Question 1

An explanation for the "inverted U" is that increased industrialization and growth initially ________ the environment, and in the long run, environmental quality ________.

Accepted Answer

A)  degrades; continues to get worse 
B)  improves; improves even more 
C)  improves; gets worse 
D)  degrades; improves 
A)  degrades; continues to get worse 
B)  improves; improves even more 
C)  improves; gets worse 
D)  degrades; improves

Question 2

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 2 to Period 3, the marginal return to labor is equal to

Accepted Answer

A)  0.67. 
B)  1.5. 
C)  3.36. 
D)  3.76. 
A)  0.67. 
B)  1.5. 
C)  3.36. 
D)  3.76.

Question 3

Refer to the information provided in Table 16.2 below to answer the questions that follow.
Table 16.2
  
-Refer to Table 16.2. When moving from Period 1 to Period 4, the marginal return to capital

Accepted Answer

A)  increases. 
B)  decreases. 
C)  does not change. 
D)  first increases, then decreases. 
A)  increases. 
B)  decreases. 
C)  does not change. 
D)  first increases, then decreases.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Refer to the information provided in Table 16.1 below to answer the questions that follow.
Table 16.1
  
-Refer to Table 16.1. When moving from Period 1 to Period 4, labor productivity

Accepted Answer

A)  increases. 
B)  decreases. 
C)  does not change. 
D)  first increases, then decreases. 
A)  increases. 
B)  decreases. 
C)  does not change. 
D)  first increases, then decreases.

Question 6

With a fixed amount of capital, 300 workers produce 9,000 cars. The average labor productivity is

Accepted Answer

A)  0.03. 
B)  3. 
C)  27. 
D)  30. 
A)  0.03. 
B)  3. 
C)  27. 
D)  30.

Question 7

Foreign direct investment is any investment made in a country by residents outside that country.

Accepted Answer

A) True 
 B)False

Question 8

________ believed that to increase agricultural output, people would be forced to farm land more intensively, in which case the returns to successive increases in population would diminish.

Accepted Answer

A)  Thomas Malthus and David Ricardo 
B)  Adam Smith and John Baptiste Say 
C)  John Maynard Keynes and Milton Friedman 
D)  Arthur Okun and Arthur Laffer 
A)  Thomas Malthus and David Ricardo 
B)  Adam Smith and John Baptiste Say 
C)  John Maynard Keynes and Milton Friedman 
D)  Arthur Okun and Arthur Laffer

Question 9

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 4, labor productivity is equal to

Accepted Answer

A)  0.33. 
B)  1.88. 
C)  3.06. 
D)  4.9. 
A)  0.33. 
B)  1.88. 
C)  3.06. 
D)  4.9.

Question 10

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

Accepted Answer

A)  rapid growth in investment spending 
B)  a reduction in government regulation 
C)  an increase in research and development spending 
D)  all of the above 
A)  rapid growth in investment spending 
B)  a reduction in government regulation 
C)  an increase in research and development spending 
D)  all of the above

Question 11

In Ansonia, real GDP increased by 9% and the population increased by 9% in 2017. In 2017, Ansonia experienced

Accepted Answer

A)  economic growth, but not an increase in living standards. 
B)  economic growth and an increase in living standards. 
C)  no economic growth, but an increase in living standards. 
D)  no economic growth and no increase in living standards. 
A)  economic growth, but not an increase in living standards. 
B)  economic growth and an increase in living standards. 
C)  no economic growth, but an increase in living standards. 
D)  no economic growth and no increase in living standards.

Question 12

An increase in real GDP per capita is the strict definition of economic growth that serves to

Accepted Answer

A)  increase living standards. 
B)  increase the population. 
C)  decrease inflation. 
D)  increase the money supply. 
A)  increase living standards. 
B)  increase the population. 
C)  decrease inflation. 
D)  increase the money supply.

Question 13

An advance in knowledge is

Accepted Answer

A)  an invention. 
B)  an innovation. 
C)  human capital accumulation. 
D)  all of the above 
A)  an invention. 
B)  an innovation. 
C)  human capital accumulation. 
D)  all of the above

Question 14

Labor productivity can increase even if the labor force decreases.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Many African nations have based their growth on resource extraction.

Accepted Answer

A) True 
 B)False

Question 17

In Chrysalis, real GDP decreased by 3% and the population decreased by 10% in 2017. In 2017, Chrysalis experienced

Accepted Answer

A)  economic growth, but not an increase in living standards. 
B)  economic growth and an increase in living standards. 
C)  no economic growth, but an increase in living standards. 
D)  no economic growth and no increase in living standards. 
A)  economic growth, but not an increase in living standards. 
B)  economic growth and an increase in living standards. 
C)  no economic growth, but an increase in living standards. 
D)  no economic growth and no increase in living standards.

Question 18

An increase in GDP can result from an increase in

Accepted Answer

A)  the labor supply. 
B)  physical capital. 
C)  productivity. 
D)  all of the above 
A)  the labor supply. 
B)  physical capital. 
C)  productivity. 
D)  all of the above

Question 19

The relation between growth, as measured in ________, is an inverted U.

Accepted Answer

A)  per capita income and pollution 
B)  income and expenditure 
C)  saving and investment 
D)  human capital and physical capital 
A)  per capita income and pollution 
B)  income and expenditure 
C)  saving and investment 
D)  human capital and physical capital

Question 20

Which of the following is a source of economic growth?

Accepted Answer

A)  more resources 
B)  active economic policies 
C)  technology 
D)  both A and C 
A)  more resources 
B)  active economic policies 
C)  technology 
D)  both A and C

Exam 16: Long-Run Growth

An explanation for the "inverted U" is that increased industrialization and growth initially ________ the environment, and in the long run, environmental quality ________.

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 2 to Period 3, the marginal return to labor is equal to

Refer to the information provided in Table 16.2 below to answer the questions that follow. Table 16.2 -Refer to Table 16.2. When moving from Period 1 to Period 4, the marginal return to capital

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

Refer to the information provided in Table 16.1 below to answer the questions that follow. Table 16.1 -Refer to Table 16.1. When moving from Period 1 to Period 4, labor productivity

With a fixed amount of capital, 300 workers produce 9,000 cars. The average labor productivity is

Foreign direct investment is any investment made in a country by residents outside that country.

________ believed that to increase agricultural output, people would be forced to farm land more intensively, in which case the returns to successive increases in population would diminish.

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 4, labor productivity is equal to

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

In Ansonia, real GDP increased by 9% and the population increased by 9% in 2017. In 2017, Ansonia experienced

An increase in real GDP per capita is the strict definition of economic growth that serves to

An advance in knowledge is

Labor productivity can increase even if the labor force decreases.

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

Many African nations have based their growth on resource extraction.

In Chrysalis, real GDP decreased by 3% and the population decreased by 10% in 2017. In 2017, Chrysalis experienced

An increase in GDP can result from an increase in

The relation between growth, as measured in ________, is an inverted U.

Which of the following is a source of economic growth?

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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An explanation for the "inverted U" is that increased industrialization and growth initially the environment, and in the long run, environmental quality .