Question 1

In the classical theory of growth, what is the final outcome of an increase in growth and labor productivity?

Accepted Answer

In the classical growth theory, a rise i

Question 2

Labor productivity rises

Accepted Answer

A)  if the amount of capital per worker increases. 
B)  in the absence of technological progress. 
C)  if firms invest in hiring more workers rather than buying more capital. 
D)  if the amount of capital per worker decreases. 
A)  if the amount of capital per worker increases. 
B)  in the absence of technological progress. 
C)  if firms invest in hiring more workers rather than buying more capital. 
D)  if the amount of capital per worker decreases.

Question 3

Countries or regions in which real GDP per person has not grown as fast as in the United States since 1960 include

Accepted Answer

A)  Japan. 
B)  countries in Africa. 
C)  Hong Kong. 
D)  Canada. 
A)  Japan. 
B)  countries in Africa. 
C)  Hong Kong. 
D)  Canada.

Question 4

The decreasing slope of a production function reflects

Accepted Answer

A)  diminishing returns. 
B)  rising unemployment. 
C)  decreasing costs. 
D)  increasing aggregate demand. 
A)  diminishing returns. 
B)  rising unemployment. 
C)  decreasing costs. 
D)  increasing aggregate demand.

Question 5

Strategy to Address Dependence on Foreign Workers, Labour Market Demands
The prime minister of Malaysia announced his government's "immediate focus would be to enhance skills development and improve the quality of education." By "the constant upgrading of skills of the country's workforce" he hoped to improve the country's "global competitiveness and raise average incomes of workers."
Www)thestar.com.my 11/21/2008
The long-run benefit of enhancing "skill development and improve....education" is to

Accepted Answer

A)  improve property rights. 
B)  increase labor supply. 
C)  speed economic growth. 
D)  smooth the growth of labor productivity. 
A)  improve property rights. 
B)  increase labor supply. 
C)  speed economic growth. 
D)  smooth the growth of labor productivity.

Question 6

The assumption that population growth will lead to a fall in real GDP per person rate back to subsistence level is

Accepted Answer

A)  accepted by all economists today. 
B)  associated with Malthusians. 
C)  part of the neoclassical school of growth theory. 
D)  central to the new growth theory. 
A)  accepted by all economists today. 
B)  associated with Malthusians. 
C)  part of the neoclassical school of growth theory. 
D)  central to the new growth theory.

Question 7

If at the prevailing real wage rate, the quantity of labor supplied exceeds the quantity demanded

Accepted Answer

A)  there is a shortage of labor. 
B)  the real wage rate will rise to restore equilibrium. 
C)  the real wage rate is greater than the equilibrium real wage rate. 
D)  None of the above answers is correct. 
A)  there is a shortage of labor. 
B)  the real wage rate will rise to restore equilibrium. 
C)  the real wage rate is greater than the equilibrium real wage rate. 
D)  None of the above answers is correct.

Question 8

If the real wage rate is such that the quantity of labor supplied by workers is less than the quantity of labor demanded by firms

Accepted Answer

A)  the economy is at full employment. 
B)  there is a shortage of labor. 
C)  the real wage rate will fall to restore equilibrium. 
D)  actual real GDP equals potential GDP because firms make the decision about how many workers to hire. 
A)  the economy is at full employment. 
B)  there is a shortage of labor. 
C)  the real wage rate will fall to restore equilibrium. 
D)  actual real GDP equals potential GDP because firms make the decision about how many workers to hire.

Question 9

If the price level rises relative to the money wage rate, firms ________ the quantity of labor they demand and workers ________ the quantity of labor they supply.

Accepted Answer

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

Question 10

According to the new growth theory

Accepted Answer

A)  the rate of technological progress is determined by chance. 
B)  knowledge is not subject to diminishing returns. 
C)  the labor demand curve does not shift rightward over time. 
D)  the concept of a labor market is not necessary. 
A)  the rate of technological progress is determined by chance. 
B)  knowledge is not subject to diminishing returns. 
C)  the labor demand curve does not shift rightward over time. 
D)  the concept of a labor market is not necessary.

Question 11

A country would achieve faster growth by ________.

Accepted Answer

A)  encouraging free trade 
B)  increasing the cost of education 
C)  increasing union membership 
D)  taxing income and not consumption 
A)  encouraging free trade 
B)  increasing the cost of education 
C)  increasing union membership 
D)  taxing income and not consumption

Question 12

Real GDP per person is slowly converging around the world.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is TRUE regarding the real wage rate? The real wage rate
I.is always greater than the money wage.
II.measures the quantity of goods and services an hour's work can buy.

Accepted Answer

A)  only I 
B)  only II 
C)  both I and II 
D)  neither I nor II 
A)  only I 
B)  only II 
C)  both I and II 
D)  neither I nor II

In the classical theory of growth, what is the final outcome of an increase in growth and labor productivity?

Labor productivity rises

Countries or regions in which real GDP per person has not grown as fast as in the United States since 1960 include

The decreasing slope of a production function reflects

The assumption that population growth will lead to a fall in real GDP per person rate back to subsistence level is

If at the prevailing real wage rate, the quantity of labor supplied exceeds the quantity demanded

If the real wage rate is such that the quantity of labor supplied by workers is less than the quantity of labor demanded by firms

If the price level rises relative to the money wage rate, firms the quantity of labor they demand and workers the quantity of labor they supply.

According to the new growth theory

A country would achieve faster growth by ________.

Real GDP per person is slowly converging around the world.

Which of the following is TRUE regarding the real wage rate? The real wage rate I.is always greater than the money wage. II.measures the quantity of goods and services an hour's work can buy.

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

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 6: Economic Growth

In the classical theory of growth, what is the final outcome of an increase in growth and labor productivity?

Labor productivity rises

Countries or regions in which real GDP per person has not grown as fast as in the United States since 1960 include

The decreasing slope of a production function reflects

The assumption that population growth will lead to a fall in real GDP per person rate back to subsistence level is

If at the prevailing real wage rate, the quantity of labor supplied exceeds the quantity demanded

If the real wage rate is such that the quantity of labor supplied by workers is less than the quantity of labor demanded by firms

If the price level rises relative to the money wage rate, firms ________ the quantity of labor they demand and workers ________ the quantity of labor they supply.

According to the new growth theory

A country would achieve faster growth by ________.

Real GDP per person is slowly converging around the world.

Which of the following is TRUE regarding the real wage rate? The real wage rate I.is always greater than the money wage. II.measures the quantity of goods and services an hour's work can buy.

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

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

If the price level rises relative to the money wage rate, firms the quantity of labor they demand and workers the quantity of labor they supply.