Question 1

Which of the following government policies is NOT likely to encourage per capita economic growth?

Accepted Answer

A) special subsidies for capital-intensive forms of production 
B) promotion of education and training programs for workers 
C) high taxes on companies that spend a lot on capital formation 
D) the use of tax revenues for investment and capital formation 
A) special subsidies for capital-intensive forms of production 
B) promotion of education and training programs for workers 
C) high taxes on companies that spend a lot on capital formation 
D) the use of tax revenues for investment and capital formation C

Question 2

In a consumer-oriented economy,what can we conclude about the decision to save in order to promote economic growth?

Accepted Answer

A) It must be enforced by high levels of taxation. 
B) It means a sacrifice of current consumption in order to enhance future consumption. 
C) It cannot be expected to benefit future generations. 
D) It can be expected to cause widespread unemployment. 
A) It must be enforced by high levels of taxation. 
B) It means a sacrifice of current consumption in order to enhance future consumption. 
C) It cannot be expected to benefit future generations. 
D) It can be expected to cause widespread unemployment. B

Question 3

If real GDP per capita is increasing,what can we conclude about real output?

Accepted Answer

A) It is growing more rapidly than are prices. 
B) It is growing more rapidly than the population. 
C) It is growing less rapidly than the population. 
D) It is growing at the same rate as the population. 
A) It is growing more rapidly than are prices. 
B) It is growing more rapidly than the population. 
C) It is growing less rapidly than the population. 
D) It is growing at the same rate as the population. B

Question 4

According to the rule of 70,if a nation grows at a rate of 10 percent per year,in roughly how many years will national income double?

Accepted Answer

A) 5 years 
B) 7 years 
C) 10 years 
D) 50 years 
A) 5 years 
B) 7 years 
C) 10 years 
D) 50 years

Question 5

Which of the following best describes output per capita?

Accepted Answer

A) It is one measure of the marginal level of economic well-being in a country. 
B) It is total output (GDP) divided by the labour force. 
C) It is measured by GDP per capita. 
D) It is total output (GDP) divided by the number of persons among who contributed to production. 
A) It is one measure of the marginal level of economic well-being in a country. 
B) It is total output (GDP) divided by the labour force. 
C) It is measured by GDP per capita. 
D) It is total output (GDP) divided by the number of persons among who contributed to production.

Question 6

As economic growth rises,literacy rates tend to fall.

Accepted Answer

A) True 
 B)False

Question 7

In the long run,what is the most important source of increase in a nation's standard of living?

Accepted Answer

A) high rate of consumption 
B) zero rate of population growth 
C) high rate of labour force growth 
D) high rate of economic growth 
A) high rate of consumption 
B) zero rate of population growth 
C) high rate of labour force growth 
D) high rate of economic growth

Question 8

A nation's prosperity is sometimes measured in terms of real GDP per capita.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following did NOT result in economic growth?

Accepted Answer

A) the instillation of a network of irrigation ditches and pumping stations in order to grow fruits and vegetables in parts of Southern Ontario 
B) the emigration of many citizens from Zimbabwe when a politically repressive regime took office 
C) the increase in government funding of post-secondary education 
D) Cyrus McCormack inventing a threshing machine for harvesting grains 
A) the instillation of a network of irrigation ditches and pumping stations in order to grow fruits and vegetables in parts of Southern Ontario 
B) the emigration of many citizens from Zimbabwe when a politically repressive regime took office 
C) the increase in government funding of post-secondary education 
D) Cyrus McCormack inventing a threshing machine for harvesting grains

Question 10

What does the extent to which the economy can produce at its natural rate of output NOT depend upon?

Accepted Answer

A) the number of consumers 
B) the productivity of labour 
C) the stock of available capital 
D) technology 
A) the number of consumers 
B) the productivity of labour 
C) the stock of available capital 
D) technology

Question 11

If Latvia's output increases by 1 percent while its population rises by 3 percent,Latvia's per capita output will rise.

Accepted Answer

A) True 
 B)False

Question 12

What will cause the standard of living to increase?

Accepted Answer

A) if the nominal GDP grows at a slower rate than real GDP 
B) if the rate of population growth is less than the rate of growth of real GDP 
C) if the rate of population growth exceeds the rate of growth of real GDP 
D) if the nominal GDP grows at a faster rate than real GDP 
A) if the nominal GDP grows at a slower rate than real GDP 
B) if the rate of population growth is less than the rate of growth of real GDP 
C) if the rate of population growth exceeds the rate of growth of real GDP 
D) if the nominal GDP grows at a faster rate than real GDP

Question 13

How does economic growth impact the output of goods and services in an economy and the quantity of goods that citizens will have to consume?

Accepted Answer

A) It increases output resulting in less goods for consumption. 
B) It decreases output resulting in less goods for consumption. 
C) It decreases output resulting in more goods for consumption. 
D) It increases output resulting in more goods for consumption. 
A) It increases output resulting in less goods for consumption. 
B) It decreases output resulting in less goods for consumption. 
C) It decreases output resulting in more goods for consumption. 
D) It increases output resulting in more goods for consumption.

Question 14

What will better technology enable producers to do?

Accepted Answer

A) economize on the use of resources 
B) reallocate resources toward the production of capital 
C) increase wages for low skilled workers 
D) rely less on entrepreneurs 
A) economize on the use of resources 
B) reallocate resources toward the production of capital 
C) increase wages for low skilled workers 
D) rely less on entrepreneurs

Question 15

Which of the following is NOT considered to be a significant factor contributing to economic growth?

Accepted Answer

A) a less intense work effort in the heat of the tropics 
B) an increase in the quantity of physical capital 
C) a greater division of labour and specialization 
D) an increase in use of land inputs 
A) a less intense work effort in the heat of the tropics 
B) an increase in the quantity of physical capital 
C) a greater division of labour and specialization 
D) an increase in use of land inputs

Question 16

What do economists typically track to measure economic growth?

Accepted Answer

A) the unemployment rate 
B) the expansion index 
C) real GDP per capita 
D) the employment rate 
A) the unemployment rate 
B) the expansion index 
C) real GDP per capita 
D) the employment rate

Question 17

Which of the following can help a nation achieve higher economic growth?

Accepted Answer

A) more resources allocated to consumption goods 
B) taxes imposed on investment in capital 
C) increased wages in the service sector 
D) more resources devoted to research and development 
A) more resources allocated to consumption goods 
B) taxes imposed on investment in capital 
C) increased wages in the service sector 
D) more resources devoted to research and development

Question 18

Which of the following will cause the production possibilities curve to shift outward?

Accepted Answer

A) improved public education 
B) increased regulation of the financial sector 
C) reallocation of resources toward food production 
D) decreased unemployment 
A) improved public education 
B) increased regulation of the financial sector 
C) reallocation of resources toward food production 
D) decreased unemployment

Question 19

According to the rule of 70,if a nation grows at a rate of 4 percent per year,in roughly how many years will national income double?

Accepted Answer

A) 7 years 
B) 10 years 
C) 12.5 years 
D) 17.5 years 
A) 7 years 
B) 10 years 
C) 12.5 years 
D) 17.5 years

Question 20

In a country that does not protect patents,what impact would you expect to see on the amount of research and development?

Accepted Answer

A) There would be more, because companies are civic-minded and highly motivated to introduce innovations that improve the standard of living. 
B) There would be less, because the benefits to society of engaging in research and development would be less than the costs to society. 
C) There would be less, because if they made a significant investment in the development, they would be unable to protect the innovations or discoveries long enough to be sufficiently compensated for their efforts. 
D) There would be more, because they could still hope to monopolize the market. 
A) There would be more, because companies are civic-minded and highly motivated to introduce innovations that improve the standard of living. 
B) There would be less, because the benefits to society of engaging in research and development would be less than the costs to society. 
C) There would be less, because if they made a significant investment in the development, they would be unable to protect the innovations or discoveries long enough to be sufficiently compensated for their efforts. 
D) There would be more, because they could still hope to monopolize the market.

Which of the following government policies is NOT likely to encourage per capita economic growth?

In a consumer-oriented economy,what can we conclude about the decision to save in order to promote economic growth?

If real GDP per capita is increasing,what can we conclude about real output?

According to the rule of 70,if a nation grows at a rate of 10 percent per year,in roughly how many years will national income double?

Which of the following best describes output per capita?

As economic growth rises,literacy rates tend to fall.

In the long run,what is the most important source of increase in a nation's standard of living?

A nation's prosperity is sometimes measured in terms of real GDP per capita.

Which of the following did NOT result in economic growth?

What does the extent to which the economy can produce at its natural rate of output NOT depend upon?

If Latvia's output increases by 1 percent while its population rises by 3 percent,Latvia's per capita output will rise.

What will cause the standard of living to increase?

How does economic growth impact the output of goods and services in an economy and the quantity of goods that citizens will have to consume?

What will better technology enable producers to do?

Which of the following is NOT considered to be a significant factor contributing to economic growth?

What do economists typically track to measure economic growth?

Which of the following can help a nation achieve higher economic growth?

Which of the following will cause the production possibilities curve to shift outward?

According to the rule of 70,if a nation grows at a rate of 4 percent per year,in roughly how many years will national income double?

In a country that does not protect patents,what impact would you expect to see on the amount of research and development?

The Role and Method of Economics

Scarcity, trade-Offs, and Production Possibilities

Supply and Demand

Bringing Supply and Demand Together

Introduction to the Macroeconomy

Measuring Economic Performance

Aggregate Demand

Aggregate Supply and Macroeconomic Equilibrium

Fiscal Policy

Money and the Banking System

The Bank of Canada

Monetary Policy

International Trade

International Finance

Filters

Exam 7: Economic Growth in the Global Economy

Which of the following government policies is NOT likely to encourage per capita economic growth?

In a consumer-oriented economy,what can we conclude about the decision to save in order to promote economic growth?

If real GDP per capita is increasing,what can we conclude about real output?

According to the rule of 70,if a nation grows at a rate of 10 percent per year,in roughly how many years will national income double?

Which of the following best describes output per capita?

As economic growth rises,literacy rates tend to fall.

In the long run,what is the most important source of increase in a nation's standard of living?

A nation's prosperity is sometimes measured in terms of real GDP per capita.

Which of the following did NOT result in economic growth?

What does the extent to which the economy can produce at its natural rate of output NOT depend upon?

If Latvia's output increases by 1 percent while its population rises by 3 percent,Latvia's per capita output will rise.

What will cause the standard of living to increase?

How does economic growth impact the output of goods and services in an economy and the quantity of goods that citizens will have to consume?

What will better technology enable producers to do?

Which of the following is NOT considered to be a significant factor contributing to economic growth?

What do economists typically track to measure economic growth?

Which of the following can help a nation achieve higher economic growth?

Which of the following will cause the production possibilities curve to shift outward?

According to the rule of 70,if a nation grows at a rate of 4 percent per year,in roughly how many years will national income double?

In a country that does not protect patents,what impact would you expect to see on the amount of research and development?

The Role and Method of Economics

Scarcity, trade-Offs, and Production Possibilities

Supply and Demand

Bringing Supply and Demand Together

Introduction to the Macroeconomy

Measuring Economic Performance

Aggregate Demand

Aggregate Supply and Macroeconomic Equilibrium

Fiscal Policy

Money and the Banking System

The Bank of Canada

Monetary Policy

International Trade

International Finance

Filters