Question 1

Economic growth will tend to be higher in a country that

Accepted Answer

A) has a low savings rate. 
B) has an open economy that encourages the rapid spread of technology. 
C) has an undeveloped system of property rights. 
D) does not grant patents to investors. 
A) has a low savings rate. 
B) has an open economy that encourages the rapid spread of technology. 
C) has an undeveloped system of property rights. 
D) does not grant patents to investors.

Question 2

A decrease in growth rates will cause the production possibilities curve to

Accepted Answer

A) shift inward. 
B) become steeper. 
C) become flatter. 
D) shift outward. 
A) shift inward. 
B) become steeper. 
C) become flatter. 
D) shift outward.

Question 3

Economic growth is best measured by increases in

Accepted Answer

A) nominal personal income. 
B) nominal GDP. 
C) per capita real GDP. 
D) per capita nominal GDP. 
A) nominal personal income. 
B) nominal GDP. 
C) per capita real GDP. 
D) per capita nominal GDP.

Question 4

The rate of economic growth will be faster

Accepted Answer

A) the greater the rate of growth of the money supply. 
B) the greater the rate of saving. 
C) the greater the rate of growth of the population. 
D) the greater consumption spending is. 
A) the greater the rate of growth of the money supply. 
B) the greater the rate of saving. 
C) the greater the rate of growth of the population. 
D) the greater consumption spending is.

Question 5

Population growth generally

Accepted Answer

A) encourages technological approach which increases economic growth. 
B) increases economic growth by stimulating more savings. 
C) reduces economic growth because more people are a drain on the limited resources. 
D) has no effect on economic growth on average. 
A) encourages technological approach which increases economic growth. 
B) increases economic growth by stimulating more savings. 
C) reduces economic growth because more people are a drain on the limited resources. 
D) has no effect on economic growth on average.

Question 6

If we produce the more output with the same amount of labour hours then

Accepted Answer

A) we are working harder over time. 
B) working longer over time. 
C) productivity is increasing. 
D) productivity is decreasing. 
A) we are working harder over time. 
B) working longer over time. 
C) productivity is increasing. 
D) productivity is decreasing.

Question 7

An increase in growth rates will cause the production possibilities curve to

Accepted Answer

A) shift inward. 
B) become steeper. 
C) become flatter. 
D) shift outward. 
A) shift inward. 
B) become steeper. 
C) become flatter. 
D) shift outward.

Question 8

The growth rate of per capita real GDP is a reasonable measure of

Accepted Answer

A) inflation. 
B) productive activity. 
C) personal well-being. 
D) quality of life. 
A) inflation. 
B) productive activity. 
C) personal well-being. 
D) quality of life.

Question 9

Giving up consumption today for consumption tomorrow accelerates economic growth by

Accepted Answer

A) having the economy produce no consumer goods. 
B) increasing saving out of disposable income. 
C) increasing the expected rate of inflation. 
D) rapid expansion of the money supply. 
A) having the economy produce no consumer goods. 
B) increasing saving out of disposable income. 
C) increasing the expected rate of inflation. 
D) rapid expansion of the money supply.

Question 10

Increases in per-capita GDP are commonly referred to as

Accepted Answer

A) inflation. 
B) economic growth. 
C) shifts in aggregate demand 
D) the Human Development Index (HDI) 
A) inflation. 
B) economic growth. 
C) shifts in aggregate demand 
D) the Human Development Index (HDI)

Question 11

If we are interested in knowing whether a poor country is improving economically,we want to know not only what the economic growth rate is,but also

Accepted Answer

A) whether the economic growth rate is faster than other nations' growth rates. 
B) whether government spending is growing at the same rate. 
C) whether the economic growth rate is greater than last years rate. 
D) whether the lowest income groups are benefiting from the growth. 
A) whether the economic growth rate is faster than other nations' growth rates. 
B) whether government spending is growing at the same rate. 
C) whether the economic growth rate is greater than last years rate. 
D) whether the lowest income groups are benefiting from the growth.

Question 12

Economic growth may understate changes in real per-capita GDP 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 13

Suppose two countries have per capita real GDP of $20,000 in 1995.Country A has a growth rate of 4 percent and Country B has a growth rate of 5 percent.By 1998,the per capita real GDPs for the two countries respectively are (rounded up)

Accepted Answer

A) $21,630 and $22,050. 
B) $22,400 and $23,000. 
C) $22,500 and $23,150. 
D) $22,400 and $25,000. 
A) $21,630 and $22,050. 
B) $22,400 and $23,000. 
C) $22,500 and $23,150. 
D) $22,400 and $25,000.

Question 14

What are the benefits and costs of economic growth?

Accepted Answer

Economic growth results in environmental

Question 15

Explain the relationship between economic growth and labour productivity.

Accepted Answer

Economic growth equals the sum of the gr

Question 16

If real per capita GDP growth is greater than the growth of GDP then

Accepted Answer

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

Question 17

A small improvement in a country's growth rate is a benefit to policy makers because

Accepted Answer

A) a small change can have large effects on per capita GDP over time. 
B) inflationary pressures will prove inconsequential. 
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) inflationary pressures will prove inconsequential. 
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.

Question 18

Which of the following is an example of a measure of labour productivity?

Accepted Answer

A) Farm workers produce 30 bushels of wheat per worker per day 
B) Autos get 30 gallons to the mile 
C) The growth rate of per capita real GDP is 3.5 percent per year 
D) Wages increase by 3.5 percent per year for 5 years 
A) Farm workers produce 30 bushels of wheat per worker per day 
B) Autos get 30 gallons to the mile 
C) The growth rate of per capita real GDP is 3.5 percent per year 
D) Wages increase by 3.5 percent per year for 5 years

Question 19

Traditionally,economists regarded improvements in technology as

Accepted Answer

A) the most important factor that helped explain economic growth,and basically the only factor that would cause economic growth. 
B) an outside factor that helped explain economic growth. 
C) an important factor in explaining economic growth that was due to economic forces that also could easily be explained. 
D) unrelated to economic growth in any systematic way. 
A) the most important factor that helped explain economic growth,and basically the only factor that would cause economic growth. 
B) an outside factor that helped explain economic growth. 
C) an important factor in explaining economic growth that was due to economic forces that also could easily be explained. 
D) unrelated to economic growth in any systematic way.

Question 20

A government grant that gives an inventor the exclusive right or privilege to make,use,or sell his or her invention is known as

Accepted Answer

A) a positive externality. 
B) a negative externality. 
C) a protectionism clause. 
D) a patent. 
A) a positive externality. 
B) a negative externality. 
C) a protectionism clause. 
D) a patent.

Economic growth will tend to be higher in a country that

A decrease in growth rates will cause the production possibilities curve to

Economic growth is best measured by increases in

The rate of economic growth will be faster

Population growth generally

If we produce the more output with the same amount of labour hours then

An increase in growth rates will cause the production possibilities curve to

The growth rate of per capita real GDP is a reasonable measure of

Giving up consumption today for consumption tomorrow accelerates economic growth by

Increases in per-capita GDP are commonly referred to as

If we are interested in knowing whether a poor country is improving economically,we want to know not only what the economic growth rate is,but also

Economic growth may understate changes in real per-capita GDP if

Suppose two countries have per capita real GDP of $20,000 in 1995.Country A has a growth rate of 4 percent and Country B has a growth rate of 5 percent.By 1998,the per capita real GDPs for the two countries respectively are (rounded up)

What are the benefits and costs of economic growth?

Explain the relationship between economic growth and labour productivity.

If real per capita GDP growth is greater than the growth of GDP then

A small improvement in a country's growth rate is a benefit to policy makers because

Which of the following is an example of a measure of labour productivity?

Traditionally,economists regarded improvements in technology as

A government grant that gives an inventor the exclusive right or privilege to make,use,or sell his or her invention is known as

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

Economic growth will tend to be higher in a country that

A decrease in growth rates will cause the production possibilities curve to

Economic growth is best measured by increases in

The rate of economic growth will be faster

Population growth generally

If we produce the more output with the same amount of labour hours then

An increase in growth rates will cause the production possibilities curve to

The growth rate of per capita real GDP is a reasonable measure of

Giving up consumption today for consumption tomorrow accelerates economic growth by

Increases in per-capita GDP are commonly referred to as

If we are interested in knowing whether a poor country is improving economically,we want to know not only what the economic growth rate is,but also

Economic growth may understate changes in real per-capita GDP if

Suppose two countries have per capita real GDP of $20,000 in 1995.Country A has a growth rate of 4 percent and Country B has a growth rate of 5 percent.By 1998,the per capita real GDPs for the two countries respectively are (rounded up)

What are the benefits and costs of economic growth?

Explain the relationship between economic growth and labour productivity.

If real per capita GDP growth is greater than the growth of GDP then

A small improvement in a country's growth rate is a benefit to policy makers because

Which of the following is an example of a measure of labour productivity?

Traditionally,economists regarded improvements in technology as

A government grant that gives an inventor the exclusive right or privilege to make,use,or sell his or her invention is known as

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