Question 1

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

Accepted Answer

A) real GDP per labor hour. 
B) real GDP per unit of capital. 
C) real GDP per capita. 
D) total nominal GDP. 
A) real GDP per labor hour. 
B) real GDP per unit of capital. 
C) real GDP per capita. 
D) total nominal GDP.

Question 2

The lower-income industrial countries are catching up to the higher-income industrial countries in terms of real GDP per capita.

Accepted Answer

A) True 
 B)False

Question 3

Because firms can free ride on the research and development of other firms

Accepted Answer

A) firms choose a level of research and development where the marginal cost of research is equal to the economy's marginal return of research. 
B) firms choose a level of research and development where the marginal cost of research is above the economy's marginal return of research. 
C) firms choose a level of research and development where the marginal cost of research is below the economy's marginal return of research. 
D) firms choose a level of research and development where the marginal cost of research is below the individual firm's marginal return of research. 
A) firms choose a level of research and development where the marginal cost of research is equal to the economy's marginal return of research. 
B) firms choose a level of research and development where the marginal cost of research is above the economy's marginal return of research. 
C) firms choose a level of research and development where the marginal cost of research is below the economy's marginal return of research. 
D) firms choose a level of research and development where the marginal cost of research is below the individual firm's marginal return of research.

Question 4

The productivity slowdown experienced in the United States from the mid-1970s to the mid-1990s occurred in all high-income countries.

Accepted Answer

A) True 
 B)False

Question 5

In 2016,GDP per capita was ________ in the United States than in China,and since 1980,the growth rate of real GDP per capita has been ________ in the United States than in China.

Accepted Answer

A) higher; higher 
B) higher; lower 
C) lower; higher 
D) lower; lower 
A) higher; higher 
B) higher; lower 
C) lower; higher 
D) lower; lower

Question 6

The Soviet Union's economic growth rate slowed despite rapid increases in capital per hour worked.

Accepted Answer

A) True 
 B)False

Question 7

If there is a change in the ability of a firm to produce a given level of output with a given level of inputs,we say there is

Accepted Answer

A) human capital investment. 
B) technological change. 
C) a decrease in labor productivity. 
D) a movement along a given per-worker production function. 
A) human capital investment. 
B) technological change. 
C) a decrease in labor productivity. 
D) a movement along a given per-worker production function.

Question 8

Figure 11-2  
-Refer to Figure 11-2.Based on the per-worker production function above,if the economy raises capital per hour worked from $35,000 to $40,000,by how much will real GDP per hour worked increase?

Accepted Answer

A) $150 
B) $1,850 
C) $2,000 
D) $5,000 
A) $150 
B) $1,850 
C) $2,000 
D) $5,000

Question 9

Relative to productivity growth in the United States,which of the following countries experienced the largest decline in productivity growth from 1990 to 2016?

Accepted Answer

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

Question 10

Figure 11-1  
-Refer to Figure 11-1.Suppose the per-worker production function in the figure above represents the production function for the U.S.economy.If the United States decided to double its support of university research,this would cause a movement from

Accepted Answer

A) A to B. 
B) B to C. 
C) B to A. 
D) D to C. 
A) A to B. 
B) B to C. 
C) B to A. 
D) D to C.

Question 11

Knowledge capital is ________ in production and ________.As a result,firms ________ free ride on other firms' research and development.

Accepted Answer

A) nonrival; nonexcludable; can 
B) nonrival; excludable; can 
C) rival; nonexcludable; cannot 
D) nonrival; nonexcludable; cannot 
A) nonrival; nonexcludable; can 
B) nonrival; excludable; can 
C) rival; nonexcludable; cannot 
D) nonrival; nonexcludable; cannot

Question 12

Developing countries with low saving rates and poor levels of health and education are likely to experience

Accepted Answer

A) high levels of foreign direct investment. 
B) easy access to financial backing from banks. 
C) rapid growth in household incomes. 
D) low rates of growth in real GDP per capita. 
A) high levels of foreign direct investment. 
B) easy access to financial backing from banks. 
C) rapid growth in household incomes. 
D) low rates of growth in real GDP per capita.

Question 13

Which of the following is not a reason why the Industrial Revolution occurred when and where it did?

Accepted Answer

A) The British government was committed to upholding private property rights. 
B) The British government was able to eliminate arbitrary increases in taxes. 
C) The British government was able to more easily seize wealth. 
D) Institutional changes by the British government helped protect wealth. 
A) The British government was committed to upholding private property rights. 
B) The British government was able to eliminate arbitrary increases in taxes. 
C) The British government was able to more easily seize wealth. 
D) Institutional changes by the British government helped protect wealth.

Question 14

Which of the following accurately describes the economic growth and standards of living between 1,000,000 B.C.and 1300 A.D.?

Accepted Answer

A) Standards of living in 1300 A.D.were substantially better than what they were in 1,000,000 B.C. 
B) Standards of living substantially declined from 1,000,000 B.C.to 1300 A.D. 
C) Significant economic growth took place between 1,000,000 B.C.and 1300 A.D. 
D) No sustained economic growth occurred between 1,000,000 B.C.and 1300 A.D. 
A) Standards of living in 1300 A.D.were substantially better than what they were in 1,000,000 B.C. 
B) Standards of living substantially declined from 1,000,000 B.C.to 1300 A.D. 
C) Significant economic growth took place between 1,000,000 B.C.and 1300 A.D. 
D) No sustained economic growth occurred between 1,000,000 B.C.and 1300 A.D.

Question 15

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 16

Table 11-3
  
-Refer to Table 11-3.Use the table above to calculate the annual growth rate in GDP.Also calculate the total percentage change in the growth from 2015 through 2018.Explain the difference between the average annual growth rate in real per capita GDP from 2015 through 2018 and the total percentage change in growth from 2015 and 2018.

Accepted Answer

One calculates the average annual percen

Question 17

Figure 11-3  
-Refer to Figure 11-3.Technological change is shown in the figure above by the movement from

Accepted Answer

A) B to C. 
B) B to D. 
C) B to E. 
D) B to A. 
A) B to C. 
B) B to D. 
C) B to E. 
D) B to A.

Question 18

A policy that offers parents a tax reduction based on how much they are saving for their children's college education should ________ the equilibrium level of loanable funds and ________ the rate of long-term growth.

Accepted Answer

A) decrease; increase 
B) increase; decrease 
C) decrease; decrease 
D) increase; increase 
A) decrease; increase 
B) increase; decrease 
C) decrease; decrease 
D) increase; increase

Question 19

The opportunity cost of being unemployed tends to be the highest in which of the following countries?

Accepted Answer

A) Canada 
B) the United States 
C) France 
D) the United Kingdom 
A) Canada 
B) the United States 
C) France 
D) the United Kingdom

Question 20

The economic growth model predicts that

Accepted Answer

A) GDP per capita of rich countries will grow more rapidly than in poor countries. 
B) GDP per capita of poor countries will grow more rapidly than in rich countries. 
C) Governments must centrally direct the economy for growth to occur. 
D) GDP per capita of poor countries will never change. 
A) GDP per capita of rich countries will grow more rapidly than in poor countries. 
B) GDP per capita of poor countries will grow more rapidly than in rich countries. 
C) Governments must centrally direct the economy for growth to occur. 
D) GDP per capita of poor countries will never change.

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

The lower-income industrial countries are catching up to the higher-income industrial countries in terms of real GDP per capita.

Because firms can free ride on the research and development of other firms

The productivity slowdown experienced in the United States from the mid-1970s to the mid-1990s occurred in all high-income countries.

In 2016,GDP per capita was in the United States than in China,and since 1980,the growth rate of real GDP per capita has been in the United States than in China.

The Soviet Union's economic growth rate slowed despite rapid increases in capital per hour worked.

If there is a change in the ability of a firm to produce a given level of output with a given level of inputs,we say there is

Figure 11-2 -Refer to Figure 11-2.Based on the per-worker production function above,if the economy raises capital per hour worked from $35,000 to $40,000,by how much will real GDP per hour worked increase?

Relative to productivity growth in the United States,which of the following countries experienced the largest decline in productivity growth from 1990 to 2016?

Figure 11-1 -Refer to Figure 11-1.Suppose the per-worker production function in the figure above represents the production function for the U.S.economy.If the United States decided to double its support of university research,this would cause a movement from

Knowledge capital is in production and .As a result,firms free ride on other firms' research and development.

Developing countries with low saving rates and poor levels of health and education are likely to experience

Which of the following is not a reason why the Industrial Revolution occurred when and where it did?

Which of the following accurately describes the economic growth and standards of living between 1,000,000 B.C.and 1300 A.D.?

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

Figure 11-3 -Refer to Figure 11-3.Technological change is shown in the figure above by the movement from

A policy that offers parents a tax reduction based on how much they are saving for their children's college education should the equilibrium level of loanable funds and the rate of long-term growth.

The opportunity cost of being unemployed tends to be the highest in which of the following countries?

The economic growth model predicts that

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

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 Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 11: Long-Run Economic Growth: Sources and Policies

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

The lower-income industrial countries are catching up to the higher-income industrial countries in terms of real GDP per capita.

Because firms can free ride on the research and development of other firms

The productivity slowdown experienced in the United States from the mid-1970s to the mid-1990s occurred in all high-income countries.

In 2016,GDP per capita was ________ in the United States than in China,and since 1980,the growth rate of real GDP per capita has been ________ in the United States than in China.

The Soviet Union's economic growth rate slowed despite rapid increases in capital per hour worked.

If there is a change in the ability of a firm to produce a given level of output with a given level of inputs,we say there is

Figure 11-2 -Refer to Figure 11-2.Based on the per-worker production function above,if the economy raises capital per hour worked from $35,000 to $40,000,by how much will real GDP per hour worked increase?

Relative to productivity growth in the United States,which of the following countries experienced the largest decline in productivity growth from 1990 to 2016?

Figure 11-1 -Refer to Figure 11-1.Suppose the per-worker production function in the figure above represents the production function for the U.S.economy.If the United States decided to double its support of university research,this would cause a movement from

Knowledge capital is ________ in production and ________.As a result,firms ________ free ride on other firms' research and development.

Developing countries with low saving rates and poor levels of health and education are likely to experience

Which of the following is not a reason why the Industrial Revolution occurred when and where it did?

Which of the following accurately describes the economic growth and standards of living between 1,000,000 B.C.and 1300 A.D.?

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

Figure 11-3 -Refer to Figure 11-3.Technological change is shown in the figure above by the movement from

A policy that offers parents a tax reduction based on how much they are saving for their children's college education should ________ the equilibrium level of loanable funds and ________ the rate of long-term growth.

The opportunity cost of being unemployed tends to be the highest in which of the following countries?

The economic growth model predicts that

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

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 Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

In 2016,GDP per capita was in the United States than in China,and since 1980,the growth rate of real GDP per capita has been in the United States than in China.

Knowledge capital is in production and .As a result,firms free ride on other firms' research and development.

A policy that offers parents a tax reduction based on how much they are saving for their children's college education should the equilibrium level of loanable funds and the rate of long-term growth.