Question 1

Growth in a production possibilities curve diagram is shown as:

Accepted Answer

A) ​a movement along the curve to the southeast. 
B) ​a movement along the curve to the southwest. 
C) ​an outward shift of the curve. 
D) ​an inward shift of the curve. 
A) ​a movement along the curve to the southeast. 
B) ​a movement along the curve to the southwest. 
C) ​an outward shift of the curve. 
D) ​an inward shift of the curve.

Question 2

If people began to retire at a later age and there was an increase in the capital stock, real GDP growth would ____ and real GDP growth per capita would ____.

Accepted Answer

A) ​increase; increase. 
B) ​increase; be indeterminate. 
C) ​decrease; decrease. 
D) ​decrease; be indeterminate 
A) ​increase; increase. 
B) ​increase; be indeterminate. 
C) ​decrease; decrease. 
D) ​decrease; be indeterminate

Question 3

If real GDP per capita is increasing, real output is:

Accepted Answer

A) ​growing less rapidly than the population. 
B) ​growing more rapidly than the population. 
C) ​growing at the same rate as the population. 
D) ​growing more rapidly than are prices. 
A) ​growing less rapidly than the population. 
B) ​growing more rapidly than the population. 
C) ​growing at the same rate as the population. 
D) ​growing more rapidly than are prices.

Question 4

Changes in the growth rate of real GDP per capita do not reflect which of the following?

Accepted Answer

A) ​changes in the total production of final goods in the economy 
B) ​changes in the production of final services in the economy 
C) ​changes in the distribution of income 
D) ​changes in the size of the population 
A) ​changes in the total production of final goods in the economy 
B) ​changes in the production of final services in the economy 
C) ​changes in the distribution of income 
D) ​changes in the size of the population

Question 5

Economies of large-scale production may exist in some forms of production, so larger markets associated with greater populations can lead to more efficiently sized production units.

Accepted Answer

A) True 
 B)False

Question 6

In making the "Malthusian Prediction," Reverend Malthus assumed that:

Accepted Answer

A) ​technological advance would be rapid; the supply of capital was unlimited; birth control techniques would limit population growth. 
B) ​there would be little if any technological advance; the supply of capital was fixed; birth control techniques would limit population growth. 
C) ​the supply of land was fixed in quantity; there would be little if any technological advance; the sexual desires of humans would work to increase production. 
D) ​the supply of land was fixed in quantity; technological advances would be rapid; the sexual desire of humans would lead to rapid population growth. 
A) ​technological advance would be rapid; the supply of capital was unlimited; birth control techniques would limit population growth. 
B) ​there would be little if any technological advance; the supply of capital was fixed; birth control techniques would limit population growth. 
C) ​the supply of land was fixed in quantity; there would be little if any technological advance; the sexual desires of humans would work to increase production. 
D) ​the supply of land was fixed in quantity; technological advances would be rapid; the sexual desire of humans would lead to rapid population growth.

Question 7

According to Malthus, how do economic growth and population relate to each other?

Accepted Answer

Malthus wrote that population tends to g

Question 8

Increases in the quality and quantity of an economy's resources have little effect on its potential output in the long run.

Accepted Answer

A) True 
 B)False

Question 9

Malthus's gloomy economic outlook for humankind is based on the following principle:

Accepted Answer

A) ​Population, when unchecked, increases at a faster pace than the production of output. 
B) ​Population grows at a slower pace than the production of output. 
C) ​Resources grow faster than humankind can reproduce itself.Therefore, humankind can never take full advantage of available resources. 
D) ​Resources and population grow at constant percentage rates, but political divisions prevent an equitable division of world output. 
A) ​Population, when unchecked, increases at a faster pace than the production of output. 
B) ​Population grows at a slower pace than the production of output. 
C) ​Resources grow faster than humankind can reproduce itself.Therefore, humankind can never take full advantage of available resources. 
D) ​Resources and population grow at constant percentage rates, but political divisions prevent an equitable division of world output.

Question 10

The rule of 70 which predicts the time required for the economy of a nation to double, is based on the mechanism of:

Accepted Answer

A) ​compound interest. 
B) ​capital formation. 
C) ​labor force productivity. 
D) ​capital investments. 
A) ​compound interest. 
B) ​capital formation. 
C) ​labor force productivity. 
D) ​capital investments.

Question 11

A negative growth rate will cause:

Accepted Answer

A) ​an inward shift of an economy's production possibilities curve. 
B) ​an outward shift of an economy's production possibilities curve. 
C) ​a movement from a point inside an economy's production possibilities curve to a point on the curve. 
D) ​an economy's production possibilities curve to slope upward. 
A) ​an inward shift of an economy's production possibilities curve. 
B) ​an outward shift of an economy's production possibilities curve. 
C) ​a movement from a point inside an economy's production possibilities curve to a point on the curve. 
D) ​an economy's production possibilities curve to slope upward.

Question 12

The faster the rate of technological progress:

Accepted Answer

A) ​the greater the rate of economic growth. 
B) ​the slower the rate of economic growth. 
C) ​the greater the rate of population growth. 
D) ​the slower the rate of growth of the money supply. 
A) ​the greater the rate of economic growth. 
B) ​the slower the rate of economic growth. 
C) ​the greater the rate of population growth. 
D) ​the slower the rate of growth of the money supply.

Question 13

An increase in growth rates will cause:

Accepted Answer

A) ​an inward shift of an economy's production possibilities curve. 
B) ​an outward shift of an economy's production possibilities curve. 
C) ​a movement from a point on an economy's production possibilities curve to a point inside the curve. 
D) ​an economy's production possibilities curve to slope upward. 
A) ​an inward shift of an economy's production possibilities curve. 
B) ​an outward shift of an economy's production possibilities curve. 
C) ​a movement from a point on an economy's production possibilities curve to a point inside the curve. 
D) ​an economy's production possibilities curve to slope upward.

Question 14

If there was an increase in technology other things equal, real GDP growth would ____ and real GDP growth per capita would ____.

Accepted Answer

A) ​increase; increase. 
B) ​increase; be indeterminate. 
C) ​decrease; decrease. 
D) ​decrease; be indeterminate 
A) ​increase; increase. 
B) ​increase; be indeterminate. 
C) ​decrease; decrease. 
D) ​decrease; be indeterminate

Question 15

Would companies and individuals invest as much in significant research and development if a system of patents were not available?

Accepted Answer

A) ​Yes they would, because they could still hope to monopolize the market. 
B) ​Yes they would, because firms are civic-minded and highly motivated to introduce innovations that improve the standard of living. 
C) ​No they would not, because if they made a significant investment in the development, they would be unable to protect the innovations or discoveries long enough to be sufficiently compensated for their efforts. 
D) ​No they would not, because the benefits to society of engaging in research and development would be less than the costs to society. 
A) ​Yes they would, because they could still hope to monopolize the market. 
B) ​Yes they would, because firms are civic-minded and highly motivated to introduce innovations that improve the standard of living. 
C) ​No they would not, because if they made a significant investment in the development, they would be unable to protect the innovations or discoveries long enough to be sufficiently compensated for their efforts. 
D) ​No they would not, because the benefits to society of engaging in research and development would be less than the costs to society.

Question 16

If real GDP per capita is decreasing, real output is:

Accepted Answer

A) ​growing less rapidly than the population. 
B) ​growing more rapidly than the population. 
C) ​growing at the same rate as the population. 
D) ​growing more rapidly than are prices. 
A) ​growing less rapidly than the population. 
B) ​growing more rapidly than the population. 
C) ​growing at the same rate as the population. 
D) ​growing more rapidly than are prices.

Question 17

If population is expanding at the same rate as a country's real output:

Accepted Answer

A) ​real per capita output would increase. 
B) ​real per capita output would remain unchanged. 
C) ​the production possibilities curve for the country as a whole will be shifting outward. 
D) ​both (b) and (c) would be true. 
A) ​real per capita output would increase. 
B) ​real per capita output would remain unchanged. 
C) ​the production possibilities curve for the country as a whole will be shifting outward. 
D) ​both (b) and (c) would be true.

Question 18

The ____ shows roughly how long it will take a nation to double its output at various growth rates.

Accepted Answer

A) ​rule of rapid growth 
B) ​rule of 70 
C) ​rule of 1950 
D) ​duopoly rule 
A) ​rule of rapid growth 
B) ​rule of 70 
C) ​rule of 1950 
D) ​duopoly rule

Question 19

Economic growth is measured by the:

Accepted Answer

A) ​advancement in the quality of a nation's technology. 
B) ​rate of business investment and capital formation. 
C) ​annual percentage change in per capita real output of goods and services. 
D) ​marginal change in nominal output divided by total output from the previous year. 
A) ​advancement in the quality of a nation's technology. 
B) ​rate of business investment and capital formation. 
C) ​annual percentage change in per capita real output of goods and services. 
D) ​marginal change in nominal output divided by total output from the previous year.

Question 20

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

Accepted Answer

A) ​high rates of inflation 
B) ​high interest rates 
C) ​sustained economic growth 
D) ​restrictions on international trade 
A) ​high rates of inflation 
B) ​high interest rates 
C) ​sustained economic growth 
D) ​restrictions on international trade

Exam 12: Firms in Perfectly Competitive Markets

Growth in a production possibilities curve diagram is shown as:

If people began to retire at a later age and there was an increase in the capital stock, real GDP growth would ____ and real GDP growth per capita would ____.

If real GDP per capita is increasing, real output is:

Changes in the growth rate of real GDP per capita do not reflect which of the following?

Economies of large-scale production may exist in some forms of production, so larger markets associated with greater populations can lead to more efficiently sized production units.

In making the "Malthusian Prediction," Reverend Malthus assumed that:

According to Malthus, how do economic growth and population relate to each other?

Increases in the quality and quantity of an economy's resources have little effect on its potential output in the long run.

Malthus's gloomy economic outlook for humankind is based on the following principle:

The rule of 70 which predicts the time required for the economy of a nation to double, is based on the mechanism of:

A negative growth rate will cause:

The faster the rate of technological progress:

An increase in growth rates will cause:

If there was an increase in technology other things equal, real GDP growth would ____ and real GDP growth per capita would ____.

Would companies and individuals invest as much in significant research and development if a system of patents were not available?

If real GDP per capita is decreasing, real output is:

If population is expanding at the same rate as a country's real output:

The ____ shows roughly how long it will take a nation to double its output at various growth rates.

Economic growth is measured by the:

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

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

Filters

If people began to retire at a later age and there was an increase in the capital stock, real GDP growth would and real GDP growth per capita would .

If there was an increase in technology other things equal, real GDP growth would and real GDP growth per capita would .