Question 1

Japan's economy:

Accepted Answer

A) had higher real GDP per capita than that of most European countries in 2010. 
B) relies on high consumption to spur its economic growth. 
C) grew but not as fast as Mexico's economy over the long run. 
D) had the same real GDP per capita as Mexico in 1820. 
A) had higher real GDP per capita than that of most European countries in 2010. 
B) relies on high consumption to spur its economic growth. 
C) grew but not as fast as Mexico's economy over the long run. 
D) had the same real GDP per capita as Mexico in 1820.

Question 2

An example of physical capital is:

Accepted Answer

A) a truck a company purchases for deliveries. 
B) a worker who physically learns to work on a truck his company buys. 
C) a truck a worker buys for personal use. 
D) a truck a company purchases for work, a worker who physically learns to work on a truck his company buys, or a truck a worker buys for personal use. 
A) a truck a company purchases for deliveries. 
B) a worker who physically learns to work on a truck his company buys. 
C) a truck a worker buys for personal use. 
D) a truck a company purchases for work, a worker who physically learns to work on a truck his company buys, or a truck a worker buys for personal use.

Question 3

According to the convergence hypothesis, differences in GDP per capita among countries tend to narrow over time because countries that start with a lower real GDP per capita tend to have negative growth rates.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following CAN properly be called a part of infrastructure?

Accepted Answer

A) robots on an assembly line 
B) professors 
C) the Golden Gate bridge 
D) a Broadway show 
A) robots on an assembly line 
B) professors 
C) the Golden Gate bridge 
D) a Broadway show

Question 5

A negative externality:

Accepted Answer

A) is not as costly as a positive externality. 
B) is a cost that individuals or firms impose on others without having to offer compensation. 
C) is immune to economic incentives. 
D) is an unavoidable consequence of budget deficits. 
A) is not as costly as a positive externality. 
B) is a cost that individuals or firms impose on others without having to offer compensation. 
C) is immune to economic incentives. 
D) is an unavoidable consequence of budget deficits.

Question 6

Who established the first research and development laboratory?

Accepted Answer

A) Galileo 
B) Thomas Edison 
C) Thomas Malthus 
D) Franklin Roosevelt 
A) Galileo 
B) Thomas Edison 
C) Thomas Malthus 
D) Franklin Roosevelt

Question 7

A nation's real GDP increased from $250 billion to $265 billion in one year. In that same year, the nation's population increased from 125 million to 130 million. Calculate the nation's real GDP per capita growth rate.

Accepted Answer

Real GDP per capita in year 1 is ($250 b

Question 8

Technological progress allows workers to produce more:

Accepted Answer

A) because it increases the amount of physical capital available. 
B) because it increases the amount of human capital available. 
C) even when the amount of physical capital and human capital do not change. 
D) only if the amount of physical capital grows at the same rate. 
A) because it increases the amount of physical capital available. 
B) because it increases the amount of human capital available. 
C) even when the amount of physical capital and human capital do not change. 
D) only if the amount of physical capital grows at the same rate.

Question 9

Use the following to answer questions :
Table: South Korea's Real GDP per Capita  
-(Table: South Korea's Real GDP per Capita) Look at the table South Korea's Real GDP per Capita. As a percentage of real GDP per capita in 2000, approximately how much did South Korea produce in 1960?

Accepted Answer

A) 10% 
B) 15% 
C) 151% 
D) 1,011% 
A) 10% 
B) 15% 
C) 151% 
D) 1,011%

Question 10

If real GDP grows at an average rate of 3% per year, it will double in approximately _____ years.

Accepted Answer

A) less than 10 
B) 20 
C) 23 
D) 36 
A) less than 10 
B) 20 
C) 23 
D) 36

Question 11

Which of the following accurately describes what is happening along a typical aggregate production function?

Accepted Answer

A) At some point, increasing the amount of physical capital per worker will reduce productivity. 
B) Increases in physical capital per worker will always bring about an increase in productivity that is worth the cost of the additional physical capital. 
C) Because of diminishing returns, increasing the amount of physical capital per worker will eventually bring smaller and smaller increases in productivity. 
D) Adding workers results in real GDP per worker rising at an increasing rate throughout the function. 
A) At some point, increasing the amount of physical capital per worker will reduce productivity. 
B) Increases in physical capital per worker will always bring about an increase in productivity that is worth the cost of the additional physical capital. 
C) Because of diminishing returns, increasing the amount of physical capital per worker will eventually bring smaller and smaller increases in productivity. 
D) Adding workers results in real GDP per worker rising at an increasing rate throughout the function.

Question 12

Use the following to answer questions :
Scenario: The Aggregate Production Function
Holding the human capital per worker and technology unchanged, the estimated aggregate production function in Jamaica is Y / L = 50 × K / L, where Y = real output, L = number of workers, and K = quantity of physical capital.
-(Scenario: The Aggregate Production Function) Look at the scenario The Aggregate Production Function. If K / L = $81, then real GDP per worker is:

Accepted Answer

A) $4,050. 
B) $4,000. 
C) $4,096. 
D) $40,500. 
A) $4,050. 
B) $4,000. 
C) $4,096. 
D) $40,500.

Question 13

Most of the rapidly growing Asian nations, though poor, have increased their productivity by providing a very good basic education for their citizens.

Accepted Answer

A) True 
 B)False

Question 14

Human capital refers to:

Accepted Answer

A) output per worker. 
B) the education and knowledge embodied in the workforce. 
C) society's investment in capital goods. 
D) people working with capital goods. 
A) output per worker. 
B) the education and knowledge embodied in the workforce. 
C) society's investment in capital goods. 
D) people working with capital goods.

Question 15

Use the following to answer questions :
Figure: Technological Progress and Productivity Growth  
-(Figure: Technological Progress and Productivity Growth) Look at the figure Technological Progress and Productivity Growth. Which of the following changes in real GDP is most likely to have resulted from an increase in the quality (as well as quantity) of public health measures?

Accepted Answer

A) A to B 
B) B to C 
C) B to A 
D) C to B 
A) A to B 
B) B to C 
C) B to A 
D) C to B

Question 16

Large technological gains often result:

Accepted Answer

A) in immediate rapid growth of an economy. 
B) only if the innovation is broad and monumental. 
C) from modest as well as large innovations. 
D) from deliberate attempts at specific types of innovation. 
A) in immediate rapid growth of an economy. 
B) only if the innovation is broad and monumental. 
C) from modest as well as large innovations. 
D) from deliberate attempts at specific types of innovation.

Question 17

Many economists view resource scarcity as a:

Accepted Answer

A) major obstacle to long-run economic growth. 
B) problem resolved fairly well by the market mechanism. 
C) primary reason for poor countries' lack of economic growth. 
D) problem for wealthy countries but not for poorer countries. 
A) major obstacle to long-run economic growth. 
B) problem resolved fairly well by the market mechanism. 
C) primary reason for poor countries' lack of economic growth. 
D) problem for wealthy countries but not for poorer countries.

Question 18

As a limit to economic growth, environmental problems are more difficult to solve than resource problems because:

Accepted Answer

A) environmental problems don't automatically provide incentives for changed behavior. 
B) resource problems don't automatically provide incentives for changed behavior. 
C) the opportunity cost of solving environmental problems in terms of GDP sacrificed is larger. 
D) most scientists haven't determined the relationship between greenhouse gas emissions and climate change. 
A) environmental problems don't automatically provide incentives for changed behavior. 
B) resource problems don't automatically provide incentives for changed behavior. 
C) the opportunity cost of solving environmental problems in terms of GDP sacrificed is larger. 
D) most scientists haven't determined the relationship between greenhouse gas emissions and climate change.

Question 19

If the population and GDP increase by the same percentage, then real GDP per capita:

Accepted Answer

A) stays the same. 
B) increases. 
C) decreases. 
D) may change, but one cannot be sure of the direction. 
A) stays the same. 
B) increases. 
C) decreases. 
D) may change, but one cannot be sure of the direction.

Question 20

The convergence hypothesis fits the data only when the factors that affect growth are held equal across countries. These factors include all of the following EXCEPT:

Accepted Answer

A) education. 
B) infrastructure. 
C) favorable policies and institutions. 
D) GDP per capita. 
A) education. 
B) infrastructure. 
C) favorable policies and institutions. 
D) GDP per capita.

Japan's economy:

An example of physical capital is:

According to the convergence hypothesis, differences in GDP per capita among countries tend to narrow over time because countries that start with a lower real GDP per capita tend to have negative growth rates.

Which of the following CAN properly be called a part of infrastructure?

A negative externality:

Who established the first research and development laboratory?

A nation's real GDP increased from $250 billion to $265 billion in one year. In that same year, the nation's population increased from 125 million to 130 million. Calculate the nation's real GDP per capita growth rate.

Technological progress allows workers to produce more:

Use the following to answer questions : Table: South Korea's Real GDP per Capita -(Table: South Korea's Real GDP per Capita) Look at the table South Korea's Real GDP per Capita. As a percentage of real GDP per capita in 2000, approximately how much did South Korea produce in 1960?

If real GDP grows at an average rate of 3% per year, it will double in approximately _____ years.

Which of the following accurately describes what is happening along a typical aggregate production function?

Most of the rapidly growing Asian nations, though poor, have increased their productivity by providing a very good basic education for their citizens.

Human capital refers to:

Large technological gains often result:

Many economists view resource scarcity as a:

As a limit to economic growth, environmental problems are more difficult to solve than resource problems because:

If the population and GDP increase by the same percentage, then real GDP per capita:

The convergence hypothesis fits the data only when the factors that affect growth are held equal across countries. These factors include all of the following EXCEPT:

First Principles

Economic Models

Supply and Demand

International Trade 5

Macroeconomics: the Big Picture

Gdp and Cpi: Tracking the Macroeconomy

Unemployment and Inflation

Savings, Investment Spending, and the Financial System

Fiscal Policy Appendix Taxes and the Multiplier

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Crises and Consequences

Events and Ideas

Open-Economy Macroeconomics

Graphs in Economics

toward a Fuller Understanding of Present Value

Filters

Exam 9: Long-Run Economic Growth

Japan's economy:

An example of physical capital is:

According to the convergence hypothesis, differences in GDP per capita among countries tend to narrow over time because countries that start with a lower real GDP per capita tend to have negative growth rates.

Which of the following CAN properly be called a part of infrastructure?

A negative externality:

Who established the first research and development laboratory?

A nation's real GDP increased from $250 billion to $265 billion in one year. In that same year, the nation's population increased from 125 million to 130 million. Calculate the nation's real GDP per capita growth rate.

Technological progress allows workers to produce more:

Use the following to answer questions : Table: South Korea's Real GDP per Capita -(Table: South Korea's Real GDP per Capita) Look at the table South Korea's Real GDP per Capita. As a percentage of real GDP per capita in 2000, approximately how much did South Korea produce in 1960?

If real GDP grows at an average rate of 3% per year, it will double in approximately _____ years.

Which of the following accurately describes what is happening along a typical aggregate production function?

Most of the rapidly growing Asian nations, though poor, have increased their productivity by providing a very good basic education for their citizens.

Human capital refers to:

Large technological gains often result:

Many economists view resource scarcity as a:

As a limit to economic growth, environmental problems are more difficult to solve than resource problems because:

If the population and GDP increase by the same percentage, then real GDP per capita:

The convergence hypothesis fits the data only when the factors that affect growth are held equal across countries. These factors include all of the following EXCEPT:

First Principles

Economic Models

Supply and Demand

International Trade 5

Macroeconomics: the Big Picture

Gdp and Cpi: Tracking the Macroeconomy

Unemployment and Inflation

Savings, Investment Spending, and the Financial System

Fiscal Policy Appendix Taxes and the Multiplier

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Crises and Consequences

Events and Ideas

Open-Economy Macroeconomics

Graphs in Economics

toward a Fuller Understanding of Present Value

Filters