Question 1

Labor productivity is defined as

Accepted Answer

A) total real GDP. 
B) real GDP per person. 
C) total output multiplied by total hours of labor. 
D) real GDP per hour of labor. 
E) hours of work per person. 
A) total real GDP. 
B) real GDP per person. 
C) total output multiplied by total hours of labor. 
D) real GDP per hour of labor. 
E) hours of work per person.

Question 2

Suppose France's real GDP grew from $750 billion in 2010 to $821 billion in 2011.What was the growth rate of France's real GDP?

Accepted Answer

A) 10 percent 
B) 9.5 percent 
C) 9.1 percent 
D) 8.6 percent 
E) $71 billion 
A) 10 percent 
B) 9.5 percent 
C) 9.1 percent 
D) 8.6 percent 
E) $71 billion

Question 3

An important condition required for economic growth is

Accepted Answer

A) a democratic government. 
B) a totalitarian government. 
C) a libertarian government. 
D) economic freedom. 
E) the incentive to limit international trade so that all economic growth remains within the country. 
A) a democratic government. 
B) a totalitarian government. 
C) a libertarian government. 
D) economic freedom. 
E) the incentive to limit international trade so that all economic growth remains within the country.

Question 4

A reason for an increase in labor productivity growth is

Accepted Answer

A) an increase in people's human capital. 
B) a decrease in the capital stock so that firms must hire more workers. 
C) growth in the supply of labor. 
D) an increase in the population so that firms hire more workers. 
E) an increase in the quantity of labor. 
A) an increase in people's human capital. 
B) a decrease in the capital stock so that firms must hire more workers. 
C) growth in the supply of labor. 
D) an increase in the population so that firms hire more workers. 
E) an increase in the quantity of labor.

Question 5

Economic freedom requires

Accepted Answer

A) that there are no regulations and restrictions set on businesses and households by the government. 
B) the rule of law and the ability to enforce the laws. 
C) strong labor unions. 
D) freedom to bribe government officials. 
E) that the government be a democracy. 
A) that there are no regulations and restrictions set on businesses and households by the government. 
B) the rule of law and the ability to enforce the laws. 
C) strong labor unions. 
D) freedom to bribe government officials. 
E) that the government be a democracy.

Question 6

Which of the following statements is FALSE?

Accepted Answer

A) Saving helps create economic growth. 
B) Improvements in quality of education are important for economic growth. 
C) Free international trade helps create economic growth. 
D) Faster population growth is the key to growth in real GDP per person. 
E) Economic freedom requires property rights. 
A) Saving helps create economic growth. 
B) Improvements in quality of education are important for economic growth. 
C) Free international trade helps create economic growth. 
D) Faster population growth is the key to growth in real GDP per person. 
E) Economic freedom requires property rights.

Question 7

According to the production function,as the quantity of labor employed increases,real GDP increases

Accepted Answer

A) at an increasing rate. 
B) at a decreasing rate. 
C) at a constant rate. 
D) and then eventually decreases. 
E) until it reaches potential GDP,and then it no longer changes. 
A) at an increasing rate. 
B) at a decreasing rate. 
C) at a constant rate. 
D) and then eventually decreases. 
E) until it reaches potential GDP,and then it no longer changes.

Question 8

Economic freedom provides the

Accepted Answer

A) political system that encourages democracy. 
B) social system that supports families. 
C) production system that discourages property rights. 
D) incentive system that encourages growth-producing activities. 
E) necessary alternative to free markets. 
A) political system that encourages democracy. 
B) social system that supports families. 
C) production system that discourages property rights. 
D) incentive system that encourages growth-producing activities. 
E) necessary alternative to free markets.

Question 9

A nation's annual growth rate of real GDP per person is 2 percent.Its standard of living will

Accepted Answer

A) double in 35 years. 
B) not change because its population is growing. 
C) fall because of its population growth. 
D) double in 10 years. 
E) double in 50 years. 
A) double in 35 years. 
B) not change because its population is growing. 
C) fall because of its population growth. 
D) double in 10 years. 
E) double in 50 years.

Question 10

Increases in human capital can come

Accepted Answer

A) only from formal schooling. 
B) from employing more machinery. 
C) only from on-the-job experience. 
D) from formal education and on-the-job learning. 
E) from nowhere because whatever human capital an individual possesses is what he or she was born with. 
A) only from formal schooling. 
B) from employing more machinery. 
C) only from on-the-job experience. 
D) from formal education and on-the-job learning. 
E) from nowhere because whatever human capital an individual possesses is what he or she was born with.

Labor productivity is defined as

Suppose France's real GDP grew from $750 billion in 2010 to $821 billion in 2011.What was the growth rate of France's real GDP?

An important condition required for economic growth is

A reason for an increase in labor productivity growth is

Economic freedom requires

Which of the following statements is FALSE?

According to the production function,as the quantity of labor employed increases,real GDP increases

Economic freedom provides the

A nation's annual growth rate of real GDP per person is 2 percent.Its standard of living will

Increases in human capital can come

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

Labor productivity is defined as

Suppose France's real GDP grew from $750 billion in 2010 to $821 billion in 2011.What was the growth rate of France's real GDP?

An important condition required for economic growth is

A reason for an increase in labor productivity growth is

Economic freedom requires

Which of the following statements is FALSE?

According to the production function,as the quantity of labor employed increases,real GDP increases

Economic freedom provides the

A nation's annual growth rate of real GDP per person is 2 percent.Its standard of living will

Increases in human capital can come

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