Question 1

A central proposition of the new growth theory is that

Accepted Answer

A)  growth will cease but prosperity will persist. 
B)  knowledge is not subject to diminishing returns. 
C)  government direction and oversight is necessary for consistent growth. 
D)  growth is often just an illusion fostered by growth accounting. 
A)  growth will cease but prosperity will persist. 
B)  knowledge is not subject to diminishing returns. 
C)  government direction and oversight is necessary for consistent growth. 
D)  growth is often just an illusion fostered by growth accounting.

Question 2

Labor productivity is defined as

Accepted Answer

A)  total output attributable to labor. 
B)  total real GDP. 
C)  the growth rate of the labor force. 
D)  real GDP per hour of labor. 
A)  total output attributable to labor. 
B)  total real GDP. 
C)  the growth rate of the labor force. 
D)  real GDP per hour of labor.

Question 3

All of the following would increase the growth rate of the economy EXCEPT

Accepted Answer

A)  raising the saving rate. 
B)  stimulating research and development. 
C)  discouraging international trade. 
D)  None of the above answers is correct because they all would increase the growth rate. 
A)  raising the saving rate. 
B)  stimulating research and development. 
C)  discouraging international trade. 
D)  None of the above answers is correct because they all would increase the growth rate.

Question 4

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

Accepted Answer

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

Question 5

Which theory of economic growth concludes that in the long run real GDP per person will be at its subsistence level?

Accepted Answer

A)  the classical theory 
B)  the neoclassical theory 
C)  the new growth theory 
D)  all of the theories 
A)  the classical theory 
B)  the neoclassical theory 
C)  the new growth theory 
D)  all of the theories

Question 6

Labor productivity increases with

Accepted Answer

A)  increases in consumption expenditure. 
B)  increases in depreciation. 
C)  increases in capital. 
D)  All of the above answers are correct. 
A)  increases in consumption expenditure. 
B)  increases in depreciation. 
C)  increases in capital. 
D)  All of the above answers are correct.

Question 7

By measuring ________ we can see that the economies of Hong Kong and Singapore are catching up to the economies of North America but that the economies of Central and South America are not.

Accepted Answer

A)  inflation per person 
B)  real GDP per person 
C)  the population 
D)  real GDP 
A)  inflation per person 
B)  real GDP per person 
C)  the population 
D)  real GDP

Question 8

Classical economists believed that

Accepted Answer

A)  real GDP per person would rise above its subsistence level in the long run. 
B)  real GDP per person would never rise above its subsistence level in the long run. 
C)  the demand for labor increases when the population increases. 
D)  population growth decreases as real GDP per person rises. 
A)  real GDP per person would rise above its subsistence level in the long run. 
B)  real GDP per person would never rise above its subsistence level in the long run. 
C)  the demand for labor increases when the population increases. 
D)  population growth decreases as real GDP per person rises.

Question 9

Neoclassical growth theory

Accepted Answer

A)  predicts that growth rates and incomes per person throughout the world will converge. 
B)  predicts that the faster growing underdeveloped nations will overtake and then surpass the industrial nations. 
C)  predicts that nations that enjoy a technological advantage will maintain that advantage. 
D)  makes no predictions about the relative growth or incomes among countries. 
A)  predicts that growth rates and incomes per person throughout the world will converge. 
B)  predicts that the faster growing underdeveloped nations will overtake and then surpass the industrial nations. 
C)  predicts that nations that enjoy a technological advantage will maintain that advantage. 
D)  makes no predictions about the relative growth or incomes among countries.

Question 10

Which of the following is consistent with the classical theory of growth?

Accepted Answer

A)  permanent increases in real wages 
B)  permanent growth in productivity 
C)  rapid population growth in poor countries 
D)  permanent increases in living standards 
A)  permanent increases in real wages 
B)  permanent growth in productivity 
C)  rapid population growth in poor countries 
D)  permanent increases in living standards

Question 11

Hu Tells Leaders China Growth Will Help World Economy Chinese President Hu Jintao told world leaders that his country "has taken an active part in the international cooperation to deal with the financial crisis'' by providing a "$586 billion economic stimulus,focused on building low-rent housing,roads,railways and airports.The package also allows tax deductions for fixed assets such as machinery to stimulate investment.Farmers will also benefit from more subsidies."
Hu stated that "China is in itself an important contribution to international financial stability and world economic growth.''
Which of the following will occur if China's spending generates economic growth in real GDP per person?
i. There will be an upward shift in China's aggregate production function.
ii. There will be a rightward shift in China's labor demand curve.
iII. There will be an increase in the real wage.

Accepted Answer

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

Question 12

An aggregate production function shows the relationship between

Accepted Answer

A)  real GDP and leisure. 
B)  real GDP and the quantity of labor employed. 
C)  leisure and unemployment. 
D)  real GDP and unemployment. 
A)  real GDP and leisure. 
B)  real GDP and the quantity of labor employed. 
C)  leisure and unemployment. 
D)  real GDP and unemployment.

Question 13

Which theory of economic growth concludes that growth can continue indefinitely?

Accepted Answer

A)  the classical theory 
B)  the neoclassical theory 
C)  the new theory 
D)  all of the theories 
A)  the classical theory 
B)  the neoclassical theory 
C)  the new theory 
D)  all of the theories

Question 14

________ is the knowledge and skill that people have obtained from education and on-the-job training.

Accepted Answer

A)  Labor productivity 
B)  Human capital 
C)  Capital 
D)  Technology 
A)  Labor productivity 
B)  Human capital 
C)  Capital 
D)  Technology

Question 15

During 2014,the country of Economia had a real GDP of $115 billion and the population was 0.9 billion. In 2013,real GDP was 105 billion and the population was 0.85 billion. In 2014,real GDP per person was

Accepted Answer

A)  $128 
B)  $124 
C)  $135 
D)  $117 
A)  $128 
B)  $124 
C)  $135 
D)  $117

Question 16

In 2011,Armenia had a real GDP of $4.21 billion and a population of 2.98 million. In 2012,real GDP was $4.59 billion and population was 2.97 million.What was Armenia's economic growth rate from 2011 to 2012?

Accepted Answer

A)  0.38 percent 
B)  9.0 percent 
C)  3.8 percent 
D)  8.3 percent 
A)  0.38 percent 
B)  9.0 percent 
C)  3.8 percent 
D)  8.3 percent

Question 17

If the price level rises by 5 percent and workers' money wage rates remain constant,firms'

Accepted Answer

A)  quantity of labor demanded will decrease. 
B)  quantity of labor demanded will increase. 
C)  supply of jobs will decrease. 
D)  None of the above answers are correct. 
A)  quantity of labor demanded will decrease. 
B)  quantity of labor demanded will increase. 
C)  supply of jobs will decrease. 
D)  None of the above answers are correct.

Question 18

In 2012,of the following ________ had the highest real GDP per person.

Accepted Answer

A)  Japan 
B)  Canada 
C)  the Europe Big 4 countries 
D)  the United States 
A)  Japan 
B)  Canada 
C)  the Europe Big 4 countries 
D)  the United States

Question 19

What factors raise the productivity of labor?

Accepted Answer

The productivity of labor is affected by

Question 20

The aggregate production function is graphed as

Accepted Answer

A)  a downward sloping curve. 
B)  an upward sloping straight line. 
C)  an upward sloping line that becomes flatter as the quantity of labor increases. 
D)  an upward sloping line that becomes steeper as the quantity of labor increases. 
A)  a downward sloping curve. 
B)  an upward sloping straight line. 
C)  an upward sloping line that becomes flatter as the quantity of labor increases. 
D)  an upward sloping line that becomes steeper as the quantity of labor increases.

A central proposition of the new growth theory is that

Labor productivity is defined as

All of the following would increase the growth rate of the economy EXCEPT

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

Which theory of economic growth concludes that in the long run real GDP per person will be at its subsistence level?

Labor productivity increases with

By measuring ________ we can see that the economies of Hong Kong and Singapore are catching up to the economies of North America but that the economies of Central and South America are not.

Classical economists believed that

Neoclassical growth theory

Which of the following is consistent with the classical theory of growth?

An aggregate production function shows the relationship between

Which theory of economic growth concludes that growth can continue indefinitely?

________ is the knowledge and skill that people have obtained from education and on-the-job training.

During 2014,the country of Economia had a real GDP of $115 billion and the population was 0.9 billion. In 2013,real GDP was 105 billion and the population was 0.85 billion. In 2014,real GDP per person was

In 2011,Armenia had a real GDP of $4.21 billion and a population of 2.98 million. In 2012,real GDP was $4.59 billion and population was 2.97 million.What was Armenia's economic growth rate from 2011 to 2012?

If the price level rises by 5 percent and workers' money wage rates remain constant,firms'

In 2012,of the following ________ had the highest real GDP per person.

What factors raise the productivity of labor?

The aggregate production function is graphed as

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

A central proposition of the new growth theory is that

Labor productivity is defined as

All of the following would increase the growth rate of the economy EXCEPT

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

Which theory of economic growth concludes that in the long run real GDP per person will be at its subsistence level?

Labor productivity increases with

By measuring ________ we can see that the economies of Hong Kong and Singapore are catching up to the economies of North America but that the economies of Central and South America are not.

Classical economists believed that

Neoclassical growth theory

Which of the following is consistent with the classical theory of growth?

An aggregate production function shows the relationship between

Which theory of economic growth concludes that growth can continue indefinitely?

________ is the knowledge and skill that people have obtained from education and on-the-job training.

During 2014,the country of Economia had a real GDP of $115 billion and the population was 0.9 billion. In 2013,real GDP was 105 billion and the population was 0.85 billion. In 2014,real GDP per person was

In 2011,Armenia had a real GDP of $4.21 billion and a population of 2.98 million. In 2012,real GDP was $4.59 billion and population was 2.97 million.What was Armenia's economic growth rate from 2011 to 2012?

If the price level rises by 5 percent and workers' money wage rates remain constant,firms'

In 2012,of the following ________ had the highest real GDP per person.

What factors raise the productivity of labor?

The aggregate production function is graphed as

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