Question 1

If capital per hour of labor decreases,real GDP per hour of labor

Accepted Answer

A) decreases because the level of technology decreases. 
B) increases because the level of technology increases. 
C) increases for a given level of technology. 
D) decreases for a given level of technology. 
E) changes only if technology also advances. 
A) decreases because the level of technology decreases. 
B) increases because the level of technology increases. 
C) increases for a given level of technology. 
D) decreases for a given level of technology. 
E) changes only if technology also advances.

Question 2

Employing an additional 1 billion hours of labor increases real GDP by $12 billion.Employing another 1 billion hours beyond the first 1 billion increases real GDP by $11 billion.Hence we can conclude from this information that as employment increases,real GDP

Accepted Answer

A) increases at an increasing rate. 
B) decreases at an increasing rate. 
C) decreases at a decreasing rate. 
D) increases at a decreasing rate. 
E) falls from $12 billion to $11 billion as more workers are hired. 
A) increases at an increasing rate. 
B) decreases at an increasing rate. 
C) decreases at a decreasing rate. 
D) increases at a decreasing rate. 
E) falls from $12 billion to $11 billion as more workers are hired.

Question 3

If the U.S.population grew at a 0.9 percent and real GDP grew at a 4.4 percent during the same period,what was the growth rate of real GDP per person?

Accepted Answer

A) 3.5 percent 
B) 5.3 percent 
C) 4.0 percent 
D) -3.5 percent 
E) 4.4 percent 
A) 3.5 percent 
B) 5.3 percent 
C) 4.0 percent 
D) -3.5 percent 
E) 4.4 percent

Question 4

All of the following are preconditions for economic growth EXCEPT
I.property rights.
Ii.democracy.
Iii.free markets.

Accepted Answer

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

Question 5

Why is growth in GDP different from growth in a nation's standard of living? Is it possible for a nation's GDP to grow while its standard of living falls?

Accepted Answer

The standard of living is measured by re

Question 6

In order to increase economic growth,a government can

Accepted Answer

A) discourage research and development. 
B) decrease funding on education. 
C) discourage specialization and trade. 
D) establish property rights and a legal system. 
E) tax saving in order to encourage more spending. 
A) discourage research and development. 
B) decrease funding on education. 
C) discourage specialization and trade. 
D) establish property rights and a legal system. 
E) tax saving in order to encourage more spending.

Question 7

Encouraging international trade will

Accepted Answer

A) slow economic growth when a country is forced to specialize and trade with other countries. 
B) slow economic growth as many workers lose their jobs to foreign workers. 
C) speed economic growth as workers diversify their knowledge and limit trade. 
D) speed economic growth as workers specialize and trade with others. 
E) speed economic growth because international trade limits the harm done by property rights. 
A) slow economic growth when a country is forced to specialize and trade with other countries. 
B) slow economic growth as many workers lose their jobs to foreign workers. 
C) speed economic growth as workers diversify their knowledge and limit trade. 
D) speed economic growth as workers specialize and trade with others. 
E) speed economic growth because international trade limits the harm done by property rights.

Question 8

Define labor productivity.Discuss the relationship between labor productivity,human capital growth,and technology change.

Accepted Answer

Labor productivity is real GDP per hour

Question 9

Suppose that an Intel worker rearranges existing machines and labor and increases the quantity of chips Intel can produce.Using the productivity curve graphed,this innovation would be described as

Accepted Answer

A) a movement upward along the curve. 
B) a movement downward along the curve. 
C) a shift of the curve upward. 
D) a shift of the curve downward. 
E) no change to the productivity curve. 
A) a movement upward along the curve. 
B) a movement downward along the curve. 
C) a shift of the curve upward. 
D) a shift of the curve downward. 
E) no change to the productivity curve.

Question 10

The productivity curve is a relationship between ________ and ________.

Accepted Answer

A) real GDP;hours of labor 
B) real GDP;capital 
C) real GDP per hour of labor;capital 
D) capital per hour of labor;labor per hour of capital 
E) real GDP per hour of labor;capital per hour of labor 
A) real GDP;hours of labor 
B) real GDP;capital 
C) real GDP per hour of labor;capital 
D) capital per hour of labor;labor per hour of capital 
E) real GDP per hour of labor;capital per hour of labor

Question 11

The real wage rate is the ________ divided by the ________.

Accepted Answer

A) quantity of labor demanded;quantity of labor supplied 
B) nominal wage rate;price level 
C) quantity of labor supplied;quantity of labor demanded 
D) nominal wage rate;inflation rate 
E) equilibrium quantity of employment;potential GDP 
A) quantity of labor demanded;quantity of labor supplied 
B) nominal wage rate;price level 
C) quantity of labor supplied;quantity of labor demanded 
D) nominal wage rate;inflation rate 
E) equilibrium quantity of employment;potential GDP

Question 12

-The tables above show a nation's labor demand and labor supply schedules and its production function.The equilibrium real wage rate is ________ and the equilibrium quantity of labor is ________ billion hours per year.

Accepted Answer

A) $50;100 
B) $40;90 
C) $30;80 
D) $40;80 
E) $20;110 
A) $50;100 
B) $40;90 
C) $30;80 
D) $40;80 
E) $20;110

Question 13

A key reason why some nations show little or no growth is

Accepted Answer

A) overpopulation that overuses limited resources. 
B) lack of incentives to undertake actions toward growth. 
C) too much private property not directed by the government. 
D) patents in rich nations that keep technology only for the rich. 
E) too much international trade so that all economic growth spills over to foreigners. 
A) overpopulation that overuses limited resources. 
B) lack of incentives to undertake actions toward growth. 
C) too much private property not directed by the government. 
D) patents in rich nations that keep technology only for the rich. 
E) too much international trade so that all economic growth spills over to foreigners.

Question 14

Property rights assure people that

Accepted Answer

A) the government will not confiscate their income or savings. 
B) the government will provide a minimum standard of living. 
C) the factors of production and goods are owned jointly by the government and the people. 
D) economic growth will enhance government involvement in the economy. 
E) international trade will be limited. 
A) the government will not confiscate their income or savings. 
B) the government will provide a minimum standard of living. 
C) the factors of production and goods are owned jointly by the government and the people. 
D) economic growth will enhance government involvement in the economy. 
E) international trade will be limited.

Question 15

A reason why many of the third world countries are not achieving an increase in their standard of living is that they

Accepted Answer

A) don't have enough natural resources. 
B) don't have strong military power to force people to work harder. 
C) don't have social institutions with a strong rule of law and economic freedom. 
D) strongly encouraged international trade. 
E) don't have a strong central government. 
A) don't have enough natural resources. 
B) don't have strong military power to force people to work harder. 
C) don't have social institutions with a strong rule of law and economic freedom. 
D) strongly encouraged international trade. 
E) don't have a strong central government.

Question 16

If real GDP was $13.1 trillion in 2013 and $13.3 in 2014,what is the growth rate?

Accepted Answer

A) 15.0 percent 
B) -1.5 percent 
C) 1.5 percent 
D) $0.2 trillion 
E) 2.1 percent 
A) 15.0 percent 
B) -1.5 percent 
C) 1.5 percent 
D) $0.2 trillion 
E) 2.1 percent

Question 17

Activities that encourage faster growth are

Accepted Answer

A) high levels of saving and investment in human capital. 
B) high levels of consumption and low levels of savings. 
C) taxes on saving that serve to encourage more spending and less saving. 
D) imposing trade barriers to limit international trade and thereby protect national industries. 
E) limiting property rights so that everyone can use any invention. 
A) high levels of saving and investment in human capital. 
B) high levels of consumption and low levels of savings. 
C) taxes on saving that serve to encourage more spending and less saving. 
D) imposing trade barriers to limit international trade and thereby protect national industries. 
E) limiting property rights so that everyone can use any invention.

Question 18

Retirement savings accounts,such as IRAs,help increase economic growth because

Accepted Answer

A) people have an incentive to work harder and longer hours to save for the future. 
B) they keep the interest rates high. 
C) savings finances investment. 
D) government invests them. 
E) they encourage international trade. 
A) people have an incentive to work harder and longer hours to save for the future. 
B) they keep the interest rates high. 
C) savings finances investment. 
D) government invests them. 
E) they encourage international trade.

Question 19

If real GDP grows at a faster rate than does population,then the standard of living,as measured by real GDP per person,

Accepted Answer

A) improves. 
B) worsens. 
C) remains the same. 
D) cannot be measured. 
E) either improves,worsens,or stays the same,depending on the size of the population and the actual level of real GDP. 
A) improves. 
B) worsens. 
C) remains the same. 
D) cannot be measured. 
E) either improves,worsens,or stays the same,depending on the size of the population and the actual level of real GDP.

Question 20

The economic growth rate is measured as the

Accepted Answer

A) annual percentage change of real GDP. 
B) annual percentage change of employment. 
C) amount of real GDP. 
D) annual percentage change of the population. 
E) amount of population. 
A) annual percentage change of real GDP. 
B) annual percentage change of employment. 
C) amount of real GDP. 
D) annual percentage change of the population. 
E) amount of population.

If capital per hour of labor decreases,real GDP per hour of labor

Employing an additional 1 billion hours of labor increases real GDP by $12 billion.Employing another 1 billion hours beyond the first 1 billion increases real GDP by $11 billion.Hence we can conclude from this information that as employment increases,real GDP

If the U.S.population grew at a 0.9 percent and real GDP grew at a 4.4 percent during the same period,what was the growth rate of real GDP per person?

All of the following are preconditions for economic growth EXCEPT I.property rights. Ii.democracy. Iii.free markets.

Why is growth in GDP different from growth in a nation's standard of living? Is it possible for a nation's GDP to grow while its standard of living falls?

In order to increase economic growth,a government can

Encouraging international trade will

Define labor productivity.Discuss the relationship between labor productivity,human capital growth,and technology change.

Suppose that an Intel worker rearranges existing machines and labor and increases the quantity of chips Intel can produce.Using the productivity curve graphed,this innovation would be described as

The productivity curve is a relationship between and .

The real wage rate is the divided by the .

-The tables above show a nation's labor demand and labor supply schedules and its production function.The equilibrium real wage rate is and the equilibrium quantity of labor is billion hours per year.

A key reason why some nations show little or no growth is

Property rights assure people that

A reason why many of the third world countries are not achieving an increase in their standard of living is that they

If real GDP was $13.1 trillion in 2013 and $13.3 in 2014,what is the growth rate?

Activities that encourage faster growth are

Retirement savings accounts,such as IRAs,help increase economic growth because

If real GDP grows at a faster rate than does population,then the standard of living,as measured by real GDP per person,

The economic growth rate is measured as the

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

If capital per hour of labor decreases,real GDP per hour of labor

Employing an additional 1 billion hours of labor increases real GDP by $12 billion.Employing another 1 billion hours beyond the first 1 billion increases real GDP by $11 billion.Hence we can conclude from this information that as employment increases,real GDP

If the U.S.population grew at a 0.9 percent and real GDP grew at a 4.4 percent during the same period,what was the growth rate of real GDP per person?

All of the following are preconditions for economic growth EXCEPT I.property rights. Ii.democracy. Iii.free markets.

Why is growth in GDP different from growth in a nation's standard of living? Is it possible for a nation's GDP to grow while its standard of living falls?

In order to increase economic growth,a government can

Encouraging international trade will

Define labor productivity.Discuss the relationship between labor productivity,human capital growth,and technology change.

Suppose that an Intel worker rearranges existing machines and labor and increases the quantity of chips Intel can produce.Using the productivity curve graphed,this innovation would be described as

The productivity curve is a relationship between ________ and ________.

The real wage rate is the ________ divided by the ________.

-The tables above show a nation's labor demand and labor supply schedules and its production function.The equilibrium real wage rate is ________ and the equilibrium quantity of labor is ________ billion hours per year.

A key reason why some nations show little or no growth is

Property rights assure people that

A reason why many of the third world countries are not achieving an increase in their standard of living is that they

If real GDP was $13.1 trillion in 2013 and $13.3 in 2014,what is the growth rate?

Activities that encourage faster growth are

Retirement savings accounts,such as IRAs,help increase economic growth because

If real GDP grows at a faster rate than does population,then the standard of living,as measured by real GDP per person,

The economic growth rate is measured as the

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

The productivity curve is a relationship between and .

The real wage rate is the divided by the .

-The tables above show a nation's labor demand and labor supply schedules and its production function.The equilibrium real wage rate is and the equilibrium quantity of labor is billion hours per year.