Question 1

In addition to generating more output,economic growth can also contribute to:

Accepted Answer

A)  Improved health for workers. 
B)  Increased unemployment for workers. 
C)  Decreased productivity. 
D)  A more equitable distribution of output. 
A)  Improved health for workers. 
B)  Increased unemployment for workers. 
C)  Decreased productivity. 
D)  A more equitable distribution of output.

Question 2

The change in real output between two time periods divided by total output in the base period is the formula for:

Accepted Answer

A)  Level of productivity. 
B)  Growth rate. 
C)  Production possibilities. 
D)  Net investment. 
A)  Level of productivity. 
B)  Growth rate. 
C)  Production possibilities. 
D)  Net investment.

Question 3

A decrease in the tax rate on capital gains can:

Accepted Answer

A)  Reduce the level of investment. 
B)  Result in economic growth. 
C)  Reduce the level of saving. 
D)  Cause crowding out. 
A)  Reduce the level of investment. 
B)  Result in economic growth. 
C)  Reduce the level of saving. 
D)  Cause crowding out.

Question 4

Which of the following is not likely to contribute to gains in productivity?

Accepted Answer

A)  Greater expenditures on training and education. 
B)  Improved management. 
C)  Greater expenditures on research and development. 
D)  Increased unemployment benefits. 
A)  Greater expenditures on training and education. 
B)  Improved management. 
C)  Greater expenditures on research and development. 
D)  Increased unemployment benefits.

Question 5

Political and economic stability are important for long-run economic growth.

Accepted Answer

A) True 
 B)False

Question 6

GDP per capita measures worker productivity.

Accepted Answer

A) True 
 B)False

Question 7

One News Wire article,titled "House Poised to Pass STEM Immigration Bill" explains the Senate immigration bill that favors those with certain job skills and education.This type of immigration policy contributes to:

Accepted Answer

A)  Unemployment of labor. 
B)  An inward shift in the production possibilities curve. 
C)  Population growth. 
D)  Long-run economic growth. 
A)  Unemployment of labor. 
B)  An inward shift in the production possibilities curve. 
C)  Population growth. 
D)  Long-run economic growth.

Question 8

When living standards rise because of an increase in GDP per capita,the amount of leisure time decreases.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is definitely true when nominal GDP increases?

Accepted Answer

A)  The standard of living improves. 
B)  The amount of output increases. 
C)  The value of output increases. 
D)  The production possibilities curve shifts outward. 
A)  The standard of living improves. 
B)  The amount of output increases. 
C)  The value of output increases. 
D)  The production possibilities curve shifts outward.

Question 10

A sustained increase in total output is possible only if the aggregate _____ curve shifts to the ____.

Accepted Answer

A)  Supply;left 
B)  Supply;right 
C)  Demand;left 
D)  Demand;right 
A)  Supply;left 
B)  Supply;right 
C)  Demand;left 
D)  Demand;right

Question 11

Crowding out is most likely to occur when the federal government:

Accepted Answer

A)  Runs a surplus and pays off part of the debt. 
B)  Balances the budget. 
C)  Runs a deficit and raises taxes to generate more revenue. 
D)  Runs a deficit and borrows money to finance its spending. 
A)  Runs a surplus and pays off part of the debt. 
B)  Balances the budget. 
C)  Runs a deficit and raises taxes to generate more revenue. 
D)  Runs a deficit and borrows money to finance its spending.

Question 12

Sustained increases in total output are possible if aggregate supply shifts to the left.

Accepted Answer

A) True 
 B)False

Question 13

Crowding in directly limits private investment and can constrain economic growth.

Accepted Answer

A) True 
 B)False

Question 14

Short-run economic growth focuses on:

Accepted Answer

A)  Using all the available resources and technology. 
B)  Increasing the amount of available resources. 
C)  Improving the level of technology. 
D)  Holding the population level constant while growing GDP. 
A)  Using all the available resources and technology. 
B)  Increasing the amount of available resources. 
C)  Improving the level of technology. 
D)  Holding the population level constant while growing GDP.

Question 15

Real GDP is the most effective measure for determining the:

Accepted Answer

A)  Income level per household. 
B)  Change in the price level. 
C)  Standard of living across countries. 
D)  Growth rate of the economy over time. 
A)  Income level per household. 
B)  Change in the price level. 
C)  Standard of living across countries. 
D)  Growth rate of the economy over time.

Question 16

Which of the following has historically made the greatest contribution to U.S.economic growth?

Accepted Answer

A)  Research and development. 
B)  Improved management training. 
C)  Increased worker productivity. 
D)  Better education and training for workers. 
A)  Research and development. 
B)  Improved management training. 
C)  Increased worker productivity. 
D)  Better education and training for workers.

Question 17

If real GDP was $600 billion in 2006 and $660 billion in 2007,the economic growth rate was approximately ___ percent.

Accepted Answer

A)  11.2 
B)  10.0 
C)  9.5 
D)  9.1 
A)  11.2 
B)  10.0 
C)  9.5 
D)  9.1

Question 18

If an economy moves from a point inside the production possibilities curve to a point on the curve:

Accepted Answer

A)  There is increased use of the productive capacity. 
B)  The level of unemployment has increased. 
C)  The available resources must have increased. 
D)  The level of technology must have increased. 
A)  There is increased use of the productive capacity. 
B)  The level of unemployment has increased. 
C)  The available resources must have increased. 
D)  The level of technology must have increased.

Question 19

Real GDP,not nominal GDP,is used to measure economic growth.

Accepted Answer

A) True 
 B)False

Question 20

When an economy experiences long-run growth there will be:

Accepted Answer

A)  An increase in potential GDP. 
B)  An increase in the use of existing productive capacity. 
C)  A shift in aggregate supply to the left. 
D)  A commitment to expansionary fiscal policy. 
A)  An increase in potential GDP. 
B)  An increase in the use of existing productive capacity. 
C)  A shift in aggregate supply to the left. 
D)  A commitment to expansionary fiscal policy.

In addition to generating more output,economic growth can also contribute to:

The change in real output between two time periods divided by total output in the base period is the formula for:

A decrease in the tax rate on capital gains can:

Which of the following is not likely to contribute to gains in productivity?

Political and economic stability are important for long-run economic growth.

GDP per capita measures worker productivity.

One News Wire article,titled "House Poised to Pass STEM Immigration Bill" explains the Senate immigration bill that favors those with certain job skills and education.This type of immigration policy contributes to:

When living standards rise because of an increase in GDP per capita,the amount of leisure time decreases.

Which of the following is definitely true when nominal GDP increases?

A sustained increase in total output is possible only if the aggregate _ curve shifts to the .

Crowding out is most likely to occur when the federal government:

Sustained increases in total output are possible if aggregate supply shifts to the left.

Crowding in directly limits private investment and can constrain economic growth.

Short-run economic growth focuses on:

Real GDP is the most effective measure for determining the:

Which of the following has historically made the greatest contribution to U.S.economic growth?

If real GDP was $600 billion in 2006 and $660 billion in 2007,the economic growth rate was approximately ___ percent.

If an economy moves from a point inside the production possibilities curve to a point on the curve:

Real GDP,not nominal GDP,is used to measure economic growth.

When an economy experiences long-run growth there will be:

The Challenge of Economics

The US Economy

Supply and Demand

Consumer Demand

Supply Decisions

Competition

Monopoly

The Labor Market

Government Intervention

The Business Cycle

Aggregate Supply and Demand

Fiscal Policy

Money and Banks

Monetary Policy

Theory and Reality

International Trade

Filters

Exam 15: Economic Growth

In addition to generating more output,economic growth can also contribute to:

The change in real output between two time periods divided by total output in the base period is the formula for:

A decrease in the tax rate on capital gains can:

Which of the following is not likely to contribute to gains in productivity?

Political and economic stability are important for long-run economic growth.

GDP per capita measures worker productivity.

One News Wire article,titled "House Poised to Pass STEM Immigration Bill" explains the Senate immigration bill that favors those with certain job skills and education.This type of immigration policy contributes to:

When living standards rise because of an increase in GDP per capita,the amount of leisure time decreases.

Which of the following is definitely true when nominal GDP increases?

A sustained increase in total output is possible only if the aggregate _____ curve shifts to the ____.

Crowding out is most likely to occur when the federal government:

Sustained increases in total output are possible if aggregate supply shifts to the left.

Crowding in directly limits private investment and can constrain economic growth.

Short-run economic growth focuses on:

Real GDP is the most effective measure for determining the:

Which of the following has historically made the greatest contribution to U.S.economic growth?

If real GDP was $600 billion in 2006 and $660 billion in 2007,the economic growth rate was approximately ___ percent.

If an economy moves from a point inside the production possibilities curve to a point on the curve:

Real GDP,not nominal GDP,is used to measure economic growth.

When an economy experiences long-run growth there will be:

The Challenge of Economics

The US Economy

Supply and Demand

Consumer Demand

Supply Decisions

Competition

Monopoly

The Labor Market

Government Intervention

The Business Cycle

Aggregate Supply and Demand

Fiscal Policy

Money and Banks

Monetary Policy

Theory and Reality

International Trade

Filters

A sustained increase in total output is possible only if the aggregate _ curve shifts to the .