Question 1

Which of the following statements is CORRECT?
I. Higher savings rates can stimulate economic growth.
II. Limiting international trade can stimulate economic growth.

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 2

The Industrial Revolution in England in large was the result of

Accepted Answer

A)  growth in human capital. 
B)  technological innovations encouraged by the patent system. 
C)  population growth. 
D)  technological innovations that were financed mainly by government spending. 
A)  growth in human capital. 
B)  technological innovations encouraged by the patent system. 
C)  population growth. 
D)  technological innovations that were financed mainly by government spending.

Question 3

Which of the following is TRUE regarding the labor market?
I. The labor supply curve slopes upward because firms maximize profits as they hire more workers.
II. If the real wage rate falls,the quantity of labor firms demand increases.
III. The demand for labor curve slopes downward because as the real wage rate falls,workers demand to work fewer hours.

Accepted Answer

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

Question 4

Greater labor force participation for households at higher real wage rate is one reason that

Accepted Answer

A)  the demand for labor curve is upward sloping. 
B)  the demand for labor curve is downward sloping. 
C)  the supply of labor curve is upward sloping. 
D)  the supply of labor curve is downward sloping. 
A)  the demand for labor curve is upward sloping. 
B)  the demand for labor curve is downward sloping. 
C)  the supply of labor curve is upward sloping. 
D)  the supply of labor curve is downward sloping.

Question 5

Strategy to Address Dependence on Foreign Workers,Labour Market Demands The prime minister of Malaysia announced his government's "immediate focus would be to enhance skills development and improve the quality of education." By "the constant upgrading of skills of the country's workforce" he hoped to improve the country's "global competitiveness and raise average incomes of workers."
The story describes

Accepted Answer

A)  a plan increase physical capital. 
B)  improvements in Malaysia's incentive system. 
C)  a consequence of economic growth. 
D)  a plan to increase human capital. 
A)  a plan increase physical capital. 
B)  improvements in Malaysia's incentive system. 
C)  a consequence of economic growth. 
D)  a plan to increase human capital.

Question 6

Moving along the aggregate production function,all of the following are held constant EXCEPT

Accepted Answer

A)  labor 
B)  capital 
C)  human capital 
D)  technology 
A)  labor 
B)  capital 
C)  human capital 
D)  technology

Question 7

Which of the following directly creates growth in labor productivity?
I. Growth in capital per hour of labor.
II. Technological change.
III. Population growth.

Accepted Answer

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

Question 8

If capital per hour of labor decreases,real GDP per hour of labor

Accepted Answer

A)  decreases because the level of technology decreases. 
B)  increases because the level of technology increases. 
C)  increases for a given level of technology. 
D)  decreases for a given level of technology. 
A)  decreases because the level of technology decreases. 
B)  increases because the level of technology increases. 
C)  increases for a given level of technology. 
D)  decreases for a given level of technology.

Question 9

Classical growth theory asserts that

Accepted Answer

A)  growth in real GDP per person is temporary. 
B)  only some countries can have economic growth. 
C)  real GDP growth will eventually be a constant 3 percent per year. 
D)  nominal GDP growth is most important. 
A)  growth in real GDP per person is temporary. 
B)  only some countries can have economic growth. 
C)  real GDP growth will eventually be a constant 3 percent per year. 
D)  nominal GDP growth is most important.

Question 10

Which of the following does NOT increase labor productivity?

Accepted Answer

A)  increases in aggregate hours 
B)  physical capital growth 
C)  human capital growth 
D)  technological advances 
A)  increases in aggregate hours 
B)  physical capital growth 
C)  human capital growth 
D)  technological advances

Question 11

According to empirical evidence,

Accepted Answer

A)  providing international aid to developing nations stimulates economic growth. 
B)  providing international aid to developing nations does not have a positive effect on economic growth. 
C)  international trade stimulates economic growth in richer nations, but actually slows economic growth in developing economies. 
D)  international trade stimulates economic growth in developing economies, but actually slows economic growth in richer nations. 
A)  providing international aid to developing nations stimulates economic growth. 
B)  providing international aid to developing nations does not have a positive effect on economic growth. 
C)  international trade stimulates economic growth in richer nations, but actually slows economic growth in developing economies. 
D)  international trade stimulates economic growth in developing economies, but actually slows economic growth in richer nations.

Question 12

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. Which of the following is true?

Accepted Answer

A)  India's PPF has been shifting rightward since 1997. 
B)  India's PPF has been shifting leftward since 1997. 
C)  India has been moving from a point within its PPF to points beyond its PPF. 
D)  India's PPF has not shifted since 1997. 
A)  India's PPF has been shifting rightward since 1997. 
B)  India's PPF has been shifting leftward since 1997. 
C)  India has been moving from a point within its PPF to points beyond its PPF. 
D)  India's PPF has not shifted since 1997.

Question 13

An assumption of neoclassical growth theory is that

Accepted Answer

A)  technological change is random. 
B)  technological change can be influenced by savings. 
C)  more growth encourages more technological change. 
D)  None of the above answers is correct. 
A)  technological change is random. 
B)  technological change can be influenced by savings. 
C)  more growth encourages more technological change. 
D)  None of the above answers is correct.

Question 14

Activities that encourage faster growth are

Accepted Answer

A)  investment in new capital and human capital. 
B)  high levels of consumption and low levels of savings. 
C)  taxes on saving that serve to encourage more spending and less saving. 
D)  developing trade barriers to protect national industries. 
A)  investment in new capital and human capital. 
B)  high levels of consumption and low levels of savings. 
C)  taxes on saving that serve to encourage more spending and less saving. 
D)  developing trade barriers to protect national industries.

Question 15

If the saving rate increases,a country's growth rate of real GDP per hour of labor ________ and capital per hour of labor ________.

Accepted Answer

A)  increases; increases 
B)  increases; decreases 
C)  decreases; increases 
D)  decreases; decreases 
A)  increases; increases 
B)  increases; decreases 
C)  decreases; increases 
D)  decreases; decreases

Question 16

In the classical theory of growth,what is the final outcome of an increase in growth and labor productivity?

Accepted Answer

In the classical growth theory,a rise in

Question 17

Labor productivity has grown at almost the same rate each year over the last 40 years in the United States.

Accepted Answer

A) True 
 B)False

Question 18

Strategy to Address Dependence on Foreign Workers,Labour Market Demands The prime minister of Malaysia announced his government's "immediate focus would be to enhance skills development and improve the quality of education." By "the constant upgrading of skills of the country's workforce" he hoped to improve the country's "global competitiveness and raise average incomes of workers."
The long-run benefit of enhancing "skill development and improve....education" is to

Accepted Answer

A)  improve property rights. 
B)  increase labor supply. 
C)  speed economic growth. 
D)  smooth the growth of labor productivity. 
A)  improve property rights. 
B)  increase labor supply. 
C)  speed economic growth. 
D)  smooth the growth of labor productivity.

Question 19

An increase in the working-age population results in a

Accepted Answer

A)  rightward shift of demand for labor curve and an increase in potential GDP. 
B)  rightward shift of the demand for labor curve and no change in potential GDP. 
C)  rightward shift of the supply of labor curve and an increase in potential GDP. 
D)  leftward shift of the supply of labor curve and a decrease in potential GDP. 
A)  rightward shift of demand for labor curve and an increase in potential GDP. 
B)  rightward shift of the demand for labor curve and no change in potential GDP. 
C)  rightward shift of the supply of labor curve and an increase in potential GDP. 
D)  leftward shift of the supply of labor curve and a decrease in potential GDP.

Question 20

The more education that workers have,the ________ is their human capital and the ________ is their productivity.

Accepted Answer

A)  larger; higher 
B)  larger; smaller 
C)  smaller; higher 
D)  smaller; smaller 
A)  larger; higher 
B)  larger; smaller 
C)  smaller; higher 
D)  smaller; smaller

Which of the following statements is CORRECT? I. Higher savings rates can stimulate economic growth. II. Limiting international trade can stimulate economic growth.

The Industrial Revolution in England in large was the result of

Greater labor force participation for households at higher real wage rate is one reason that

Moving along the aggregate production function,all of the following are held constant EXCEPT

Which of the following directly creates growth in labor productivity? I. Growth in capital per hour of labor. II. Technological change. III. Population growth.

If capital per hour of labor decreases,real GDP per hour of labor

Classical growth theory asserts that

Which of the following does NOT increase labor productivity?

According to empirical evidence,

An assumption of neoclassical growth theory is that

Activities that encourage faster growth are

If the saving rate increases,a country's growth rate of real GDP per hour of labor and capital per hour of labor .

In the classical theory of growth,what is the final outcome of an increase in growth and labor productivity?

Labor productivity has grown at almost the same rate each year over the last 40 years in the United States.

An increase in the working-age population results in a

The more education that workers have,the is their human capital and the is their productivity.

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 of the following statements is CORRECT? I. Higher savings rates can stimulate economic growth. II. Limiting international trade can stimulate economic growth.

The Industrial Revolution in England in large was the result of

Greater labor force participation for households at higher real wage rate is one reason that

Moving along the aggregate production function,all of the following are held constant EXCEPT

Which of the following directly creates growth in labor productivity? I. Growth in capital per hour of labor. II. Technological change. III. Population growth.

If capital per hour of labor decreases,real GDP per hour of labor

Classical growth theory asserts that

Which of the following does NOT increase labor productivity?

According to empirical evidence,

An assumption of neoclassical growth theory is that

Activities that encourage faster growth are

If the saving rate increases,a country's growth rate of real GDP per hour of labor ________ and capital per hour of labor ________.

In the classical theory of growth,what is the final outcome of an increase in growth and labor productivity?

Labor productivity has grown at almost the same rate each year over the last 40 years in the United States.

An increase in the working-age population results in a

The more education that workers have,the ________ is their human capital and the ________ is their productivity.

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

If the saving rate increases,a country's growth rate of real GDP per hour of labor and capital per hour of labor .

The more education that workers have,the is their human capital and the is their productivity.