Question 1

One concern regarding educational attainment in the U.S. is that:

Accepted Answer

A)  The percentage of adults finishing college is falling 
B)  There are fewer college graduates in science and engineering 
C)  Students are graduating later and later 
D)  Fewer high school graduates are going on to college 
A)  The percentage of adults finishing college is falling 
B)  There are fewer college graduates in science and engineering 
C)  Students are graduating later and later 
D)  Fewer high school graduates are going on to college

Question 2

"Show me a pastoral society with an untouched environment, an abundance of leisure, and non-secular values, and I will show you an underdeveloped, poverty-ridden country." This statement is most likely to be made by a(n):

Accepted Answer

A)  Advocate of learning by doing 
B)  Advocate of network effects 
C)  Proponent of economic growth 
D)  Critic of economic growth 
A)  Advocate of learning by doing 
B)  Advocate of network effects 
C)  Proponent of economic growth 
D)  Critic of economic growth

Question 3

The size of the labor force depends on the size of the working-age population and the:

Accepted Answer

A)  Participation rate 
B)  Employment rate 
C)  Unemployment rate 
D)  Inflation rate 
A)  Participation rate 
B)  Employment rate 
C)  Unemployment rate 
D)  Inflation rate

Question 4

A nation's average annual real GDP growth rate is 2.5%. Based on the "rule of 70", the approximate number of years that it would take for this nation's real GDP to double is:

Accepted Answer

A)  175 years 
B)  40 years 
C)  28 years 
A)  175 years 
B)  40 years 
C)  28 years

Question 5

The factor accounting for the largest increase in the productivity of labor in the United States has been:

Accepted Answer

A)  The education and training of workers 
B)  Improved resource allocation 
C)  The quantity of capital 
D)  Technological advance 
A)  The education and training of workers 
B)  Improved resource allocation 
C)  The quantity of capital 
D)  Technological advance

Question 6

Trends in educational attainment in the U.S. since 1960 indicate that the percentage of adults:

Accepted Answer

A)  Completing high school has been rising, and so has the percentage who do not go to high school nor complete elementary school 
B)  Completing college has been rising, and so has the percentage completing high school 
C)  Completing college has been constant, but the percentage completing high school has been rising 
D)  Who do not go to high school has been falling, but the percentage who do not complete elementary school has been rising 
A)  Completing high school has been rising, and so has the percentage who do not go to high school nor complete elementary school 
B)  Completing college has been rising, and so has the percentage completing high school 
C)  Completing college has been constant, but the percentage completing high school has been rising 
D)  Who do not go to high school has been falling, but the percentage who do not complete elementary school has been rising

Question 7

Which of the following will NOT increase the average productivity of labor?

Accepted Answer

A)  An increase in the stock of real capital 
B)  Improvement in the education and health of the population 
C)  Technological progress 
D)  An increase in the size of the labor force 
A)  An increase in the stock of real capital 
B)  Improvement in the education and health of the population 
C)  Technological progress 
D)  An increase in the size of the labor force

Question 8

Which of the following is a measure of economic growth that is most useful for comparing living standards?

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

If the working-age population in an economy shrinks, real GDP can still grow if:

Accepted Answer

A)  Work hours per week decreases, to spread work among more workers 
B)  Labor productivity increases rapidly enough 
C)  Consumption by households increase rapidly 
D)  Spending by firms and the government increases 
A)  Work hours per week decreases, to spread work among more workers 
B)  Labor productivity increases rapidly enough 
C)  Consumption by households increase rapidly 
D)  Spending by firms and the government increases

Question 10

Which of the following factors is projected to be the dominant source of economic growth in the U.S. from now until 2020?

Accepted Answer

A)  Increase in hours per worker 
B)  Increase in labor force 
C)  Increase in population 
D)  Increase in labor productivity 
A)  Increase in hours per worker 
B)  Increase in labor force 
C)  Increase in population 
D)  Increase in labor productivity

Question 11

The ability to expand production is sufficient for a nation to achieve maximum possible growth.

Accepted Answer

A) True 
 B)False

Question 12

Efficient financial institutions foster the flow of:

Accepted Answer

A)  Saving and investment 
B)  Spending and income 
C)  Resources and products 
D)  Inventions and ideas 
A)  Saving and investment 
B)  Spending and income 
C)  Resources and products 
D)  Inventions and ideas

Question 13

Nation A's real GDP was $520 billion in 2013 and $550 billion in 2014. Its population was 150 million in 2013 and 155 million in 2014. On the other hand, Nation B's real GDP was $200 billion in 2013 and $210 billion in 2014; and its population was 53 million in 2013 and 55 million in 2014. Which of the following statements is true?

Accepted Answer

A)  Nation A's real GDP growth in 2014 is higher than Nation B's 
B)  Nation B's real GDP growth in 2014 is higher than Nation A's 
C)  Nation A's real GDP growth in 2014 is identical to Nation B's 
D)  Nation A's and Nation B's real GDP growth rates in 2014 are both higher than 10% 
A)  Nation A's real GDP growth in 2014 is higher than Nation B's 
B)  Nation B's real GDP growth in 2014 is higher than Nation A's 
C)  Nation A's real GDP growth in 2014 is identical to Nation B's 
D)  Nation A's and Nation B's real GDP growth rates in 2014 are both higher than 10%

Question 14

The main cause for the vast differences in per capita GDP levels seen across the globe today is the:

Accepted Answer

A)  Huge differences in the natural-resource endowments of different countries 
B)  Major differences in the population sizes of various societies 
C)  Different starting dates of modern economic growth in different parts of the world 
D)  Differences in religions that different societies around the world believe in 
A)  Huge differences in the natural-resource endowments of different countries 
B)  Major differences in the population sizes of various societies 
C)  Different starting dates of modern economic growth in different parts of the world 
D)  Differences in religions that different societies around the world believe in

Question 15

There tends to be a positive correlation between real wages of workers and the productivity of labor in the economy.

Accepted Answer

A) True 
 B)False

Question 16

Technological advance is very tightly intertwined with:

Accepted Answer

A)  Capital formation 
B)  Household consumption 
C)  Government spending 
D)  Population growth 
A)  Capital formation 
B)  Household consumption 
C)  Government spending 
D)  Population growth

Question 17

A nation's real GDP was $250 billion in 2013 and $265 billion in 2014. Its population was 120 million in 2013 and 125 million in 2014. What is its real GDP per capita in 2014?

Accepted Answer

A)  $2,120 per person 
B)  $212 per person 
C)  $21,200 per person 
D)  $205 per person 
A)  $2,120 per person 
B)  $212 per person 
C)  $21,200 per person 
D)  $205 per person

Question 18

One major aspect of the socio-cultural-political environment of the United States which has generally been conducive to economic growth is the:

Accepted Answer

A)  Enforcement of contracts by the market 
B)  Denial of the rights of property ownership 
C)  Favorable attitude toward work and risk-taking 
D)  Strict social regulation of production and progress 
A)  Enforcement of contracts by the market 
B)  Denial of the rights of property ownership 
C)  Favorable attitude toward work and risk-taking 
D)  Strict social regulation of production and progress

Question 19

A major effect of the rise in the rate of productivity growth in the United States is a(n):

Accepted Answer

A)  Rise in the rate of inflation 
B)  Rise in the growth of living standards 
C)  Increase in the relative prices of U.S. goods in foreign markets 
D)  Increase in the competitiveness of U.S. goods in foreign markets 
A)  Rise in the rate of inflation 
B)  Rise in the growth of living standards 
C)  Increase in the relative prices of U.S. goods in foreign markets 
D)  Increase in the competitiveness of U.S. goods in foreign markets

Question 20

Technological advances that contribute to economic growth include the following, except:

Accepted Answer

A)  Innovative production techniques 
B)  New managerial methods 
C)  Innovative digital gadgets for consumers 
D)  New forms of business organization 
A)  Innovative production techniques 
B)  New managerial methods 
C)  Innovative digital gadgets for consumers 
D)  New forms of business organization

Exam 8: Economic Growth

One concern regarding educational attainment in the U.S. is that:

"Show me a pastoral society with an untouched environment, an abundance of leisure, and non-secular values, and I will show you an underdeveloped, poverty-ridden country." This statement is most likely to be made by a(n):

The size of the labor force depends on the size of the working-age population and the:

A nation's average annual real GDP growth rate is 2.5%. Based on the "rule of 70", the approximate number of years that it would take for this nation's real GDP to double is:

The factor accounting for the largest increase in the productivity of labor in the United States has been:

Trends in educational attainment in the U.S. since 1960 indicate that the percentage of adults:

Which of the following will NOT increase the average productivity of labor?

Which of the following is a measure of economic growth that is most useful for comparing living standards?

If the working-age population in an economy shrinks, real GDP can still grow if:

Which of the following factors is projected to be the dominant source of economic growth in the U.S. from now until 2020?

The ability to expand production is sufficient for a nation to achieve maximum possible growth.

Efficient financial institutions foster the flow of:

The main cause for the vast differences in per capita GDP levels seen across the globe today is the:

There tends to be a positive correlation between real wages of workers and the productivity of labor in the economy.

Technological advance is very tightly intertwined with:

A nation's real GDP was $250 billion in 2013 and $265 billion in 2014. Its population was 120 million in 2013 and 125 million in 2014. What is its real GDP per capita in 2014?

One major aspect of the socio-cultural-political environment of the United States which has generally been conducive to economic growth is the:

A major effect of the rise in the rate of productivity growth in the United States is a(n):

Technological advances that contribute to economic growth include the following, except:

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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