Question 1

The secular increase in real wages resulted from increases in labor productivity:

Accepted Answer

A) that have increased the demand for labor faster than the supply of labor 
B) that have increased the supply of labor faster than the demand for labor 
C) that have decreased the demand for labor faster than the supply of labor 
D) made possible by increased public sector output 
A) that have increased the demand for labor faster than the supply of labor 
B) that have increased the supply of labor faster than the demand for labor 
C) that have decreased the demand for labor faster than the supply of labor 
D) made possible by increased public sector output A

Question 2

Labor productivity in the base year was 20.The following year,the productivity index stood at 105.Labor productivity in the second year was:

Accepted Answer

A) 5 
B) 20 
C) 21 
D) 105 
A) 5 
B) 20 
C) 21 
D) 105 C

Question 3

Allowing for changes in product demand,the relationship between productivity growth and employment growth across industries over the past ten years is best described as:

Accepted Answer

A) positive 
B) negative 
C) "U"-shaped 
D) random 
A) positive 
B) negative 
C) "U"-shaped 
D) random D

Question 4

The critical determinants of productivity growth include all of the following except:

Accepted Answer

A) the average quality of the labor force 
B) the amount of capital goods employed with each worker hour of labor 
C) the efficiency with which inputs are combined 
D) the extent of import restrictions 
A) the average quality of the labor force 
B) the amount of capital goods employed with each worker hour of labor 
C) the efficiency with which inputs are combined 
D) the extent of import restrictions

Question 5

Labor productivity is best defined as:

Accepted Answer

A) real GDP divided by unit labor costs 
B) nominal GDP divided by the number of worker hours 
C) nominal GDP divided by labor costs 
D) real GDP divided by the number of worker hours 
A) real GDP divided by unit labor costs 
B) nominal GDP divided by the number of worker hours 
C) nominal GDP divided by labor costs 
D) real GDP divided by the number of worker hours

Question 6

Empirical studies of the productivity of public capital indicate:

Accepted Answer

A) a consensus that public capital is approximately half as productive as private capital 
B) a consensus that public capital is approximately twice as productive as private capital 
C) high productivity when using national data,but low productivity using state and regional data 
D) high productivity when using state and regional data,but low productivity using national data 
A) a consensus that public capital is approximately half as productive as private capital 
B) a consensus that public capital is approximately twice as productive as private capital 
C) high productivity when using national data,but low productivity using state and regional data 
D) high productivity when using state and regional data,but low productivity using national data

Question 7

If nominal wages rose 1.5% and productivity increased 3% in a given year,we should expect:

Accepted Answer

A) an increase in unit labor costs and upward pressure on prices 
B) an increase in unit labor costs and downward pressure on prices 
C) a decrease in unit labor costs and upward pressure on prices 
D) a decrease in unit labor costs and downward pressure on prices 
A) an increase in unit labor costs and upward pressure on prices 
B) an increase in unit labor costs and downward pressure on prices 
C) a decrease in unit labor costs and upward pressure on prices 
D) a decrease in unit labor costs and downward pressure on prices

Question 8

Which of the following would not cause an increase in the BLS Index of Labor Productivity?

Accepted Answer

A) An increase in labor quality 
B) An improvement in production technology 
C) An increase in output per worker in the public sector 
D) An increase in the quantity of physical capital 
A) An increase in labor quality 
B) An improvement in production technology 
C) An increase in output per worker in the public sector 
D) An increase in the quantity of physical capital

Question 9

Higher than average productivity growth in industry X would be least likely lead to relative employment growth in industry X if the demand for X is:

Accepted Answer

A) both price and income inelastic 
B) both price and income elastic 
C) price inelastic and income elastic 
D) price elastic and income elastic 
A) both price and income inelastic 
B) both price and income elastic 
C) price inelastic and income elastic 
D) price elastic and income elastic

Question 10

Compared to the 1948 - 1973 period,the annual rate of productivity growth from 1974 - 1995 was approximately:

Accepted Answer

A) one fourth as much 
B) one half as much 
C) the same 
D) twice as much 
A) one fourth as much 
B) one half as much 
C) the same 
D) twice as much

Question 11

The resurgence of U.S.productivity growth in the last half of the 1990s:

Accepted Answer

A) corresponded to a resurgence in the growth of real compensation per hour 
B) contributed to rising inflationary pressures 
C) was unaccompanied by rising real compensation per hour 
D) contributed to the rising unemployment rate at the beginning of the new millennium 
A) corresponded to a resurgence in the growth of real compensation per hour 
B) contributed to rising inflationary pressures 
C) was unaccompanied by rising real compensation per hour 
D) contributed to the rising unemployment rate at the beginning of the new millennium

Question 12

Of the following,which country experienced the fastest rate of productivity growth over the period 2000 - 2010?

Accepted Answer

A) United States 
B) Sweden 
C) France 
D) Germany 
A) United States 
B) Sweden 
C) France 
D) Germany

Question 13

If real GDP falls by 2% while work hours fall by 10%,then labor productivity:

Accepted Answer

A) falls 
B) is unchanged 
C) rises 
D) might fall,but we cannot know without more information 
A) falls 
B) is unchanged 
C) rises 
D) might fall,but we cannot know without more information

Question 14

Productivity growth:

Accepted Answer

A) falls below its trend rate in a recession and rises above it in an expansion 
B) rises above its trend rate in a recession and falls below it in an expansion 
C) is counter-cyclical 
D) is independent of the business cycle 
A) falls below its trend rate in a recession and rises above it in an expansion 
B) rises above its trend rate in a recession and falls below it in an expansion 
C) is counter-cyclical 
D) is independent of the business cycle

Question 15

Productivity appears to be:

Accepted Answer

A) procyclical; firms are reluctant to lay off workers in a recession,so output falls more than employment 
B) procyclical; firms are quick to lay off workers in a recession,so employment falls more than output 
C) countercyclical; firms are reluctant to lay off workers in a recession,so output falls more than employment 
D) countercyclical; firms are quick to lay off workers in a recession,so employment falls more than output 
A) procyclical; firms are reluctant to lay off workers in a recession,so output falls more than employment 
B) procyclical; firms are quick to lay off workers in a recession,so employment falls more than output 
C) countercyclical; firms are reluctant to lay off workers in a recession,so output falls more than employment 
D) countercyclical; firms are quick to lay off workers in a recession,so employment falls more than output

Question 16

Which of the following is one of the reasons typically given for the relatively high secular growth rate of productivity for the period 1959 - 2006?

Accepted Answer

A) A three-fold increase in the capital stock 
B) An increase in service sector output relative to the manufacturing sector 
C) An increase in the average length of the workweek 
D) An increase in the use of quotas and tariffs to protect domestic industries 
A) A three-fold increase in the capital stock 
B) An increase in service sector output relative to the manufacturing sector 
C) An increase in the average length of the workweek 
D) An increase in the use of quotas and tariffs to protect domestic industries

Question 17

Productivity declines may worsen recessions by causing unit labor costs to:

Accepted Answer

A) rise,thereby resulting in falling profits and lower investment spending 
B) rise,thereby resulting in greater retained earnings by firms 
C) fall,thereby creating incentives for government intervention 
D) fall,thereby reducing consumer spending power 
A) rise,thereby resulting in falling profits and lower investment spending 
B) rise,thereby resulting in greater retained earnings by firms 
C) fall,thereby creating incentives for government intervention 
D) fall,thereby reducing consumer spending power

Question 18

Suppose productivity increases by 5% in industry X and 2% in industry Y.Further suppose the demand for X has fallen while the demand for Y has increased.If economy-wide productivity and the average wage each rise by 3%,we should expect that:

Accepted Answer

A) output and employment in X will increase relative to Y 
B) output and employment in X and Y will not change relative to one another,since wages will increase by 5% in X and 2% in Y 
C) output and employment in Y will increase relative to X 
D) no statement can be made concerning output and employment in either industry without more information 
A) output and employment in X will increase relative to Y 
B) output and employment in X and Y will not change relative to one another,since wages will increase by 5% in X and 2% in Y 
C) output and employment in Y will increase relative to X 
D) no statement can be made concerning output and employment in either industry without more information

Question 19

Proponents of the view that a fundamental change in the economy occurred in the late 1990s cite as evidence all of the following except:

Accepted Answer

A) heavy investment in information capital 
B) the fast pace of technological progress and efficiency 
C) the procyclical nature of productivity growth 
D) increased spending on capital other than information capital contributed little to the acceleration in productivity 
A) heavy investment in information capital 
B) the fast pace of technological progress and efficiency 
C) the procyclical nature of productivity growth 
D) increased spending on capital other than information capital contributed little to the acceleration in productivity

Question 20

Which one of the following most closely corresponds to the average annual rate of productivity growth in the U.S.for the period 1948 - 1973?

Accepted Answer

A) 0-1% 
B) 1-2% 
C) 3-4% 
D) 5-8% 
A) 0-1% 
B) 1-2% 
C) 3-4% 
D) 5-8%

The secular increase in real wages resulted from increases in labor productivity:

Labor productivity in the base year was 20.The following year,the productivity index stood at 105.Labor productivity in the second year was:

Allowing for changes in product demand,the relationship between productivity growth and employment growth across industries over the past ten years is best described as:

The critical determinants of productivity growth include all of the following except:

Labor productivity is best defined as:

Empirical studies of the productivity of public capital indicate:

If nominal wages rose 1.5% and productivity increased 3% in a given year,we should expect:

Which of the following would not cause an increase in the BLS Index of Labor Productivity?

Higher than average productivity growth in industry X would be least likely lead to relative employment growth in industry X if the demand for X is:

Compared to the 1948 - 1973 period,the annual rate of productivity growth from 1974 - 1995 was approximately:

The resurgence of U.S.productivity growth in the last half of the 1990s:

Of the following,which country experienced the fastest rate of productivity growth over the period 2000 - 2010?

If real GDP falls by 2% while work hours fall by 10%,then labor productivity:

Productivity growth:

Productivity appears to be:

Which of the following is one of the reasons typically given for the relatively high secular growth rate of productivity for the period 1959 - 2006?

Productivity declines may worsen recessions by causing unit labor costs to:

Suppose productivity increases by 5% in industry X and 2% in industry Y.Further suppose the demand for X has fallen while the demand for Y has increased.If economy-wide productivity and the average wage each rise by 3%,we should expect that:

Proponents of the view that a fundamental change in the economy occurred in the late 1990s cite as evidence all of the following except:

Which one of the following most closely corresponds to the average annual rate of productivity growth in the U.S.for the period 1948 - 1973?

Labor Economics: Introduction and Overview

The Theory of Individual Labor Supply

Population, Participation Rates, and Hours of Work

Labor Quality: Investing in Human Capital

The Demand for Labor

Wage Determination and the Allocation of Labor

Alternative Pay Schemes and Labor Efficiency

The Wage Structure

Mobility,Migration,and Efficiency

Labor Unions and Collective Bargaining

The Economic Impact of Unions

Government and the Labor Market: Employment, Expenditures, and Taxation

Government and the Labor Market: Legislation and Regulation

Labor Market Discrimination

Job Search: External and Internal

The Distribution of Personal Earnings

Employment and Unemployment

Filters

Exam 17: Labor Productivity: Wages,Prices,and Employment

The secular increase in real wages resulted from increases in labor productivity:

Labor productivity in the base year was 20.The following year,the productivity index stood at 105.Labor productivity in the second year was:

Allowing for changes in product demand,the relationship between productivity growth and employment growth across industries over the past ten years is best described as:

The critical determinants of productivity growth include all of the following except:

Labor productivity is best defined as:

Empirical studies of the productivity of public capital indicate:

If nominal wages rose 1.5% and productivity increased 3% in a given year,we should expect:

Which of the following would not cause an increase in the BLS Index of Labor Productivity?

Higher than average productivity growth in industry X would be least likely lead to relative employment growth in industry X if the demand for X is:

Compared to the 1948 - 1973 period,the annual rate of productivity growth from 1974 - 1995 was approximately:

The resurgence of U.S.productivity growth in the last half of the 1990s:

Of the following,which country experienced the fastest rate of productivity growth over the period 2000 - 2010?

If real GDP falls by 2% while work hours fall by 10%,then labor productivity:

Productivity growth:

Productivity appears to be:

Which of the following is one of the reasons typically given for the relatively high secular growth rate of productivity for the period 1959 - 2006?

Productivity declines may worsen recessions by causing unit labor costs to:

Suppose productivity increases by 5% in industry X and 2% in industry Y.Further suppose the demand for X has fallen while the demand for Y has increased.If economy-wide productivity and the average wage each rise by 3%,we should expect that:

Proponents of the view that a fundamental change in the economy occurred in the late 1990s cite as evidence all of the following except:

Which one of the following most closely corresponds to the average annual rate of productivity growth in the U.S.for the period 1948 - 1973?

Labor Economics: Introduction and Overview

The Theory of Individual Labor Supply

Population, Participation Rates, and Hours of Work

Labor Quality: Investing in Human Capital

The Demand for Labor

Wage Determination and the Allocation of Labor

Alternative Pay Schemes and Labor Efficiency

The Wage Structure

Mobility,Migration,and Efficiency

Labor Unions and Collective Bargaining

The Economic Impact of Unions

Government and the Labor Market: Employment, Expenditures, and Taxation

Government and the Labor Market: Legislation and Regulation

Labor Market Discrimination

Job Search: External and Internal

The Distribution of Personal Earnings

Employment and Unemployment

Filters