Question 1

Which growth theory predicts perpetual growth?

Accepted Answer

A)  classical growth theory 
B)  neoclassical growth theory 
C)  new growth theory 
D)  None of the above answers is correct. 
A)  classical growth theory 
B)  neoclassical growth theory 
C)  new growth theory 
D)  None of the above answers is correct.

Question 2

The decreasing slope of a production function reflects

Accepted Answer

A)  diminishing returns. 
B)  rising unemployment. 
C)  decreasing costs. 
D)  increasing aggregate demand. 
A)  diminishing returns. 
B)  rising unemployment. 
C)  decreasing costs. 
D)  increasing aggregate demand.

Question 3

When labor productivity increases,the demand for labor curve ________ and the supply of labor curve ________.

Accepted Answer

A)  shifts rightward; shifts rightward 
B)  shifts rightward; does not shift 
C)  shifts leftward; shifts rightward 
D)  shift s leftward; does not shift 
A)  shifts rightward; shifts rightward 
B)  shifts rightward; does not shift 
C)  shifts leftward; shifts rightward 
D)  shift s leftward; does not shift

Question 4

Neoclassical growth theory attributes economic growth to

Accepted Answer

A)  technological change. 
B)  fiscal policy. 
C)  the law of diminishing returns. 
D)  increasing population growth. 
A)  technological change. 
B)  fiscal policy. 
C)  the law of diminishing returns. 
D)  increasing population growth.

Question 5

Dividing the value of real GDP by aggregate labor hours gives

Accepted Answer

A)  the net domestic product. 
B)  labor productivity. 
C)  the size of the labor force. 
D)  the rate of capital accumulation. 
A)  the net domestic product. 
B)  labor productivity. 
C)  the size of the labor force. 
D)  the rate of capital accumulation.

Question 6

Ongoing economic growth in real GDP per person requires all of the following except ________.

Accepted Answer

A)  investment in human capital 
B)  the discovery of new technologies 
C)  saving and investment in new capital 
D)  population growth 
A)  investment in human capital 
B)  the discovery of new technologies 
C)  saving and investment in new capital 
D)  population growth

Question 7

A movement along the aggregate production function is the result of a change in

Accepted Answer

A)  the quantity of labor 
B)  technology 
C)  capital 
D)  interest rates 
A)  the quantity of labor 
B)  technology 
C)  capital 
D)  interest rates

Question 8

New growth theory assumes that

Accepted Answer

A)  all inputs experience diminishing returns. 
B)  only random technological advances produce growth. 
C)  knowledge does not experience diminishing returns. 
D)  None of the above answers is correct. 
A)  all inputs experience diminishing returns. 
B)  only random technological advances produce growth. 
C)  knowledge does not experience diminishing returns. 
D)  None of the above answers is correct.

Question 9

The aggregate production function shows how ________ varies with ________.

Accepted Answer

A)  leisure time; labor 
B)  labor; leisure time 
C)  real GDP; labor 
D)  labor; capital 
A)  leisure time; labor 
B)  labor; leisure time 
C)  real GDP; labor 
D)  labor; capital

Question 10

Which of the following is used to calculate the standard of living?

Accepted Answer

A)  real GDP/population 
B)  ((real GDP in the current year - real GDP in previous year)/real GDP in previous year) × 100 
C)  the one-third rule 
D)  real GDP/aggregate hours 
A)  real GDP/population 
B)  ((real GDP in the current year - real GDP in previous year)/real GDP in previous year) × 100 
C)  the one-third rule 
D)  real GDP/aggregate hours

Question 11

According to UNESCO reporting,"Governments in North America and Western Europe invested the highest shares of national resources in education: 5.6 percent of GDP." As a result,we would expect ________,all else held constant.

Accepted Answer

A)  higher economic growth rates in these countries compared to other countries 
B)  lower economic growth rates in the countries because fewer resources can be devoted to innovation. 
C)  lower research and development spending and lower economic growth unless the governments can raise taxes. 
D)  lower saving rates and slower economic growth. 
A)  higher economic growth rates in these countries compared to other countries 
B)  lower economic growth rates in the countries because fewer resources can be devoted to innovation. 
C)  lower research and development spending and lower economic growth unless the governments can raise taxes. 
D)  lower saving rates and slower economic growth.

Question 12

Saving and investment that increase a nation's capital lead to

Accepted Answer

A)  slower growth because there is a lack of consumption. 
B)  a decrease in labor productivity as capital is used to replace labor. 
C)  a decrease in the amount of capital per worker. 
D)  an increase in labor productivity. 
A)  slower growth because there is a lack of consumption. 
B)  a decrease in labor productivity as capital is used to replace labor. 
C)  a decrease in the amount of capital per worker. 
D)  an increase in labor productivity.

Question 13

Which of the following is NOT an important factor affecting growth in labor productivity?

Accepted Answer

A)  the saving rate 
B)  the speed with which prices fall 
C)  the growth rate of physical capital 
D)  the growth rate of labor productivity 
A)  the saving rate 
B)  the speed with which prices fall 
C)  the growth rate of physical capital 
D)  the growth rate of labor productivity

Question 14

According to the Economic Times (09/2012),Standard & Poor's forecast for India's GDP growth rate was cut by 1 percentage point to 5.5 percent as the entire Asia Pacific region feels the pressure of ongoing economic uncertainty. India has averaged 7 percent growth in GDP since 1997. Based on this story,it is most likely that the slowdown reflects a

Accepted Answer

A)  temporary business cycle slowdown. 
B)  temporary business cycle expansion. 
C)  change to India's long-term economic growth rate. 
D)  shrinkage of India's economy. 
A)  temporary business cycle slowdown. 
B)  temporary business cycle expansion. 
C)  change to India's long-term economic growth rate. 
D)  shrinkage of India's economy.

Question 15

An increase in labor productivity shifts the labor ________ curve ________.

Accepted Answer

A)  demand; rightward 
B)  demand; leftward 
C)  supply; rightward 
D)  supply; leftward 
A)  demand; rightward 
B)  demand; leftward 
C)  supply; rightward 
D)  supply; leftward

Question 16

Which theory emphasizes the significance of new discoveries that can be used by many people at the same time?

Accepted Answer

A)  neoclassical growth theory 
B)  new growth theory 
C)  classical growth theory 
D)  None of the above answers are correct. 
A)  neoclassical growth theory 
B)  new growth theory 
C)  classical growth theory 
D)  None of the above answers are correct.

Question 17

We are interested in long-term growth primarily because it brings

Accepted Answer

A)  higher price levels. 
B)  lower price levels. 
C)  higher standards of living. 
D)  trade wars with our trading partners. 
A)  higher price levels. 
B)  lower price levels. 
C)  higher standards of living. 
D)  trade wars with our trading partners.

Question 18

The gaps between the United States and the Asian countries of Honk Kong,Singapore,Korea and China have been

Accepted Answer

A)  decreasing 
B)  increasing 
C)  remaining fairly constant 
D)  there are no gaps between these Asian countries and the United States 
A)  decreasing 
B)  increasing 
C)  remaining fairly constant 
D)  there are no gaps between these Asian countries and the United States

Question 19

Labor growth depends mainly on ________ and labor productivity growth depends mainly on ________.

Accepted Answer

A)  population growth; increases in real GDP 
B)  population growth; technological advances 
C)  growth in real GDP per person; growth rate of capital 
D)  growth in real GDP per person; technological advances 
A)  population growth; increases in real GDP 
B)  population growth; technological advances 
C)  growth in real GDP per person; growth rate of capital 
D)  growth in real GDP per person; technological advances

Question 20

Which of the following policy actions could speed productivity growth?
I. Tax incentives to encourage saving.
II. Encouraging international trade.
III. Directing public funds toward financing basic research.

Accepted Answer

A)  II only. 
B)  I and III. 
C)  I only. 
D)  I, II, and III. 
A)  II only. 
B)  I and III. 
C)  I only. 
D)  I, II, and III.

Which growth theory predicts perpetual growth?

The decreasing slope of a production function reflects

When labor productivity increases,the demand for labor curve and the supply of labor curve .

Neoclassical growth theory attributes economic growth to

Dividing the value of real GDP by aggregate labor hours gives

Ongoing economic growth in real GDP per person requires all of the following except ________.

A movement along the aggregate production function is the result of a change in

New growth theory assumes that

The aggregate production function shows how varies with .

Which of the following is used to calculate the standard of living?

According to UNESCO reporting,"Governments in North America and Western Europe invested the highest shares of national resources in education: 5.6 percent of GDP." As a result,we would expect ________,all else held constant.

Saving and investment that increase a nation's capital lead to

Which of the following is NOT an important factor affecting growth in labor productivity?

An increase in labor productivity shifts the labor curve .

Which theory emphasizes the significance of new discoveries that can be used by many people at the same time?

We are interested in long-term growth primarily because it brings

The gaps between the United States and the Asian countries of Honk Kong,Singapore,Korea and China have been

Labor growth depends mainly on and labor productivity growth depends mainly on .

Which of the following policy actions could speed productivity growth? I. Tax incentives to encourage saving. II. Encouraging international trade. III. Directing public funds toward financing basic research.

What Is Economics

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

Exam 6: Economic Growth

Which growth theory predicts perpetual growth?

The decreasing slope of a production function reflects

When labor productivity increases,the demand for labor curve ________ and the supply of labor curve ________.

Neoclassical growth theory attributes economic growth to

Dividing the value of real GDP by aggregate labor hours gives

Ongoing economic growth in real GDP per person requires all of the following except ________.

A movement along the aggregate production function is the result of a change in

New growth theory assumes that

The aggregate production function shows how ________ varies with ________.

Which of the following is used to calculate the standard of living?

According to UNESCO reporting,"Governments in North America and Western Europe invested the highest shares of national resources in education: 5.6 percent of GDP." As a result,we would expect ________,all else held constant.

Saving and investment that increase a nation's capital lead to

Which of the following is NOT an important factor affecting growth in labor productivity?

An increase in labor productivity shifts the labor ________ curve ________.

Which theory emphasizes the significance of new discoveries that can be used by many people at the same time?

We are interested in long-term growth primarily because it brings

The gaps between the United States and the Asian countries of Honk Kong,Singapore,Korea and China have been

Labor growth depends mainly on ________ and labor productivity growth depends mainly on ________.

Which of the following policy actions could speed productivity growth? I. Tax incentives to encourage saving. II. Encouraging international trade. III. Directing public funds toward financing basic research.

What Is Economics

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

When labor productivity increases,the demand for labor curve and the supply of labor curve .

The aggregate production function shows how varies with .

An increase in labor productivity shifts the labor curve .

Labor growth depends mainly on and labor productivity growth depends mainly on .