Question 1

Human capital is

Accepted Answer

A) the saving done by human beings. 
B) the knowledge and skills that people in the work force acquire through education and training. 
C) a measure of the labour productivity of workers. 
D) the investment people make in industries that make capital goods. 
A) the saving done by human beings. 
B) the knowledge and skills that people in the work force acquire through education and training. 
C) a measure of the labour productivity of workers. 
D) the investment people make in industries that make capital goods. B

Question 2

What is the human Development Index (HDI),and what does it measure?

Accepted Answer

The HDI was developed by the United Nations to measure how nations are developing,recognizes the problem of defining economic variable across countries in measuring national income,education and life expectancy.

Question 3

A small reduction in a country's growth rate is a concern to policy makers because

Accepted Answer

A) a small change can have large effects on per capita GDP over time. 
B) a reduction usually leads to future reductions until finally the economy stagnates. 
C) policy makers focus too much on economic growth and not enough on increasing savings rates. 
D) the larger GDP is the better the economic welfare will be in the future. 
A) a small change can have large effects on per capita GDP over time. 
B) a reduction usually leads to future reductions until finally the economy stagnates. 
C) policy makers focus too much on economic growth and not enough on increasing savings rates. 
D) the larger GDP is the better the economic welfare will be in the future. A

Question 4

Productivity is ________ if we produce less output with the same labour hours.

Accepted Answer

A) increasing 
B) not changing 
C) decreasing 
D) proportional 
A) increasing 
B) not changing 
C) decreasing 
D) proportional

Question 5

The benefits from research and development activities

Accepted Answer

A) are limited to the firm winning a patent. 
B) are limited to the firms investing in similar research and development projects. 
C) are limited to the nation in which the research and development is taking place. 
D) spill over to others,including foreigners. 
A) are limited to the firm winning a patent. 
B) are limited to the firms investing in similar research and development projects. 
C) are limited to the nation in which the research and development is taking place. 
D) spill over to others,including foreigners.

Question 6

Economic growth may understate changes in standards of living if

Accepted Answer

A) the growth is accompanied by increasing congestion. 
B) leisure time is also increasing. 
C) the types of jobs generated feelings of alienation. 
D) deflation is taking place. 
A) the growth is accompanied by increasing congestion. 
B) leisure time is also increasing. 
C) the types of jobs generated feelings of alienation. 
D) deflation is taking place.

Question 7

Many countries find it difficult to achieve economic growth.This is because economic growth

Accepted Answer

A) is not understood well by economists,so it is difficult to advise policy makers on the best policies to pursue. 
B) requires saving and saving means less consumption today.A poor country may find it difficult to consume less today. 
C) appears to be predetermined and not subject to factors that policy makers can have any affect on. 
D) depends on technological change and technological change depends on non-economic factors such as the growth rate of scientific knowledge. 
A) is not understood well by economists,so it is difficult to advise policy makers on the best policies to pursue. 
B) requires saving and saving means less consumption today.A poor country may find it difficult to consume less today. 
C) appears to be predetermined and not subject to factors that policy makers can have any affect on. 
D) depends on technological change and technological change depends on non-economic factors such as the growth rate of scientific knowledge.

Question 8

Productivity is ________ if we produce the same output with more labour hours.

Accepted Answer

A) increasing 
B) not changing 
C) decreasing 
D) proportional 
A) increasing 
B) not changing 
C) decreasing 
D) proportional

Question 9

A higher rate of savings should lead to

Accepted Answer

A) higher current consumption. 
B) less growth. 
C) more investment,capital growth,and future consumption. 
D) a higher price level and reduced future consumption. 
A) higher current consumption. 
B) less growth. 
C) more investment,capital growth,and future consumption. 
D) a higher price level and reduced future consumption.

Question 10

If population growth is less than growth of real output,

Accepted Answer

A) real per capita GDP growth will be less than the growth of GDP. 
B) there can be no economic growth. 
C) real per capita GDP growth will be greater than the growth of GDP. 
D) real per capita GDP and GDP will be growing at the same rate. 
A) real per capita GDP growth will be less than the growth of GDP. 
B) there can be no economic growth. 
C) real per capita GDP growth will be greater than the growth of GDP. 
D) real per capita GDP and GDP will be growing at the same rate.

Question 11

Entrepreneurship functions less effectively when

Accepted Answer

A) the government performs the entrepreneurial function. 
B) the property rights system is not very well-defined . 
C) saving is relatively low. 
D) most of the population has low levels of education. 
A) the government performs the entrepreneurial function. 
B) the property rights system is not very well-defined . 
C) saving is relatively low. 
D) most of the population has low levels of education.

Question 12

An increase in output per unit of labour may be attributable to

Accepted Answer

A) a movement along the production possibilities curve. 
B) lower wages. 
C) economic growth. 
D) all of these. 
A) a movement along the production possibilities curve. 
B) lower wages. 
C) economic growth. 
D) all of these.

Question 13

The less certain property rights are

Accepted Answer

A) the more people need to invest in education or human capital development. 
B) the more entrepreneurship there will be. 
C) the less capital accumulation there will be. 
D) the less an economy must grow to maintain a certain living standard. 
A) the more people need to invest in education or human capital development. 
B) the more entrepreneurship there will be. 
C) the less capital accumulation there will be. 
D) the less an economy must grow to maintain a certain living standard.

Question 14

Describe the New Growth theory and the factors that determine growth.

Accepted Answer

The new growth theory suggests that new

Question 15

Productivity relates to

Accepted Answer

A) working harder over time. 
B) working longer over time. 
C) producing the same output with fewer labour hours. 
D) producing the same output with more labour hours. 
A) working harder over time. 
B) working longer over time. 
C) producing the same output with fewer labour hours. 
D) producing the same output with more labour hours.

Question 16

Other things held constant,an increase in saving implies

Accepted Answer

A) a decrease in consumption spending. 
B) a decline in government spending. 
C) a lower standard of living in the future. 
D) economic growth will soon decrease. 
A) a decrease in consumption spending. 
B) a decline in government spending. 
C) a lower standard of living in the future. 
D) economic growth will soon decrease.

Question 17

What is labour productivity,and why is it important to economic growth?

Accepted Answer

Labour productivity is measured by divid

Question 18

Other things held constant,a decline in saving implies

Accepted Answer

A) an increase in consumption spending. 
B) a decline in government spending. 
C) a higher standard of living in the future. 
D) economic growth will soon increase. 
A) an increase in consumption spending. 
B) a decline in government spending. 
C) a higher standard of living in the future. 
D) economic growth will soon increase.

Question 19

When comparing across countries,the higher the rate of savings,

Accepted Answer

A) the lower the level of per capita real GDP. 
B) the higher the level of per capita real GDP. 
C) the less industrialized the country. 
D) the lower the productivity rates. 
A) the lower the level of per capita real GDP. 
B) the higher the level of per capita real GDP. 
C) the less industrialized the country. 
D) the lower the productivity rates.

Question 20

Why are economic growth and saving related?

Accepted Answer

To consume more in the future

Human capital is

What is the human Development Index (HDI),and what does it measure?

A small reduction in a country's growth rate is a concern to policy makers because

Productivity is ________ if we produce less output with the same labour hours.

The benefits from research and development activities

Economic growth may understate changes in standards of living if

Many countries find it difficult to achieve economic growth.This is because economic growth

Productivity is ________ if we produce the same output with more labour hours.

A higher rate of savings should lead to

If population growth is less than growth of real output,

Entrepreneurship functions less effectively when

An increase in output per unit of labour may be attributable to

The less certain property rights are

Describe the New Growth theory and the factors that determine growth.

Productivity relates to

Other things held constant,an increase in saving implies

What is labour productivity,and why is it important to economic growth?

Other things held constant,a decline in saving implies

When comparing across countries,the higher the rate of savings,

Why are economic growth and saving related?

The Nature of Economics

Production Possibilities and Economic Systems

Demand and Supply

Introduction to Macroeconomics

Measuring the Economys Performance

Modelling Real Gdp and the Price Level in the Long Run

Modelling Real Gdp and the Price Level in the Short Run

Consumption, investment, and the Multiplier

The Public Sector

Fiscal Policy and the Public Debt

Money and the Banking System

Money Creation and Deposit Insurance

The Bank of Canada and Monetary Policy

Issues in Stabilization Policy

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

Exam 7: Economic Growth and Development

Human capital is

What is the human Development Index (HDI),and what does it measure?

A small reduction in a country's growth rate is a concern to policy makers because

Productivity is ________ if we produce less output with the same labour hours.

The benefits from research and development activities

Economic growth may understate changes in standards of living if

Many countries find it difficult to achieve economic growth.This is because economic growth

Productivity is ________ if we produce the same output with more labour hours.

A higher rate of savings should lead to

If population growth is less than growth of real output,

Entrepreneurship functions less effectively when

An increase in output per unit of labour may be attributable to

The less certain property rights are

Describe the New Growth theory and the factors that determine growth.

Productivity relates to

Other things held constant,an increase in saving implies

What is labour productivity,and why is it important to economic growth?

Other things held constant,a decline in saving implies

When comparing across countries,the higher the rate of savings,

Why are economic growth and saving related?

The Nature of Economics

Production Possibilities and Economic Systems

Demand and Supply

Introduction to Macroeconomics

Measuring the Economys Performance

Modelling Real Gdp and the Price Level in the Long Run

Modelling Real Gdp and the Price Level in the Short Run

Consumption, investment, and the Multiplier

The Public Sector

Fiscal Policy and the Public Debt

Money and the Banking System

Money Creation and Deposit Insurance

The Bank of Canada and Monetary Policy

Issues in Stabilization Policy

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters