Question 1

Economic growth allows a society to consume

Accepted Answer

A)  more goods per person. 
B)  more than it should. 
C)  more than is sustainable. 
D)  exactly what it needs. 
A)  more goods per person. 
B)  more than it should. 
C)  more than is sustainable. 
D)  exactly what it needs.

Question 2

Labor productivity growth is the growth rate of output

Accepted Answer

A)  per person in the economy. 
B)  per worker in the economy. 
C)  for labor-intensive economies. 
D)  for the entire economy. 
A)  per person in the economy. 
B)  per worker in the economy. 
C)  for labor-intensive economies. 
D)  for the entire economy.

Question 3

Much of the growth in Southeast Asia is due to ________, and many African nations have based their growth on ________.

Accepted Answer

A)  service exports; manufactured exports 
B)  export-manufacturing; resource extraction 
C)  increased tourism; foreign aid 
D)  trade restrictions; free trade 
A)  service exports; manufactured exports 
B)  export-manufacturing; resource extraction 
C)  increased tourism; foreign aid 
D)  trade restrictions; free trade

Question 4

In Vidalia, real GDP increased by 6% and the population increased by 9% in 2016. In 2016, Vidalia 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)  an economic decline. 
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)  an economic decline.

Question 5

Refer to the information provided in Figure 16.2 below to answer the questions that follow.   Figure 16.2
-Refer to Figure 16.2. Suboptimal production occurs when the economy is at Point

Accepted Answer

A)  A. 
B)  B. 
C)  C. 
D)  D. 
A)  A. 
B)  B. 
C)  C. 
D)  D.

Question 6

A researcher discovered the adhesive that allows a piece of paper to be attached to a surface temporarily and then removed and reattached many times. It was many years before a use was found for this adhesive. Which of the following is true?

Accepted Answer

A)  The discovery represents an invention and the finding of a use for the adhesive represents an innovation. 
B)  The discovery represents an innovation and the finding of a use for the adhesive represents an invention. 
C)  This is an example of an invention only. 
D)  This is an example of an innovation only. 
A)  The discovery represents an invention and the finding of a use for the adhesive represents an innovation. 
B)  The discovery represents an innovation and the finding of a use for the adhesive represents an invention. 
C)  This is an example of an invention only. 
D)  This is an example of an innovation only.

Question 7

The production possibility frontier shows the maximum output a nation can produce with available resources.

Accepted Answer

A) True 
 B)False

Question 8

Technical change that results in a change in the production process is known as disembodied technical change.

Accepted Answer

A) True 
 B)False

Question 9

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 ppf3?

Accepted Answer

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

Question 10

Convergence theory suggests that gaps in national incomes

Accepted Answer

A)  tend to close over time. 
B)  widen over time. 
C)  do not seem to change over time. 
D)  are irrelevant in global economies. 
A)  tend to close over time. 
B)  widen over time. 
C)  do not seem to change over time. 
D)  are irrelevant in global economies.

Question 11

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, labor productivity is equal to

Accepted Answer

A)  0.22. 
B)  2.88. 
C)  4.6. 
D)  5.75. 
A)  0.22. 
B)  2.88. 
C)  4.6. 
D)  5.75.

Question 12

Refer to the information provided in Figure 16.2 below to answer the questions that follow.   Figure 16.2
-Refer to Figure 16.2. The highest unemployment rate occurs when the economy is at Point

Accepted Answer

A)  A. 
B)  B. 
C)  C. 
D)  D. 
A)  A. 
B)  B. 
C)  C. 
D)  D.

Question 13

Related to the Economics in Practice on p. 304: According to a study cited in the Economics in Practice, if a country is relatively far from the technological frontier of the rest of the world, its best strategy would be to

Accepted Answer

A)  adopt other countries' policies until it reaches the frontier of the rest of the world. 
B)  support its own innovative efforts until it reaches the frontier of the rest of the world. 
C)  first adopt other countries' policies, and as the country approaches the frontier, shift to supporting its own innovative efforts. 
D)  first support its own innovative efforts, and as the country approaches the frontier, shift to adopting other countries' policies . 
A)  adopt other countries' policies until it reaches the frontier of the rest of the world. 
B)  support its own innovative efforts until it reaches the frontier of the rest of the world. 
C)  first adopt other countries' policies, and as the country approaches the frontier, shift to supporting its own innovative efforts. 
D)  first support its own innovative efforts, and as the country approaches the frontier, shift to adopting other countries' policies .

Question 14

In 2000, the ________ unanimously adopted the Millennium Development Goals, a set of quantifiable, time-based targets for developing countries to meet.

Accepted Answer

A)  World Bank 
B)  World Economic Council 
C)  United Nations 
D)  Global Justice League 
A)  World Bank 
B)  World Economic Council 
C)  United Nations 
D)  Global Justice League

Question 15

The growth rate of output per person in the 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 16

Thinking up a new idea is an example of

Accepted Answer

A)  an invention. 
B)  an innovation. 
C)  human capital accumulation. 
D)  social overhead capital. 
A)  an invention. 
B)  an innovation. 
C)  human capital accumulation. 
D)  social overhead capital.

Question 17

Which of the following could result in negative disembodied technical change?

Accepted Answer

A)  environmental regulations 
B)  health regulations 
C)  safety regulations 
D)  all of the above 
A)  environmental regulations 
B)  health regulations 
C)  safety regulations 
D)  all of the above

Question 18

An increase in the physical quantity of the labor supply is called an increase in human capital.

Accepted Answer

A) True 
 B)False

Question 19

Per-capita output growth is the growth rate of output

Accepted Answer

A)  per person in the economy. 
B)  per worker in the economy. 
C)  for capitalist economies. 
D)  of the entire economy. 
A)  per person in the economy. 
B)  per worker in the economy. 
C)  for capitalist economies. 
D)  of the entire economy.

Question 20

The strict definition of economic growth that serves to increase living standards is

Accepted Answer

A)  an increase in real GDP per capita. 
B)  an increase in nominal GDP per capita. 
C)  an increase in capital accumulation per capita. 
D)  an increase in investment per capita. 
A)  an increase in real GDP per capita. 
B)  an increase in nominal GDP per capita. 
C)  an increase in capital accumulation per capita. 
D)  an increase in investment per capita.

Exam 16: Long-Run Growth

Economic growth allows a society to consume

Labor productivity growth is the growth rate of output

Much of the growth in Southeast Asia is due to ________, and many African nations have based their growth on ________.

In Vidalia, real GDP increased by 6% and the population increased by 9% in 2016. In 2016, Vidalia experienced

Refer to the information provided in Figure 16.2 below to answer the questions that follow. Figure 16.2 -Refer to Figure 16.2. Suboptimal production occurs when the economy is at Point

A researcher discovered the adhesive that allows a piece of paper to be attached to a surface temporarily and then removed and reattached many times. It was many years before a use was found for this adhesive. Which of the following is true?

The production possibility frontier shows the maximum output a nation can produce with available resources.

Technical change that results in a change in the production process is known as disembodied technical change.

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 ppf3?

Convergence theory suggests that gaps in national incomes

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, labor productivity is equal to

Refer to the information provided in Figure 16.2 below to answer the questions that follow. Figure 16.2 -Refer to Figure 16.2. The highest unemployment rate occurs when the economy is at Point

Related to the Economics in Practice on p. 304: According to a study cited in the Economics in Practice, if a country is relatively far from the technological frontier of the rest of the world, its best strategy would be to

In 2000, the ________ unanimously adopted the Millennium Development Goals, a set of quantifiable, time-based targets for developing countries to meet.

The growth rate of output per person in the economy is called

Thinking up a new idea is an example of

Which of the following could result in negative disembodied technical change?

An increase in the physical quantity of the labor supply is called an increase in human capital.

Per-capita output growth is the growth rate of output

The strict definition of economic growth that serves to increase living standards is

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

Much of the growth in Southeast Asia is due to , and many African nations have based their growth on .

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 ppf₃?