Question 1

Labor productivity is affected by each of the following, except:

Accepted Answer

A) technological innovation. 
B) change in capital stock. 
C) change in average age of the workers. 
D) change in educational levels. 
E) cultural ethnicity. 
A) technological innovation. 
B) change in capital stock. 
C) change in average age of the workers. 
D) change in educational levels. 
E) cultural ethnicity. E

Question 2

Which of the following is true of the rule of 72?

Accepted Answer

A) The rule of 72 is used to approximate annual real GDP. 
B) The rule of 72 determines the time required for any value to double if it grows at a constant annual rate. 
C) The rule of 72 is used to calculate the number of years it takes for any quantity to treble in size. 
D) The rule of 72 refers to the fact that real GDP doubles every 6 years. 
E) The rule of 72 refers to the fact that capital growth has consistently contributed 72 percent to the U.S.real GDP. 
A) The rule of 72 is used to approximate annual real GDP. 
B) The rule of 72 determines the time required for any value to double if it grows at a constant annual rate. 
C) The rule of 72 is used to calculate the number of years it takes for any quantity to treble in size. 
D) The rule of 72 refers to the fact that real GDP doubles every 6 years. 
E) The rule of 72 refers to the fact that capital growth has consistently contributed 72 percent to the U.S.real GDP. B

Question 3

What will be Singapore's approximate real GDP after five years if its average annual growth rate is 9.8 percent and the economy initially produces at real GDP of S$80, 500 million?

Accepted Answer

A) S$98, 726 million 
B) S$102, 375 million 
C) S$119, 945 million 
D) S$124, 648 million 
E) S$128, 472 million 
A) S$98, 726 million 
B) S$102, 375 million 
C) S$119, 945 million 
D) S$124, 648 million 
E) S$128, 472 million E

Question 4

Consumer spending is considered a determinant of economic growth.

Accepted Answer

A) True 
 B)False

Question 5

The income of the town of Kennebunkport has been growing by 2 percent per year.If this growth continues into the future, how long will it take until the town's income has doubled?

Accepted Answer

A) About 36 years 
B) About 24 years 
C) About 96 years 
D) About 50 years 
E) About 144 years 
A) About 36 years 
B) About 24 years 
C) About 96 years 
D) About 50 years 
E) About 144 years

Question 6

Other things equal, if the labor input grows faster than total output, total factor productivity falls.

Accepted Answer

A) True 
 B)False

Question 7

Economic growth in any country is reflected by an increase in real GDP.

Accepted Answer

A) True 
 B)False

Question 8

Other things remaining equal, total factor productivity will fall if _____.

Accepted Answer

A) labor input grows more slowly than total output 
B) capital input grows faster than total output 
C) the economy's output divided by total inputs increases 
D) the ratio of total output to the stock of labor and capital changes by zero percent 
E) the ratio of total output to the stock of labor and capital increases 
A) labor input grows more slowly than total output 
B) capital input grows faster than total output 
C) the economy's output divided by total inputs increases 
D) the ratio of total output to the stock of labor and capital changes by zero percent 
E) the ratio of total output to the stock of labor and capital increases

Question 9

As all available statistics show us, because the average annual population growth is 1.4 percent higher in developing countries than in industrial nations, economic growth is lower in low-income countries.

Accepted Answer

A) True 
 B)False

Question 10

In developing countries, the labor force typically grows _____.

Accepted Answer

A) as rapidly as in industrial countries 
B) less rapidly than in industrial countries 
C) more rapidly than in industrial countries 
D) at a diminishing rate 
E) at a constant rate 
A) as rapidly as in industrial countries 
B) less rapidly than in industrial countries 
C) more rapidly than in industrial countries 
D) at a diminishing rate 
E) at a constant rate

Question 11

Per capita real GDP is a questionable indicator of the state of the economy because it does not account for:

Accepted Answer

A) growth of national income. 
B) changes in inflation. 
C) income distribution. 
D) changes in the size of the population. 
E) changes in the level of output. 
A) growth of national income. 
B) changes in inflation. 
C) income distribution. 
D) changes in the size of the population. 
E) changes in the level of output.

Question 12

Which of the following is accounted for when we measure economic growth in terms of per capita real GDP?

Accepted Answer

A) Changes in the quality of life 
B) Changes in income distribution 
C) Changes in standards of living 
D) Changes in price level 
E) People's nonmonetary needs 
A) Changes in the quality of life 
B) Changes in income distribution 
C) Changes in standards of living 
D) Changes in price level 
E) People's nonmonetary needs

Question 13

Suppose the economy grows by 2.5 percent, the labor force rises by 3 percent, and capital rises by 1 percent.If capital takes 50 percent of real GDP and labor takes the other 50 percent of real GDP, then the growth in total factor productivity must be _____.

Accepted Answer

A) 6.5 % 
B) 4.5 % 
C) 0.5 % 
D) 6 % 
E) 10 % 
A) 6.5 % 
B) 4.5 % 
C) 0.5 % 
D) 6 % 
E) 10 %

Question 14

Long-term economic growth requires a permanent:

Accepted Answer

A) decline in the average price level. 
B) leftward shift of the vertical Phillips curve. 
C) rise in the natural rate of unemployment. 
D) leftward shift of the aggregate demand curve. 
E) rightward shift of the vertical aggregate supply curve. 
A) decline in the average price level. 
B) leftward shift of the vertical Phillips curve. 
C) rise in the natural rate of unemployment. 
D) leftward shift of the aggregate demand curve. 
E) rightward shift of the vertical aggregate supply curve.

Question 15

Per capita real GDP doesnot give us information about the distribution of income in a country or about the non-monetary quality of life.

Accepted Answer

A) True 
 B)False

Question 16

In 2000, the real GDP for Malaysia was 93.15 trillion ringgit (MYR)and the population size was 20.5 million, then per capita real GDP for the year was approximately equal to _____.

Accepted Answer

A) MYR 45.44 million 
B) MYR 45.9 million 
C) MYR 1, 909.5 million 
D) MYR 191 million 
E) MYR 9315 million 
A) MYR 45.44 million 
B) MYR 45.9 million 
C) MYR 1, 909.5 million 
D) MYR 191 million 
E) MYR 9315 million

Question 17

If real GDP remains unchanged, the population size is stationary, and people have more leisure time, then per capita real GDP will _____.

Accepted Answer

A) overstate actual economic growth 
B) understate actual economic growth 
C) be the most accurate measure of actual economic growth 
D) show that actual economic growth was negative 
E) show that actual economic growth was positive 
A) overstate actual economic growth 
B) understate actual economic growth 
C) be the most accurate measure of actual economic growth 
D) show that actual economic growth was negative 
E) show that actual economic growth was positive

Question 18

The long-run growth of the economy depends on productive resources (land, labor, and capital)and on technological advances.

Accepted Answer

A) True 
 B)False

Question 19

The labor force typically grows faster in developing countries than in industrial ones because mortality rates are higher in low-income countries.

Accepted Answer

A) True 
 B)False

Question 20

Technological advancement is defined as:

Accepted Answer

A) the increase in the quantity of inputs needed to produce a given quantity of output. 
B) the reduction in the quantity of inputs needed to produce a given quantity of output. 
C) the reduction in the productivity of a sector of the economy that has become obsolete. 
D) an increase in the labor to capital ratio in any production process. 
E) the growth in the natural resource endowment. 
A) the increase in the quantity of inputs needed to produce a given quantity of output. 
B) the reduction in the quantity of inputs needed to produce a given quantity of output. 
C) the reduction in the productivity of a sector of the economy that has become obsolete. 
D) an increase in the labor to capital ratio in any production process. 
E) the growth in the natural resource endowment.

Exam 28: Economic Growth

Labor productivity is affected by each of the following, except:

Which of the following is true of the rule of 72?

What will be Singapore's approximate real GDP after five years if its average annual growth rate is 9.8 percent and the economy initially produces at real GDP of S$80, 500 million?

Consumer spending is considered a determinant of economic growth.

The income of the town of Kennebunkport has been growing by 2 percent per year.If this growth continues into the future, how long will it take until the town's income has doubled?

Other things equal, if the labor input grows faster than total output, total factor productivity falls.

Economic growth in any country is reflected by an increase in real GDP.

Other things remaining equal, total factor productivity will fall if _____.

As all available statistics show us, because the average annual population growth is 1.4 percent higher in developing countries than in industrial nations, economic growth is lower in low-income countries.

In developing countries, the labor force typically grows _____.

Per capita real GDP is a questionable indicator of the state of the economy because it does not account for:

Which of the following is accounted for when we measure economic growth in terms of per capita real GDP?

Suppose the economy grows by 2.5 percent, the labor force rises by 3 percent, and capital rises by 1 percent.If capital takes 50 percent of real GDP and labor takes the other 50 percent of real GDP, then the growth in total factor productivity must be _____.

Long-term economic growth requires a permanent:

Per capita real GDP doesnot give us information about the distribution of income in a country or about the non-monetary quality of life.

In 2000, the real GDP for Malaysia was 93.15 trillion ringgit (MYR)and the population size was 20.5 million, then per capita real GDP for the year was approximately equal to _____.

If real GDP remains unchanged, the population size is stationary, and people have more leisure time, then per capita real GDP will _____.

The long-run growth of the economy depends on productive resources (land, labor, and capital)and on technological advances.

The labor force typically grows faster in developing countries than in industrial ones because mortality rates are higher in low-income countries.

Technological advancement is defined as:

Economics: The World Around You

Choice, Opportunity Costs, and Specialization

Markets, Demand and Supply, and the Price System

The Market System and the Private and Public Sector

Elasticity: Demand and Supply

National Income Accounting

an Introduction to the Foreign Exchange Market and the Balance of Payments

Consumer Choice

Supply: The Costs of Doing Business

Unemployment and Inflation

Macroeconomic Equilibrium: Aggregate Demand and Supply

Profit Maximization

Aggregate Expenditures

Perfect Competition

Income and Expenditures Equilibrium

Monopoly

Fiscal Policy

Monopolistic Competition and Oligopoly

Antitrust and Regulation

Money and Banking

Market Failures, Government Failures, and Rent Seeking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Resource Markets

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

The Labor Market

Capital Markets

Development Economics

the Land Market and Natural Resources

Aging, Social Security and Health Care

Globalization

Elasticity: Demand and Supply

Income Distribution, Poverty and Government Policy

World Trade Equilibrium

Consumer Choice

International Trade Restrictions

World Trade Equilibrium

Exchange Rates and Financial Links Between Countries

International Trade Restrictions

Supply: the Costs of Doing Business

Exchange Rates and Financial Links Between Countries

Profit Maximization

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Antitrust and Regulation

Market Failures, Government Failures, and Rent Seeking

Resource Markets

The Labor Market

Capital Markets

The Land Market and Natural Resources

Aging, Social Security and Health Care

Income Distribution, Poverty and Government Policy

World Trade Equilibrium

International Trade Restrictions

Exchange Rates and Financial Links Between Countries

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