Question 1

New growth theory

Accepted Answer

A)  dates from the 18th century. 
B)  concludes that economic growth is temporary. 
C)  states that economic growth arises from people's choices. 
D)  asserts that population growth is the source of economic growth. 
A)  dates from the 18th century. 
B)  concludes that economic growth is temporary. 
C)  states that economic growth arises from people's choices. 
D)  asserts that population growth is the source of economic growth.

Question 2

-The country of Kemper is on its aggregate production function at point W in the above figure. The government of Kemper passes a law that makes 4 years of college mandatory for all citizens. After all citizens have their education, the economy will

Accepted Answer

A)  move to point such as Y. 
B)  remain at point W. 
C)  move to point such as X. 
D)  move to point such as Z. 
A)  move to point such as Y. 
B)  remain at point W. 
C)  move to point such as X. 
D)  move to point such as Z.

Question 3

Which of the following ideas are included in classical growth theory?
I.Subsistence real GDP per person
II.Growth in real GDP per person is temporary.
III.Technological change induces investment.

Accepted Answer

A)  I only 
B)  I and II 
C)  II and III 
D)  I, II and III 
A)  I only 
B)  I and II 
C)  II and III 
D)  I, II and III

Question 4

Which of following was a period of below-average economic growth in the United States?

Accepted Answer

A)  the 1920s 
B)  the 1960s 
C)  the 1930s 
D)  all of the above 
A)  the 1920s 
B)  the 1960s 
C)  the 1930s 
D)  all of the above

Question 5

In addition to saving and investment in capital, making an even larger contribution to long-term economic growth in real GDP per person

Accepted Answer

A)  are technological advances. 
B)  is lower current consumption. 
C)  is higher current consumption. 
D)  is a larger work force. 
A)  are technological advances. 
B)  is lower current consumption. 
C)  is higher current consumption. 
D)  is a larger work force.

Question 6

In neoclassical growth theory, technological progress is the key to continuous growth in labor productivity.

Accepted Answer

A) True 
 B)False

Question 7

Neoclassical growth theory predicts that China's economic growth rate will ________.

Accepted Answer

A)  decrease when the interest rate increases 
B)  continue at around 10 percent a year 
C)  always remain above the U.S. economic growth rate 
D)  eventually converge to the U.S. economic growth rate 
A)  decrease when the interest rate increases 
B)  continue at around 10 percent a year 
C)  always remain above the U.S. economic growth rate 
D)  eventually converge to the U.S. economic growth rate

Question 8

Factors that influence labor productivity include ________.

Accepted Answer

A)  the inflation rate, the real wage rate, and the exchange rate 
B)  the labor demand curve 
C)  physical capital, the real wage rate, and technology 
D)  physical capital, human capital, and technology 
A)  the inflation rate, the real wage rate, and the exchange rate 
B)  the labor demand curve 
C)  physical capital, the real wage rate, and technology 
D)  physical capital, human capital, and technology

Question 9

-The first table above gives the labor demand and labor supply schedules for a nation. The second table gives its production function.
a)What are the equilibrium real wage rate and the level of employment?
b)What is potential GDP?

Accepted Answer

a)The equilibrium real wage rate is $15

Question 10

What is the main shortcoming of the neoclassical growth model and how does the new growth theory address this shortcoming?

Accepted Answer

One difficulty with the neoclassical mod

Question 11

People base their labor supply on the ________ because they care about ________.

Accepted Answer

A)  real wage; what their earnings will buy 
B)  real wage; the equality of money wages and the price level 
C)  money wage; a surplus of labor 
D)  money wage; the amount of labor firms demand 
A)  real wage; what their earnings will buy 
B)  real wage; the equality of money wages and the price level 
C)  money wage; a surplus of labor 
D)  money wage; the amount of labor firms demand

Question 12

In 2010, of the following ________ had the highest real GDP per person.

Accepted Answer

A)  Japan 
B)  Canada 
C)  the Europe Big 4 countries 
D)  the United States 
A)  Japan 
B)  Canada 
C)  the Europe Big 4 countries 
D)  the United States

Question 13

An advance in technology that increases productivity and an increase in the working-age population results in a

Accepted Answer

A)  rightward shift of the labor supply curve. 
B)  rightward shift of the labor demand curve. 
C)  rightward shift of the labor demand curve and of the labor supply curve. 
D)  no change to the production function. 
A)  rightward shift of the labor supply curve. 
B)  rightward shift of the labor demand curve. 
C)  rightward shift of the labor demand curve and of the labor supply curve. 
D)  no change to the production function.

Question 14

How has the U.S. growth experience compared to that of Central Europe and Africa? How has compared to the recent experience of Asian nations such as Hong Kong and Singapore.

Accepted Answer

A persistent gap in the level of real GD

Question 15

The demand curve for labor shows how many hours workers demand to work.

Accepted Answer

A) True 
 B)False

Question 16

A key feature of the new growth theory is the assumption of

Accepted Answer

A)  diminishing returns to labor. 
B)  diminishing returns to knowledge. 
C)  no diminishing returns to knowledge. 
D)  no diminishing returns to labor. 
A)  diminishing returns to labor. 
B)  diminishing returns to knowledge. 
C)  no diminishing returns to knowledge. 
D)  no diminishing returns to labor.

Question 17

Which of the following is NOT an important factor affecting growth in labor productivity?

Accepted Answer

A)  the saving rate 
B)  the speed with which prices fall 
C)  the growth rate of physical capital 
D)  the growth rate of labor productivity 
A)  the saving rate 
B)  the speed with which prices fall 
C)  the growth rate of physical capital 
D)  the growth rate of labor productivity

Question 18

The gaps between the United States and the Asian countries of Honk Kong, Singapore, Korea and China have been

Accepted Answer

A)  decreasing 
B)  increasing 
C)  remaining fairly constant 
D)  there are no gaps between these Asian countries and the United States 
A)  decreasing 
B)  increasing 
C)  remaining fairly constant 
D)  there are no gaps between these Asian countries and the United States

Question 19

The curvature of the production function shows that as employment increases, the productivity of labor

Accepted Answer

A)  remains positive and increases. 
B)  remains positive but decreases. 
C)  decreases and becomes negative. 
D)  remains constant. 
A)  remains positive and increases. 
B)  remains positive but decreases. 
C)  decreases and becomes negative. 
D)  remains constant.

Question 20

On-the-job-training is an example of

Accepted Answer

A)  increasing labor force participation. 
B)  investment in human capital. 
C)  investment in physical capital. 
D)  technological change. 
A)  increasing labor force participation. 
B)  investment in human capital. 
C)  investment in physical capital. 
D)  technological change.

New growth theory

-The country of Kemper is on its aggregate production function at point W in the above figure. The government of Kemper passes a law that makes 4 years of college mandatory for all citizens. After all citizens have their education, the economy will

Which of the following ideas are included in classical growth theory? I.Subsistence real GDP per person II.Growth in real GDP per person is temporary. III.Technological change induces investment.

Which of following was a period of below-average economic growth in the United States?

In addition to saving and investment in capital, making an even larger contribution to long-term economic growth in real GDP per person

In neoclassical growth theory, technological progress is the key to continuous growth in labor productivity.

Neoclassical growth theory predicts that China's economic growth rate will ________.

Factors that influence labor productivity include ________.

-The first table above gives the labor demand and labor supply schedules for a nation. The second table gives its production function. a)What are the equilibrium real wage rate and the level of employment? b)What is potential GDP?

What is the main shortcoming of the neoclassical growth model and how does the new growth theory address this shortcoming?

People base their labor supply on the because they care about .

In 2010, of the following ________ had the highest real GDP per person.

An advance in technology that increases productivity and an increase in the working-age population results in a

How has the U.S. growth experience compared to that of Central Europe and Africa? How has compared to the recent experience of Asian nations such as Hong Kong and Singapore.

The demand curve for labor shows how many hours workers demand to work.

A key feature of the new growth theory is the assumption of

Which of the following is NOT an important factor affecting growth in labor productivity?

The gaps between the United States and the Asian countries of Honk Kong, Singapore, Korea and China have been

The curvature of the production function shows that as employment increases, the productivity of labor

On-the-job-training is an example of

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

New growth theory

-The country of Kemper is on its aggregate production function at point W in the above figure. The government of Kemper passes a law that makes 4 years of college mandatory for all citizens. After all citizens have their education, the economy will

Which of the following ideas are included in classical growth theory? I.Subsistence real GDP per person II.Growth in real GDP per person is temporary. III.Technological change induces investment.

Which of following was a period of below-average economic growth in the United States?

In addition to saving and investment in capital, making an even larger contribution to long-term economic growth in real GDP per person

In neoclassical growth theory, technological progress is the key to continuous growth in labor productivity.

Neoclassical growth theory predicts that China's economic growth rate will ________.

Factors that influence labor productivity include ________.

-The first table above gives the labor demand and labor supply schedules for a nation. The second table gives its production function. a)What are the equilibrium real wage rate and the level of employment? b)What is potential GDP?

What is the main shortcoming of the neoclassical growth model and how does the new growth theory address this shortcoming?

People base their labor supply on the ________ because they care about ________.

In 2010, of the following ________ had the highest real GDP per person.

An advance in technology that increases productivity and an increase in the working-age population results in a

How has the U.S. growth experience compared to that of Central Europe and Africa? How has compared to the recent experience of Asian nations such as Hong Kong and Singapore.

The demand curve for labor shows how many hours workers demand to work.

A key feature of the new growth theory is the assumption of

Which of the following is NOT an important factor affecting growth in labor productivity?

The gaps between the United States and the Asian countries of Honk Kong, Singapore, Korea and China have been

The curvature of the production function shows that as employment increases, the productivity of labor

On-the-job-training is an example of

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

People base their labor supply on the because they care about .