Question 1

Expansion of a nation's human capital can be achieved through

Accepted Answer

A)  education and job experience. 
B)  education and saving. 
C)  education and technology improvements. 
D)  education only. 
E)  nothing because human capital is determined by the skills people are born with. 
A)  education and job experience. 
B)  education and saving. 
C)  education and technology improvements. 
D)  education only. 
E)  nothing because human capital is determined by the skills people are born with.

Question 2

In new growth theory, growth in real GDP per person occurs because i. human capital grows indefinitely.
Ii) technology advances as a result of choices individuals make.
Iii) profit incentives encourage technological change.

Accepted Answer

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

Question 3

Encouraging international trade will

Accepted Answer

A)  slow economic growth when a country is forced to specialize and trade with other countries. 
B)  slow economic growth as many workers lose their jobs to foreign workers. 
C)  speed economic growth as workers diversify their knowledge and limit trade. 
D)  speed economic growth as workers specialize and trade with others. 
E)  speed economic growth because international trade limits the harm done by property rights. 
A)  slow economic growth when a country is forced to specialize and trade with other countries. 
B)  slow economic growth as many workers lose their jobs to foreign workers. 
C)  speed economic growth as workers diversify their knowledge and limit trade. 
D)  speed economic growth as workers specialize and trade with others. 
E)  speed economic growth because international trade limits the harm done by property rights.

Question 4

Using the data in the table above, real GDP per person in 2007 is

Accepted Answer

A)  $70,000. 
B)  $71,429. 
C)  $75,000. 
D)  $70 trillion. 
E)  7 percent. 
A)  $70,000. 
B)  $71,429. 
C)  $75,000. 
D)  $70 trillion. 
E)  7 percent.

Question 5

If real GDP is $1,200 billion, the population is 60 million, and aggregate hours are 80 billion, labor productivity is

Accepted Answer

A)  $5.00 an hour. 
B)  $6.67 an hour. 
C)  $15.00 an hour. 
D)  $20,000. 
E)  $150 an hour. 
A)  $5.00 an hour. 
B)  $6.67 an hour. 
C)  $15.00 an hour. 
D)  $20,000. 
E)  $150 an hour.

Question 6

What three factors can increase aggregate hours?
 Of the three, explain which is the only one that can be sustained over long periods of time.

Accepted Answer

The three factors that can increase aggr

Question 7

Which of the following policies encourages economic growth?

Accepted Answer

A)  Increased taxes on income and business profits 
B)  Reduction of government support of higher education 
C)  High tariffs and strict import quotas on foreign-made products 
D)  Creation of tax free savings accounts 
E)  Limiting the years people spend in education so that they can start productive work 
A)  Increased taxes on income and business profits 
B)  Reduction of government support of higher education 
C)  High tariffs and strict import quotas on foreign-made products 
D)  Creation of tax free savings accounts 
E)  Limiting the years people spend in education so that they can start productive work

Question 8

$$\begin{array} { c c c } 
& \begin{array} { c } 
\text { Employment } \
\text { Year }
\end{array} & \begin{array} { c } 
\text { Real GDP } \
\text { (millions of people) (billions of 2005 francs) }
\end{array} \
\hline 1998 & 58.85 & 8,243.9 \
1997 & 58.61 & 7,992.2 \
\hline
\end{array}$$
-If real GDP grew 5 percent last year and the population grew 2 percent, then real GDP per person grew by ________ percent.

Accepted Answer

A)  10 
B)  5 
C)  3 
D)  2 
E)  7 
A)  10 
B)  5 
C)  3 
D)  2 
E)  7

Question 9

Classical growth theory predicts that increases in

Accepted Answer

A)  real GDP per person are permanent and sustainable. 
B)  real GDP per person are temporary and not sustainable. 
C)  resources permanently increase labor productivity. 
D)  resources permanently increase real GDP per person. 
E)  competition increase economic growth. 
A)  real GDP per person are permanent and sustainable. 
B)  real GDP per person are temporary and not sustainable. 
C)  resources permanently increase labor productivity. 
D)  resources permanently increase real GDP per person. 
E)  competition increase economic growth.

Question 10

The classical theory was developed in the late 18th and early 19th centuries

Accepted Answer

A)  and therefore is not accepted today. 
B)  during a time of population decline. 
C)  and has proponents today who fear population growth and overpopulation. 
D)  and can not be explained using the modern tool of the production function. 
E)  and still applies to the most developed nations today, though not to the less developed nations. 
A)  and therefore is not accepted today. 
B)  during a time of population decline. 
C)  and has proponents today who fear population growth and overpopulation. 
D)  and can not be explained using the modern tool of the production function. 
E)  and still applies to the most developed nations today, though not to the less developed nations.

Question 11

The growth rate of real GDP equals

Accepted Answer

A)  [(employment in the current year - employment in previous year)/employment in previous year] × 100. 
B)  [(real GDP in current year - real GDP in previous year) ÷ real GDP in previous year] × 100. 
C)  [(real GDP in previous year - real GDP in current year) ÷ real GDP in previous year] × 100. 
D)  [(real GDP in current year - real GDP in previous year) ÷ real GDP in current year] × 100. 
E)  (real GDP in current year - real GDP in previous year) × 100. 
A)  [(employment in the current year - employment in previous year)/employment in previous year] × 100. 
B)  [(real GDP in current year - real GDP in previous year) ÷ real GDP in previous year] × 100. 
C)  [(real GDP in previous year - real GDP in current year) ÷ real GDP in previous year] × 100. 
D)  [(real GDP in current year - real GDP in previous year) ÷ real GDP in current year] × 100. 
E)  (real GDP in current year - real GDP in previous year) × 100.

Question 12

What policies can a government undertake to achieve faster economic growth?

Accepted Answer

There are several policies a government

Question 13

Suppose Mexico's real GDP per person in 2008 is $6,000 and the U.S.real GDP per person is $24,000.Mexico has annual growth in real GDP per person of 5 percent.Approximately how many years will it take Mexico to equal $24,000 of real GDP per person?

Accepted Answer

A)  14 years 
B)  18 years 
C)  28 years 
D)  36 years 
E)  40 years 
A)  14 years 
B)  18 years 
C)  28 years 
D)  36 years 
E)  40 years

Question 14

Labor productivity equals

Accepted Answer

A)  real GDP divided by the capital stock. 
B)  real GDP divided by the population 
C)  total wages divided by real GDP. 
D)  real GDP divided by aggregate hours. 
E)  aggregate hours divided by employment. 
A)  real GDP divided by the capital stock. 
B)  real GDP divided by the population 
C)  total wages divided by real GDP. 
D)  real GDP divided by aggregate hours. 
E)  aggregate hours divided by employment.

Question 15

Classical growth theory predicts

Accepted Answer

A)  a slowdown in population growth over time. 
B)  real GDP will remain at the subsistence level over time. 
C)  sustained increases in economic growth in the long run. 
D)  the population growth rate slows as real GDP per person rises. 
E)  sustained increases in the standard of living in the long run. 
A)  a slowdown in population growth over time. 
B)  real GDP will remain at the subsistence level over time. 
C)  sustained increases in economic growth in the long run. 
D)  the population growth rate slows as real GDP per person rises. 
E)  sustained increases in the standard of living in the long run.

Question 16

An important condition required for economic growth is

Accepted Answer

A)  a democratic government. 
B)  a totalitarian government. 
C)  a libertarian government. 
D)  economic freedom. 
E)  the incentive to limit international trade so that all economic growth remains within the country. 
A)  a democratic government. 
B)  a totalitarian government. 
C)  a libertarian government. 
D)  economic freedom. 
E)  the incentive to limit international trade so that all economic growth remains within the country.

Question 17

Which of the following are required for economic growth?
i. more goods and services produced per hour of work
ii. an increase in the average hours of labor per person
iii. an increase in prices

Accepted Answer

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

Question 18

The growth rate of real GDP is measured by the following formula:

Accepted Answer

A)  real GDP in the current year minus real GDP in the previous year. 
B)  real GDP in the previous year minus real GDP in the current year. 
C)  $\left( \frac { \text { real GDP in the current year - real GDP in the previous year } } { \text { real GDP in the previous year } } \right)$ × 100. 
D)  (real GDP in the current year + real GDP in the previous year) ÷ 2. 
E)  (real GDP in the current year minus real GDP in the previous year) × 100. 
A)  real GDP in the current year minus real GDP in the previous year. 
B)  real GDP in the previous year minus real GDP in the current year. 
C)  $\left( \frac { \text { real GDP in the current year - real GDP in the previous year } } { \text { real GDP in the previous year } } \right)$ × 100. 
D)  (real GDP in the current year + real GDP in the previous year) ÷ 2. 
E)  (real GDP in the current year minus real GDP in the previous year) × 100.

Question 19

If real GDP in year 1 is $72 million and real GDP in year 2 is $87 million, then the growth rate of real GDP is

Accepted Answer

A)  15 percent. 
B)  $15 million. 
C)  20.8 percent. 
D)  17 percent. 
E)  83 percent. 
A)  15 percent. 
B)  $15 million. 
C)  20.8 percent. 
D)  17 percent. 
E)  83 percent.

Question 20

China's growth rate has ________ that of most other countries, ________.

Accepted Answer

A)  topped; but its real GDP per person is still lower than other industrialized countries 
B)  lagged; and its real GDP is close to other Asian economies 
C)  lagged; but its real GDP per person is higher than other Asian economies 
D)  topped: but its real GDP per person declined in 2008-09. 
E)  equaled; and its real GDP per person declined in 2008-09. 
A)  topped; but its real GDP per person is still lower than other industrialized countries 
B)  lagged; and its real GDP is close to other Asian economies 
C)  lagged; but its real GDP per person is higher than other Asian economies 
D)  topped: but its real GDP per person declined in 2008-09. 
E)  equaled; and its real GDP per person declined in 2008-09.

Expansion of a nation's human capital can be achieved through

In new growth theory, growth in real GDP per person occurs because i. human capital grows indefinitely. Ii) technology advances as a result of choices individuals make. Iii) profit incentives encourage technological change.

Encouraging international trade will

Using the data in the table above, real GDP per person in 2007 is

If real GDP is $1,200 billion, the population is 60 million, and aggregate hours are 80 billion, labor productivity is

What three factors can increase aggregate hours? Of the three, explain which is the only one that can be sustained over long periods of time.

Which of the following policies encourages economic growth?

Employment Year Real GDP (millions of people) (billions of 2005 francs) 1998 58.85 8,243.9 1997 58.61 7,992.2 -If real GDP grew 5 percent last year and the population grew 2 percent, then real GDP per person grew by ________ percent.

Classical growth theory predicts that increases in

The classical theory was developed in the late 18th and early 19th centuries

The growth rate of real GDP equals

What policies can a government undertake to achieve faster economic growth?

Suppose Mexico's real GDP per person in 2008 is $6,000 and the U.S.real GDP per person is $24,000.Mexico has annual growth in real GDP per person of 5 percent.Approximately how many years will it take Mexico to equal $24,000 of real GDP per person?

Labor productivity equals

Classical growth theory predicts

An important condition required for economic growth is

Which of the following are required for economic growth? i. more goods and services produced per hour of work ii. an increase in the average hours of labor per person iii. an increase in prices

The growth rate of real GDP is measured by the following formula:

If real GDP in year 1 is $72 million and real GDP in year 2 is $87 million, then the growth rate of real GDP is

China's growth rate has that of most other countries, .

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

Expansion of a nation's human capital can be achieved through

In new growth theory, growth in real GDP per person occurs because i. human capital grows indefinitely. Ii) technology advances as a result of choices individuals make. Iii) profit incentives encourage technological change.

Encouraging international trade will

Using the data in the table above, real GDP per person in 2007 is

If real GDP is $1,200 billion, the population is 60 million, and aggregate hours are 80 billion, labor productivity is

What three factors can increase aggregate hours? Of the three, explain which is the only one that can be sustained over long periods of time.

Which of the following policies encourages economic growth?

Employment Year Real GDP (millions of people) (billions of 2005 francs) 1998 58.85 8,243.9 1997 58.61 7,992.2 -If real GDP grew 5 percent last year and the population grew 2 percent, then real GDP per person grew by ________ percent.

Classical growth theory predicts that increases in

The classical theory was developed in the late 18th and early 19th centuries

The growth rate of real GDP equals

What policies can a government undertake to achieve faster economic growth?

Suppose Mexico's real GDP per person in 2008 is $6,000 and the U.S.real GDP per person is $24,000.Mexico has annual growth in real GDP per person of 5 percent.Approximately how many years will it take Mexico to equal $24,000 of real GDP per person?

Labor productivity equals

Classical growth theory predicts

An important condition required for economic growth is

Which of the following are required for economic growth? i. more goods and services produced per hour of work ii. an increase in the average hours of labor per person iii. an increase in prices

The growth rate of real GDP is measured by the following formula:

If real GDP in year 1 is $72 million and real GDP in year 2 is $87 million, then the growth rate of real GDP is

China's growth rate has ________ that of most other countries, ________.

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

China's growth rate has that of most other countries, .