Question 1

Because of the productivity slowdown in Canada from the mid-1970s through 2014,

Accepted Answer

A) real GDP per capita grew more rapidly. 
B) real GDP per capita grew more slowly. 
C) the standard of living did not change. 
D) the standard of living increased in Canada. 
E) the value of the Canadian dollar rose. 
A) real GDP per capita grew more rapidly. 
B) real GDP per capita grew more slowly. 
C) the standard of living did not change. 
D) the standard of living increased in Canada. 
E) the value of the Canadian dollar rose.

Question 2

What features made England in the eighteenth century the place where the Industrial Revolution occurred?

Accepted Answer

The British Parliament had just gained c

Question 3

New growth theory assumes

Accepted Answer

A) knowledge capital is subject to decreasing returns at the firm level and increasing returns over the entire economy. 
B) physical capital is subject to decreasing returns at the firm level and increasing returns over the entire economy. 
C) physical capital is subject to increasing returns at the firm level and decreasing returns over the entire economy. 
D) knowledge capital is subject to increasing returns at the firm level and decreasing returns over the entire economy. 
E) the returns to knowledge capital can be exhausted in specific industries. 
A) knowledge capital is subject to decreasing returns at the firm level and increasing returns over the entire economy. 
B) physical capital is subject to decreasing returns at the firm level and increasing returns over the entire economy. 
C) physical capital is subject to increasing returns at the firm level and decreasing returns over the entire economy. 
D) knowledge capital is subject to increasing returns at the firm level and decreasing returns over the entire economy. 
E) the returns to knowledge capital can be exhausted in specific industries.

Question 4

Globalization is positively associated with

Accepted Answer

A) poverty. 
B) declining rates of investment. 
C) declining standards of living. 
D) economic growth. 
E) slower technological progress. 
A) poverty. 
B) declining rates of investment. 
C) declining standards of living. 
D) economic growth. 
E) slower technological progress.

Question 5

Human capital refers to the percentage of the working-age population in the labour force.

Accepted Answer

A) True 
 B)False

Question 6

Some researchers have been unable to find evidence of increasing returns to human capital.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a normative statement about economic growth?

Accepted Answer

A) Economic growth is associated with higher labour productivity growth. 
B) Economic growth increases GDP per capita. 
C) Economic growth hurts developing countries. 
D) Foreign direct investment stimulates economic growth. 
E) Economic growth is lower where property rights are enforced. 
A) Economic growth is associated with higher labour productivity growth. 
B) Economic growth increases GDP per capita. 
C) Economic growth hurts developing countries. 
D) Foreign direct investment stimulates economic growth. 
E) Economic growth is lower where property rights are enforced.

Question 8

To what do economists attribute the rapid growth of labour productivity in the United States relative to other countries?

Accepted Answer

A) the flexibility of U.S.labour markets and the efficiency of the U.S.financial system 
B) the strict government rules in the United States that regulate a firm's ability to hire and fire workers 
C) the low rate of job mobility in the United States 
D) the high level of unemployment benefits the United States pays relative to other countries like Canada 
E) the higher educational attainment of American workers relative to workers in other countries like Canada 
A) the flexibility of U.S.labour markets and the efficiency of the U.S.financial system 
B) the strict government rules in the United States that regulate a firm's ability to hire and fire workers 
C) the low rate of job mobility in the United States 
D) the high level of unemployment benefits the United States pays relative to other countries like Canada 
E) the higher educational attainment of American workers relative to workers in other countries like Canada

Question 9

Because of diminishing returns, an economy can continue to increase real GDP per hour worked only if

Accepted Answer

A) there are decreases in human capital. 
B) the per-worker production function shifts downward. 
C) there continue to be decreases in capital per hour worked. 
D) there is technological change. 
E) there continue to be increases in capital per hour worked. 
A) there are decreases in human capital. 
B) the per-worker production function shifts downward. 
C) there continue to be decreases in capital per hour worked. 
D) there is technological change. 
E) there continue to be increases in capital per hour worked.

Question 10

Which of the following explains the ability of the Canadian economy to avoid diminishing marginal returns and experience accelerating growth in the early to mid-20th century?

Accepted Answer

A) continuing technological change 
B) immigration 
C) additions of a greater amount of capital of the same quality 
D) a decrease in the quality of labour 
E) every faster capital accumulation 
A) continuing technological change 
B) immigration 
C) additions of a greater amount of capital of the same quality 
D) a decrease in the quality of labour 
E) every faster capital accumulation

Question 11

How do economic growth rates affect a nation's standard of living?

Accepted Answer

The speed at which an economy grows dete

Question 12

The best measure of a country's standard of living is

Accepted Answer

A) GDP per labour hour. 
B) GDP per unit of capital. 
C) GDP per capita. 
D) total nominal GDP. 
E) the employment population ratio. 
A) GDP per labour hour. 
B) GDP per unit of capital. 
C) GDP per capita. 
D) total nominal GDP. 
E) the employment population ratio.

Question 13

Most economic growth in the world occurred between 1,000,000 BCE and 1300 CE.

Accepted Answer

A) True 
 B)False

Question 14

When an economy faces diminishing returns,

Accepted Answer

A) the slope of the per-worker production function becomes steeper as capital per hour worked increases. 
B) the slope of the per-worker production function becomes flatter as capital per hour worked increases. 
C) the per-worker production function shifts to the left. 
D) the per-worker production function shifts to the right. 
E) the per-worker production function does not pass through the origin. 
A) the slope of the per-worker production function becomes steeper as capital per hour worked increases. 
B) the slope of the per-worker production function becomes flatter as capital per hour worked increases. 
C) the per-worker production function shifts to the left. 
D) the per-worker production function shifts to the right. 
E) the per-worker production function does not pass through the origin.

Question 15

The economic growth model predicts that

Accepted Answer

A) the level of real GDP per capita in poor countries will grow faster than in rich countries. 
B) the per-worker production function of poor countries will be flatter than the per-worker production function of rich countries. 
C) lower-income industrial countries will forever be unable to catch up to higher-income industrial countries. 
D) economic growth in rich countries can only be accomplished at the expense of slow or even negative growth in poor countries. 
E) high income countries have a legal obligation to help poorer countries grow. 
A) the level of real GDP per capita in poor countries will grow faster than in rich countries. 
B) the per-worker production function of poor countries will be flatter than the per-worker production function of rich countries. 
C) lower-income industrial countries will forever be unable to catch up to higher-income industrial countries. 
D) economic growth in rich countries can only be accomplished at the expense of slow or even negative growth in poor countries. 
E) high income countries have a legal obligation to help poorer countries grow.

Question 16

Entrepreneurship in Mexico is

Accepted Answer

A) still risky due to government corruption and organized crime. 
B) the sole responsibility of the Mexican government. 
C) a relatively new phenomenon. 
D) the main reason Mexico does not enjoy the same standard of living as the United States and Canada. 
E) much safer than in Canada. 
A) still risky due to government corruption and organized crime. 
B) the sole responsibility of the Mexican government. 
C) a relatively new phenomenon. 
D) the main reason Mexico does not enjoy the same standard of living as the United States and Canada. 
E) much safer than in Canada.

Question 17

Relative to productivity growth in the United States, which of the following countries experienced the largest decline in productivity growth from 1990 to 2014?

Accepted Answer

A) Canada 
B) Japan 
C) Germany 
D) the United Kingdom 
E) Spain 
A) Canada 
B) Japan 
C) Germany 
D) the United Kingdom 
E) Spain

Question 18

________ save a ________ of their income.This ________ capital in their economy and raises economic growth.

Accepted Answer

A) Developing countries; large proportion; decreases 
B) Developing countries; small proportion; increases 
C) High-income countries; large proportion; increases 
D) High-income countries; small proportion; increases 
E) High-income countries; large proportion; decreases 
A) Developing countries; large proportion; decreases 
B) Developing countries; small proportion; increases 
C) High-income countries; large proportion; increases 
D) High-income countries; small proportion; increases 
E) High-income countries; large proportion; decreases

Question 19

During which of the following periods was the Canadian growth rate the fastest?

Accepted Answer

A) 1900-1949 
B) 1950-1972 
C) 1973-1994 
D) 1995-2011 
E) 2011-2015 
A) 1900-1949 
B) 1950-1972 
C) 1973-1994 
D) 1995-2011 
E) 2011-2015

Question 20

According to new growth theory, firms accumulate the efficient level of both physical and knowledge capital.

Accepted Answer

A) True 
 B)False

Because of the productivity slowdown in Canada from the mid-1970s through 2014,

What features made England in the eighteenth century the place where the Industrial Revolution occurred?

New growth theory assumes

Globalization is positively associated with

Human capital refers to the percentage of the working-age population in the labour force.

Some researchers have been unable to find evidence of increasing returns to human capital.

Which of the following is a normative statement about economic growth?

To what do economists attribute the rapid growth of labour productivity in the United States relative to other countries?

Because of diminishing returns, an economy can continue to increase real GDP per hour worked only if

Which of the following explains the ability of the Canadian economy to avoid diminishing marginal returns and experience accelerating growth in the early to mid-20th century?

How do economic growth rates affect a nation's standard of living?

The best measure of a country's standard of living is

Most economic growth in the world occurred between 1,000,000 BCE and 1300 CE.

When an economy faces diminishing returns,

The economic growth model predicts that

Entrepreneurship in Mexico is

Relative to productivity growth in the United States, which of the following countries experienced the largest decline in productivity growth from 1990 to 2014?

save a of their income.This capital in their economy and raises economic growth.

During which of the following periods was the Canadian growth rate the fastest?

According to new growth theory, firms accumulate the efficient level of both physical and knowledge capital.

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Supply and Demand

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, The Financial System, and Business Cycles

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks, and the Bank of Canada

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Bank of Canada Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 7: Long-Run Economic Growth: Sources and Policies

Because of the productivity slowdown in Canada from the mid-1970s through 2014,

What features made England in the eighteenth century the place where the Industrial Revolution occurred?

New growth theory assumes

Globalization is positively associated with

Human capital refers to the percentage of the working-age population in the labour force.

Some researchers have been unable to find evidence of increasing returns to human capital.

Which of the following is a normative statement about economic growth?

To what do economists attribute the rapid growth of labour productivity in the United States relative to other countries?

Because of diminishing returns, an economy can continue to increase real GDP per hour worked only if

Which of the following explains the ability of the Canadian economy to avoid diminishing marginal returns and experience accelerating growth in the early to mid-20th century?

How do economic growth rates affect a nation's standard of living?

The best measure of a country's standard of living is

Most economic growth in the world occurred between 1,000,000 BCE and 1300 CE.

When an economy faces diminishing returns,

The economic growth model predicts that

Entrepreneurship in Mexico is

Relative to productivity growth in the United States, which of the following countries experienced the largest decline in productivity growth from 1990 to 2014?

________ save a ________ of their income.This ________ capital in their economy and raises economic growth.

During which of the following periods was the Canadian growth rate the fastest?

According to new growth theory, firms accumulate the efficient level of both physical and knowledge capital.

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Supply and Demand

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, The Financial System, and Business Cycles

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks, and the Bank of Canada

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Bank of Canada Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

save a of their income.This capital in their economy and raises economic growth.