Question 1

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

Accepted Answer

A)  a reduction in government regulation 
B)  reduced research and development spending 
C)  a slowdown in investment spending 
D)  low saving rates 
A)  a reduction in government regulation 
B)  reduced research and development spending 
C)  a slowdown in investment spending 
D)  low saving rates

Question 2

Economists agree that the cause of the slow economic growth during the 1970s was the tight monetary policy.

Accepted Answer

A) True 
 B)False

Question 3

The aggregate production function is Y = 5K0.5L0.5. If there are 49 units of capital and 16 units of labor, aggregate output is

Accepted Answer

A)  60 units. 
B)  70 units. 
C)  140 units. 
D)  325 units. 
A)  60 units. 
B)  70 units. 
C)  140 units. 
D)  325 units.

Question 4

In general, environmental pollution generally declines after growth has led to high per-capita incomes.

Accepted Answer

A) True 
 B)False

Question 5

The mathematical representation of the technological relationship between inputs and national output is known as the

Accepted Answer

A)  aggregate supply function. 
B)  production possibilities frontier. 
C)  aggregate production function. 
D)  input-output table. 
A)  aggregate supply function. 
B)  production possibilities frontier. 
C)  aggregate production function. 
D)  input-output table.

Question 6

Which of the following is an investment in human capital?

Accepted Answer

A)  The city government green lights the construction of a new concert arena. 
B)  Rayburn Tool and Die Company purchases a new die-cutting machine. 
C)  Displaced workers return to school to update their skills. 
D)  Thompson Temp Agency replaces its desktop computers with laptop computers. 
A)  The city government green lights the construction of a new concert arena. 
B)  Rayburn Tool and Die Company purchases a new die-cutting machine. 
C)  Displaced workers return to school to update their skills. 
D)  Thompson Temp Agency replaces its desktop computers with laptop computers.

Question 7

Technical change which results in a change in the production process is known as

Accepted Answer

A)  disembodied technical change. 
B)  embodied technical change. 
C)  per-capita technical change. 
D)  technical catch-up. 
A)  disembodied technical change. 
B)  embodied technical change. 
C)  per-capita technical change. 
D)  technical catch-up.

Question 8

The 1970s was a period of high productivity growth in the United States.

Accepted Answer

A) True 
 B)False

Question 9

The growth rate of output of the entire economy is called

Accepted Answer

A)  factor growth. 
B)  labor productivity growth. 
C)  per-capita output growth. 
D)  output growth. 
A)  factor growth. 
B)  labor productivity growth. 
C)  per-capita output growth. 
D)  output growth.

Question 10

Labor productivity increases when

Accepted Answer

A)  labor and output increase proportionately. 
B)  capital increases and labor remains constant. 
C)  output decreases and labor increases. 
D)  capital/labor ratio decreases. 
A)  labor and output increase proportionately. 
B)  capital increases and labor remains constant. 
C)  output decreases and labor increases. 
D)  capital/labor ratio decreases.

Question 11

Suppose that growth in output that can be attributed to growth in labor and capital is 6%. If output grows at a rate of 6%, it must be the case that

Accepted Answer

A)  the economy is not experiencing technological progress. 
B)  growth in labor force exceeds growth in capital. 
C)  growth in capital exceeds growth in labor. 
D)  the economy is experiencing technological progress. 
A)  the economy is not experiencing technological progress. 
B)  growth in labor force exceeds growth in capital. 
C)  growth in capital exceeds growth in labor. 
D)  the economy is experiencing technological progress.

Question 12

As growth progresses and countries become richer, pollution tends to fall.

Accepted Answer

A) True 
 B)False

Question 13

In all economies experiencing modern economic growth,

Accepted Answer

A)  labor expands at a more rapid pace than capital. 
B)  capital and labor expand at a constant rate. 
C)  capital expands at a more rapid pace than labor. 
D)  capital expands, but labor remains constant. 
A)  labor expands at a more rapid pace than capital. 
B)  capital and labor expand at a constant rate. 
C)  capital expands at a more rapid pace than labor. 
D)  capital expands, but labor remains constant.

Question 14

The aggregate production function is Y = 2K0.5L0.5. If there are 225 units of capital and 196 units of labor, aggregate output is

Accepted Answer

A)  420 units. 
B)  508 units. 
C)  700 units. 
D)  842 units. 
A)  420 units. 
B)  508 units. 
C)  700 units. 
D)  842 units.

Question 15

An invention is an advance in knowledge.

Accepted Answer

A) True 
 B)False

Question 16

A key problem facing Sub-Saharan Africa in terms of human capital is health.

Accepted Answer

A) True 
 B)False

Question 17

For economic growth to ________, the rate of growth must exceed the rate of population increase.

Accepted Answer

A)  result from a decrease in the labor force 
B)  occur with increasing unemployment levels 
C)  increase living standards 
D)  all of the above 
A)  result from a decrease in the labor force 
B)  occur with increasing unemployment levels 
C)  increase living standards 
D)  all of the above

Question 18

Output growth is another name for labor productivity growth.

Accepted Answer

A) True 
 B)False

Question 19

An increase in the capital stock

Accepted Answer

A)  can increase output, even if it is not accompanied by an increase in the labor force. 
B)  provides valuable services directly, but not indirectly. 
C)  can increase output, but only if it is accompanied by an increase in the labor force. 
D)  cannot increase output, even if it is accompanied by an increase in the labor force. 
A)  can increase output, even if it is not accompanied by an increase in the labor force. 
B)  provides valuable services directly, but not indirectly. 
C)  can increase output, but only if it is accompanied by an increase in the labor force. 
D)  cannot increase output, even if it is accompanied by an increase in the labor force.

Question 20

Embodied technical change results in

Accepted Answer

A)  an increase in physical capital. 
B)  disembodied technical change. 
C)  an improvement in the quality of capital. 
D)  a decrease in labor productivity. 
A)  an increase in physical capital. 
B)  disembodied technical change. 
C)  an improvement in the quality of capital. 
D)  a decrease in labor productivity.

Exam 16: Long-Run Growth

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

Economists agree that the cause of the slow economic growth during the 1970s was the tight monetary policy.

The aggregate production function is Y = 5K0.5L0.5. If there are 49 units of capital and 16 units of labor, aggregate output is

In general, environmental pollution generally declines after growth has led to high per-capita incomes.

The mathematical representation of the technological relationship between inputs and national output is known as the

Which of the following is an investment in human capital?

Technical change which results in a change in the production process is known as

The 1970s was a period of high productivity growth in the United States.

The growth rate of output of the entire economy is called

Labor productivity increases when

Suppose that growth in output that can be attributed to growth in labor and capital is 6%. If output grows at a rate of 6%, it must be the case that

As growth progresses and countries become richer, pollution tends to fall.

In all economies experiencing modern economic growth,

The aggregate production function is Y = 2K0.5L0.5. If there are 225 units of capital and 196 units of labor, aggregate output is

An invention is an advance in knowledge.

A key problem facing Sub-Saharan Africa in terms of human capital is health.

For economic growth to ________, the rate of growth must exceed the rate of population increase.

Output growth is another name for labor productivity growth.

An increase in the capital stock

Embodied technical change results in

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

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The aggregate production function is Y = 5K^0.5^L^0.5. If there are 49 units of capital and 16 units of labor, aggregate output is

The aggregate production function is Y = 2K^0.5^L^0.5. If there are 225 units of capital and 196 units of labor, aggregate output is