Question 1

In the modern economic growth process, it is typical to find that:

Accepted Answer

A)  Leader countries continue to grow faster than follower countries 
B)  Follower countries can grow faster than leader countries 
C)  Large countries cannot grow faster than leader countries 
D)  The gap between the leader countries and the follower countries stays constant 
A)  Leader countries continue to grow faster than follower countries 
B)  Follower countries can grow faster than leader countries 
C)  Large countries cannot grow faster than leader countries 
D)  The gap between the leader countries and the follower countries stays constant

Question 2

If 40,000 worker-hours produced a total output of $600,000 in an economy, then the labor productivity is:

Accepted Answer

A)  $10/worker-hour 
B)  $15/worker-hour 
C)  $24/worker-hour 
D)  $240/worker-hour 
A)  $10/worker-hour 
B)  $15/worker-hour 
C)  $24/worker-hour 
D)  $240/worker-hour

Question 3

Human capital refers to the:

Accepted Answer

A)  Tools and equipment available to workers 
B)  Amount of financing available to start-up firms 
C)  Number of workers available in the economy 
D)  Education, training, and skills of workers 
A)  Tools and equipment available to workers 
B)  Amount of financing available to start-up firms 
C)  Number of workers available in the economy 
D)  Education, training, and skills of workers

Question 4

The movement of workers from lower productivity jobs to higher productivity jobs would be an example of a(n):

Accepted Answer

A)  Technological advance 
B)  Network effects 
C)  Simultaneous consumption 
D)  Improved resource allocation 
A)  Technological advance 
B)  Network effects 
C)  Simultaneous consumption 
D)  Improved resource allocation

Question 5

In the period 1960 to 2010, the U.S. experienced a more rapid annual growth in real GDP per capita than countries like Ireland, Singapore, and South Korea.

Accepted Answer

A) True 
 B)False

Question 6

Before the Industrial Revolution, living standards in the world:

Accepted Answer

A)  Were relatively stagnant for long periods of time 
B)  Were already rising significantly for many decades 
C)  Are not known, for lack of reliable records from that period 
D)  Were declining because of rapid increases in population 
A)  Were relatively stagnant for long periods of time 
B)  Were already rising significantly for many decades 
C)  Are not known, for lack of reliable records from that period 
D)  Were declining because of rapid increases in population

Question 7

Modern economic growth often results in the following, except:

Accepted Answer

A)  Less time for ordinary people to enjoy leisure activities because the primary focus is on production and work 
B)  Vast increases in wealth and living standards for many groups in the economy 
C)  Spread of universal education and elimination of ancient social norms 
D)  Movement towards democracy and the abolishment of feudalism 
A)  Less time for ordinary people to enjoy leisure activities because the primary focus is on production and work 
B)  Vast increases in wealth and living standards for many groups in the economy 
C)  Spread of universal education and elimination of ancient social norms 
D)  Movement towards democracy and the abolishment of feudalism

Question 8

Which of the following is a measure of economic growth that is most useful for measuring geopolitical preeminence or military potential?

Accepted Answer

A)  Growth in nominal GDP 
B)  Decreases in the rate of unemployment 
C)  Increases in real GDP per capita 
D)  Increases in real GDP 
A)  Growth in nominal GDP 
B)  Decreases in the rate of unemployment 
C)  Increases in real GDP per capita 
D)  Increases in real GDP

Question 9

The invention of the steam engine ushered in the following developments, except:

Accepted Answer

A)  Mass-production in industrial factories, for the first time 
B)  Much easier and cheaper transportation of resources and products 
C)  A sharp reduction in trade as many societies specialized 
D)  Major population shifts, from farms to towns and cities 
A)  Mass-production in industrial factories, for the first time 
B)  Much easier and cheaper transportation of resources and products 
C)  A sharp reduction in trade as many societies specialized 
D)  Major population shifts, from farms to towns and cities

Question 10

Which of the following does not correctly characterize modern economic growth?

Accepted Answer

A)  It spread slowly across the globe, with some societies not having experienced it yet 
B)  It has occurred only in the last 200 or so years 
C)  It drastically alters the culture and politics of society 
D)  It has not affected the average lifespan of human beings 
A)  It spread slowly across the globe, with some societies not having experienced it yet 
B)  It has occurred only in the last 200 or so years 
C)  It drastically alters the culture and politics of society 
D)  It has not affected the average lifespan of human beings

Question 11

Labor productivity can only increase if:

Accepted Answer

A)  Labor increases faster than capital 
B)  Capital increases faster than labor 
C)  Labor increases while capital decreases 
D)  Labor and capital increase at the same rate 
A)  Labor increases faster than capital 
B)  Capital increases faster than labor 
C)  Labor increases while capital decreases 
D)  Labor and capital increase at the same rate

Question 12

The real GDP of the United States has grown since the 1950's largely because of increases in labor productivity.

Accepted Answer

A) True 
 B)False

Question 13

Sources of increasing returns that help raise productivity growth include the following, except:

Accepted Answer

A)  More specialized inputs 
B)  Spreading of development costs 
C)  Network effects 
D)  Low unemployment 
A)  More specialized inputs 
B)  Spreading of development costs 
C)  Network effects 
D)  Low unemployment

Question 14

In the growth debate, critics of economic growth say that it will deplete our finite economic resources.

Accepted Answer

A) True 
 B)False

Question 15

Increasing returns in production implies the following, except:

Accepted Answer

A)  Increasing labor-requirements per unit of output 
B)  Decreasing per-unit production costs 
C)  Economies of scale 
D)  An increase in the productivity of inputs 
A)  Increasing labor-requirements per unit of output 
B)  Decreasing per-unit production costs 
C)  Economies of scale 
D)  An increase in the productivity of inputs

Question 16

An antigrowth view would be that there may be a significant tradeoff between productivity and:

Accepted Answer

A)  Education 
B)  Employment 
C)  Economies of scale 
D)  The quality of life 
A)  Education 
B)  Employment 
C)  Economies of scale 
D)  The quality of life

Question 17

Factors that contributed to the higher U.S. labor productivity growth in 1995-2012 relative to the earlier period include the following, except:

Accepted Answer

A)  Microchip and information technologies 
B)  New start-up firms and increasing returns 
C)  Global competition 
D)  Population growth 
A)  Microchip and information technologies 
B)  New start-up firms and increasing returns 
C)  Global competition 
D)  Population growth

Question 18

Since the 1950's, the U.S. average annual rate of growth of real GDP was higher than the average annual growth of real GDP per capita.

Accepted Answer

A) True 
 B)False

Question 19

The reasons why per capita GDP in the U.S. is significantly higher than in some other rich countries like, say, France include the following, except:

Accepted Answer

A)  U.S. citizens put in substantially more work hours than do citizens of France 
B)  Cultural differences between the U.S. and France regarding the right balance between labor and leisure 
C)  Differences in the tax structure and the resulting incentive effects of taxes 
D)  Differences is the communication technology due to language differences 
A)  U.S. citizens put in substantially more work hours than do citizens of France 
B)  Cultural differences between the U.S. and France regarding the right balance between labor and leisure 
C)  Differences in the tax structure and the resulting incentive effects of taxes 
D)  Differences is the communication technology due to language differences

Question 20

An increase in the quantity and quality of natural resources is an example of a demand factor of economic growth.

Accepted Answer

A) True 
 B)False

Exam 8: Economic Growth

In the modern economic growth process, it is typical to find that:

If 40,000 worker-hours produced a total output of $600,000 in an economy, then the labor productivity is:

Human capital refers to the:

The movement of workers from lower productivity jobs to higher productivity jobs would be an example of a(n):

In the period 1960 to 2010, the U.S. experienced a more rapid annual growth in real GDP per capita than countries like Ireland, Singapore, and South Korea.

Before the Industrial Revolution, living standards in the world:

Modern economic growth often results in the following, except:

Which of the following is a measure of economic growth that is most useful for measuring geopolitical preeminence or military potential?

The invention of the steam engine ushered in the following developments, except:

Which of the following does not correctly characterize modern economic growth?

Labor productivity can only increase if:

The real GDP of the United States has grown since the 1950's largely because of increases in labor productivity.

Sources of increasing returns that help raise productivity growth include the following, except:

In the growth debate, critics of economic growth say that it will deplete our finite economic resources.

Increasing returns in production implies the following, except:

An antigrowth view would be that there may be a significant tradeoff between productivity and:

Factors that contributed to the higher U.S. labor productivity growth in 1995-2012 relative to the earlier period include the following, except:

Since the 1950's, the U.S. average annual rate of growth of real GDP was higher than the average annual growth of real GDP per capita.

The reasons why per capita GDP in the U.S. is significantly higher than in some other rich countries like, say, France include the following, except:

An increase in the quantity and quality of natural resources is an example of a demand factor of economic growth.

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

Fiscal Policy, Deficits, and Debt

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

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