Question 1

If real GDP is $1,200 billion,the population is 60 million,and aggregate hours are 80 billion,labor productivity is

Accepted Answer

A) $5.00 an hour. 
B) $6.67 an hour. 
C) $15.00 an hour. 
D) $20,000. 
E) $150 an hour. 
A) $5.00 an hour. 
B) $6.67 an hour. 
C) $15.00 an hour. 
D) $20,000. 
E) $150 an hour.

Question 2

The presence of an incentive system that encourages growth

Accepted Answer

A) guarantees that growth will occur. 
B) creates the right conditions for growth to occur. 
C) cannot exist in poor countries. 
D) existed even in hunter-gatherer societies. 
E) means that the government must be a democracy. 
A) guarantees that growth will occur. 
B) creates the right conditions for growth to occur. 
C) cannot exist in poor countries. 
D) existed even in hunter-gatherer societies. 
E) means that the government must be a democracy.

Question 3

If the government raises income taxes,then the equilibrium amount of employment ________ and potential GDP ________.

Accepted Answer

A) increases;increases 
B) increases;decreases 
C) decreases;increases 
D) decreases;decreases 
E) does not change;does not change 
A) increases;increases 
B) increases;decreases 
C) decreases;increases 
D) decreases;decreases 
E) does not change;does not change

Question 4

The total labor hours that all the firms in the economy plan to hire during a given time period at one particular real wage rate is the

Accepted Answer

A) demand for labor. 
B) quantity of labor demanded. 
C) supply of labor. 
D) quantity of labor supplied. 
E) quantity of jobs supplied. 
A) demand for labor. 
B) quantity of labor demanded. 
C) supply of labor. 
D) quantity of labor supplied. 
E) quantity of jobs supplied.

Question 5

In the United States between the 1970s and the 2000s,the productivity of labor increased.This increase led to

Accepted Answer

A) an increase in the demand for labor. 
B) an increase in the supply of labor. 
C) a downward shift of the production function. 
D) a decrease in the supply of labor. 
E) no change in either the demand for or the supply of labor. 
A) an increase in the demand for labor. 
B) an increase in the supply of labor. 
C) a downward shift of the production function. 
D) a decrease in the supply of labor. 
E) no change in either the demand for or the supply of labor.

Question 6

If a country experiences a real GDP growth rate of 1 percent and population growth of 2 percent,then the growth rate of real GDP per person is

Accepted Answer

A) 3 percent. 
B) 2 percent. 
C) 1 percent. 
D) -1 percent. 
E) 0 percent. 
A) 3 percent. 
B) 2 percent. 
C) 1 percent. 
D) -1 percent. 
E) 0 percent.

Question 7

Potential GDP is the level of

Accepted Answer

A) real GDP that the economy would produce if it was at full employment. 
B) nominal GDP that the economy would produce if it was at full employment. 
C) real GDP that the economy would produce if there was no inflation. 
D) nominal GDP that the economy would produce if there was no inflation. 
E) real GDP that the economy would produce if there was no unemployment. 
A) real GDP that the economy would produce if it was at full employment. 
B) nominal GDP that the economy would produce if it was at full employment. 
C) real GDP that the economy would produce if there was no inflation. 
D) nominal GDP that the economy would produce if there was no inflation. 
E) real GDP that the economy would produce if there was no unemployment.

Question 8

Economic growth is enhanced by

Accepted Answer

A) free international trade. 
B) limiting international trade so that the domestic economy can prosper. 
C) discouraging saving,because increased saving means less spending. 
D) ignoring incentive systems. 
E) increasing welfare payments to the poor so they can afford to buy goods. 
A) free international trade. 
B) limiting international trade so that the domestic economy can prosper. 
C) discouraging saving,because increased saving means less spending. 
D) ignoring incentive systems. 
E) increasing welfare payments to the poor so they can afford to buy goods.

Question 9

Suppose that in the future,real GDP per person grows 2 percent a year in the United States and 4 percent a year in China.It will take real GDP per person approximately ________ years to double in the United States and approximately ________ years to double in China.

Accepted Answer

A) 70;35 
B) 35;17.5 
C) 35;8.75 
D) 50;25 
E) 20;10 
A) 70;35 
B) 35;17.5 
C) 35;8.75 
D) 50;25 
E) 20;10

Question 10

The Lucas Wedge is estimated to

Accepted Answer

A) total over $406,000 per person as a result of the slowdown in the growth rate of real GDP. 
B) have reached about $13,000 per person in the last year. 
C) be about 2 percent of real GDP per year. 
D) be negative due to the severe recession in 2008-2009. 
E) be positive in some years and negative in others. 
A) total over $406,000 per person as a result of the slowdown in the growth rate of real GDP. 
B) have reached about $13,000 per person in the last year. 
C) be about 2 percent of real GDP per year. 
D) be negative due to the severe recession in 2008-2009. 
E) be positive in some years and negative in others.

Question 11

If Country A's real GDP is growing at 6 percent per year and Country B's real GDP is growing at 6 percent per year,then the standard of living is

Accepted Answer

A) growing more rapidly in Country A. 
B) higher in Country B. 
C) changing at the same rate in Country A and Country B. 
D) growing more slowly in Country A. 
E) changing at the same rate in Country A and Country B only if the rate of population growth is the same in both countries. 
A) growing more rapidly in Country A. 
B) higher in Country B. 
C) changing at the same rate in Country A and Country B. 
D) growing more slowly in Country A. 
E) changing at the same rate in Country A and Country B only if the rate of population growth is the same in both countries.

Question 12

A country will likely experience an increase in poverty if

Accepted Answer

A) its population decreases over time. 
B) its real GDP growth rate decreases or slows over time. 
C) its inflation rate decreases or slows over time. 
D) its real GDP per person growth rate increases over time. 
E) it does not receive foreign aid. 
A) its population decreases over time. 
B) its real GDP growth rate decreases or slows over time. 
C) its inflation rate decreases or slows over time. 
D) its real GDP per person growth rate increases over time. 
E) it does not receive foreign aid.

Question 13

Real GDP is $700 billion,average hours worked per week is 42 and aggregate hours 150 billion hours.What is the economy's labor productivity?

Accepted Answer

A) $1.80 per hour 
B) $3.75 per hour 
C) $16.67 per hour 
D) $46.67 per hour 
E) $4.50 per hour 
A) $1.80 per hour 
B) $3.75 per hour 
C) $16.67 per hour 
D) $46.67 per hour 
E) $4.50 per hour

Question 14

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

Accepted Answer

A) 10 percent 
B) 0 percent 
C) 1 percent 
D) 5 percent 
E) 50 percent 
A) 10 percent 
B) 0 percent 
C) 1 percent 
D) 5 percent 
E) 50 percent

Question 15

The level of real GDP the economy produces at full employment is called

Accepted Answer

A) sustainable GDP. 
B) nominal GDP. 
C) potential GDP. 
D) maximum GDP. 
E) Lucas GDP. 
A) sustainable GDP. 
B) nominal GDP. 
C) potential GDP. 
D) maximum GDP. 
E) Lucas GDP.

Question 16

________ increases with education,training,and job experience.
I.Physical capital
Ii.Human capital
Iii.Financial capital

Accepted Answer

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

Question 17

According the Keynesian macroeconomic model,which of the following was responsible for starting the Great Depression?

Accepted Answer

A) too little private spending 
B) too little government spending 
C) high taxes 
D) decreases in the quantity of money 
E) decreases in technology 
A) too little private spending 
B) too little government spending 
C) high taxes 
D) decreases in the quantity of money 
E) decreases in technology

Question 18

The economic growth rate is expressed as the

Accepted Answer

A) annual percentage change of real GDP per person. 
B) growth rate of real GDP minus the growth rate of population. 
C) standard of living. 
D) annual percentage change of real GDP. 
E) growth rate of the population. 
A) annual percentage change of real GDP per person. 
B) growth rate of real GDP minus the growth rate of population. 
C) standard of living. 
D) annual percentage change of real GDP. 
E) growth rate of the population.

Question 19

-The table gives information about the economy of Japan.The economic growth rate in 1997 is ________ percent.

Accepted Answer

A) 8.0 
B) 0.8 
C) 0.08 
D) 0.008 
E) 4 
A) 8.0 
B) 0.8 
C) 0.08 
D) 0.008 
E) 4

Question 20

Economic freedom

Accepted Answer

A) is not important for nations to grow. 
B) must come from a democratic government. 
C) is founded,in part,on the rule of law. 
D) is created when the nation imposes many regulations on businesses. 
E) is harmed by having too many property rights. 
A) is not important for nations to grow. 
B) must come from a democratic government. 
C) is founded,in part,on the rule of law. 
D) is created when the nation imposes many regulations on businesses. 
E) is harmed by having too many property rights.

If real GDP is $1,200 billion,the population is 60 million,and aggregate hours are 80 billion,labor productivity is

The presence of an incentive system that encourages growth

If the government raises income taxes,then the equilibrium amount of employment and potential GDP .

The total labor hours that all the firms in the economy plan to hire during a given time period at one particular real wage rate is the

In the United States between the 1970s and the 2000s,the productivity of labor increased.This increase led to

If a country experiences a real GDP growth rate of 1 percent and population growth of 2 percent,then the growth rate of real GDP per person is

Potential GDP is the level of

Economic growth is enhanced by

Suppose that in the future,real GDP per person grows 2 percent a year in the United States and 4 percent a year in China.It will take real GDP per person approximately years to double in the United States and approximately years to double in China.

The Lucas Wedge is estimated to

If Country A's real GDP is growing at 6 percent per year and Country B's real GDP is growing at 6 percent per year,then the standard of living is

A country will likely experience an increase in poverty if

Real GDP is $700 billion,average hours worked per week is 42 and aggregate hours 150 billion hours.What is the economy's labor productivity?

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

The level of real GDP the economy produces at full employment is called

________ increases with education,training,and job experience. I.Physical capital Ii.Human capital Iii.Financial capital

According the Keynesian macroeconomic model,which of the following was responsible for starting the Great Depression?

The economic growth rate is expressed as the

-The table gives information about the economy of Japan.The economic growth rate in 1997 is ________ percent.

Economic freedom

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 real GDP is $1,200 billion,the population is 60 million,and aggregate hours are 80 billion,labor productivity is

The presence of an incentive system that encourages growth

If the government raises income taxes,then the equilibrium amount of employment ________ and potential GDP ________.

The total labor hours that all the firms in the economy plan to hire during a given time period at one particular real wage rate is the

In the United States between the 1970s and the 2000s,the productivity of labor increased.This increase led to

If a country experiences a real GDP growth rate of 1 percent and population growth of 2 percent,then the growth rate of real GDP per person is

Potential GDP is the level of

Economic growth is enhanced by

Suppose that in the future,real GDP per person grows 2 percent a year in the United States and 4 percent a year in China.It will take real GDP per person approximately ________ years to double in the United States and approximately ________ years to double in China.

The Lucas Wedge is estimated to

If Country A's real GDP is growing at 6 percent per year and Country B's real GDP is growing at 6 percent per year,then the standard of living is

A country will likely experience an increase in poverty if

Real GDP is $700 billion,average hours worked per week is 42 and aggregate hours 150 billion hours.What is the economy's labor productivity?

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

The level of real GDP the economy produces at full employment is called

________ increases with education,training,and job experience. I.Physical capital Ii.Human capital Iii.Financial capital

According the Keynesian macroeconomic model,which of the following was responsible for starting the Great Depression?

The economic growth rate is expressed as the

-The table gives information about the economy of Japan.The economic growth rate in 1997 is ________ percent.

Economic freedom

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

If the government raises income taxes,then the equilibrium amount of employment and potential GDP .

Suppose that in the future,real GDP per person grows 2 percent a year in the United States and 4 percent a year in China.It will take real GDP per person approximately years to double in the United States and approximately years to double in China.