Question 1

When measuring economic growth,economists typically focus on per capita real GDP in order to account for variations in the:

Accepted Answer

A)  size of the population 
B)  price level 
C)  quality of goods and services 
D)  both (a) and (b) above 
A)  size of the population 
B)  price level 
C)  quality of goods and services 
D)  both (a) and (b) above

Question 2

How does opportunity cost to education contribute to low school enrollments in developing countries?

Accepted Answer

In developing countries,children are oft

Question 3

In the 1700s,Reverend Thomas Malthus predicted that:

Accepted Answer

A)  per capita economic growth would not change very much since humans were already content with their standards of living. 
B)  per capita economic growth would tend to rise as modern birth control techniques caused the rate of population growth to decline. 
C)  per capita economic growth would eventually become negative since population growth would tend to outstrip production. 
D)  per capita economic growth would tend to rise in the future because technological advances in production would outpace population growth. 
A)  per capita economic growth would not change very much since humans were already content with their standards of living. 
B)  per capita economic growth would tend to rise as modern birth control techniques caused the rate of population growth to decline. 
C)  per capita economic growth would eventually become negative since population growth would tend to outstrip production. 
D)  per capita economic growth would tend to rise in the future because technological advances in production would outpace population growth.

Question 4

In the nearly 200 years since Malthus wrote An Essay on the Principle of Population,what has happened to population growth rates as nations have become increasingly industrialized?

Accepted Answer

A)  they have generally increased 
B)  they have averaged zero 
C)  they have generally fallen 
D)  they have done exactly as Malthus forecast, outstripping the production of output 
A)  they have generally increased 
B)  they have averaged zero 
C)  they have generally fallen 
D)  they have done exactly as Malthus forecast, outstripping the production of output

Question 5

In making the "Malthusian Prediction," Reverend Malthus assumed that:

Accepted Answer

A)  technological advance would be rapid; the supply of capital was unlimited; birth control techniques would limit population growth. 
B)  there would be little if any technological advance; the supply of capital was fixed; birth control techniques would limit population growth. 
C)  the supply of land was fixed in quantity; there would be little if any technological advance; the sexual desires of humans would work to increase production. 
D)  the supply of land was fixed in quantity; technological advances would be rapid; the sexual desire of humans would lead to rapid population growth. 
A)  technological advance would be rapid; the supply of capital was unlimited; birth control techniques would limit population growth. 
B)  there would be little if any technological advance; the supply of capital was fixed; birth control techniques would limit population growth. 
C)  the supply of land was fixed in quantity; there would be little if any technological advance; the sexual desires of humans would work to increase production. 
D)  the supply of land was fixed in quantity; technological advances would be rapid; the sexual desire of humans would lead to rapid population growth.

Question 6

Increases in the quality and quantity of an economy's resources have little effect on its potential output in the long run.

Accepted Answer

A) True 
 B)False

Question 7

Technology can enable producers to economize on:

Accepted Answer

A)  labor. 
B)  capital. 
C)  land. 
D)  any of the above. 
A)  labor. 
B)  capital. 
C)  land. 
D)  any of the above.

Question 8

Does the political freedom existing in democracies always aid economic growth?

Accepted Answer

It is claimed that economic growth stimu

Question 9

Improvements in and greater stocks of land,labor,capital,and entrepreneurial activity will shift the production possibilities curve:

Accepted Answer

A)  outward, such that more goods and services can be produced. 
B)  outward, such that the cost-of-living rises. 
C)  inward, such that the marketplace experiences a decrease in price and output levels. 
D)  inward, because more resources will be used up and not renewed. 
A)  outward, such that more goods and services can be produced. 
B)  outward, such that the cost-of-living rises. 
C)  inward, such that the marketplace experiences a decrease in price and output levels. 
D)  inward, because more resources will be used up and not renewed.

Question 10

A negative growth rate will cause:

Accepted Answer

A)  an inward shift of an economy's production possibilities curve. 
B)  an outward shift of an economy's production possibilities curve. 
C)  a movement from a point inside an economy's production possibilities curve to a point on the curve. 
D)  an economy's production possibilities curve to slope upward. 
A)  an inward shift of an economy's production possibilities curve. 
B)  an outward shift of an economy's production possibilities curve. 
C)  a movement from a point inside an economy's production possibilities curve to a point on the curve. 
D)  an economy's production possibilities curve to slope upward.

Question 11

Which of the following is correct?

Accepted Answer

A)  An increase in the quantity of labor always leads to economic growth. 
B)  Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital. 
C)  A decrease in the productivity of labor leads to economic growth. 
D)  Japan and Hong Kong are rich in natural resources. 
A)  An increase in the quantity of labor always leads to economic growth. 
B)  Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital. 
C)  A decrease in the productivity of labor leads to economic growth. 
D)  Japan and Hong Kong are rich in natural resources.

Question 12

The GI Bill provided educational opportunities to many young men returning from military service.Using a production possibilities curve,demonstrate how the GI Bill affected economic growth and explain your answer.

Accepted Answer

Implementation of the GI Bill shifted th

Question 13

Economists generally define economic growth as an increase in real income per capita.

Accepted Answer

A) True 
 B)False

Question 14

A technological advance may come in either the form of a product or a process innovation.

Accepted Answer

A) True 
 B)False

Question 15

The ____ shows roughly how long it will take a nation to double its output at various growth rates.

Accepted Answer

A)  rule of rapid growth 
B)  rule of 70 
C)  rule of 1950 
D)  duopoly rule 
A)  rule of rapid growth 
B)  rule of 70 
C)  rule of 1950 
D)  duopoly rule

Question 16

Which one of the following will cause the production possibilities curve to shift outward?

Accepted Answer

A)  improved public education 
B)  improved health care systems 
C)  larger budgets for research, development, and exploration 
D)  all of the above 
A)  improved public education 
B)  improved health care systems 
C)  larger budgets for research, development, and exploration 
D)  all of the above

Question 17

One of the most important determinants of accelerated economic growth is:

Accepted Answer

A)  relaxed property rights. 
B)  an increase in population. 
C)  a high level of savings. 
D)  an increased rate of consumption. 
A)  relaxed property rights. 
B)  an increase in population. 
C)  a high level of savings. 
D)  an increased rate of consumption.

Question 18

Which of the following would not be considered an investment in human capital?

Accepted Answer

A)  education 
B)  training programs 
C)  transportation infrastructure 
D)  literacy programs 
A)  education 
B)  training programs 
C)  transportation infrastructure 
D)  literacy programs

Question 19

Which of the following is not considered a significant factor contributing to economic growth by economists today?

Accepted Answer

A)  work effort is less intense in the heat of the tropics 
B)  an increase in the quantity of physical capital 
C)  increased use of land inputs 
D)  greater division of labor and specialization 
A)  work effort is less intense in the heat of the tropics 
B)  an increase in the quantity of physical capital 
C)  increased use of land inputs 
D)  greater division of labor and specialization

Question 20

Economic growth is measured by the:

Accepted Answer

A)  advancement in the quality of a nation's technology. 
B)  rate of business investment and capital formation. 
C)  annual percentage change in per capita real output of goods and services. 
D)  marginal change in nominal output divided by total output from the previous year. 
A)  advancement in the quality of a nation's technology. 
B)  rate of business investment and capital formation. 
C)  annual percentage change in per capita real output of goods and services. 
D)  marginal change in nominal output divided by total output from the previous year.

Exam 20: Economic Growth in the Global Economy

When measuring economic growth,economists typically focus on per capita real GDP in order to account for variations in the:

How does opportunity cost to education contribute to low school enrollments in developing countries?

In the 1700s,Reverend Thomas Malthus predicted that:

In the nearly 200 years since Malthus wrote An Essay on the Principle of Population,what has happened to population growth rates as nations have become increasingly industrialized?

In making the "Malthusian Prediction," Reverend Malthus assumed that:

Increases in the quality and quantity of an economy's resources have little effect on its potential output in the long run.

Technology can enable producers to economize on:

Does the political freedom existing in democracies always aid economic growth?

Improvements in and greater stocks of land,labor,capital,and entrepreneurial activity will shift the production possibilities curve:

A negative growth rate will cause:

Which of the following is correct?

The GI Bill provided educational opportunities to many young men returning from military service.Using a production possibilities curve,demonstrate how the GI Bill affected economic growth and explain your answer.

Economists generally define economic growth as an increase in real income per capita.

A technological advance may come in either the form of a product or a process innovation.

The ____ shows roughly how long it will take a nation to double its output at various growth rates.

Which one of the following will cause the production possibilities curve to shift outward?

One of the most important determinants of accelerated economic growth is:

Which of the following would not be considered an investment in human capital?

Which of the following is not considered a significant factor contributing to economic growth by economists today?

Economic growth is measured by the:

The Role and Method of Economics

Economics: Eight Powerful Ideas

Scarcity, Trade-Offs, and Production Possibilities

Demand, Supply, and Market Equilibrium

Markets in Motion and Price Controls

Elasticities

Market Efficiency and Welfare

Market Failure

Public Finance and Public Choice

Consumer Choice Theory

The Firm: Production and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Product Differentiation

Oligopoly and Strategic Behavior

The Markets for Labor, Capital, and Land

Income, Poverty, and Health Care

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Measuring Economic Performance

Financial Markets, Saving, and Investment

Aggregate Demand and Aggregate Supply

The Aggregate Expenditure Model

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Trade

International Finance

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