Question 1

Property rights are a tangible factor in producing economic growth.

Accepted Answer

A) True 
 B)False  False

Question 2

Neoclassical growth theory placed emphasis on two resources:

Accepted Answer

A) capital and entrepreneurship. 
B) natural resources and capital. 
C) capital and labor. 
D) labor and entrepreneurship. 
E) labor and natural resources. 
A) capital and entrepreneurship. 
B) natural resources and capital. 
C) capital and labor. 
D) labor and entrepreneurship. 
E) labor and natural resources. C

Question 3

According to new growth theory,discovering and implementing new __________ is what causes economic growth.

Accepted Answer

A) ways of managing personnel 
B) manufacturing techniques 
C) ideas 
D) resource sources 
E) none of the above 
A) ways of managing personnel 
B) manufacturing techniques 
C) ideas 
D) resource sources 
E) none of the above C

Question 4

In the production function Real GDP = T (L,K),the T stands for tax coefficient.

Accepted Answer

A) True 
 B)False

Question 5

Examples of physical capital include _______________________.Examples of human capital include ______________________________.

Accepted Answer

A) knowledge one picks up through education and training;factories and computers 
B) machines and factories;chairs and desks 
C) knowledge one picks up through education and experience;factories and machines 
D) machines and factories;knowledge one picks up through education and training 
A) knowledge one picks up through education and training;factories and computers 
B) machines and factories;chairs and desks 
C) knowledge one picks up through education and experience;factories and machines 
D) machines and factories;knowledge one picks up through education and training

Question 6

The Real GDP of country X doubled in 10 years.It follows that

Accepted Answer

A) the per-capita Real GDP doubled during this time,too. 
B) the per-capita Real GDP remained stable during this time. 
C) the per-capita Real GDP fell during this time. 
D) disposable income also doubled during this time. 
E) none of the above 
A) the per-capita Real GDP doubled during this time,too. 
B) the per-capita Real GDP remained stable during this time. 
C) the per-capita Real GDP fell during this time. 
D) disposable income also doubled during this time. 
E) none of the above

Question 7

When a production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis,a rise in labor ________________________which shifts the LRAS curve ____________ resulting in ______________________.

Accepted Answer

A) shifts the production function up;rightward;economic growth 
B) shifts the production function down;leftward;a shrinking economy 
C) moves us up along a given production function;rightward;economic growth 
D) moves us down along a given production function;leftward;a shrinking economy 
A) shifts the production function up;rightward;economic growth 
B) shifts the production function down;leftward;a shrinking economy 
C) moves us up along a given production function;rightward;economic growth 
D) moves us down along a given production function;leftward;a shrinking economy

Question 8

If an economy can increase its steady annual growth rate from 2 percent to 3 percent,this reduces the time it takes for the economy to double in size by __________ years.

Accepted Answer

A) 5 
B) 8 
C) 12 
D) 17 
E) 20 
A) 5 
B) 8 
C) 12 
D) 17 
E) 20

Question 9

Research by Harvard economists Barro and McCleary revealed that church attendance and economic growth have a(n)_______________ relationship.They also found that specific religious beliefs (in heaven,hell,and afterlife)and economic growth have a(n)___________ relationship.

Accepted Answer

A) inverse;inverse 
B) direct;direct 
C) inverse;direct 
D) direct;inverse 
A) inverse;inverse 
B) direct;direct 
C) inverse;direct 
D) direct;inverse

Question 10

Exhibit 17-4      
-Refer to Exhibit 17-5.Based on the equation given in this exhibit,if you read 2 books,study for 3 hours,have an instructor whose quality of instruction is ranked as 4,and your motivation to learn is ranked as 7,what is the amount of learning that you will acquire?

Accepted Answer

A) 2.65 
B) 9.65 
C) 16 
D) 4.55 
A) 2.65 
B) 9.65 
C) 16 
D) 4.55

Question 11

The term economic growth can be used in reference to absolute real economic growth or to per- capita real economic growth.

Accepted Answer

A) True 
 B)False

Question 12

According to Paul Romer,one way to produce more ideas and knowledge is by

Accepted Answer

A) investing in research and development. 
B) giving the federal government more control over the direction of research. 
C) giving businesses less control over federal research monies. 
D) a,b and c 
A) investing in research and development. 
B) giving the federal government more control over the direction of research. 
C) giving businesses less control over federal research monies. 
D) a,b and c

Question 13

When income taxes are lowered in a given economy,it causes the supply of labor curve to shift __________which ___________ the equilibrium quantity of labor employed.In terms of the production function (graphed with labor on the horizontal axis and Real GDP on the vertical axis)this then causes _______________,which makes the LRAS curve shift ____________ resulting in ______________________.

Accepted Answer

A) rightward;raises;the production function to shift upward;rightward;economic growth 
B) leftward;lowers;the production function to shift downward;leftward;a shrinking economy 
C) rightward;raises;a movement up along a given production function;rightward;economic growth 
D) rightward;raises;a movement down along a given production function;leftward;a shrinking economy 
A) rightward;raises;the production function to shift upward;rightward;economic growth 
B) leftward;lowers;the production function to shift downward;leftward;a shrinking economy 
C) rightward;raises;a movement up along a given production function;rightward;economic growth 
D) rightward;raises;a movement down along a given production function;leftward;a shrinking economy

Question 14

In the production function Real GDP = T (L,K,NR,H),the T represents the _____________ coefficient,the L represents ________________,the K represents _______________,the NR represents natural resources,and the H represents ________________.

Accepted Answer

A) tax;labor;capital;humanity 
B) technology;labor;knowledge;humanity 
C) technology;labor;capital;human capital 
D) trade;labor;knowledge;human capital 
A) tax;labor;capital;humanity 
B) technology;labor;knowledge;humanity 
C) technology;labor;capital;human capital 
D) trade;labor;knowledge;human capital

Question 15

In the production function,the variable K represents human capital.

Accepted Answer

A) True 
 B)False

Question 16

If the annual growth rate in Real GDP is 2 percent,then it will take 50 years for the economy to double in size.

Accepted Answer

A) True 
 B)False

Question 17

If an economy's steady annual growth rate falls from 2.5 percent to 2.0 percent,this adds __________ years to the time it takes for the economy to double in size.

Accepted Answer

A) 24.0 
B) 7.0 
C) 5.3 
D) 10.2 
A) 24.0 
B) 7.0 
C) 5.3 
D) 10.2

Question 18

An economy growing at a steady rate of 3.1 percent per year doubles in size approximately every __________ years.

Accepted Answer

A) 40 
B) 23 
C) 32 
D) 16 
A) 40 
B) 23 
C) 32 
D) 16

Question 19

_______________________ specifies the relation between technology and the factor inputs to output.

Accepted Answer

A) Neoclassical growth theory 
B) Meta-ideas 
C) The LRAS curve 
D) A production function 
A) Neoclassical growth theory 
B) Meta-ideas 
C) The LRAS curve 
D) A production function

Question 20

When a production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis,a rise in labor ________________________,and a rise in the technology coefficient __________________.

Accepted Answer

A) shifts the production function upward;also shifts the production function upward 
B) moves us up along a given production function;shifts the production function upward 
C) shifts the production function downward;shifts the production function upward 
D) shifts the production function upward;moves us up along a given production function 
A) shifts the production function upward;also shifts the production function upward 
B) moves us up along a given production function;shifts the production function upward 
C) shifts the production function downward;shifts the production function upward 
D) shifts the production function upward;moves us up along a given production function

Exam 17: Economic Growth: Resources, technology, ideas, and Institutions

Property rights are a tangible factor in producing economic growth.

Neoclassical growth theory placed emphasis on two resources:

According to new growth theory,discovering and implementing new __________ is what causes economic growth.

In the production function Real GDP = T (L,K),the T stands for tax coefficient.

Examples of physical capital include _______________________.Examples of human capital include ______________________________.

The Real GDP of country X doubled in 10 years.It follows that

When a production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis,a rise in labor ________________________which shifts the LRAS curve ____________ resulting in ______________________.

If an economy can increase its steady annual growth rate from 2 percent to 3 percent,this reduces the time it takes for the economy to double in size by __________ years.

Research by Harvard economists Barro and McCleary revealed that church attendance and economic growth have a(n)_______________ relationship.They also found that specific religious beliefs (in heaven,hell,and afterlife)and economic growth have a(n)___________ relationship.

Exhibit 17-4 -Refer to Exhibit 17-5.Based on the equation given in this exhibit,if you read 2 books,study for 3 hours,have an instructor whose quality of instruction is ranked as 4,and your motivation to learn is ranked as 7,what is the amount of learning that you will acquire?

The term economic growth can be used in reference to absolute real economic growth or to per- capita real economic growth.

According to Paul Romer,one way to produce more ideas and knowledge is by

In the production function Real GDP = T (L,K,NR,H),the T represents the _____________ coefficient,the L represents ________________,the K represents _______________,the NR represents natural resources,and the H represents ________________.

In the production function,the variable K represents human capital.

If the annual growth rate in Real GDP is 2 percent,then it will take 50 years for the economy to double in size.

If an economy's steady annual growth rate falls from 2.5 percent to 2.0 percent,this adds __________ years to the time it takes for the economy to double in size.

An economy growing at a steady rate of 3.1 percent per year doubles in size approximately every __________ years.

_______________________ specifies the relation between technology and the factor inputs to output.

When a production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis,a rise in labor ________________________,and a rise in the technology coefficient __________________.

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, controlled, and Relative

Supply,demand,and Price: Applications

Macroeconomic Measurements, part I: Prices and Unemployment

Macroeconomic Measurements, part II: GDP and Real GDP

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self-Regulating Economy

Keynesian Macroeconomics and Economic Instability: a Critique of the Self-Regulating Economy

Fiscal Policy and the Federal Budget

Money,banking,and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

The Financial Crisis of 2007-2009

Debates in Macroeconomics Over the Role and Effects of Government

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

Globalization and International Impacts on the Economy

The Economic Case for and Against Government: Five Topics Considered

Stocks, bonds, futures, and Options

Filters

Examples of physical capital include _.Examples of human capital include ________.

When a production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis,a rise in labor __which shifts the LRAS curve resulting in .

Research by Harvard economists Barro and McCleary revealed that church attendance and economic growth have a(n)_____ relationship.They also found that specific religious beliefs (in heaven,hell,and afterlife)and economic growth have a(n)_ relationship.

In the production function Real GDP = T (L,K,NR,H),the T represents the _____ coefficient,the L represents ,the K represents _,the NR represents natural resources,and the H represents __________.

When a production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis,a rise in labor ______,and a rise in the technology coefficient .