Question 1

Which of the following would not be considered an investment in human capital?

Accepted Answer

A) ​education 
B) ​training programs 
C) ​transportation infrastructure 
D) ​literacy programs 
A) ​education 
B) ​training programs 
C) ​transportation infrastructure 
D) ​literacy programs

Question 2

Technology can enable producers to economize on:

Accepted Answer

A) ​labor 
B) ​capital 
C) ​land 
D) ​any of the above. 
A) ​labor 
B) ​capital 
C) ​land 
D) ​any of the above.

Question 3

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 
A) ​Japan 
B) ​Canada 
C) ​Hong Kong 
D) ​all of the above

Question 4

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 5

It is impossible to have economic growth unless a country or a region has abundant natural resources to sustain the growth.

Accepted Answer

A) True 
 B)False

Question 6

For a low-income country to develop into a high-income country, ____ is (are) needed.

Accepted Answer

A) ​a sustained and rapid expansion in the money supply 
B) ​sustained economic growth 
C) ​tax breaks on consumption goods 
D) ​deflation 
A) ​a sustained and rapid expansion in the money supply 
B) ​sustained economic growth 
C) ​tax breaks on consumption goods 
D) ​deflation

Question 7

If real GDP is increasing more rapidly than the population, then:

Accepted Answer

A) ​interest rates must be falling. 
B) ​the economy must be experiencing inflation. 
C) ​per capita real GDP will be increasing. 
D) ​per capita real GDP will be decreasing. 
A) ​interest rates must be falling. 
B) ​the economy must be experiencing inflation. 
C) ​per capita real GDP will be increasing. 
D) ​per capita real GDP will be decreasing.

Question 8

Which one of the following will not cause the production possibilities curve to shift outward?

Accepted Answer

A) ​improvements in the stock of land 
B) ​increased educational opportunities 
C) ​a very low birth rate 
D) ​increased entrepreneurial activity 
A) ​improvements in the stock of land 
B) ​increased educational opportunities 
C) ​a very low birth rate 
D) ​increased entrepreneurial activity

Question 9

An increase in the stock of capital:

Accepted Answer

A) ​causes a movement from a point on an economy's production possibilities curve to a point inside the curve. 
B) ​causes an economy's production possibilities curve to shift inward over time. 
C) ​causes an economy's production possibilities curve to shift outward over time. 
D) ​has no effect on the position of an economy's production possibilities curve over time. 
A) ​causes a movement from a point on an economy's production possibilities curve to a point inside the curve. 
B) ​causes an economy's production possibilities curve to shift inward over time. 
C) ​causes an economy's production possibilities curve to shift outward over time. 
D) ​has no effect on the position of an economy's production possibilities curve over time.

Question 10

Given a constant rate of growth of real GDP, what would cause a fall in real GDP per capita?

Accepted Answer

A) ​a rate of population growth that is less than the rate of growth of real GDP 
B) ​a rate of population growth that is greater than the rate of growth of real GDP 
C) ​an increase in the size of the labor force 
D) ​an overall decrease in population 
A) ​a rate of population growth that is less than the rate of growth of real GDP 
B) ​a rate of population growth that is greater than the rate of growth of real GDP 
C) ​an increase in the size of the labor force 
D) ​an overall decrease in population

Question 11

In the 1700s, Reverend Thomas Malthus predicted that:

Accepted Answer

A) ​per capita economic growth would not change very much since humans were already content with their standards of living. 
B) ​per capita economic growth would tend to rise as modern birth control techniques caused the rate of population growth to decline. 
C) ​per capita economic growth would eventually become negative since population growth would tend to outstrip production. 
D) ​per capita economic growth would tend to rise in the future because technological advances in production would outpace population growth. 
A) ​per capita economic growth would not change very much since humans were already content with their standards of living. 
B) ​per capita economic growth would tend to rise as modern birth control techniques caused the rate of population growth to decline. 
C) ​per capita economic growth would eventually become negative since population growth would tend to outstrip production. 
D) ​per capita economic growth would tend to rise in the future because technological advances in production would outpace population growth.

Question 12

As economic growth rises, literacy rates tend to fall.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following best describes the relationship between economic growth and literacy?

Accepted Answer

A) ​As the economy grows, literacy declines because it becomes less and less useful in a developed economy. 
B) ​Increased literacy initially stimulates economic growth by raising labor productivity, but as the economy grows and the opportunity cost of education rises, literacy declines. 
C) ​Increased literacy stimulates economic growth by raising labor productivity, and as the economy grows, people consume more education. 
D) ​There is no correlation between economic growth and literacy. 
A) ​As the economy grows, literacy declines because it becomes less and less useful in a developed economy. 
B) ​Increased literacy initially stimulates economic growth by raising labor productivity, but as the economy grows and the opportunity cost of education rises, literacy declines. 
C) ​Increased literacy stimulates economic growth by raising labor productivity, and as the economy grows, people consume more education. 
D) ​There is no correlation between economic growth and literacy.

Question 14

Real output per capita:

Accepted Answer

A) ​is measured by real GDP per capita. 
B) ​is total real output ( real GDP) divided by the number of persons among whom it will be distributed. 
C) ​is one measure of the average level of economic well being in a country. 
D) ​all of the above are correct. 
A) ​is measured by real GDP per capita. 
B) ​is total real output ( real GDP) divided by the number of persons among whom it will be distributed. 
C) ​is one measure of the average level of economic well being in a country. 
D) ​all of the above are correct.

Question 15

Which of the following is not considered a factor that contributes to economic growth?

Accepted Answer

A) ​increased labor productivity 
B) ​increased infant mortality rates 
C) ​technological advances 
D) ​the migration of resources from areas of low productivity to areas of high productivity 
A) ​increased labor productivity 
B) ​increased infant mortality rates 
C) ​technological advances 
D) ​the migration of resources from areas of low productivity to areas of high productivity

Question 16

When measuring economic growth, economists typically focus on per capita real GDP in order to account for variations in the:

Accepted Answer

A) ​size of the population 
B) ​price level 
C) ​quality of goods and services 
D) ​both (a) and (b) above 
A) ​size of the population 
B) ​price level 
C) ​quality of goods and services 
D) ​both (a) and (b) above

Question 17

Country A and Country B initially have the same real GDP per capita. Country A experiences no economic growth, while Country B grows at a sustained rate of 5 percent. In 14 years, Country A's GDP will be approximately ____ that of Country B.

Accepted Answer

A) ​one-fourth 
B) ​one-half 
C) ​double 
D) ​triple 
A) ​one-fourth 
B) ​one-half 
C) ​double 
D) ​triple

Question 18

Which of the following will not increase the rate of growth in an economy?

Accepted Answer

A) ​a reduction in the rate of savings 
B) ​an increase in the productivity of labor 
C) ​technological progress 
D) ​higher rates of investment 
A) ​a reduction in the rate of savings 
B) ​an increase in the productivity of labor 
C) ​technological progress 
D) ​higher rates of investment

Question 19

Which of the following was not one of Malthus assumptions?

Accepted Answer

A) ​stable prices 
B) ​production with only two inputs - land and labor 
C) ​a fixed supply of land 
D) ​human desire to increase the population 
A) ​stable prices 
B) ​production with only two inputs - land and labor 
C) ​a fixed supply of land 
D) ​human desire to increase the population

Question 20

In the long run, the most important source of increase in a nation's standard of living is a:

Accepted Answer

A) ​zero rate of population growth. 
B) ​high rate of economic growth. 
C) ​high rate of consumption. 
D) ​high rate of labor force growth. 
A) ​zero rate of population growth. 
B) ​high rate of economic growth. 
C) ​high rate of consumption. 
D) ​high rate of labor force growth.

Exam 12: Firms in Perfectly Competitive Markets

Which of the following would not be considered an investment in human capital?

Technology can enable producers to economize on:

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

Improvements in literacy stimulate economic growth by:

It is impossible to have economic growth unless a country or a region has abundant natural resources to sustain the growth.

For a low-income country to develop into a high-income country, ____ is (are) needed.

If real GDP is increasing more rapidly than the population, then:

Which one of the following will not cause the production possibilities curve to shift outward?

An increase in the stock of capital:

Given a constant rate of growth of real GDP, what would cause a fall in real GDP per capita?

In the 1700s, Reverend Thomas Malthus predicted that:

As economic growth rises, literacy rates tend to fall.

Which of the following best describes the relationship between economic growth and literacy?

Real output per capita:

Which of the following is not considered a factor that contributes to economic growth?

When measuring economic growth, economists typically focus on per capita real GDP in order to account for variations in the:

Country A and Country B initially have the same real GDP per capita. Country A experiences no economic growth, while Country B grows at a sustained rate of 5 percent. In 14 years, Country A's GDP will be approximately ____ that of Country B.

Which of the following will not increase the rate of growth in an economy?

Which of the following was not one of Malthus assumptions?

In the long run, the most important source of increase in a nation's standard of living is a:

The Role and Method of Economics

Eight Powerful Ideas

Scarcity, Trade-Offs, and Production Possibilities

Demand, Supply, and Market Equilibrium

Market in Motion and Price Controls

Elasticities

Market Efficiency and Welfare

Market Failure

Public Finance and Public Choice

Consumer Choice Theory

The Firm: Production and Costs

Monopoly and Antitrust

Monopolistic Competition and Product Differentiation

Oligopoly and Strategic Behavior

The Markets for Labor, Capital, and Land

Income, Poverty and Health Care

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Measuring Economic Performance

Economic Growth in the Global Economy

Financial Markets, Saving, and Investment

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