Question 1

The largest contributor to increases in the productivity of American labor is:

Accepted Answer

A)  the reallocation of labor from agriculture to manufacturing. 
B)  improvements in labor quality. 
C)  increases in the quantity of capital. 
D)  technological advance. 
A)  the reallocation of labor from agriculture to manufacturing. 
B)  improvements in labor quality. 
C)  increases in the quantity of capital. 
D)  technological advance.

Question 2

The annual growth of U.S.labor productivity:

Accepted Answer

A)  was greater between 1973 and 1995 than between 1995 and 2012. 
B)  was greater between 1995 and 2012 than between 1973 and 1995. 
C)  was negative in the late 1990s. 
D)  averaged nearly 5 percent in the 1990s. 
A)  was greater between 1973 and 1995 than between 1995 and 2012. 
B)  was greater between 1995 and 2012 than between 1973 and 1995. 
C)  was negative in the late 1990s. 
D)  averaged nearly 5 percent in the 1990s.

Question 3

The percentage of the working-age population in the labor force (= employed + officially unemployed)is called the:

Accepted Answer

A)  labor force participation rate. 
B)  employment-population ratio. 
C)  work-activity rate. 
D)  work-nonwork ratio. 
A)  labor force participation rate. 
B)  employment-population ratio. 
C)  work-activity rate. 
D)  work-nonwork ratio.

Question 4

If the number of worker-hours in an economy is 100 and its labor productivity is $5 of output per worker-hour,the economy's real GDP:

Accepted Answer

A)  is $20. 
B)  is $500. 
C)  is $5,000. 
D)  cannot be calculated. 
A)  is $20. 
B)  is $500. 
C)  is $5,000. 
D)  cannot be calculated.

Question 5

Based on the annual number of hours worked per capita,labor supply in the United States exceeds that of France by about _______ percent.

Accepted Answer

A)  20 
B)  34 
C)  51 
D)  58 
A)  20 
B)  34 
C)  51 
D)  58

Question 6

Which of the following statements is most accurate about the prospects for poorer ("follower")countries catching up with richer ("leader")countries?

Accepted Answer

A)  Catching up is unlikely to occur because their growth rates are the same on average. 
B)  Catching up is unlikely to occur because richer countries tend to grow at a faster rate. 
C)  Catching up is possible,but only if growth rates in leader countries fall to zero or become negative. 
D)  Catching up is possible as "follower countries" tend to grow faster than "leader countries." 
A)  Catching up is unlikely to occur because their growth rates are the same on average. 
B)  Catching up is unlikely to occur because richer countries tend to grow at a faster rate. 
C)  Catching up is possible,but only if growth rates in leader countries fall to zero or become negative. 
D)  Catching up is possible as "follower countries" tend to grow faster than "leader countries."

Question 7

Proponents of economic growth claim that rising living standards can lead to environmental improvements as people can afford to care more about the environment.

Accepted Answer

A) True 
 B)False

Question 8

Critics of economic growth:

Accepted Answer

A)  contend that growth and industrialization reduce pollution. 
B)  argue that economic growth does not resolve socioeconomic problems such as an unequal distribution of income and wealth. 
C)  point out that growth results in greater economic security for workers. 
D)  say that its benefits accrue nearly exclusively to white males. 
A)  contend that growth and industrialization reduce pollution. 
B)  argue that economic growth does not resolve socioeconomic problems such as an unequal distribution of income and wealth. 
C)  point out that growth results in greater economic security for workers. 
D)  say that its benefits accrue nearly exclusively to white males.

Question 9

Proponents of economic growth claim that growth leads to greater equality of income in an economy.

Accepted Answer

A) True 
 B)False

Question 10

Use the list below to answer the following question: 1.Improvements in technology.
2)Increases in the supply (stock)of capital goods.
3)Purchases of expanding output.
4)Obtaining the optimal combination of goods,each at least-cost production.
5)Increases in the quantity and quality of natural resources.
6)Increases in the quantity and quality of human resources.
Which set of items in the list would shift an economy's production possibilities curve outward?

Accepted Answer

A)  2,5,and 6 only. 
B)  2,4,5,and 6 only. 
C)  1,2,5,and 6 only. 
D)  1,3,and 4 only. 
A)  2,5,and 6 only. 
B)  2,4,5,and 6 only. 
C)  1,2,5,and 6 only. 
D)  1,3,and 4 only.

Question 11

For comparing changes in potential military strength and political preeminence,the most meaningful measure of economic growth would be changes in:

Accepted Answer

A)  total nominal output. 
B)  total real output. 
C)  per capita output. 
D)  per family output. 
A)  total nominal output. 
B)  total real output. 
C)  per capita output. 
D)  per family output.

Question 12

Network effects are:

Accepted Answer

A)  increases in the value of a product to each user,including existing users,as the total number of users rises. 
B)  reductions in per unit production cost as firms learn by doing. 
C)  increases in demand resulting from products being mentioned positively in a television program. 
D)  the change in real GDP resulting from a change in investment or government spending. 
A)  increases in the value of a product to each user,including existing users,as the total number of users rises. 
B)  reductions in per unit production cost as firms learn by doing. 
C)  increases in demand resulting from products being mentioned positively in a television program. 
D)  the change in real GDP resulting from a change in investment or government spending.

Question 13

Economic growth can be portrayed as:

Accepted Answer

A)  an outward shift of the production possibilities curve. 
B)  an inward shift of the production possibilities curve. 
C)  a movement from a point on to a point inside a production possibilities curve. 
D)  a movement from one point to another point on a fixed production possibilities curve. 
A)  an outward shift of the production possibilities curve. 
B)  an inward shift of the production possibilities curve. 
C)  a movement from a point on to a point inside a production possibilities curve. 
D)  a movement from one point to another point on a fixed production possibilities curve.

Question 14

Between 1950 and 2012,U.S.real GDP per capita grew at an average annual rate of about:

Accepted Answer

A)  5.5 percent. 
B)  4.2 percent. 
C)  3.2 percent. 
D)  2.0 percent. 
A)  5.5 percent. 
B)  4.2 percent. 
C)  3.2 percent. 
D)  2.0 percent.

Question 15

Suppose that an economy's labor productivity and total worker-hours each grew by 4 percent between year 1 and year 2.We could conclude that this economy's:

Accepted Answer

A)  real GDP also increased by 4 percent. 
B)  real GDP remained constant. 
C)  production possibilities curve shifted outward. 
D)  capital stock increased by 4 percent. 
A)  real GDP also increased by 4 percent. 
B)  real GDP remained constant. 
C)  production possibilities curve shifted outward. 
D)  capital stock increased by 4 percent.

Question 16

Suppose total output (real GDP)is $4,000 and labor productivity is $8.We can conclude that:

Accepted Answer

A)  real GDP per capita must be $500. 
B)  the price-level index must be greater than 100. 
C)  nominal GDP must be $500. 
D)  the number of worker-hours must be 500. 
A)  real GDP per capita must be $500. 
B)  the price-level index must be greater than 100. 
C)  nominal GDP must be $500. 
D)  the number of worker-hours must be 500.

Question 17

Use the list below to answer the following question: 1.Improvements in technology.
2)Increases in the supply (stock)of capital goods.
3)Purchases of expanding output.
4)Obtaining the optimal combination of goods,each at least-cost production.
5)Increases in the quantity and quality of natural resources.
6)Increases in the quantity and quality of human resources.
Which set of items in the list would move an economy from a point inside its production possibilities curve to a point on its production possibilities curve?

Accepted Answer

A)  1,2,5,and 6 only. 
B)  3 and 4 only. 
C)  3 only. 
D)  1,3,and 4 only. 
A)  1,2,5,and 6 only. 
B)  3 and 4 only. 
C)  3 only. 
D)  1,3,and 4 only.

Question 18

Other things equal,if a full-employment economy reallocated a substantial quantity of its resources to capital goods,we would expect:

Accepted Answer

A)  present consumption to rise. 
B)  future consumption to fall. 
C)  a lower rate of growth of real GDP. 
D)  labor productivity to rise. 
A)  present consumption to rise. 
B)  future consumption to fall. 
C)  a lower rate of growth of real GDP. 
D)  labor productivity to rise.

Question 19

Empirical studies suggest that:

Accepted Answer

A)  labor productivity has declined throughout U.S.history. 
B)  technological advances account for about 40 percent of U.S.productivity growth. 
C)  the achieving of economies of scale is the most important factor in U.S.economic growth. 
D)  all U.S.economic growth from between 2001 and 2007 can be attributed to increases in the quantity of labor. 
A)  labor productivity has declined throughout U.S.history. 
B)  technological advances account for about 40 percent of U.S.productivity growth. 
C)  the achieving of economies of scale is the most important factor in U.S.economic growth. 
D)  all U.S.economic growth from between 2001 and 2007 can be attributed to increases in the quantity of labor.

Question 20

Labor productivity is defined as:

Accepted Answer

A)  total output/worker-hours. 
B)  nominal GDP minus real GDP. 
C)  the ratio of real capital to worker-hours. 
D)  the annual increase in nominal GDP per worker. 
A)  total output/worker-hours. 
B)  nominal GDP minus real GDP. 
C)  the ratio of real capital to worker-hours. 
D)  the annual increase in nominal GDP per worker.

The largest contributor to increases in the productivity of American labor is:

The annual growth of U.S.labor productivity:

The percentage of the working-age population in the labor force (= employed + officially unemployed)is called the:

If the number of worker-hours in an economy is 100 and its labor productivity is $5 of output per worker-hour,the economy's real GDP:

Based on the annual number of hours worked per capita,labor supply in the United States exceeds that of France by about _______ percent.

Which of the following statements is most accurate about the prospects for poorer ("follower")countries catching up with richer ("leader")countries?

Proponents of economic growth claim that rising living standards can lead to environmental improvements as people can afford to care more about the environment.

Critics of economic growth:

Proponents of economic growth claim that growth leads to greater equality of income in an economy.

For comparing changes in potential military strength and political preeminence,the most meaningful measure of economic growth would be changes in:

Network effects are:

Economic growth can be portrayed as:

Between 1950 and 2012,U.S.real GDP per capita grew at an average annual rate of about:

Suppose that an economy's labor productivity and total worker-hours each grew by 4 percent between year 1 and year 2.We could conclude that this economy's:

Suppose total output (real GDP)is $4,000 and labor productivity is $8.We can conclude that:

Other things equal,if a full-employment economy reallocated a substantial quantity of its resources to capital goods,we would expect:

Empirical studies suggest that:

Labor productivity is defined as:

Income Inequality Poverty and Discrimination

Health Care

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

The Balance of Payments, Exchange Rates, and Trade Deficits

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

The United States and the Global Economy

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Exam 27: Economic Growth

The largest contributor to increases in the productivity of American labor is:

The annual growth of U.S.labor productivity:

The percentage of the working-age population in the labor force (= employed + officially unemployed)is called the:

If the number of worker-hours in an economy is 100 and its labor productivity is $5 of output per worker-hour,the economy's real GDP:

Based on the annual number of hours worked per capita,labor supply in the United States exceeds that of France by about _______ percent.

Which of the following statements is most accurate about the prospects for poorer ("follower")countries catching up with richer ("leader")countries?

Proponents of economic growth claim that rising living standards can lead to environmental improvements as people can afford to care more about the environment.

Critics of economic growth:

Proponents of economic growth claim that growth leads to greater equality of income in an economy.

For comparing changes in potential military strength and political preeminence,the most meaningful measure of economic growth would be changes in:

Network effects are:

Economic growth can be portrayed as:

Between 1950 and 2012,U.S.real GDP per capita grew at an average annual rate of about:

Suppose that an economy's labor productivity and total worker-hours each grew by 4 percent between year 1 and year 2.We could conclude that this economy's:

Suppose total output (real GDP)is $4,000 and labor productivity is $8.We can conclude that:

Other things equal,if a full-employment economy reallocated a substantial quantity of its resources to capital goods,we would expect:

Empirical studies suggest that:

Labor productivity is defined as:

Income Inequality Poverty and Discrimination

Health Care

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

The Balance of Payments, Exchange Rates, and Trade Deficits

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

The United States and the Global Economy

Filters