Question 1

Technological advances make it possible to

Accepted Answer

A) produce goods without using any resources. 
B) obtain the same output by using more resources. 
C) obtain the same output by using fewer resources. 
D) lower labor productivity. 
A) produce goods without using any resources. 
B) obtain the same output by using more resources. 
C) obtain the same output by using fewer resources. 
D) lower labor productivity.

Question 2

In contrast to neoclassical growth theory,new growth theory lays more emphasis on

Accepted Answer

A) intangibles than tangibles. 
B) tangibles than intangibles. 
C) changes in the money supply than changes in taxes. 
D) fiscal policy than monetary policy. 
E) objects than ideas. 
A) intangibles than tangibles. 
B) tangibles than intangibles. 
C) changes in the money supply than changes in taxes. 
D) fiscal policy than monetary policy. 
E) objects than ideas.

Question 3

Suppose that the production function for an economy is graphed with Real GDP on the vertical axis and labor on the horizontal axis.When the level of capital in this economy rises,it causes ____________________which shifts the LRAS curve ____________ resulting in ______________________.

Accepted Answer

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

Question 4

New growth theory puts emphasis on

Accepted Answer

A) ideas. 
B) experimenting with new ways of doing things. 
C) rearranging resources in ways that are more valuable. 
D) b and c 
E) a,b,and c 
A) ideas. 
B) experimenting with new ways of doing things. 
C) rearranging resources in ways that are more valuable. 
D) b and c 
E) a,b,and c

Question 5

Describe new growth theory.Explain how it differs from neoclassical growth theory.

Accepted Answer

Economists,such as Paul Romer,who adhere

Question 6

The concept that economic growth can do more than just give us more goods and services goes back to Adam Smith.

Accepted Answer

A) True 
 B)False

Question 7

"Absolute real economic growth" is defined as an increase in __________ from one period to the next.

Accepted Answer

A) GDP 
B) Real GDP 
C) Real GDP per person 
D) the inflation rate 
A) GDP 
B) Real GDP 
C) Real GDP per person 
D) the inflation rate

Question 8

Economists Barro and McCleary's research regarding the impact of religious beliefs on economic growth noted that a belief in hell matters more to economic growth than the belief in heaven.

Accepted Answer

A) True 
 B)False

Question 9

The term human capital refers to education,training and experience.

Accepted Answer

A) True 
 B)False

Question 10

An increase in nominal GDP

Accepted Answer

A) is absolute real economic growth. 
B) is per capita real economic growth. 
C) is both per capita and absolute real economic growth. 
D) does not necessarily mean either absolute or per capita real economic growth. 
A) is absolute real economic growth. 
B) is per capita real economic growth. 
C) is both per capita and absolute real economic growth. 
D) does not necessarily mean either absolute or per capita real economic growth.

Question 11

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

Accepted Answer

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

Question 12

Using the production function Real GDP = T (L,K),define the term production function and describe what each of the variables (T,L,and K)represents.When graphed with Real GDP on the vertical axis and labor on the horizontal axis,which variable(s)can shift the production function and which variable(s)can cause a movement along the production function?

Accepted Answer

A production function specifies the rela

Question 13

Exhibit 17-4      
-Refer to Exhibit 17-5.Based on the equation given in this exhibit,if your motivation to learn rises from 7 to 9,by how much will the amount of learning acquired rise as a result?

Accepted Answer

A) 2 
B) 0.8 
C) 1.6 
D) 8 
A) 2 
B) 0.8 
C) 1.6 
D) 8

Question 14

Exhibit 17-3    
-Refer to Exhibit 17-3 Assume that the starting point on the production function is point A.After an increase in the quantity of labor,there would be a ______________________ which would shift the LRAS curve from LRAS1 to _______________ resulting in _______________..

Accepted Answer

A) movement along the production function to point C;LRAS2;economic growth 
B) shifting upward of the production function to point B;LRAS2;economic growth 
C) movement along the production function to point C;LRAS3;a shrinking economy 
D) shifting upward of the production function to point B;LRAS3;a shrinking economy 
A) movement along the production function to point C;LRAS2;economic growth 
B) shifting upward of the production function to point B;LRAS2;economic growth 
C) movement along the production function to point C;LRAS3;a shrinking economy 
D) shifting upward of the production function to point B;LRAS3;a shrinking economy

Question 15

Using the production function Real GDP = T (L,K),and the LRAS curve,describe the process by which a decline in interest rates impacts the use of capital and economic growth.

Accepted Answer

Lower interest rates will lower the cost

Question 16

Neoclassical growth theory does not emphasize how __________ contribute to growth.

Accepted Answer

A) the quantity of capital 
B) technological changes 
C) the quantity of labor 
D) factors limiting population growth 
E) a and c 
A) the quantity of capital 
B) technological changes 
C) the quantity of labor 
D) factors limiting population growth 
E) a and c

Question 17

New growth theory holds technology to be __________;neoclassical growth theory holds technology to be __________.

Accepted Answer

A) exogenous;endogenous 
B) endogenous;endogenous 
C) endogenous;exogenous 
D) exogenous;exogenous 
A) exogenous;endogenous 
B) endogenous;endogenous 
C) endogenous;exogenous 
D) exogenous;exogenous

Question 18

Stan Laurel and Oliver Hardy acted separately in comedy shorts for the Hal Roach Studio for over a decade without greatly distinguishing themselves from hundreds of other screen comedians.Then in 1927,Roach writer-director Leo McCarey tried them out as a comedy team in one more routine short.Only then was the fantastic chemistry between "the fiddle and the bow" realized.The rest is immortality.This story relates to the "new growth theory" idea of

Accepted Answer

A) employee involvement. 
B) rearranging. 
C) exogeneity. 
D) objects and ideas. 
A) employee involvement. 
B) rearranging. 
C) exogeneity. 
D) objects and ideas.

Question 19

List and describe four factors that can contribute to economic growth.

Accepted Answer

The determinants of economic growth incl

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

Technological advances make it possible to

In contrast to neoclassical growth theory,new growth theory lays more emphasis on

Suppose that the production function for an economy is graphed with Real GDP on the vertical axis and labor on the horizontal axis.When the level of capital in this economy rises,it causes ____________________which shifts the LRAS curve ____________ resulting in ______________________.

New growth theory puts emphasis on

Describe new growth theory.Explain how it differs from neoclassical growth theory.

The concept that economic growth can do more than just give us more goods and services goes back to Adam Smith.

"Absolute real economic growth" is defined as an increase in __________ from one period to the next.

Economists Barro and McCleary's research regarding the impact of religious beliefs on economic growth noted that a belief in hell matters more to economic growth than the belief in heaven.

The term human capital refers to education,training and experience.

An increase in nominal GDP

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

Exhibit 17-4 -Refer to Exhibit 17-5.Based on the equation given in this exhibit,if your motivation to learn rises from 7 to 9,by how much will the amount of learning acquired rise as a result?

Exhibit 17-3 -Refer to Exhibit 17-3 Assume that the starting point on the production function is point A.After an increase in the quantity of labor,there would be a ______________________ which would shift the LRAS curve from LRAS1 to _______________ resulting in _______________..

Using the production function Real GDP = T (L,K),and the LRAS curve,describe the process by which a decline in interest rates impacts the use of capital and economic growth.

Neoclassical growth theory does not emphasize how __________ contribute to growth.

New growth theory holds technology to be __________;neoclassical growth theory holds technology to be __________.

List and describe four factors that can contribute to economic growth.

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

Suppose that the production function for an economy is graphed with Real GDP on the vertical axis and labor on the horizontal axis.When the level of capital in this economy rises,it causes which shifts the LRAS curve resulting in __.

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

Exhibit 17-3 -Refer to Exhibit 17-3 Assume that the starting point on the production function is point A.After an increase in the quantity of labor,there would be a ______________ which would shift the LRAS curve from LRAS₁ to _ resulting in _________..

New growth theory holds technology to be ;neoclassical growth theory holds technology to be .