Question 1

Labor productivity equals ________.

Accepted Answer

A)  real GDP × aggregate hours 
B)  real GDP ÷ aggregate hours 
C)  aggregate hours ÷ real GDP 
D)  aggregate hours × labor productivity 
E)  aggregate hours ÷ labor productivity 
A)  real GDP × aggregate hours 
B)  real GDP ÷ aggregate hours 
C)  aggregate hours ÷ real GDP 
D)  aggregate hours × labor productivity 
E)  aggregate hours ÷ labor productivity

Question 2

If a nation's population grows at 2 percent and its real GDP grows at 4 percent, what is the growth rate of real GDP per person?

Accepted Answer

The growth rate of real GDP per person e

Question 3

The fastest growing nations today

Accepted Answer

A)  are not saving but instead are investing. 
B)  have erected many trade barriers to protect domestic firms. 
C)  have the fastest growing exports and imports. 
D)  have non-democratic political systems. 
E)  have the government directing all their research and development. 
A)  are not saving but instead are investing. 
B)  have erected many trade barriers to protect domestic firms. 
C)  have the fastest growing exports and imports. 
D)  have non-democratic political systems. 
E)  have the government directing all their research and development.

Question 4

Real GDP per person did not remain at the subsistence level, as predicted by classical growth theory, because as GDP per person increased,

Accepted Answer

A)  birth rates remained constant and death rates fell. 
B)  birth rates eventually fell. 
C)  technological advances were able to outpace the effects of the continued and increasingly high birth rate. 
D)  the total level of real GDP decreased. 
E)  death rates eventually increased. 
A)  birth rates remained constant and death rates fell. 
B)  birth rates eventually fell. 
C)  technological advances were able to outpace the effects of the continued and increasingly high birth rate. 
D)  the total level of real GDP decreased. 
E)  death rates eventually increased.

Question 5

Hong Kong is an example of an economy that

Accepted Answer

A)  does not experience economic growth because it is not a democracy. 
B)  experiences economic growth in spite of the fact that is lacks democratic freedom. 
C)  grows more slowly than other Asian countries because property rights are not valued. 
D)  needs to promote investment so that economic growth can occur. 
E)  lacks economic freedom and therefore experiences the slowest economic growth of all developed economies. 
A)  does not experience economic growth because it is not a democracy. 
B)  experiences economic growth in spite of the fact that is lacks democratic freedom. 
C)  grows more slowly than other Asian countries because property rights are not valued. 
D)  needs to promote investment so that economic growth can occur. 
E)  lacks economic freedom and therefore experiences the slowest economic growth of all developed economies.

Question 6

"According to the neoclassical growth theory, national incentives to save, invest, accumulate human capital, and develop new technology influence the country's growth rate of real GDP." Comment on the accuracy of the previous statement.

Accepted Answer

The sentence is inaccurate.The neoclassi

Question 7

Neoclassical growth theory predicts that

Accepted Answer

A)  the economy will grow as long as the population grows. 
B)  population grows rapidly and lowers real income level to subsistence. 
C)  the economy is not subject to diminishing returns.. 
D)  technological growth is necessary to maintain growth in real GDP per person. 
E)  production activities can be replicated so there is no diminishing returns. 
A)  the economy will grow as long as the population grows. 
B)  population grows rapidly and lowers real income level to subsistence. 
C)  the economy is not subject to diminishing returns.. 
D)  technological growth is necessary to maintain growth in real GDP per person. 
E)  production activities can be replicated so there is no diminishing returns.

Question 8

$$\begin{array}{l}
\text { Real GDP }\
\begin{array} { c c } 
\text { Year } & \text { (trillions of 2005 yen) } \
\hline 1997 & 484 \
1996 & 480 \
\hline
\end{array}
\end{array}$$
-The standard of living is measured by

Accepted Answer

A)  real GDP. 
B)  employment. 
C)  employment per person. 
D)  real GDP per person. 
E)  the population. 
A)  real GDP. 
B)  employment. 
C)  employment per person. 
D)  real GDP per person. 
E)  the population.

Question 9

How do we calculate growth in a nation's standard of living?

Accepted Answer

The standard of living is meas

Question 10

Labor productivity is defined as

Accepted Answer

A)  total real GDP. 
B)  real GDP per person. 
C)  total output multiplied by total hours of labor. 
D)  real GDP per hour of labor. 
E)  hours of work per person. 
A)  total real GDP. 
B)  real GDP per person. 
C)  total output multiplied by total hours of labor. 
D)  real GDP per hour of labor. 
E)  hours of work per person.

Question 11

Neoclassical growth theory asserts that

Accepted Answer

A)  population grows rapidly and lowers real income level to subsistence. 
B)  economies are able to sustain growth indefinitely. 
C)  real GDP per person grows at a rate determined by the pace of technological change. 
D)  technological change results from people's choices. 
E)  profits are a key component determining how rapidly the economy will grow. 
A)  population grows rapidly and lowers real income level to subsistence. 
B)  economies are able to sustain growth indefinitely. 
C)  real GDP per person grows at a rate determined by the pace of technological change. 
D)  technological change results from people's choices. 
E)  profits are a key component determining how rapidly the economy will grow.

Question 12

A condition necessary for a country to achieve economic growth is

Accepted Answer

A)  high tax rates so the government can purchase a lot of capital equipment. 
B)  strict environmental regulations. 
C)  economic freedom. 
D)  government control of the banking system. 
E)  democracy. 
A)  high tax rates so the government can purchase a lot of capital equipment. 
B)  strict environmental regulations. 
C)  economic freedom. 
D)  government control of the banking system. 
E)  democracy.

Question 13

In classical growth theory, if the income level is above the subsistence income,

Accepted Answer

A)  the economy will keep growing without limit. 
B)  population grows and lowers real income to its subsistence level. 
C)  technological growth occurs and keeps real income above its subsistence level. 
D)  the pursuit of profit will cause economic growth to accelerate. 
E)  None of the above is correct because the classical growth theory asserts that income can never exceed the subsistence level. 
A)  the economy will keep growing without limit. 
B)  population grows and lowers real income to its subsistence level. 
C)  technological growth occurs and keeps real income above its subsistence level. 
D)  the pursuit of profit will cause economic growth to accelerate. 
E)  None of the above is correct because the classical growth theory asserts that income can never exceed the subsistence level.

Question 14

For the world, what period of time experienced the fastest growth rate of real GDP per person?

Accepted Answer

A)  around 500 B.C. 
B)  around 400 A.D. 
C)  between 1000 A.D.and 1500 A.D. 
D)  after about 1850 A.D. 
E)  between 1500 A.D.and 1850 A.D. 
A)  around 500 B.C. 
B)  around 400 A.D. 
C)  between 1000 A.D.and 1500 A.D. 
D)  after about 1850 A.D. 
E)  between 1500 A.D.and 1850 A.D.

Question 15

The population in the current year is 31.5 million and the real GDP is $814 million.The previous year's statistics were a population of 31 million and a real GDP of $800 million.The change in the standard of living, measured by growth in real GDP per person, is

Accepted Answer

A)  1.6 percent. 
B)  7.75 percent. 
C)  4.3 percent. 
D)  6 percent. 
E)  0 percent. 
A)  1.6 percent. 
B)  7.75 percent. 
C)  4.3 percent. 
D)  6 percent. 
E)  0 percent.

Question 16

The widespread adoption of computers in the workplace has likely lead to

Accepted Answer

A)  no change in the quantity of labor hours. 
B)  an increase in labor productivity because computers are a capital good. 
C)  a decrease in labor productivity because computers are a capital good. 
D)  a decrease in human capital because computers are physical capital. 
E)  an increase in the supply of labor because people are needed to operate the computers. 
A)  no change in the quantity of labor hours. 
B)  an increase in labor productivity because computers are a capital good. 
C)  a decrease in labor productivity because computers are a capital good. 
D)  a decrease in human capital because computers are physical capital. 
E)  an increase in the supply of labor because people are needed to operate the computers.

Question 17

Labor force productivity has increased from $30 per hour to $32 per hour over the past year. This could result from

Accepted Answer

A)  only an increase in real GDP. 
B)  an increase in real GDP with no change in the aggregate hours or an decrease in aggregate hours with no change in real GDP. 
C)  only a decrease in aggregate hours. 
D)  an increase in the labor force participation rate. 
E)  an increase in population. 
A)  only an increase in real GDP. 
B)  an increase in real GDP with no change in the aggregate hours or an decrease in aggregate hours with no change in real GDP. 
C)  only a decrease in aggregate hours. 
D)  an increase in the labor force participation rate. 
E)  an increase in population.

Question 18

Human capital refers to the

Accepted Answer

A)  accumulated skill and knowledge of human beings. 
B)  accumulated equipment used by human beings. 
C)  accumulation of money by human beings. 
D)  accumulation of money and equipment used by human beings. 
E)  accumulated financial capital people have acquired. 
A)  accumulated skill and knowledge of human beings. 
B)  accumulated equipment used by human beings. 
C)  accumulation of money by human beings. 
D)  accumulation of money and equipment used by human beings. 
E)  accumulated financial capital people have acquired.

Question 19

In 2009, U.S.real GDP decreased by 3 percent and the population grew by 1 percent.Thus, real GDP per person

Accepted Answer

A)  increased 2 percent. 
B)  decreased 2 percent. 
C)  increased 4 percent. 
D)  decreased 4 percent. 
E)  decreased 3 percent. 
A)  increased 2 percent. 
B)  decreased 2 percent. 
C)  increased 4 percent. 
D)  decreased 4 percent. 
E)  decreased 3 percent.

Question 20

If Country A's real GDP is growing at 6 percent per year and Country B's real GDP is growing at 6 percent per year, then the standard of living is

Accepted Answer

A)  growing more rapidly in Country A. 
B)  higher in Country B. 
C)  changing at the same rate in Country A and Country B. 
D)  growing more slowly in Country A. 
E)  changing at the same rate in Country A and Country B only if the rate of population growth is the same in both countries. 
A)  growing more rapidly in Country A. 
B)  higher in Country B. 
C)  changing at the same rate in Country A and Country B. 
D)  growing more slowly in Country A. 
E)  changing at the same rate in Country A and Country B only if the rate of population growth is the same in both countries.

Labor productivity equals ________.

If a nation's population grows at 2 percent and its real GDP grows at 4 percent, what is the growth rate of real GDP per person?

The fastest growing nations today

Real GDP per person did not remain at the subsistence level, as predicted by classical growth theory, because as GDP per person increased,

Hong Kong is an example of an economy that

"According to the neoclassical growth theory, national incentives to save, invest, accumulate human capital, and develop new technology influence the country's growth rate of real GDP." Comment on the accuracy of the previous statement.

Neoclassical growth theory predicts that

Real GDP Year (trillions of 2005 yen) 1997 484 1996 480 -The standard of living is measured by

How do we calculate growth in a nation's standard of living?

Labor productivity is defined as

Neoclassical growth theory asserts that

A condition necessary for a country to achieve economic growth is

In classical growth theory, if the income level is above the subsistence income,

For the world, what period of time experienced the fastest growth rate of real GDP per person?

The population in the current year is 31.5 million and the real GDP is $814 million.The previous year's statistics were a population of 31 million and a real GDP of $800 million.The change in the standard of living, measured by growth in real GDP per person, is

The widespread adoption of computers in the workplace has likely lead to

Labor force productivity has increased from $30 per hour to $32 per hour over the past year. This could result from

Human capital refers to the

In 2009, U.S.real GDP decreased by 3 percent and the population grew by 1 percent.Thus, real GDP per person

If Country A's real GDP is growing at 6 percent per year and Country B's real GDP is growing at 6 percent per year, then the standard of living is

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

Labor productivity equals ________.

If a nation's population grows at 2 percent and its real GDP grows at 4 percent, what is the growth rate of real GDP per person?

The fastest growing nations today

Real GDP per person did not remain at the subsistence level, as predicted by classical growth theory, because as GDP per person increased,

Hong Kong is an example of an economy that

"According to the neoclassical growth theory, national incentives to save, invest, accumulate human capital, and develop new technology influence the country's growth rate of real GDP." Comment on the accuracy of the previous statement.

Neoclassical growth theory predicts that

Real GDP Year (trillions of 2005 yen) 1997 484 1996 480 -The standard of living is measured by

How do we calculate growth in a nation's standard of living?

Labor productivity is defined as

Neoclassical growth theory asserts that

A condition necessary for a country to achieve economic growth is

In classical growth theory, if the income level is above the subsistence income,

For the world, what period of time experienced the fastest growth rate of real GDP per person?

The population in the current year is 31.5 million and the real GDP is $814 million.The previous year's statistics were a population of 31 million and a real GDP of $800 million.The change in the standard of living, measured by growth in real GDP per person, is

The widespread adoption of computers in the workplace has likely lead to

Labor force productivity has increased from $30 per hour to $32 per hour over the past year. This could result from

Human capital refers to the

In 2009, U.S.real GDP decreased by 3 percent and the population grew by 1 percent.Thus, real GDP per person

If Country A's real GDP is growing at 6 percent per year and Country B's real GDP is growing at 6 percent per year, then the standard of living is

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