Question 1

Capital investment is a primary determinant of productivity and growth.

Accepted Answer

A) True 
 B)False

Question 2

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 should cause:

Accepted Answer

A)  Short-run changes in capacity use. 
B)  Movement along the production possibilities curve. 
C)  Expansion of the production possibilities curve. 
D)  An increase in unemployment as more workers immigrate. 
A)  Short-run changes in capacity use. 
B)  Movement along the production possibilities curve. 
C)  Expansion of the production possibilities curve. 
D)  An increase in unemployment as more workers immigrate.

Question 3

More technically advanced capital makes its contribution to productivity by:

Accepted Answer

A)  Replacing labor and increasing unemployment. 
B)  Enhancing labor productivity. 
C)  Increasing profits for producers. 
D)  Increasing nominal GDP. 
A)  Replacing labor and increasing unemployment. 
B)  Enhancing labor productivity. 
C)  Increasing profits for producers. 
D)  Increasing nominal GDP.

Question 4

If GDP per capita grows at a constant rate of 6 percent per year,using the "rule of 72" it will take approximately ___ years for GDP per capita to double.

Accepted Answer

A)  6 
B)  10 
C)  12 
D)  72 
A)  6 
B)  10 
C)  12 
D)  72

Question 5

If GDP was $7,500 billion in 2007 and the population was 250 million,then GDP per capita was approximately:

Accepted Answer

A)  $33,333. 
B)  $32,042. 
C)  $30,000. 
D)  $28,000. 
A)  $33,333. 
B)  $32,042. 
C)  $30,000. 
D)  $28,000.

Question 6

Growth in GDP per capita is only possible if growth in _______ exceeds growth in ______.

Accepted Answer

A)  Employment;output 
B)  Output;prices 
C)  Prices;employment 
D)  Output;population 
A)  Employment;output 
B)  Output;prices 
C)  Prices;employment 
D)  Output;population

Question 7

Government policies to encourage saving are meant to:

Accepted Answer

A)  Increase economic growth. 
B)  Decrease aggregate supply. 
C)  Increase the level of consumption. 
D)  Increase the price level. 
A)  Increase economic growth. 
B)  Decrease aggregate supply. 
C)  Increase the level of consumption. 
D)  Increase the price level.

Question 8

The best measurement for comparing the standard of living between two countries is:

Accepted Answer

A)  The ratio of current GDP to GDP in the base period. 
B)  GDP per capita. 
C)  Investment as a percentage of GDP. 
D)  GDP per worker. 
A)  The ratio of current GDP to GDP in the base period. 
B)  GDP per capita. 
C)  Investment as a percentage of GDP. 
D)  GDP per worker.

Question 9

To produce a combination of goods and services beyond the current production possibilities curve,an economy must:

Accepted Answer

A)  Use more of the available resources and technology. 
B)  Raise the prices of goods and services so that firms will produce more. 
C)  Find more resources or develop new technology. 
D)  Experience population growth. 
A)  Use more of the available resources and technology. 
B)  Raise the prices of goods and services so that firms will produce more. 
C)  Find more resources or develop new technology. 
D)  Experience population growth.

Question 10

If the total output for an economy is equal to $750 billion and the total number of labor hours is 20 billion,then labor productivity is equal to:

Accepted Answer

A)  $15.00 per hour. 
B)  $20.00 per hour. 
C)  $37.50 per hour. 
D)  $75.00 per hour. 
A)  $15.00 per hour. 
B)  $20.00 per hour. 
C)  $37.50 per hour. 
D)  $75.00 per hour.

Question 11

Government policies that shift aggregate supply to the right include:

Accepted Answer

A)  Immigration preferences based on potential productivity. 
B)  Increased transfer payments to the unemployed. 
C)  Elimination of training programs for the structurally unemployed. 
D)  Reduction in job search assistance. 
A)  Immigration preferences based on potential productivity. 
B)  Increased transfer payments to the unemployed. 
C)  Elimination of training programs for the structurally unemployed. 
D)  Reduction in job search assistance.

Question 12

Which of the following is credited with making the greatest contribution to economic growth over time for the United States?

Accepted Answer

A)  Improved management techniques. 
B)  Investment in capital. 
C)  Research and development. 
D)  Increased education. 
A)  Improved management techniques. 
B)  Investment in capital. 
C)  Research and development. 
D)  Increased education.

Question 13

By using all available resources and technology the economy will:

Accepted Answer

A)  Shift aggregate supply to the right. 
B)  Shift the production possibilities curve to the right. 
C)  Experience long-run economic growth. 
D)  Produce at a point on the production possibilities curve. 
A)  Shift aggregate supply to the right. 
B)  Shift the production possibilities curve to the right. 
C)  Experience long-run economic growth. 
D)  Produce at a point on the production possibilities curve.

Question 14

Dollars spent on education and training:

Accepted Answer

A)  Increase short-run growth but not long-run growth. 
B)  Increase both short-run and long-run growth. 
C)  Increase long-run growth but not short-run growth. 
D)  Affect the level of productivity but do not affect growth. 
A)  Increase short-run growth but not long-run growth. 
B)  Increase both short-run and long-run growth. 
C)  Increase long-run growth but not short-run growth. 
D)  Affect the level of productivity but do not affect growth.

Question 15

If real GDP grows at a constant rate of 2 percent per year,using the "rule of 72" it will take approximately ___ years for real GDP to double.

Accepted Answer

A)  10 
B)  15 
C)  20 
D)  36 
A)  10 
B)  15 
C)  20 
D)  36

Question 16

Which of the following will reduce labor productivity?

Accepted Answer

A)  An increase in the ratio of labor to capital. 
B)  A higher savings rate. 
C)  An increase in literacy. 
D)  An increase in capital stock. 
A)  An increase in the ratio of labor to capital. 
B)  A higher savings rate. 
C)  An increase in literacy. 
D)  An increase in capital stock.

Question 17

Ceteris paribus,if the labor force becomes more educated,then productivity increases.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following measures the actual quantity of goods and services produced in the United States?

Accepted Answer

A)  Nominal GDP. 
B)  GDP per worker. 
C)  Real GDP per capita. 
D)  Real GDP. 
A)  Nominal GDP. 
B)  GDP per worker. 
C)  Real GDP per capita. 
D)  Real GDP.

Question 19

Productivity can be measured by output per labor hour.

Accepted Answer

A) True 
 B)False

Question 20

Government policies that support education and job training cause:

Accepted Answer

A)  A decrease in GDP per capita,since dollars are not being spent on output. 
B)  An increase in the size of the labor force. 
C)  An increase in productivity. 
D)  An increase in the ratio of capital to labor. 
A)  A decrease in GDP per capita,since dollars are not being spent on output. 
B)  An increase in the size of the labor force. 
C)  An increase in productivity. 
D)  An increase in the ratio of capital to labor.

Capital investment is a primary determinant of productivity and growth.

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 should cause:

More technically advanced capital makes its contribution to productivity by:

If GDP per capita grows at a constant rate of 6 percent per year,using the "rule of 72" it will take approximately ___ years for GDP per capita to double.

If GDP was $7,500 billion in 2007 and the population was 250 million,then GDP per capita was approximately:

Growth in GDP per capita is only possible if growth in _ exceeds growth in .

Government policies to encourage saving are meant to:

The best measurement for comparing the standard of living between two countries is:

To produce a combination of goods and services beyond the current production possibilities curve,an economy must:

If the total output for an economy is equal to $750 billion and the total number of labor hours is 20 billion,then labor productivity is equal to:

Government policies that shift aggregate supply to the right include:

Which of the following is credited with making the greatest contribution to economic growth over time for the United States?

By using all available resources and technology the economy will:

Dollars spent on education and training:

If real GDP grows at a constant rate of 2 percent per year,using the "rule of 72" it will take approximately ___ years for real GDP to double.

Which of the following will reduce labor productivity?

Ceteris paribus,if the labor force becomes more educated,then productivity increases.

Which of the following measures the actual quantity of goods and services produced in the United States?

Productivity can be measured by output per labor hour.

Government policies that support education and job training cause:

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

Capital investment is a primary determinant of productivity and growth.

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 should cause:

More technically advanced capital makes its contribution to productivity by:

If GDP per capita grows at a constant rate of 6 percent per year,using the "rule of 72" it will take approximately ___ years for GDP per capita to double.

If GDP was $7,500 billion in 2007 and the population was 250 million,then GDP per capita was approximately:

Growth in GDP per capita is only possible if growth in _______ exceeds growth in ______.

Government policies to encourage saving are meant to:

The best measurement for comparing the standard of living between two countries is:

To produce a combination of goods and services beyond the current production possibilities curve,an economy must:

If the total output for an economy is equal to $750 billion and the total number of labor hours is 20 billion,then labor productivity is equal to:

Government policies that shift aggregate supply to the right include:

Which of the following is credited with making the greatest contribution to economic growth over time for the United States?

By using all available resources and technology the economy will:

Dollars spent on education and training:

If real GDP grows at a constant rate of 2 percent per year,using the "rule of 72" it will take approximately ___ years for real GDP to double.

Which of the following will reduce labor productivity?

Ceteris paribus,if the labor force becomes more educated,then productivity increases.

Which of the following measures the actual quantity of goods and services produced in the United States?

Productivity can be measured by output per labor hour.

Government policies that support education and job training cause:

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

Growth in GDP per capita is only possible if growth in _ exceeds growth in .