Question 1

Which one of the following will not cause the production possibilities curve to shift outward?

Accepted Answer

A)  improvements in the stock of land 
B)  increased educational opportunities 
C)  a very low birth rate 
D)  increased entrepreneurial activity 
A)  improvements in the stock of land 
B)  increased educational opportunities 
C)  a very low birth rate 
D)  increased entrepreneurial activity

Question 2

As economic growth rises,literacy rates tend to fall.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not considered a factor contributing to economic growth?

Accepted Answer

A)  Growth in the quantity and quality of labor resources used 
B)  Growth in physical capital inputs (machines, tools, buildings, and inventories) 
C)  Growth in the money supply relative to the growth of final goods and services 
D)  Government protection of property rights 
A)  Growth in the quantity and quality of labor resources used 
B)  Growth in physical capital inputs (machines, tools, buildings, and inventories) 
C)  Growth in the money supply relative to the growth of final goods and services 
D)  Government protection of property rights

Question 4

Growth in a production possibilities curve diagram is shown as:

Accepted Answer

A)  a movement along the curve to the southeast. 
B)  a movement along the curve to the southwest. 
C)  an outward shift of the curve. 
D)  an inward shift of the curve. 
A)  a movement along the curve to the southeast. 
B)  a movement along the curve to the southwest. 
C)  an outward shift of the curve. 
D)  an inward shift of the curve.

Question 5

Given a constant rate of growth of real GDP,what would cause a fall in real GDP per capita?

Accepted Answer

A)  a rate of population growth that is less than the rate of growth of real GDP 
B)  a rate of population growth that is greater than the rate of growth of real GDP 
C)  an increase in the size of the labor force 
D)  an overall decrease in population 
A)  a rate of population growth that is less than the rate of growth of real GDP 
B)  a rate of population growth that is greater than the rate of growth of real GDP 
C)  an increase in the size of the labor force 
D)  an overall decrease in population

Question 6

Which of the following factors contribute to economic growth?

Accepted Answer

A)  a decline in the stock of physical capital 
B)  the discovery of new oil reserves 
C)  a decrease in the productivity of labor 
D)  a decrease in the quantity of labor due to emigration 
A)  a decline in the stock of physical capital 
B)  the discovery of new oil reserves 
C)  a decrease in the productivity of labor 
D)  a decrease in the quantity of labor due to emigration

Question 7

The per-worker production function is ____ sloped and ____ at a(n)____ rate.

Accepted Answer

A)  negatively; decreases; diminishing 
B)  negatively; decreases; increasing 
C)  positively; increases; increasing 
D)  positively; increases; diminishing 
A)  negatively; decreases; diminishing 
B)  negatively; decreases; increasing 
C)  positively; increases; increasing 
D)  positively; increases; diminishing

Question 8

How much a country's economy will produce at its potential output is also called:

Accepted Answer

A)  the trough of the business cycle. 
B)  its economic welfare. 
C)  the trend line. 
D)  the natural rate of output. 
A)  the trough of the business cycle. 
B)  its economic welfare. 
C)  the trend line. 
D)  the natural rate of output.

Question 9

In a consumer-oriented economy,the decision to save in order to promote economic growth:

Accepted Answer

A)  means a sacrifice of current consumption in order to enhance future consumption. 
B)  must be enforced by high levels of taxation. 
C)  cannot be expected to benefit future generations. 
D)  none of the above. 
A)  means a sacrifice of current consumption in order to enhance future consumption. 
B)  must be enforced by high levels of taxation. 
C)  cannot be expected to benefit future generations. 
D)  none of the above.

Question 10

Which of the following factors contribute to economic growth?

Accepted Answer

A)  growth in physical capital 
B)  technological advances 
C)  an increase in the productivity of labor 
D)  all of the above 
A)  growth in physical capital 
B)  technological advances 
C)  an increase in the productivity of labor 
D)  all of the above

Question 11

What were the negative results predicted by Malthus' and how can we avoid such results?

Accepted Answer

Malthus predicted that per capita income

Question 12

Would companies and individuals invest as much in significant research and development if a system of patents were not available?

Accepted Answer

A)  Yes they would, because they could still hope to monopolize the market. 
B)  Yes they would, because firms are civic-minded and highly motivated to introduce innovations that improve the standard of living. 
C)  No they would not, because if they made a significant investment in the development, they would be unable to protect the innovations or discoveries long enough to be sufficiently compensated for their efforts. 
D)  No they would not, because the benefits to society of engaging in research and development would be less than the costs to society. 
A)  Yes they would, because they could still hope to monopolize the market. 
B)  Yes they would, because firms are civic-minded and highly motivated to introduce innovations that improve the standard of living. 
C)  No they would not, because if they made a significant investment in the development, they would be unable to protect the innovations or discoveries long enough to be sufficiently compensated for their efforts. 
D)  No they would not, because the benefits to society of engaging in research and development would be less than the costs to society.

Question 13

The measure most commonly used by economists to gauge the standard of living of a nation is:

Accepted Answer

A)  labor productivity. 
B)  nominal GDP. 
C)  real GDP. 
D)  real GDP per capita. 
A)  labor productivity. 
B)  nominal GDP. 
C)  real GDP. 
D)  real GDP per capita.

Question 14

Why is China still poor in per capita terms despite having the second-largest economy in the world in terms of real GDP?

Accepted Answer

China has over 1 billion peopl

Question 15

If the educational attainment of a nation's population increases,the economy's production possibilities curve shifts inward.

Accepted Answer

A) True 
 B)False

Question 16

In developing countries,the opportunity cost of an education is relatively low compared to the cost in a highly developed country.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following affect the growth in real GDP per capita?

Accepted Answer

A)  the total production of final goods in the economy. 
B)  the population. 
C)  the production of final services in the economy. 
D)  all of the above 
A)  the total production of final goods in the economy. 
B)  the population. 
C)  the production of final services in the economy. 
D)  all of the above

Question 18

The rule of 70 which predicts the time required for the economy of a nation to double,is based on the mechanism of:

Accepted Answer

A)  compound interest. 
B)  capital formation. 
C)  labor force productivity. 
D)  capital investments. 
A)  compound interest. 
B)  capital formation. 
C)  labor force productivity. 
D)  capital investments.

Question 19

Which of the following countries have a relative abundance of natural resources?

Accepted Answer

A)  Japan 
B)  Canada 
C)  Hong Kong 
D)  all of the above 
A)  Japan 
B)  Canada 
C)  Hong Kong 
D)  all of the above

Question 20

The Malthusian prospect of starvation of the population could be prevented by:

Accepted Answer

A)  increasing the amount of land available for agriculture. 
B)  investing in research and development of new technologies. 
C)  expanding food production on available land. 
D)  all of the above 
A)  increasing the amount of land available for agriculture. 
B)  investing in research and development of new technologies. 
C)  expanding food production on available land. 
D)  all of the above

Exam 20: Economic Growth in the Global Economy

Which one of the following will not cause the production possibilities curve to shift outward?

As economic growth rises,literacy rates tend to fall.

Which of the following is not considered a factor contributing to economic growth?

Growth in a production possibilities curve diagram is shown as:

Given a constant rate of growth of real GDP,what would cause a fall in real GDP per capita?

Which of the following factors contribute to economic growth?

The per-worker production function is ____ sloped and ____ at a(n)____ rate.

How much a country's economy will produce at its potential output is also called:

In a consumer-oriented economy,the decision to save in order to promote economic growth:

Which of the following factors contribute to economic growth?

What were the negative results predicted by Malthus' and how can we avoid such results?

Would companies and individuals invest as much in significant research and development if a system of patents were not available?

The measure most commonly used by economists to gauge the standard of living of a nation is:

Why is China still poor in per capita terms despite having the second-largest economy in the world in terms of real GDP?

If the educational attainment of a nation's population increases,the economy's production possibilities curve shifts inward.

In developing countries,the opportunity cost of an education is relatively low compared to the cost in a highly developed country.

Which of the following affect the growth in real GDP per capita?

The rule of 70 which predicts the time required for the economy of a nation to double,is based on the mechanism of:

Which of the following countries have a relative abundance of natural resources?

The Malthusian prospect of starvation of the population could be prevented by:

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

Filters

The per-worker production function is sloped and at a(n) rate.