Question 1

An increase in labor hours will lead to

Accepted Answer

A)  a shift of the aggregate production function but no movement along it. 
B)  a movement along the aggregate production function but no shift in it. 
C)  both a movement along and a shift in the aggregate production function. 
D)  neither a movement along nor a shift in the aggregate production function. 
A)  a shift of the aggregate production function but no movement along it. 
B)  a movement along the aggregate production function but no shift in it. 
C)  both a movement along and a shift in the aggregate production function. 
D)  neither a movement along nor a shift in the aggregate production function.

Question 2

All of the following would stimulate economic growth EXCEPT

Accepted Answer

A)  decreasing taxes on consumption (for instance, decreasing a sales taxes) and increasing income taxes. 
B)  subsidizing basic research. 
C)  decreasing tuition charges at state universities. 
D)  encouraging international trade. 
A)  decreasing taxes on consumption (for instance, decreasing a sales taxes) and increasing income taxes. 
B)  subsidizing basic research. 
C)  decreasing tuition charges at state universities. 
D)  encouraging international trade.

Question 3

The relationship between education and economic growth can best be summarized by saying that

Accepted Answer

A)  educated people are less apt to consume goods that deplete economic resources, which encourages economic growth. 
B)  educational expenditures tend to divert funds from productive investments, which discourages economic growth. 
C)  educational expenditures tend to be inflationary, which discourages economic growth. 
D)  education has benefits beyond those who receive the education, which encourages economic growth. 
A)  educated people are less apt to consume goods that deplete economic resources, which encourages economic growth. 
B)  educational expenditures tend to divert funds from productive investments, which discourages economic growth. 
C)  educational expenditures tend to be inflationary, which discourages economic growth. 
D)  education has benefits beyond those who receive the education, which encourages economic growth.

Question 4

Which of the following statements is correct?

Accepted Answer

A)  When the real wage increases, the labor supply curve shifts rightward. 
B)  When the real wage increases, the labor supply curve shifts leftward. 
C)  When the real wage decreases, the labor supply curve shifts leftward. 
D)  None of the above statements are correct. 
A)  When the real wage increases, the labor supply curve shifts rightward. 
B)  When the real wage increases, the labor supply curve shifts leftward. 
C)  When the real wage decreases, the labor supply curve shifts leftward. 
D)  None of the above statements are correct.

Question 5

An increase in labor productivity ________ the real wage rate and an increase in population ________ the real wage rate.

Accepted Answer

A)  raises; lowers 
B)  raises; raises 
C)  lowers; lowers 
D)  lowers; raises 
A)  raises; lowers 
B)  raises; raises 
C)  lowers; lowers 
D)  lowers; raises

Question 6

Which of the following statements regarding U.S.economic growth is NOT correct?

Accepted Answer

A)  Over the past 100 years, on the average real GDP per person grew 2 percent a year. 
B)  The average annual growth rate of real GDP per person in the United States was rapid during World War II. 
C)  In the 1930s, real GDP fell well below its trend. 
D)  The growth rate of real GDP per person accelerated between 1973 to 1984. 
A)  Over the past 100 years, on the average real GDP per person grew 2 percent a year. 
B)  The average annual growth rate of real GDP per person in the United States was rapid during World War II. 
C)  In the 1930s, real GDP fell well below its trend. 
D)  The growth rate of real GDP per person accelerated between 1973 to 1984.

Question 7

Which of the following has NOT been one of the primary sources of economic growth over the last 200 years?

Accepted Answer

A)  investment in new capital 
B)  resource conservation 
C)  investment in human capital 
D)  discoveries of new technology 
A)  investment in new capital 
B)  resource conservation 
C)  investment in human capital 
D)  discoveries of new technology

Question 8

An increase in the population and hence the supply of labor causes a

Accepted Answer

A)  shortage of labor at the original real wage rate and the real wage rate will fall. 
B)  surplus of labor at the original real wage rate and the real wage rate will rise. 
C)  surplus of labor at the original real wage rate and the real wage rate will fall. 
D)  shortage of labor at the original real wage rate and the real wage rate will rise. 
A)  shortage of labor at the original real wage rate and the real wage rate will fall. 
B)  surplus of labor at the original real wage rate and the real wage rate will rise. 
C)  surplus of labor at the original real wage rate and the real wage rate will fall. 
D)  shortage of labor at the original real wage rate and the real wage rate will rise.

Question 9

Which of the following statements are correct?
I. The average economic growth rate in real GDP per person in the United States over the last century was 5 percent per year.
II. The United States has the highest economic growth rate of any nation.

Accepted Answer

A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II 
A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II

Question 10

Which growth theory models growth as a perpetual motion machine?

Accepted Answer

A)  new growth theory 
B)  classical growth theory 
C)  neoclassical growth theory 
D)  all growth theories model growth as a perpetual motion machine 
A)  new growth theory 
B)  classical growth theory 
C)  neoclassical growth theory 
D)  all growth theories model growth as a perpetual motion machine

Question 11

Which of following was a period of below-average economic growth in the United States?

Accepted Answer

A)  the 1920s 
B)  the 1960s 
C)  the 1930s 
D)  all of the above 
A)  the 1920s 
B)  the 1960s 
C)  the 1930s 
D)  all of the above

Question 12

The labor force participation rate

Accepted Answer

A)  does not change when the real wage rate changes. 
B)  decreases as the real wage rate rises. 
C)  increases as the real wage rate increases. 
D)  has an inverse effect of the supply of labor. 
A)  does not change when the real wage rate changes. 
B)  decreases as the real wage rate rises. 
C)  increases as the real wage rate increases. 
D)  has an inverse effect of the supply of labor.

Question 13

Employment and (total) potential GDP increase if the

Accepted Answer

A)  labor supply curve shifts rightward and the labor demand curve does not shift. 
B)  labor demand curve shifts leftward more than the labor supply curve shifts rightward. 
C)  labor demand curve shifts leftward and the labor supply curve does not shift. 
D)  None of the above answers are correct. 
A)  labor supply curve shifts rightward and the labor demand curve does not shift. 
B)  labor demand curve shifts leftward more than the labor supply curve shifts rightward. 
C)  labor demand curve shifts leftward and the labor supply curve does not shift. 
D)  None of the above answers are correct.

Question 14

"Premier Liu Chao-shiuan announced Tuesday a government plan to distribute NT$82.9 billion (US$2.51 billion) in consumption coupons to Taiwan's citizens in a bid to stimulate ...economic growth." The Premier's plan to boost economic growth by boosting consumption

Accepted Answer

A)  will work because employment will increase. 
B)  will work because there will be a movement out along Taiwan's aggregate production function. 
C)  will not work because real GDP per person will decrease. 
D)  will not work because economic growth is boosted by labor productivity, not consumption. 
A)  will work because employment will increase. 
B)  will work because there will be a movement out along Taiwan's aggregate production function. 
C)  will not work because real GDP per person will decrease. 
D)  will not work because economic growth is boosted by labor productivity, not consumption.

Question 15

The neoclassical growth theory concluded that economic growth is temporary because of a population explosion that occurs as a result of economic growth.

Accepted Answer

A) True 
 B)False

Question 16

Economists are interested in long-term economic growth because growth increases real GDP per person and improves our standard of living.

Accepted Answer

A) True 
 B)False

Question 17

Briefly explain how growth in real GDP differs across economies including the United States,Japan,Africa,Central America,Hong Kong,Korea,and Singapore.

Accepted Answer

Over the past 100 years,growth in real G

Question 18

Neoclassical growth theory is based on the proposition that real GDP per person grows when

Accepted Answer

A)  the population growth rate increases. 
B)  the population growth rate decreases. 
C)  technological advances occur. 
D)  saving decreases. 
A)  the population growth rate increases. 
B)  the population growth rate decreases. 
C)  technological advances occur. 
D)  saving decreases.

Question 19

If the labor and capital grow more quickly,then real GDP will

Accepted Answer

A)  not grow fast enough. 
B)  grow more quickly. 
C)  grow more slowly. 
D)  stay fixed at potential GDP. 
A)  not grow fast enough. 
B)  grow more quickly. 
C)  grow more slowly. 
D)  stay fixed at potential GDP.

Question 20

Use the table below to answer this question. The data show national savings rates as a percentage of GDP; the growth rate of real GDP per person; and birth rates in 2006. $\begin{array}{c}
\begin{array}{|l}
\hline\
\
\text {Country}\
\hline\text {Japan}\
\hline\text {Canada}\
\hline\text {Germany}\
\hline\text {U.S.}\
\hline
\end{array}
\begin{array}{|c}
\hline\
\text {National Saving}\
\text { ( } \% \text { of } \mathrm{GDP})\
\hline28\
\hline24\
\hline 23\
\hline 14\
\hline
\end{array}
\begin{array}{|l|}
\hline \text { Growth rate}\ 
\text { of real GDP}\ 
\text {  per person}\
\hline 1.6\
\hline 2.6\
\hline 1.9\
\hline 1.9\
\hline
\end{array}
\begin{array}{l|}
\hline\
\
\text { Birth Rate}\
\hline9.96\
\hline 11.4\
\hline9.35\
\hline 14.2\
\hline

\end{array}
\end{array}$

If the data support the neoclassical growth theory,we would expect to see

Accepted Answer

A)  Japan with the highest economic growth rate because the high saving means that more capital is accumulated. 
B)  the United States with the highest economic growth rate because a lower savings rate means more income is spent on consumption. 
C)  Canada with the highest economic growth rate because it has the highest real GDP per person. 
D)  the United States with the highest economic growth rate because it has the highest birth rate. 
A)  Japan with the highest economic growth rate because the high saving means that more capital is accumulated. 
B)  the United States with the highest economic growth rate because a lower savings rate means more income is spent on consumption. 
C)  Canada with the highest economic growth rate because it has the highest real GDP per person. 
D)  the United States with the highest economic growth rate because it has the highest birth rate.

An increase in labor hours will lead to

All of the following would stimulate economic growth EXCEPT

The relationship between education and economic growth can best be summarized by saying that

Which of the following statements is correct?

An increase in labor productivity the real wage rate and an increase in population the real wage rate.

Which of the following statements regarding U.S.economic growth is NOT correct?

Which of the following has NOT been one of the primary sources of economic growth over the last 200 years?

An increase in the population and hence the supply of labor causes a

Which of the following statements are correct? I. The average economic growth rate in real GDP per person in the United States over the last century was 5 percent per year. II. The United States has the highest economic growth rate of any nation.

Which growth theory models growth as a perpetual motion machine?

Which of following was a period of below-average economic growth in the United States?

The labor force participation rate

Employment and (total) potential GDP increase if the

"Premier Liu Chao-shiuan announced Tuesday a government plan to distribute NT$82.9 billion (US$2.51 billion) in consumption coupons to Taiwan's citizens in a bid to stimulate ...economic growth." The Premier's plan to boost economic growth by boosting consumption

The neoclassical growth theory concluded that economic growth is temporary because of a population explosion that occurs as a result of economic growth.

Economists are interested in long-term economic growth because growth increases real GDP per person and improves our standard of living.

Briefly explain how growth in real GDP differs across economies including the United States,Japan,Africa,Central America,Hong Kong,Korea,and Singapore.

Neoclassical growth theory is based on the proposition that real GDP per person grows when

If the labor and capital grow more quickly,then real GDP will

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

An increase in labor hours will lead to

All of the following would stimulate economic growth EXCEPT

The relationship between education and economic growth can best be summarized by saying that

Which of the following statements is correct?

An increase in labor productivity ________ the real wage rate and an increase in population ________ the real wage rate.

Which of the following statements regarding U.S.economic growth is NOT correct?

Which of the following has NOT been one of the primary sources of economic growth over the last 200 years?

An increase in the population and hence the supply of labor causes a

Which of the following statements are correct? I. The average economic growth rate in real GDP per person in the United States over the last century was 5 percent per year. II. The United States has the highest economic growth rate of any nation.

Which growth theory models growth as a perpetual motion machine?

Which of following was a period of below-average economic growth in the United States?

The labor force participation rate

Employment and (total) potential GDP increase if the

"Premier Liu Chao-shiuan announced Tuesday a government plan to distribute NT$82.9 billion (US$2.51 billion) in consumption coupons to Taiwan's citizens in a bid to stimulate ...economic growth." The Premier's plan to boost economic growth by boosting consumption

The neoclassical growth theory concluded that economic growth is temporary because of a population explosion that occurs as a result of economic growth.

Economists are interested in long-term economic growth because growth increases real GDP per person and improves our standard of living.

Briefly explain how growth in real GDP differs across economies including the United States,Japan,Africa,Central America,Hong Kong,Korea,and Singapore.

Neoclassical growth theory is based on the proposition that real GDP per person grows when

If the labor and capital grow more quickly,then real GDP will

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

An increase in labor productivity the real wage rate and an increase in population the real wage rate.