Question 1

Sources of productivity growth include all of the following except:

Accepted Answer

A)  An increase in the ratio of capital to labor. 
B)  An increase in the price level. 
C)  Better use of available resources in the production process. 
D)  An increase in labor skills. 
A)  An increase in the ratio of capital to labor. 
B)  An increase in the price level. 
C)  Better use of available resources in the production process. 
D)  An increase in labor skills.

Question 2

Long-run economic growth policies focus on:

Accepted Answer

A)  Shifting the aggregate demand curve to the left. 
B)  Moving the economy along the production possibilities curve. 
C)  Shifting the production possibilities curve outward. 
D)  Moving the economy onto the production possibilities curve. 
A)  Shifting the aggregate demand curve to the left. 
B)  Moving the economy along the production possibilities curve. 
C)  Shifting the production possibilities curve outward. 
D)  Moving the economy onto the production possibilities curve.

Question 3

Which of the following does not contribute to economic freedom?

Accepted Answer

A)  Government regulation of production processes. 
B)  Government enforced property rights. 
C)  Government enforced legal rights. 
D)  Government established political rights. 
A)  Government regulation of production processes. 
B)  Government enforced property rights. 
C)  Government enforced legal rights. 
D)  Government established political rights.

Question 4

Which of the following will cause the aggregate supply curve to shift to the left?

Accepted Answer

A)  A lower tax rate. 
B)  Deregulation of production processes. 
C)  A higher minimum wage. 
D)  More job and skills training. 
A)  A lower tax rate. 
B)  Deregulation of production processes. 
C)  A higher minimum wage. 
D)  More job and skills training.

Question 5

GDP per capita is used to measure the standard of living.

Accepted Answer

A) True 
 B)False

Question 6

Deregulation shifts the aggregate supply curve to the right by reducing costs and releasing resources for other uses.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is the best measure of the growth rate of the economy?

Accepted Answer

A)  The percentage change in real GDP. 
B)  Investment as a percentage of real GDP. 
C)  Real GDP per capita. 
D)  Real GDP per worker. 
A)  The percentage change in real GDP. 
B)  Investment as a percentage of real GDP. 
C)  Real GDP per capita. 
D)  Real GDP per worker.

Question 8

Which of the following is true if an economy is producing inside its production possibilities curve?

Accepted Answer

A)  There are not enough resources available to reach the curve. 
B)  More output can be produced with existing resources. 
C)  The available technology is limiting the level of production. 
D)  The economy is producing the maximum potential output. 
A)  There are not enough resources available to reach the curve. 
B)  More output can be produced with existing resources. 
C)  The available technology is limiting the level of production. 
D)  The economy is producing the maximum potential output.

Question 9

Fiscal and monetary policies are used to shift the:

Accepted Answer

A)  Aggregate demand curve. 
B)  Aggregate supply curve. 
C)  Production possibilities curve. 
D)  Real GDP curve. 
A)  Aggregate demand curve. 
B)  Aggregate supply curve. 
C)  Production possibilities curve. 
D)  Real GDP curve.

Question 10

An increase in nominal GDP means that there has been an outward shift of the production possibilities curve.

Accepted Answer

A) True 
 B)False

Question 11

An increase in our production possibilities is known as:

Accepted Answer

A)  Inflation. 
B)  Crowding out. 
C)  GDP per capita. 
D)  Economic growth. 
A)  Inflation. 
B)  Crowding out. 
C)  GDP per capita. 
D)  Economic growth.

Question 12

Ceteris paribus,when new immigrants enter a country:

Accepted Answer

A)  Production possibilities decrease. 
B)  Aggregate supply shifts to the left. 
C)  The size of the labor force increases. 
D)  Crowding in occurs. 
A)  Production possibilities decrease. 
B)  Aggregate supply shifts to the left. 
C)  The size of the labor force increases. 
D)  Crowding in occurs.

Question 13

Additional capital contributes to economic growth by:

Accepted Answer

A)  Replacing labor and increasing unemployment. 
B)  Enhancing labor productivity. 
C)  Replacing manufacturing industries with service industries. 
D)  Giving savers more money to put into investment. 
A)  Replacing labor and increasing unemployment. 
B)  Enhancing labor productivity. 
C)  Replacing manufacturing industries with service industries. 
D)  Giving savers more money to put into investment.

Question 14

Short-run economic policy attempts to shift the production possibilities curve outward.

Accepted Answer

A) True 
 B)False

Question 15

If real GDP was $750 billion in 2006 and $800 billion in 2007,the economic growth rate was approximately ___ percent.

Accepted Answer

A)  6.7 
B)  6.3 
C)  5.0 
D)  3.3 
A)  6.7 
B)  6.3 
C)  5.0 
D)  3.3

Question 16

There is an inverse relationship between the growth rate of capital and the growth rate of an economy.

Accepted Answer

A) True 
 B)False

Question 17

Growth in GDP per capita can only occur if the growth in:

Accepted Answer

A)  Output is greater than the growth in population. 
B)  Employment is greater than the growth in prices. 
C)  Population is greater than the growth in unemployment. 
D)  Prices is greater than the growth in output. 
A)  Output is greater than the growth in population. 
B)  Employment is greater than the growth in prices. 
C)  Population is greater than the growth in unemployment. 
D)  Prices is greater than the growth in output.

Question 18

Which of the following is used to measure labor productivity?

Accepted Answer

A)  Labor input divided by total output. 
B)  Output per labor hour. 
C)  Hourly wage rate divided by output per labor hour. 
D)  Dollar value of inputs per unit of output. 
A)  Labor input divided by total output. 
B)  Output per labor hour. 
C)  Hourly wage rate divided by output per labor hour. 
D)  Dollar value of inputs per unit of output.

Question 19

The proportion of the adult population that is employed is the:

Accepted Answer

A)  Unemployment rate. 
B)  Employment rate. 
C)  GDP per capita. 
D)  Productivity rate. 
A)  Unemployment rate. 
B)  Employment rate. 
C)  GDP per capita. 
D)  Productivity rate.

Question 20

All persons over age 16 who are either working for pay or actively seeking paid employment defines:

Accepted Answer

A)  Labor force. 
B)  Employment rate. 
C)  GDP per capita. 
D)  Productivity rate. 
A)  Labor force. 
B)  Employment rate. 
C)  GDP per capita. 
D)  Productivity rate.

Sources of productivity growth include all of the following except:

Long-run economic growth policies focus on:

Which of the following does not contribute to economic freedom?

Which of the following will cause the aggregate supply curve to shift to the left?

GDP per capita is used to measure the standard of living.

Deregulation shifts the aggregate supply curve to the right by reducing costs and releasing resources for other uses.

Which of the following is the best measure of the growth rate of the economy?

Which of the following is true if an economy is producing inside its production possibilities curve?

Fiscal and monetary policies are used to shift the:

An increase in nominal GDP means that there has been an outward shift of the production possibilities curve.

An increase in our production possibilities is known as:

Ceteris paribus,when new immigrants enter a country:

Additional capital contributes to economic growth by:

Short-run economic policy attempts to shift the production possibilities curve outward.

If real GDP was $750 billion in 2006 and $800 billion in 2007,the economic growth rate was approximately ___ percent.

There is an inverse relationship between the growth rate of capital and the growth rate of an economy.

Growth in GDP per capita can only occur if the growth in:

Which of the following is used to measure labor productivity?

The proportion of the adult population that is employed is the:

All persons over age 16 who are either working for pay or actively seeking paid employment defines:

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

Sources of productivity growth include all of the following except:

Long-run economic growth policies focus on:

Which of the following does not contribute to economic freedom?

Which of the following will cause the aggregate supply curve to shift to the left?

GDP per capita is used to measure the standard of living.

Deregulation shifts the aggregate supply curve to the right by reducing costs and releasing resources for other uses.

Which of the following is the best measure of the growth rate of the economy?

Which of the following is true if an economy is producing inside its production possibilities curve?

Fiscal and monetary policies are used to shift the:

An increase in nominal GDP means that there has been an outward shift of the production possibilities curve.

An increase in our production possibilities is known as:

Ceteris paribus,when new immigrants enter a country:

Additional capital contributes to economic growth by:

Short-run economic policy attempts to shift the production possibilities curve outward.

If real GDP was $750 billion in 2006 and $800 billion in 2007,the economic growth rate was approximately ___ percent.

There is an inverse relationship between the growth rate of capital and the growth rate of an economy.

Growth in GDP per capita can only occur if the growth in:

Which of the following is used to measure labor productivity?

The proportion of the adult population that is employed is the:

All persons over age 16 who are either working for pay or actively seeking paid employment defines:

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