Question 1

In India last year,the growth rate of real GDP was 3.5 percent and the population grew from 1,000 million people to 1,100 million.Real GDP per person

Accepted Answer

A) increased by 13.5 percent. 
B) decreased by 6.5 percent. 
C) increased by 6.5 percent. 
D) decreased by 13.5 percent. 
E) increased by 3.5 percent. 
A) increased by 13.5 percent. 
B) decreased by 6.5 percent. 
C) increased by 6.5 percent. 
D) decreased by 13.5 percent. 
E) increased by 3.5 percent.

Question 2

-According to the data in the table above,real GDP grew at a rate of ________ between year 1 and year 2.

Accepted Answer

A) 10 percent 
B) 1 percent 
C) 50 percent 
D) 5 percent 
E) 55 percent 
A) 10 percent 
B) 1 percent 
C) 50 percent 
D) 5 percent 
E) 55 percent

Question 3

A surplus in the labor market indicates that the

Accepted Answer

A) real wage rate is above the equilibrium wage rate but it is too low to eliminate the surplus of labor. 
B) quantity of labor demanded is less than the quantity of labor supplied. 
C) real wage rate has to rise before the labor market will reach equilibrium. 
D) workers are not looking for work because they enjoy their leisure time. 
E) real wage rate is less than the equilibrium wage rate. 
A) real wage rate is above the equilibrium wage rate but it is too low to eliminate the surplus of labor. 
B) quantity of labor demanded is less than the quantity of labor supplied. 
C) real wage rate has to rise before the labor market will reach equilibrium. 
D) workers are not looking for work because they enjoy their leisure time. 
E) real wage rate is less than the equilibrium wage rate.

Question 4

Economic growth is defined as equal to the increase in

Accepted Answer

A) employment. 
B) population. 
C) real GDP. 
D) the price level. 
E) the inflation rate. 
A) employment. 
B) population. 
C) real GDP. 
D) the price level. 
E) the inflation rate.

Question 5

China's growth rate has ________ that of most other countries,________.

Accepted Answer

A) topped;but its real GDP per person is still lower than other industrialized countries 
B) lagged behind;and its real GDP is close to other Asian economies 
C) lagged behind;but its real GDP per person is higher than other Asian economies 
D) topped: but its real GDP per person declined in 2008-09 
E) equaled;and its real GDP per person declined in 2008-09 
A) topped;but its real GDP per person is still lower than other industrialized countries 
B) lagged behind;and its real GDP is close to other Asian economies 
C) lagged behind;but its real GDP per person is higher than other Asian economies 
D) topped: but its real GDP per person declined in 2008-09 
E) equaled;and its real GDP per person declined in 2008-09

Question 6

The production function displays

Accepted Answer

A) increasing returns. 
B) real returns. 
C) diminishing returns. 
D) average returns. 
E) normal returns. 
A) increasing returns. 
B) real returns. 
C) diminishing returns. 
D) average returns. 
E) normal returns.

Question 7

Labor productivity equals

Accepted Answer

A) real GDP divided by the capital stock. 
B) real GDP divided by the population. 
C) total wages divided by real GDP. 
D) real GDP divided by aggregate hours. 
E) aggregate hours divided by employment. 
A) real GDP divided by the capital stock. 
B) real GDP divided by the population. 
C) total wages divided by real GDP. 
D) real GDP divided by aggregate hours. 
E) aggregate hours divided by employment.

Question 8

Iceland's real GDP grows at a rate of 2.6 percent and population grows at a rate of 0.8 percent.Iceland's real GDP per person grows at a rate of

Accepted Answer

A) 1.8 percent. 
B) 2.6 percent. 
C) 3.4 percent. 
D) 3.0 percent. 
E) 3.2 percent. 
A) 1.8 percent. 
B) 2.6 percent. 
C) 3.4 percent. 
D) 3.0 percent. 
E) 3.2 percent.

Question 9

-The figure above shows the U.S.production function.How would an increase in unemployment benefits be shown in the figure?

Accepted Answer

A) a movement from point C to point B 
B) a movement from point A to point B 
C) an upward shift or rotation of the production function 
D) a downward shift or rotation of the production function 
E) None of the above because the effects of an increase in unemployment benefits cannot be shown in the figure. 
A) a movement from point C to point B 
B) a movement from point A to point B 
C) an upward shift or rotation of the production function 
D) a downward shift or rotation of the production function 
E) None of the above because the effects of an increase in unemployment benefits cannot be shown in the figure.

Question 10

-Using the data in the table above,the growth rate of real GDP has

Accepted Answer

A) increased from year to year. 
B) increased more rapidly from year to year. 
C) remained constant from year to year. 
D) slowed from year to year. 
E) probably changed,but more information is needed about the price level to determine by how much it has changed. 
A) increased from year to year. 
B) increased more rapidly from year to year. 
C) remained constant from year to year. 
D) slowed from year to year. 
E) probably changed,but more information is needed about the price level to determine by how much it has changed.

Question 11

Economic freedom means that

Accepted Answer

A) firms are regulated by the government. 
B) some goods and services are free. 
C) people are able to make personal choices and their property is protected. 
D) the rule of law does not apply. 
E) the nation's government is a democracy. 
A) firms are regulated by the government. 
B) some goods and services are free. 
C) people are able to make personal choices and their property is protected. 
D) the rule of law does not apply. 
E) the nation's government is a democracy.

Question 12

What are the sources of human capital?

Accepted Answer

Human capital,the accumulated skills and

Question 13

Using the rule of 70,a sustained 3 percent per year real GDP growth rate will

Accepted Answer

A) last for 70 years. 
B) double the current level of real GDP in about 23 years. 
C) double the current level of real GDP in about 210 years. 
D) double the current level of real GDP in about 70 years. 
E) double the current level of real GDP in about 40 years. 
A) last for 70 years. 
B) double the current level of real GDP in about 23 years. 
C) double the current level of real GDP in about 210 years. 
D) double the current level of real GDP in about 70 years. 
E) double the current level of real GDP in about 40 years.

Question 14

The benefit to the firm of hiring another worker is

Accepted Answer

A) the nominal wage. 
B) the price level. 
C) the real wage. 
D) the extra output produced by the worker. 
E) measured as the height of the production function. 
A) the nominal wage. 
B) the price level. 
C) the real wage. 
D) the extra output produced by the worker. 
E) measured as the height of the production function.

Question 15

Which of the following statement or statements are correct about potential GDP?
I.Actual real GDP equals potential GDP when the economy is at full employment.
Ii.Real GDP can be less than potential GDP.
Iii.When real GDP equals potential GDP,it also equals nominal GDP.

Accepted Answer

A) i only 
B) ii only 
C) ii and iii 
D) i and ii 
E) i,ii,and iii 
A) i only 
B) ii only 
C) ii and iii 
D) i and ii 
E) i,ii,and iii

Question 16

An increase in labor productivity

Accepted Answer

A) increases the standard of living. 
B) decreases the standard of living. 
C) might be the result of an increase in the quantity of labor. 
D) generally occurs when physical capital decreases because firms must then hire more workers. 
E) cannot occur without a corresponding increase in employment. 
A) increases the standard of living. 
B) decreases the standard of living. 
C) might be the result of an increase in the quantity of labor. 
D) generally occurs when physical capital decreases because firms must then hire more workers. 
E) cannot occur without a corresponding increase in employment.

Question 17

The Rule of 70,as applied to real GDP growth,can be used to find the

Accepted Answer

A) real GDP growth rate necessary to double growth. 
B) number of years it takes for the level of real GDP to double. 
C) growth rate of real GDP. 
D) number of years it takes for the growth rate of real GDP to double. 
E) population growth rate necessary to double the GDP growth rate. 
A) real GDP growth rate necessary to double growth. 
B) number of years it takes for the level of real GDP to double. 
C) growth rate of real GDP. 
D) number of years it takes for the growth rate of real GDP to double. 
E) population growth rate necessary to double the GDP growth rate.

Question 18

-The first table above gives the labor demand and labor supply schedules for a nation.The second table gives its production function.
a.What is the equilibrium real wage rate and the level of employment?
b.What is potential GDP?

Accepted Answer

a.The equilibrium real wage rate is $15

Question 19

-The above figure shows a nation's production function.Point C is

Accepted Answer

A) unattainable given the nation's resource level. 
B) attainable if the nation uses resources efficiently. 
C) attainable if the nation uses resources inefficiently. 
D) the maximum amount of real GDP the nation can produce. 
E) the labor market equilibrium point. 
A) unattainable given the nation's resource level. 
B) attainable if the nation uses resources efficiently. 
C) attainable if the nation uses resources inefficiently. 
D) the maximum amount of real GDP the nation can produce. 
E) the labor market equilibrium point.

Question 20

Suppose Mexico's real GDP per person in 2008 is $6,000 and the U.S.real GDP per person is $24,000.Mexico has annual growth in real GDP per person of 5 percent.Approximately how many years will it take Mexico to equal $24,000 of real GDP per person?

Accepted Answer

A) 14 years 
B) 18 years 
C) 28 years 
D) 36 years 
E) 40 years 
A) 14 years 
B) 18 years 
C) 28 years 
D) 36 years 
E) 40 years

In India last year,the growth rate of real GDP was 3.5 percent and the population grew from 1,000 million people to 1,100 million.Real GDP per person

-According to the data in the table above,real GDP grew at a rate of ________ between year 1 and year 2.

A surplus in the labor market indicates that the

Economic growth is defined as equal to the increase in

China's growth rate has that of most other countries,.

The production function displays

Labor productivity equals

Iceland's real GDP grows at a rate of 2.6 percent and population grows at a rate of 0.8 percent.Iceland's real GDP per person grows at a rate of

-The figure above shows the U.S.production function.How would an increase in unemployment benefits be shown in the figure?

-Using the data in the table above,the growth rate of real GDP has

Economic freedom means that

What are the sources of human capital?

Using the rule of 70,a sustained 3 percent per year real GDP growth rate will

The benefit to the firm of hiring another worker is

Which of the following statement or statements are correct about potential GDP? I.Actual real GDP equals potential GDP when the economy is at full employment. Ii.Real GDP can be less than potential GDP. Iii.When real GDP equals potential GDP,it also equals nominal GDP.

An increase in labor productivity

The Rule of 70,as applied to real GDP growth,can be used to find the

-The first table above gives the labor demand and labor supply schedules for a nation.The second table gives its production function. a.What is the equilibrium real wage rate and the level of employment? b.What is potential GDP?

-The above figure shows a nation's production function.Point C is

Suppose Mexico's real GDP per person in 2008 is $6,000 and the U.S.real GDP per person is $24,000.Mexico has annual growth in real GDP per person of 5 percent.Approximately how many years will it take Mexico to equal $24,000 of real GDP per person?

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 17: Potential Gdp and Economic Growth

In India last year,the growth rate of real GDP was 3.5 percent and the population grew from 1,000 million people to 1,100 million.Real GDP per person

-According to the data in the table above,real GDP grew at a rate of ________ between year 1 and year 2.

A surplus in the labor market indicates that the

Economic growth is defined as equal to the increase in

China's growth rate has ________ that of most other countries,________.

The production function displays

Labor productivity equals

Iceland's real GDP grows at a rate of 2.6 percent and population grows at a rate of 0.8 percent.Iceland's real GDP per person grows at a rate of

-The figure above shows the U.S.production function.How would an increase in unemployment benefits be shown in the figure?

-Using the data in the table above,the growth rate of real GDP has

Economic freedom means that

What are the sources of human capital?

Using the rule of 70,a sustained 3 percent per year real GDP growth rate will

The benefit to the firm of hiring another worker is

Which of the following statement or statements are correct about potential GDP? I.Actual real GDP equals potential GDP when the economy is at full employment. Ii.Real GDP can be less than potential GDP. Iii.When real GDP equals potential GDP,it also equals nominal GDP.

An increase in labor productivity

The Rule of 70,as applied to real GDP growth,can be used to find the

-The first table above gives the labor demand and labor supply schedules for a nation.The second table gives its production function. a.What is the equilibrium real wage rate and the level of employment? b.What is potential GDP?

-The above figure shows a nation's production function.Point C is

Suppose Mexico's real GDP per person in 2008 is $6,000 and the U.S.real GDP per person is $24,000.Mexico has annual growth in real GDP per person of 5 percent.Approximately how many years will it take Mexico to equal $24,000 of real GDP per person?

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Externalities: Pollution, education, and Health Care

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

China's growth rate has that of most other countries,.