Question 1

Labor productivity is defined as

Accepted Answer

A)  total output attributable to labor. 
B)  total real GDP. 
C)  the growth rate of the labor force. 
D)  real GDP per hour of labor. 
A)  total output attributable to labor. 
B)  total real GDP. 
C)  the growth rate of the labor force. 
D)  real GDP per hour of labor.

Question 2

All else equal, an increase in population decreases potential GDP.

Accepted Answer

A) True 
 B)False

Question 3

________ is the knowledge and skill that people have obtained from education and on-the-job training.

Accepted Answer

A)  Labor productivity 
B)  Human capital 
C)  Capital 
D)  Technology 
A)  Labor productivity 
B)  Human capital 
C)  Capital 
D)  Technology

Question 4

In general, a higher real wage rate decreases the quantity of labor supplied because fewer people enter the labor force.

Accepted Answer

A) True 
 B)False

Question 5

An advance in technology will

Accepted Answer

A)  not shift the production function but will lead to a movement down along the production function. 
B)  shift the production function downward. 
C)  not shift the production function but will lead to a movement up along the production function. 
D)  shift the production function upward. 
A)  not shift the production function but will lead to a movement down along the production function. 
B)  shift the production function downward. 
C)  not shift the production function but will lead to a movement up along the production function. 
D)  shift the production function upward.

Question 6

Moving along the aggregate production function shows the relationship between ________, holding all else constant.

Accepted Answer

A)  capital input and real GDP 
B)  labor input and real GDP 
C)  labor input, capital input and real GDP 
D)  technology and real GDP 
A)  capital input and real GDP 
B)  labor input and real GDP 
C)  labor input, capital input and real GDP 
D)  technology and real GDP

Question 7

Over the past 100 years, real GDP per person in the United States has grown at an average of ________ percent a year.

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  4 
A)  1 
B)  2 
C)  3 
D)  4

Question 8

A recent article states that "...gains from two centuries of rapid technological innovation are largely exhausted, and new discoveries lack the same revolutionary quality....{Further}, 80 percent of the growth between 1950 and 1993 came from the new application of old ideas, and these old ideas are now mostly wrung dry."
(The Economist, 03/03/2011)
-An assumption of neoclassical growth theory is that

Accepted Answer

A)  technological change is random. 
B)  technological change can be influenced by savings. 
C)  more growth encourages more technological change. 
D)  None of the above answers is correct. 
A)  technological change is random. 
B)  technological change can be influenced by savings. 
C)  more growth encourages more technological change. 
D)  None of the above answers is correct.

Question 9

According to UNESCO reporting, "Governments in North America and Western Europe invested the highest shares of national resources in education: 5.6 percent of GDP." As a result, we would expect ________, all else held constant.
Www)worldometers.info

Accepted Answer

A)  higher economic growth rates in these countries compared to other countries 
B)  lower economic growth rates in the countries because fewer resources can be devoted to innovation 
C)  lower research and development spending and lower economic growth unless the governments can raise taxes 
D)  lower saving rates and slower economic growth 
A)  higher economic growth rates in these countries compared to other countries 
B)  lower economic growth rates in the countries because fewer resources can be devoted to innovation 
C)  lower research and development spending and lower economic growth unless the governments can raise taxes 
D)  lower saving rates and slower economic growth

Question 10

An assumption of classical growth theory is that when ________ the population growth rate ________.

Accepted Answer

A)  real GDP per person exceeds the subsistence level; increases 
B)  people become more skilled; decreases 
C)  the real wage rate falls; increases 
D)  saving declines; decreases 
A)  real GDP per person exceeds the subsistence level; increases 
B)  people become more skilled; decreases 
C)  the real wage rate falls; increases 
D)  saving declines; decreases

Question 11

An increase in labor productivity relates to

Accepted Answer

A)  working harder over time. 
B)  working longer over time. 
C)  producing the same output with fewer labor hours. 
D)  producing the same output with more labor hours. 
A)  working harder over time. 
B)  working longer over time. 
C)  producing the same output with fewer labor hours. 
D)  producing the same output with more labor hours.

Question 12

A decrease in population shifts the

Accepted Answer

A)  labor demand curve rightward. 
B)  labor demand curve leftward. 
C)  labor supply curve rightward. 
D)  labor supply curve leftward. 
A)  labor demand curve rightward. 
B)  labor demand curve leftward. 
C)  labor supply curve rightward. 
D)  labor supply curve leftward.

Question 13

According to the Economic Times (09/2012), Standard & Poor's forecast for India's GDP growth rate was cut by 1 percentage point to 5.5 percent as the entire Asia Pacific region feels the pressure of ongoing economic uncertainty. India has averaged 7 percent growth in GDP since 1997. Which of the following is TRUE?

Accepted Answer

A)  India's PPF has been shifting rightward since 1997. 
B)  India's PPF has been shifting leftward since 1997. 
C)  India has been moving from a point within its PPF to points beyond its PPF. 
D)  India's PPF has not shifted since 1997. 
A)  India's PPF has been shifting rightward since 1997. 
B)  India's PPF has been shifting leftward since 1997. 
C)  India has been moving from a point within its PPF to points beyond its PPF. 
D)  India's PPF has not shifted since 1997.

Question 14

Which of the following statements is CORRECT?
I.Higher savings rates can stimulate economic growth.
II.Limiting international trade can stimulate economic growth.

Accepted Answer

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

Question 15

A worker's stock of knowledge is known as

Accepted Answer

A)  monetary capital. 
B)  human capital. 
C)  physical capital. 
D)  financial capital. 
A)  monetary capital. 
B)  human capital. 
C)  physical capital. 
D)  financial capital.

Question 16

The growth theory that predicts perpetual economic growth is

Accepted Answer

A)  classical growth theory. 
B)  neoclassical growth theory. 
C)  the new growth theory. 
D)  real growth theory. 
A)  classical growth theory. 
B)  neoclassical growth theory. 
C)  the new growth theory. 
D)  real growth theory.

Question 17

Economists are interested in long-term economic growth because growth increases real GDP per person and improves our standard of living.

Accepted Answer

A) True 
 B)False

Question 18

If real GDP is $800 million and aggregate labor hours are 20 million, labor productivity is ________.

Accepted Answer

A)  $40 per hour 
B)  $16,000 million 
C)  $40 million 
D)  $160 per hour 
A)  $40 per hour 
B)  $16,000 million 
C)  $40 million 
D)  $160 per hour

Question 19

New growth theory assumes that

Accepted Answer

A)  all inputs experience diminishing returns. 
B)  only random technological advances produce growth. 
C)  knowledge does not experience diminishing returns. 
D)  None of the above answers is correct. 
A)  all inputs experience diminishing returns. 
B)  only random technological advances produce growth. 
C)  knowledge does not experience diminishing returns. 
D)  None of the above answers is correct.

Question 20

If a rich country grows at a faster rate than a poor one, then

Accepted Answer

A)  the gap in their standard of living will widen over time. 
B)  the gap in their standard of living will close over time. 
C)  the difference in their living standards will not change over time. 
D)  whether or not the living standards gap widens or closes over time depends on the absolute size of the relative growth rates. 
A)  the gap in their standard of living will widen over time. 
B)  the gap in their standard of living will close over time. 
C)  the difference in their living standards will not change over time. 
D)  whether or not the living standards gap widens or closes over time depends on the absolute size of the relative growth rates.

Labor productivity is defined as

All else equal, an increase in population decreases potential GDP.

________ is the knowledge and skill that people have obtained from education and on-the-job training.

In general, a higher real wage rate decreases the quantity of labor supplied because fewer people enter the labor force.

An advance in technology will

Moving along the aggregate production function shows the relationship between ________, holding all else constant.

Over the past 100 years, real GDP per person in the United States has grown at an average of ________ percent a year.

According to UNESCO reporting, "Governments in North America and Western Europe invested the highest shares of national resources in education: 5.6 percent of GDP." As a result, we would expect ________, all else held constant. Www)worldometers.info

An assumption of classical growth theory is that when the population growth rate .

An increase in labor productivity relates to

A decrease in population shifts the

Which of the following statements is CORRECT? I.Higher savings rates can stimulate economic growth. II.Limiting international trade can stimulate economic growth.

A worker's stock of knowledge is known as

The growth theory that predicts perpetual economic growth is

Economists are interested in long-term economic growth because growth increases real GDP per person and improves our standard of living.

If real GDP is $800 million and aggregate labor hours are 20 million, labor productivity is ________.

New growth theory assumes that

If a rich country grows at a faster rate than a poor one, then

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

Labor productivity is defined as

All else equal, an increase in population decreases potential GDP.

________ is the knowledge and skill that people have obtained from education and on-the-job training.

In general, a higher real wage rate decreases the quantity of labor supplied because fewer people enter the labor force.

An advance in technology will

Moving along the aggregate production function shows the relationship between ________, holding all else constant.

Over the past 100 years, real GDP per person in the United States has grown at an average of ________ percent a year.

According to UNESCO reporting, "Governments in North America and Western Europe invested the highest shares of national resources in education: 5.6 percent of GDP." As a result, we would expect ________, all else held constant. Www)worldometers.info

An assumption of classical growth theory is that when ________ the population growth rate ________.

An increase in labor productivity relates to

A decrease in population shifts the

Which of the following statements is CORRECT? I.Higher savings rates can stimulate economic growth. II.Limiting international trade can stimulate economic growth.

A worker's stock of knowledge is known as

The growth theory that predicts perpetual economic growth is

Economists are interested in long-term economic growth because growth increases real GDP per person and improves our standard of living.

If real GDP is $800 million and aggregate labor hours are 20 million, labor productivity is ________.

New growth theory assumes that

If a rich country grows at a faster rate than a poor one, then

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

An assumption of classical growth theory is that when the population growth rate .