Question 1

Refer to the information provided in Table 16.1 below to answer the questions that follow.
Table 16.1
  
-Refer to Table 16.1. During Period 1, labor productivity is equal to

Accepted Answer

A)  0.25. 
B)  1.0. 
C)  2.0. 
D)  4.0. 
A)  0.25. 
B)  1.0. 
C)  2.0. 
D)  4.0.

Question 2

Labor productivity growth is the growth rate of output per person in the economy.

Accepted Answer

A) True 
 B)False

Question 3

A company uses 100 workers and 30 units of capital to produce 500 units of output. If this company increases its capital to 50 units and, as a result, its output increases by 300 units, the productivity of labor ________ to ________ units per worker.

Accepted Answer

A)  increases; 8 
B)  increases; 1 
C)  increases; 3 
D)  decreases; 4 
A)  increases; 8 
B)  increases; 1 
C)  increases; 3 
D)  decreases; 4

Question 4

In the absence of increases in the capital stock, increases in labor are subject to diminishing returns.

Accepted Answer

A) True 
 B)False

Question 5

Suppose that growth in output that can be attributed to growth in labor and capital is 2%. If output grows at a rate of 5%, it must be the case that

Accepted Answer

A)  growth in labor exceeds growth in capital. 
B)  growth in capital exceeds growth in labor. 
C)  the economy is experiencing technological progress. 
D)  the economy is not spending enough on acquiring human capital. 
A)  growth in labor exceeds growth in capital. 
B)  growth in capital exceeds growth in labor. 
C)  the economy is experiencing technological progress. 
D)  the economy is not spending enough on acquiring human capital.

Question 6

Refer to the information provided in Figure 16.1 below to answer the questions that follow.   Figure 16.1
-Refer to Figure 16.1. Which of the following causes the ppf to shift from ppf2 to ppf1?

Accepted Answer

A)  technological progress 
B)  a decrease in capital stock 
C)  an increase in the labor force 
D)  an increase in per capita income 
A)  technological progress 
B)  a decrease in capital stock 
C)  an increase in the labor force 
D)  an increase in per capita income

Question 7

Convergence theory suggests that gaps in ________ tend to close over time.

Accepted Answer

A)  national income 
B)  population levels 
C)  unemployment rates 
D)  inflation rates 
A)  national income 
B)  population levels 
C)  unemployment rates 
D)  inflation rates

Question 8

Refer to the information provided in Table 16.1 below to answer the questions that follow.
Table 16.1
  
-Refer to Table 16.1. From Period 1 to Period 2, the marginal return to labor is equal to

Accepted Answer

A)  0.5. 
B)  1.0. 
C)  2.0. 
D)  4.0. 
A)  0.5. 
B)  1.0. 
C)  2.0. 
D)  4.0.

Question 9

The Millennium Development Goals adopted by the United Nations included targets for which of the following?

Accepted Answer

A)  education 
B)  income growth 
C)  environmental protection 
D)  all of the above 
A)  education 
B)  income growth 
C)  environmental protection 
D)  all of the above

Question 10

An increase in human capital will decrease output.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following was not one of the likely causes of the productivity problem in the 1970s?

Accepted Answer

A)  the increase in energy prices in the 1970s 
B)  high saving rates 
C)  an increase in government regulation 
D)  a slowdown in investment spending 
A)  the increase in energy prices in the 1970s 
B)  high saving rates 
C)  an increase in government regulation 
D)  a slowdown in investment spending

Question 12

Globally, from 1996-2013 the highest average growth rate per year occurred on the continent of Africa.

Accepted Answer

A) True 
 B)False

Question 13

Refer to the information provided in Table 16.2 below to answer the questions that follow.
Table 16.2
  
-Refer to Table 16.2. During Period 4, output per capital is equal to

Accepted Answer

A)  0.35. 
B)  1.77. 
C)  2.88. 
D)  4.6. 
A)  0.35. 
B)  1.77. 
C)  2.88. 
D)  4.6.

Question 14

Refer to the information provided in Figure 16.1 below to answer the questions that follow.   Figure 16.1
-Refer to Figure 16.1. A decrease in the labor force will cause a

Accepted Answer

A)  movement from Point A to Point B. 
B)  movement from Point B to Point A. 
C)  shift from ppf2 to ppf1. 
D)  shift from ppf2 to ppf3. 
A)  movement from Point A to Point B. 
B)  movement from Point B to Point A. 
C)  shift from ppf2 to ppf1. 
D)  shift from ppf2 to ppf3.

Question 15

A decrease in capital/labor ratio enhances economic growth.

Accepted Answer

A) True 
 B)False

Question 16

Embodied technical change is one reason why

Accepted Answer

A)  human capital is more valued in an economy than physical capital. 
B)  the quality of capital had decreased. 
C)  labor productivity has increased over time. 
D)  increases in population decrease labor productivity. 
A)  human capital is more valued in an economy than physical capital. 
B)  the quality of capital had decreased. 
C)  labor productivity has increased over time. 
D)  increases in population decrease labor productivity.

Refer to the information provided in Table 16.1 below to answer the questions that follow. Table 16.1 -Refer to Table 16.1. During Period 1, labor productivity is equal to

Labor productivity growth is the growth rate of output per person in the economy.

A company uses 100 workers and 30 units of capital to produce 500 units of output. If this company increases its capital to 50 units and, as a result, its output increases by 300 units, the productivity of labor to units per worker.

In the absence of increases in the capital stock, increases in labor are subject to diminishing returns.

Suppose that growth in output that can be attributed to growth in labor and capital is 2%. If output grows at a rate of 5%, it must be the case that

Refer to the information provided in Figure 16.1 below to answer the questions that follow. Figure 16.1 -Refer to Figure 16.1. Which of the following causes the ppf to shift from ppf₂ to ppf₁?

Convergence theory suggests that gaps in ________ tend to close over time.

Refer to the information provided in Table 16.1 below to answer the questions that follow. Table 16.1 -Refer to Table 16.1. From Period 1 to Period 2, the marginal return to labor is equal to

The Millennium Development Goals adopted by the United Nations included targets for which of the following?

An increase in human capital will decrease output.

Which of the following was not one of the likely causes of the productivity problem in the 1970s?

Globally, from 1996-2013 the highest average growth rate per year occurred on the continent of Africa.

Refer to the information provided in Table 16.2 below to answer the questions that follow. Table 16.2 -Refer to Table 16.2. During Period 4, output per capital is equal to

Refer to the information provided in Figure 16.1 below to answer the questions that follow. Figure 16.1 -Refer to Figure 16.1. A decrease in the labor force will cause a

A decrease in capital/labor ratio enhances economic growth.

Embodied technical change is one reason why

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment, Inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

Money, the Federal Reserve, and the Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Cost Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, Stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Alternative Views in Macroeconomics

International Trade, Comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

Exam 16: Long-Run Growth

Refer to the information provided in Table 16.1 below to answer the questions that follow. Table 16.1 -Refer to Table 16.1. During Period 1, labor productivity is equal to

Labor productivity growth is the growth rate of output per person in the economy.

A company uses 100 workers and 30 units of capital to produce 500 units of output. If this company increases its capital to 50 units and, as a result, its output increases by 300 units, the productivity of labor ________ to ________ units per worker.

In the absence of increases in the capital stock, increases in labor are subject to diminishing returns.

Suppose that growth in output that can be attributed to growth in labor and capital is 2%. If output grows at a rate of 5%, it must be the case that

Refer to the information provided in Figure 16.1 below to answer the questions that follow. Figure 16.1 -Refer to Figure 16.1. Which of the following causes the ppf to shift from ppf2 to ppf1?

Convergence theory suggests that gaps in ________ tend to close over time.

Refer to the information provided in Table 16.1 below to answer the questions that follow. Table 16.1 -Refer to Table 16.1. From Period 1 to Period 2, the marginal return to labor is equal to

The Millennium Development Goals adopted by the United Nations included targets for which of the following?

An increase in human capital will decrease output.

Which of the following was not one of the likely causes of the productivity problem in the 1970s?

Globally, from 1996-2013 the highest average growth rate per year occurred on the continent of Africa.

Refer to the information provided in Table 16.2 below to answer the questions that follow. Table 16.2 -Refer to Table 16.2. During Period 4, output per capital is equal to

Refer to the information provided in Figure 16.1 below to answer the questions that follow. Figure 16.1 -Refer to Figure 16.1. A decrease in the labor force will cause a

A decrease in capital/labor ratio enhances economic growth.

Embodied technical change is one reason why

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment, Inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

Money, the Federal Reserve, and the Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Cost Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, Stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Alternative Views in Macroeconomics

International Trade, Comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

A company uses 100 workers and 30 units of capital to produce 500 units of output. If this company increases its capital to 50 units and, as a result, its output increases by 300 units, the productivity of labor to units per worker.

Refer to the information provided in Figure 16.1 below to answer the questions that follow. Figure 16.1 -Refer to Figure 16.1. Which of the following causes the ppf to shift from ppf₂ to ppf₁?