP grows at a rate of 2.6 percent and population grows at a rate of 0.8 percent.Iceland's real GDP per person grows at a rate of

Accepted Answer

A)  1.8 percent. 
B)  2.6 percent. 
C)  3.4 percent. 
D)  3.0 percent. 
E)  3.2 percent. 
A)  1.8 percent. 
B)  2.6 percent. 
C)  3.4 percent. 
D)  3.0 percent. 
E)  3.2 percent.

If a country lacks _, economic growth __.

Jose and Julia were discussing the necessary components to achieve economic growth.Jose stated that the economy must include free markets, specialization and trade, and an ethical judicial system.Julia reminded Jose that another key component is

Economic growth is defined as equal to the increase in

Sustained growth in the quantity of labor hours worked depends on

Labor productivity is $20 per hour and aggregate hours are 400 billion hours. a. What does real GDP equal? b. Because of technological advances, labor productivity doubles to $40 per hour.Furthermore, assume that aggregate hours decrease to 300 billion hours.What does real GDP equal?

Workers in the United States are productive than workers in China because .

The new growth theory states that

Neoclassical growth theory predicts that real GDP will

One possible way of achieving faster economic growth is to

According to the new growth theory, which of the following promote economic growth? i. discoveries that bring profit ii. choices that expand human capital iii. random events that create technology change

Neoclassical growth theory predicts that growth in real GDP is determined by

The growth rate of real GDP per person equals the

In the neoclassical growth theory, growth stops when ________.

List and explain the three factors that can increase labor productivity.

Labor productivity is equal to the quantity of

Increases in human capital can come

Which of the following are important for countries to promote with property rights and incentives if economic growth is to occur? i. specialization ii. saving and investment iii. increases in human capital iv. discovery of new technology

If a country experiences a real GDP growth rate of 1 percent and population growth of 2 percent, then the growth rate of real GDP per person is

Economic growth is a sustained expansion of production possibilities, as measured by the increase in ________ over time.

Iceland's real GDP grows at a rate of 2.6 percent and population grows at a rate of 0.8 percent.Iceland's real GDP per person grows at a rate of

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

If a country lacks _______, economic growth ________.

Jose and Julia were discussing the necessary components to achieve economic growth.Jose stated that the economy must include free markets, specialization and trade, and an ethical judicial system.Julia reminded Jose that another key component is

Economic growth is defined as equal to the increase in

Sustained growth in the quantity of labor hours worked depends on

Labor productivity is $20 per hour and aggregate hours are 400 billion hours. a. What does real GDP equal? b. Because of technological advances, labor productivity doubles to $40 per hour.Furthermore, assume that aggregate hours decrease to 300 billion hours.What does real GDP equal?

Workers in the United States are ________ productive than workers in China because ________.

The new growth theory states that

Neoclassical growth theory predicts that real GDP will

One possible way of achieving faster economic growth is to

According to the new growth theory, which of the following promote economic growth? i. discoveries that bring profit ii. choices that expand human capital iii. random events that create technology change

Neoclassical growth theory predicts that growth in real GDP is determined by

The growth rate of real GDP per person equals the

In the neoclassical growth theory, growth stops when ________.

List and explain the three factors that can increase labor productivity.

Labor productivity is equal to the quantity of

Increases in human capital can come

Which of the following are important for countries to promote with property rights and incentives if economic growth is to occur? i. specialization ii. saving and investment iii. increases in human capital iv. discovery of new technology

If a country experiences a real GDP growth rate of 1 percent and population growth of 2 percent, then the growth rate of real GDP per person is

Economic growth is a sustained expansion of production possibilities, as measured by the increase in ________ over time.

Iceland's real GDP grows at a rate of 2.6 percent and population grows at a rate of 0.8 percent.Iceland's real GDP per person grows at a rate of

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

If a country lacks _, economic growth __.

Workers in the United States are productive than workers in China because .