Question 1

An important factor in determining a country's rate of economic growth is

Accepted Answer

A) the diversity of its population. 
B) its rate of saving. 
C) the size of its labour force. 
D) the proportion of the adult population that is working. 
A) the diversity of its population. 
B) its rate of saving. 
C) the size of its labour force. 
D) the proportion of the adult population that is working.

Question 2

A system of property rights

Accepted Answer

A) encourages economic growth by creating incentives to invest in capital and to be innovative. 
B) discourages economic growth by discouraging the development of new ideas and ways of doing things. 
C) reduces the efficiency of government,which reduces the growth rate of the economy over time. 
D) encourages investment but discourages entrepreneurial activity,so the effect on economic growth is uncertain. 
A) encourages economic growth by creating incentives to invest in capital and to be innovative. 
B) discourages economic growth by discouraging the development of new ideas and ways of doing things. 
C) reduces the efficiency of government,which reduces the growth rate of the economy over time. 
D) encourages investment but discourages entrepreneurial activity,so the effect on economic growth is uncertain.

Question 3

The more certain property rights are

Accepted Answer

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

Question 4

Productivity is ________ if we produce more 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

Would a new growth theorist expect economic growth to be very rapid in one of the Communist nations before the fall of Communism? Why or why not?

Accepted Answer

No.These centrally planned economies did

Question 6

The most important thing about higher labour productivity is that it means

Accepted Answer

A) we are doing better than anyone else. 
B) we can compete well with other nations. 
C) we can achieve a happier population. 
D) we can have a higher standard of living. 
A) we are doing better than anyone else. 
B) we can compete well with other nations. 
C) we can achieve a happier population. 
D) we can have a higher standard of living.

Question 7

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

Accepted Answer

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

Question 8

New growth theory argues that

Accepted Answer

A) growth is due to the proper government policies concerning interest rates. 
B) growth relies on maintaining lower growth rates of population,especially in less developed countries. 
C) technology cannot be looked at as an outside factor without an explanation of what drives it. 
D) technology is the key factor that explains growth but technology is beyond economic explanation itself. 
A) growth is due to the proper government policies concerning interest rates. 
B) growth relies on maintaining lower growth rates of population,especially in less developed countries. 
C) technology cannot be looked at as an outside factor without an explanation of what drives it. 
D) technology is the key factor that explains growth but technology is beyond economic explanation itself.

Question 9

New growth theorists believe that

Accepted Answer

A) wealth creation comes from innovation. 
B) wealth creation comes from saving. 
C) wealth creation is due to capital spending and not research and development spending since much research and development spending fails to produce an invention. 
D) inventions spread very rapidly,thereby curtailing the need for more innovations. 
A) wealth creation comes from innovation. 
B) wealth creation comes from saving. 
C) wealth creation is due to capital spending and not research and development spending since much research and development spending fails to produce an invention. 
D) inventions spread very rapidly,thereby curtailing the need for more innovations.

Question 10

Other things held constant,a decrease in consumption spending implies

Accepted Answer

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

Question 11

Productive capacity usually refers to

Accepted Answer

A) resources use. 
B) nominal income. 
C) satisfaction. 
D) economic growth. 
A) resources use. 
B) nominal income. 
C) satisfaction. 
D) economic growth.

Question 12

Economic growth

Accepted Answer

A) is sustainable with the help of "green" initiatives. 
B) occurs when there are increases in per-capita GDP. 
C) occurs when there are increases in real GDP. 
D) occurs when there are increases in nominal GDP. 
A) is sustainable with the help of "green" initiatives. 
B) occurs when there are increases in per-capita GDP. 
C) occurs when there are increases in real GDP. 
D) occurs when there are increases in nominal GDP.

Question 13

The majority of evidence points to the fact that,in the last decade in Canada,labour productivity has

Accepted Answer

A) decreased. 
B) increased. 
C) stayed the same. 
D) decreased in the manufacturing sector but increased in the service sector. 
A) decreased. 
B) increased. 
C) stayed the same. 
D) decreased in the manufacturing sector but increased in the service sector.

Question 14

The term economic growth refers to increases in

Accepted Answer

A) resources use. 
B) nominal income. 
C) satisfaction. 
D) productive capacity. 
A) resources use. 
B) nominal income. 
C) satisfaction. 
D) productive capacity.

Question 15

The development of a strain of wheat that will yield two crops per year rather than one crop per year is an example of economic growth resulting from

Accepted Answer

A) capital accumulation. 
B) increased gross investment. 
C) technological progress. 
D) an increase in per capita real income. 
A) capital accumulation. 
B) increased gross investment. 
C) technological progress. 
D) an increase in per capita real income.

Question 16

The average amount produced per worker is commonly referred to as

Accepted Answer

A) inflationary 
B) the value added. 
C) labour productivity . 
D) the real interest rate. 
A) inflationary 
B) the value added. 
C) labour productivity . 
D) the real interest rate.

Question 17

Labour productivity increases when

Accepted Answer

A) the population increases. 
B) output remains constant while the labour force decreases. 
C) output increases at the same rate as the labour force increases. 
D) output increases faster than population increases. 
A) the population increases. 
B) output remains constant while the labour force decreases. 
C) output increases at the same rate as the labour force increases. 
D) output increases faster than population increases.

Question 18

The main benefit to economic growth is

Accepted Answer

A) sustainable development. 
B) higher standard of living. 
C) environmental disasters. 
D) uneven consumption around the world. 
A) sustainable development. 
B) higher standard of living. 
C) environmental disasters. 
D) uneven consumption around the world.

Question 19

Economists typically agree that the special position given to owners of patents tends to

Accepted Answer

A) reduce expenditures on research and development. 
B) increase expenditures on research and development. 
C) reduce economic growth. 
D) reduce productivity. 
A) reduce expenditures on research and development. 
B) increase expenditures on research and development. 
C) reduce economic growth. 
D) reduce productivity.

Question 20

Labour productivity is

Accepted Answer

A) the average amount produced times the number of workers. 
B) the average amount produced times the number of people in the labour force. 
C) the average amount produced per worker. 
D) the rate of change in the total amount produced per worker. 
A) the average amount produced times the number of workers. 
B) the average amount produced times the number of people in the labour force. 
C) the average amount produced per worker. 
D) the rate of change in the total amount produced per worker.

An important factor in determining a country's rate of economic growth is

A system of property rights

The more certain property rights are

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

Would a new growth theorist expect economic growth to be very rapid in one of the Communist nations before the fall of Communism? Why or why not?

The most important thing about higher labour productivity is that it means

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

New growth theory argues that

New growth theorists believe that

Other things held constant,a decrease in consumption spending implies

Productive capacity usually refers to

Economic growth

The majority of evidence points to the fact that,in the last decade in Canada,labour productivity has

The term economic growth refers to increases in

The development of a strain of wheat that will yield two crops per year rather than one crop per year is an example of economic growth resulting from

The average amount produced per worker is commonly referred to as

Labour productivity increases when

The main benefit to economic growth is

Economists typically agree that the special position given to owners of patents tends to

Labour productivity is

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

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Exam 7: Economic Growth and Development

An important factor in determining a country's rate of economic growth is

A system of property rights

The more certain property rights are

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

Would a new growth theorist expect economic growth to be very rapid in one of the Communist nations before the fall of Communism? Why or why not?

The most important thing about higher labour productivity is that it means

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

New growth theory argues that

New growth theorists believe that

Other things held constant,a decrease in consumption spending implies

Productive capacity usually refers to

Economic growth

The majority of evidence points to the fact that,in the last decade in Canada,labour productivity has

The term economic growth refers to increases in

The development of a strain of wheat that will yield two crops per year rather than one crop per year is an example of economic growth resulting from

The average amount produced per worker is commonly referred to as

Labour productivity increases when

The main benefit to economic growth is

Economists typically agree that the special position given to owners of patents tends to

Labour productivity is

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