Question 1

Which of the following statements is true?

Accepted Answer

A) In the foreseeable future,real GDP will grow slower than the U.S.population 
B) Based on past economic performance,it is likely that standards of living in the U.S.will fall during the early part of the 21st century 
C) Real per capita GDP will likely increase in the near future due in part to the slowdown in the rate of population growth 
D) In economics,the past is a very poor predictor of the future 
E) The rate of economic growth does not affect individual people 
A) In the foreseeable future,real GDP will grow slower than the U.S.population 
B) Based on past economic performance,it is likely that standards of living in the U.S.will fall during the early part of the 21st century 
C) Real per capita GDP will likely increase in the near future due in part to the slowdown in the rate of population growth 
D) In economics,the past is a very poor predictor of the future 
E) The rate of economic growth does not affect individual people

Question 2

The economic variables that make up the Leading Economic Indicators Index tend to move in the ______ direction as overall economic output and do so _____ changes in real GDP.

Accepted Answer

A) Opposite; prior to 
B) Same; after 
C) Opposite; after 
D) Same; prior to 
E) Same; simultaneously as 
A) Opposite; prior to 
B) Same; after 
C) Opposite; after 
D) Same; prior to 
E) Same; simultaneously as

Question 3

In an economy,100 workers can produce 500 units of output and 110 workers produce 600 units of output.Which of the following is true? The average product with

Accepted Answer

A) 100 workers is 500 
B) 100 workers is 5 
C) 110 workers is 600 
D) 10 workers is 100 
E) Both a)and c) 
A) 100 workers is 500 
B) 100 workers is 5 
C) 110 workers is 600 
D) 10 workers is 100 
E) Both a)and c)

Question 4

Another name for the trough of a business cycle is recession.

Accepted Answer

A) True 
 B)False

Question 5

Savings can only occur when the economy is in the expansion phase of a business cyclE.

Accepted Answer

A) True 
 B)False

Question 6

Initially 10 workers produce 100 units of output in an economy.The next year,20 workers produce 250 units of output in the same economy.Productivity in the economy has

Accepted Answer

A) Doubled 
B) More than doubled 
C) Increased 
D) Decreased 
E) Not changed 
A) Doubled 
B) More than doubled 
C) Increased 
D) Decreased 
E) Not changed

Question 7

The total output produced divided by the total units of labor employed is called the average product of labor.

Accepted Answer

A) True 
 B)False

Question 8

The last depression experienced by the U.S.economy occurred

Accepted Answer

A) During the 1970s 
B) In 1982 
C) During the 1930s 
D) Between 1974-1975 
E) In 1990 
A) During the 1970s 
B) In 1982 
C) During the 1930s 
D) Between 1974-1975 
E) In 1990

Question 9

Why do small differences in economic growth rates today result in significant differences in the level of economic activity in the future?

Accepted Answer

A) Growth rates discount over time 
B) Economic growth compounds year after year 
C) Economics grow in an arithmetic fashion 
D) Business cycles are less likely at higher rates of growth 
E) All of the above 
A) Growth rates discount over time 
B) Economic growth compounds year after year 
C) Economics grow in an arithmetic fashion 
D) Business cycles are less likely at higher rates of growth 
E) All of the above

Question 10

Every business cycle has four distinct phases; expansion,peak,contraction,and trough.

Accepted Answer

A) True 
 B)False

Question 11

Productivity gains in the 1990s were a result of which of the following?

Accepted Answer

A) Capital investment 
B) Improved labor quality 
C) Technological progress 
D) Increased use of computers 
E) All of the above 
A) Capital investment 
B) Improved labor quality 
C) Technological progress 
D) Increased use of computers 
E) All of the above

Question 12

Human capital refers to

Accepted Answer

A)  Foregone earnings of students enrolled in college 
B)  Money required to enroll in educational programs 
C)  Slaves owned by capitalists 
D)  Skills and training that increase a worker's productivity 
E)  Factories and equipment owned by workers 
A)  Foregone earnings of students enrolled in college 
B)  Money required to enroll in educational programs 
C)  Slaves owned by capitalists 
D)  Skills and training that increase a worker's productivity 
E)  Factories and equipment owned by workers

Question 13

What is the result of a growing labor force?

Accepted Answer

A) Lower rates of interest in the capital market 
B) Higher rates of unemployment 
C) The economy's production possibilities curve shifts outward 
D) The economy's production possibilities curve shifts inward 
E) The economy's rate of growth must slow to accommodate more people 
A) Lower rates of interest in the capital market 
B) Higher rates of unemployment 
C) The economy's production possibilities curve shifts outward 
D) The economy's production possibilities curve shifts inward 
E) The economy's rate of growth must slow to accommodate more people

Question 14

Which decade resulted in the lowest average annual rate of economic growth in the U.S.?

Accepted Answer

A) 1950s 
B) 1960s 
C) 1970s 
D) 1980s 
E) Unknown 
A) 1950s 
B) 1960s 
C) 1970s 
D) 1980s 
E) Unknown

Question 15

Productivity is a measure of how efficiently resources are converted into goods and services through a production process.

Accepted Answer

A) True 
 B)False

Question 16

The most important determinants of economic growth are the availability of resources and productivity factors.

Accepted Answer

A) True 
 B)False

Question 17

Strong economic expansions are sometimes

Accepted Answer

A) True 
 B)False

Question 18

What was the primary opportunity cost of the former Soviet Union's policy to heavily invest in capital for economic growth?

Accepted Answer

A) An inability to trade with other nations 
B) Democracy 
C) Foregone consumer goods 
D) Technological innovations 
E) Foregone military goods 
A) An inability to trade with other nations 
B) Democracy 
C) Foregone consumer goods 
D) Technological innovations 
E) Foregone military goods

Question 19

For an economy to expand its investment in the production of capital goods,it must

Accepted Answer

A) Enhance its current level of technology 
B) Forego some production of consumer goods and services 
C) Expand its geographic territory 
D) Increase its real supply of money 
E) Reduce the level of savings by consumers 
A) Enhance its current level of technology 
B) Forego some production of consumer goods and services 
C) Expand its geographic territory 
D) Increase its real supply of money 
E) Reduce the level of savings by consumers

Question 20

The Following Questions Refer to the graph below.  
-An economic contraction is illustrated on the graph

Accepted Answer

A) At point T2 
B) At point T3 
C) Between T1 and T2 
D) Between T2 and T3 
E) Along the straight line 
A) At point T2 
B) At point T3 
C) Between T1 and T2 
D) Between T2 and T3 
E) Along the straight line

Which of the following statements is true?

The economic variables that make up the Leading Economic Indicators Index tend to move in the __ direction as overall economic output and do so _ changes in real GDP.

In an economy,100 workers can produce 500 units of output and 110 workers produce 600 units of output.Which of the following is true? The average product with

Another name for the trough of a business cycle is recession.

Savings can only occur when the economy is in the expansion phase of a business cyclE.

Initially 10 workers produce 100 units of output in an economy.The next year,20 workers produce 250 units of output in the same economy.Productivity in the economy has

The total output produced divided by the total units of labor employed is called the average product of labor.

The last depression experienced by the U.S.economy occurred

Why do small differences in economic growth rates today result in significant differences in the level of economic activity in the future?

Every business cycle has four distinct phases; expansion,peak,contraction,and trough.

Productivity gains in the 1990s were a result of which of the following?

Human capital refers to

What is the result of a growing labor force?

Which decade resulted in the lowest average annual rate of economic growth in the U.S.?

Productivity is a measure of how efficiently resources are converted into goods and services through a production process.

The most important determinants of economic growth are the availability of resources and productivity factors.

Strong economic expansions are sometimes

What was the primary opportunity cost of the former Soviet Union's policy to heavily invest in capital for economic growth?

For an economy to expand its investment in the production of capital goods,it must

The Following Questions Refer to the graph below. -An economic contraction is illustrated on the graph

Alleviating Human Misery: The Role of Economic Reasoning

Economic Systems, Resource Allocation, and Social Well-Being: Lessons From Chinas Transition

Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

Pollution Problems: Must We Foul Our Own Nests

Economics of Crime and Its Prevention: How Much Is Too Much

The Economics of Education: Crisis and Reform

Poverty Problems and Discrimination: Why Are so Many Still so Poor

The Economics of Monopoly Power: Can Markets Be Controlled

The Economics of Professional Sports: What Is the Real Score

Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Money,Banking and the Financial System: Old Problems With New Twists

Unemployment and Inflation: Can We Find a Balance

Government Spending,Taxation,and the National Debt: Who Wins and Who Loses

Social Security and Medicare: How Secure Is Our Safety Net for the Elderly

Filters

Exam 11: Economic Growth: Why Is the Economic Road so Bumpy

Which of the following statements is true?

The economic variables that make up the Leading Economic Indicators Index tend to move in the ______ direction as overall economic output and do so _____ changes in real GDP.

In an economy,100 workers can produce 500 units of output and 110 workers produce 600 units of output.Which of the following is true? The average product with

Another name for the trough of a business cycle is recession.

Savings can only occur when the economy is in the expansion phase of a business cyclE.

Initially 10 workers produce 100 units of output in an economy.The next year,20 workers produce 250 units of output in the same economy.Productivity in the economy has

The total output produced divided by the total units of labor employed is called the average product of labor.

The last depression experienced by the U.S.economy occurred

Why do small differences in economic growth rates today result in significant differences in the level of economic activity in the future?

Every business cycle has four distinct phases; expansion,peak,contraction,and trough.

Productivity gains in the 1990s were a result of which of the following?

Human capital refers to

What is the result of a growing labor force?

Which decade resulted in the lowest average annual rate of economic growth in the U.S.?

Productivity is a measure of how efficiently resources are converted into goods and services through a production process.

The most important determinants of economic growth are the availability of resources and productivity factors.

Strong economic expansions are sometimes

What was the primary opportunity cost of the former Soviet Union's policy to heavily invest in capital for economic growth?

For an economy to expand its investment in the production of capital goods,it must

The Following Questions Refer to the graph below. -An economic contraction is illustrated on the graph

Alleviating Human Misery: The Role of Economic Reasoning

Economic Systems, Resource Allocation, and Social Well-Being: Lessons From Chinas Transition

Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

Pollution Problems: Must We Foul Our Own Nests

Economics of Crime and Its Prevention: How Much Is Too Much

The Economics of Education: Crisis and Reform

Poverty Problems and Discrimination: Why Are so Many Still so Poor

The Economics of Monopoly Power: Can Markets Be Controlled

The Economics of Professional Sports: What Is the Real Score

Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Money,Banking and the Financial System: Old Problems With New Twists

Unemployment and Inflation: Can We Find a Balance

Government Spending,Taxation,and the National Debt: Who Wins and Who Loses

Social Security and Medicare: How Secure Is Our Safety Net for the Elderly

Filters

The economic variables that make up the Leading Economic Indicators Index tend to move in the __ direction as overall economic output and do so _ changes in real GDP.