Question 1

When observing economic growth and literacy rates, it is clear that:

Accepted Answer

A) economic growth causes higher literacy rates. 
B) economic growth may be a consequence of improved education. 
C) improved levels of education may be the result of increasing economic growth. 
D) higher levels of education lead to increases in worker productivity. 
E) all of the above are likely to be true. 
A) economic growth causes higher literacy rates. 
B) economic growth may be a consequence of improved education. 
C) improved levels of education may be the result of increasing economic growth. 
D) higher levels of education lead to increases in worker productivity. 
E) all of the above are likely to be true.

Question 2

Which of the following products are not included in current U.S.GDP?

Accepted Answer

A) a Washington apple 
B) a Ford Mustang produced last year and sold this year 
C) a physical examination at a California health clinic 
D) All of the above are included in current U.S. GDP. 
A) a Washington apple 
B) a Ford Mustang produced last year and sold this year 
C) a physical examination at a California health clinic 
D) All of the above are included in current U.S. GDP.

Question 3

Which of the following factors that affect our well-being does GDP fail to adequately account for?

Accepted Answer

A) changes in the quality of goods 
B) externalities 
C) leisure 
D) nonmarket transactions 
E) all of the above 
A) changes in the quality of goods 
B) externalities 
C) leisure 
D) nonmarket transactions 
E) all of the above

Question 4

Which of the following factors contribute to economic growth?

Accepted Answer

A) a decline in the stock of physical capital 
B) the discovery of new oil reserves 
C) a decrease in the productivity of labor 
D) a decrease in the quantity of labor due to emigration 
A) a decline in the stock of physical capital 
B) the discovery of new oil reserves 
C) a decrease in the productivity of labor 
D) a decrease in the quantity of labor due to emigration

Question 5

Which one of the following will determine the size of the production possibilities curve?

Accepted Answer

A) amount of labor 
B) amount of capital 
C) entrepreneurship 
D) all of the above 
A) amount of labor 
B) amount of capital 
C) entrepreneurship 
D) all of the above

Question 6

Which of the following countries have a relative abundance of natural resources?

Accepted Answer

A) Japan 
B) Canada 
C) Hong Kong 
D) all of the above 
E) none of the above 
A) Japan 
B) Canada 
C) Hong Kong 
D) all of the above 
E) none of the above

Question 7

If a country's annual growth rate is 2%, then its output will double in approximately ____ years.

Accepted Answer

A) 2 
B) 10 
C) 25 
D) 35 
E) 50 
A) 2 
B) 10 
C) 25 
D) 35 
E) 50

Question 8

Enforcement of property rights is likely to result in:

Accepted Answer

A) more incentives to invest. 
B) lower rates of economic growth. 
C) political instability. 
D) corruption. 
A) more incentives to invest. 
B) lower rates of economic growth. 
C) political instability. 
D) corruption.

Question 9

What is the measure of the income earned by owners of resources used in making final goods and services?

Accepted Answer

A) personal income 
B) national income 
C) retained earnings 
D) gross domestic income 
A) personal income 
B) national income 
C) retained earnings 
D) gross domestic income

Question 10

A country will roughly double its GDP in twenty years if its annual growth rate is:

Accepted Answer

A) 2.5 percent. 
B) 3.5 percent. 
C) 7.5 percent. 
D) 12 percent. 
E) 20 percent. 
A) 2.5 percent. 
B) 3.5 percent. 
C) 7.5 percent. 
D) 12 percent. 
E) 20 percent.

Question 11

If nominal GDP increased from $5,000 billion in 2003 to $5,500 billion in 2004 and the GDP deflator increased from 130 to 140 over the same time period, what would the 2004 real GDP equal expressed in terms of 2003 dollars?

Accepted Answer

A) $4,643 billion 
B) $5,107 billion 
C) $5,385 billion 
D) $5,500 billion 
E) $5,923 billion 
A) $4,643 billion 
B) $5,107 billion 
C) $5,385 billion 
D) $5,500 billion 
E) $5,923 billion

Question 12

If real GDP increases and the price index also increases:

Accepted Answer

A) nominal GDP must also have risen. 
B) nominal GDP must have fallen. 
C) nominal GDP could have either risen or fallen. 
D) the percentage increase in nominal GDP must have been greater than the percentage increase in the price level. 
A) nominal GDP must also have risen. 
B) nominal GDP must have fallen. 
C) nominal GDP could have either risen or fallen. 
D) the percentage increase in nominal GDP must have been greater than the percentage increase in the price level.

Question 13

Improvements in literacy stimulate economic growth by:

Accepted Answer

A) reducing the barriers to the flow of information. 
B) improving the flow of resources to more productive uses. 
C) imparting skills, which raises labor productivity. 
D) doing all of the above. 
A) reducing the barriers to the flow of information. 
B) improving the flow of resources to more productive uses. 
C) imparting skills, which raises labor productivity. 
D) doing all of the above.

Question 14

A nation can achieve higher economic growth if:

Accepted Answer

A) it devotes more resources to research and development. 
B) the productivity of labor declines. 
C) taxes are imposed on investment in capital. 
D) more resources are allocated to consumption goods. 
A) it devotes more resources to research and development. 
B) the productivity of labor declines. 
C) taxes are imposed on investment in capital. 
D) more resources are allocated to consumption goods.

Question 15

Consumption is the purchase of goods and services by:

Accepted Answer

A) households. 
B) government. 
C) business firms. 
D) foreign buyers. 
E) all of the above. 
A) households. 
B) government. 
C) business firms. 
D) foreign buyers. 
E) all of the above.

Question 16

National income:

Accepted Answer

A) is a measure of the income earned by owners of resources used in making final goods and services. 
B) is a measure of the income received by persons after taxes. 
C) equals aggregate income minus the statistical discrepancy. 
D) equals GDP minus depreciation. 
E) measures the total amount of income received by households and noncorporate businesses. 
A) is a measure of the income earned by owners of resources used in making final goods and services. 
B) is a measure of the income received by persons after taxes. 
C) equals aggregate income minus the statistical discrepancy. 
D) equals GDP minus depreciation. 
E) measures the total amount of income received by households and noncorporate businesses.

Question 17

If nominal GDP rises from $5 billion to $6 billion, when the GDP deflator goes from 100 to 130, real GDP

Accepted Answer

A) rises. 
B) falls. 
C) stays the same. 
D) could either be rising or falling. 
A) rises. 
B) falls. 
C) stays the same. 
D) could either be rising or falling.

When observing economic growth and literacy rates, it is clear that:

Which of the following products are not included in current U.S.GDP?

Which of the following factors that affect our well-being does GDP fail to adequately account for?

Which of the following factors contribute to economic growth?

Which one of the following will determine the size of the production possibilities curve?

Which of the following countries have a relative abundance of natural resources?

If a country's annual growth rate is 2%, then its output will double in approximately ____ years.

Enforcement of property rights is likely to result in:

What is the measure of the income earned by owners of resources used in making final goods and services?

A country will roughly double its GDP in twenty years if its annual growth rate is:

If nominal GDP increased from $5,000 billion in 2003 to $5,500 billion in 2004 and the GDP deflator increased from 130 to 140 over the same time period, what would the 2004 real GDP equal expressed in terms of 2003 dollars?

If real GDP increases and the price index also increases:

Improvements in literacy stimulate economic growth by:

A nation can achieve higher economic growth if:

Consumption is the purchase of goods and services by:

National income:

If nominal GDP rises from $5 billion to $6 billion, when the GDP deflator goes from 100 to 130, real GDP

The Role and Method of Economics

The Economic Way of Thinking

Supply and Demand

Using Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets, Income Distribution, and Poverty

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

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Exam 12: Economic Growth

When observing economic growth and literacy rates, it is clear that:

Which of the following products are not included in current U.S.GDP?

Which of the following factors that affect our well-being does GDP fail to adequately account for?

Which of the following factors contribute to economic growth?

Which one of the following will determine the size of the production possibilities curve?

Which of the following countries have a relative abundance of natural resources?

If a country's annual growth rate is 2%, then its output will double in approximately ____ years.

Enforcement of property rights is likely to result in:

What is the measure of the income earned by owners of resources used in making final goods and services?

A country will roughly double its GDP in twenty years if its annual growth rate is:

If nominal GDP increased from $5,000 billion in 2003 to $5,500 billion in 2004 and the GDP deflator increased from 130 to 140 over the same time period, what would the 2004 real GDP equal expressed in terms of 2003 dollars?

If real GDP increases and the price index also increases:

Improvements in literacy stimulate economic growth by:

A nation can achieve higher economic growth if:

Consumption is the purchase of goods and services by:

National income:

If nominal GDP rises from $5 billion to $6 billion, when the GDP deflator goes from 100 to 130, real GDP

The Role and Method of Economics

The Economic Way of Thinking

Supply and Demand

Using Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets, Income Distribution, and Poverty

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

Filters