Question 1

An outward shift in the production possibilities curve is the direct result of improvements in the efficiency factor for economic growth.

Accepted Answer

A) True 
 B)False

Question 2

Economic growth can be portrayed as a(n) :

Accepted Answer

A)  outward shift of the production possibilities curve.
B)  inward shift of the production possibilities curve.
C)  movement from a point on to a point inside a production possibilities curve.
D)  movement from one point to another point on a production possibilities curve.E) None of the above
F) C) and D)

Question 3

Which of the following would not be expected to increase labour productivity?

Accepted Answer

A)  technological advance
B)  the acquisition of more education and training by the labour force
C)  an increase in the size of the labour force
D)  the realization of economies of scaleE) None of the above
F) A) and C)

Question 4

Other things being equal, all of the following would cause a rise in a country's real per capita GDP, except a(n) :

Accepted Answer

A)  increase in the general price level.
B)  decrease in the population size.
C)  increase in labour productivity.
D)  decrease in imports.E) All of the above
F) A) and C)

Question 5

Refer to the above diagram.If the production possibilities curve of an economy shifts from AB to EF, it is most likely the result of what factor affecting economic growth?

Accepted Answer

A)  a supply factor
B)  a demand factor
C)  an efficiency factor
D)  an allocation factorE) None of the above
F) All of the above

Question 6

How does the environment react to waste, assuming that the standard of living is increasing?

Accepted Answer

A)  Increases
B)  Decreases
C)  Has no effect
D)  IndeterminateE) A) and B)
F) B) and D)

Question 7

An outward shift of a nation's production possibilities curve:

Accepted Answer

A)  ensures the nation of an increase in real GDP per capita.
B)  could increase the nation's real GDP, but not the real- GDP per capita.
C)  could reduce the nation's real GDP.
D)  corresponds to a leftward shift of the nation's long-run aggregate supply curve.E) A) and C)
F) C) and D)

Question 8

Economic well-being in Canada is understated by growth rates because they:

Accepted Answer

A)  account for pollution expenditures.
B)  don't account for improvement in products.
C)  account for illegal activity.
D)  don't account for the slowdown in productivity.E) A) and B)
F) A) and C)

Question 9

Real GDP = worker-hours $\times$ labour productivity.

Accepted Answer

A) True 
 B)False

Question 10

Critics of economic growth say that it will deplete economic resources.

Accepted Answer

A) True 
 B)False

Question 11

The knowledge and skill that make for a productive worker are referred to by economists as:

Accepted Answer

A)  human capital.
B)  increasing returns.
C)  resource allocation.
D)  simultaneous consumption.E) A) and B)
F) B) and D)

Question 12

Which is an efficiency factor in economic growth?

Accepted Answer

A)  an efficient allocation of resources
B)  natural resources
C)  the quantity and quality of labour
D)  technological knowledgeE) A) and D)
F) None of the above

Question 13

If the economy's real GDP doubles in 18 years, we can:

Accepted Answer

A)  not say anything about the average annual rate of growth.
B)  conclude that its average annual rate of growth is about 5.5 percent.
C)  conclude that its average annual rate of growth is about 2 percent.
D)  conclude that its average annual rate of growth is about 4 percent.E) None of the above
F) A) and C)

Question 14

Over the past half century the growth of real GDP in Canada has been caused primarily by:

Accepted Answer

A)  a falling price level.
B)  the reallocation of labour from manufacturing to agriculture.
C)  increases in the productivity of labour.
D)  the use of fewer inputs of labour.E) A) and D)
F) B) and C)

Question 15

Between 1946 - 2011, the annual Canadian multifactor productivity has increased by about:

Accepted Answer

A)  4%
B)  2%
C)  5%
D)  7%E) A) and B)
F) A) and C)

Question 16

Refer to the above table, per capita GDP was about:

Accepted Answer

A)  $105 in year 3 in Italy.
B)  $303 in year 3 in China.
C)  $200 in year 1 in China
D)  $5 in year 2 in Italy.E) A) and B)
F) B) and D)

Question 17

Which is a demand factor in economic growth?

Accepted Answer

A)  more human and natural resources
B)  technological progress and innovation
C)  an increase in the economy's stock of capital goods
D)  an increase in total spending in the economyE) B) and C)
F) C) and D)

Question 18

According to some studies in Canada, the productivity advance related to the information technology:

Accepted Answer

A)  has spread to only a few industries.
B)  has not spread to other industries.
C)  has spread to a wide range of industries, but not to services.
D)  has spread to a wide range of industries, including services.E) A) and C)
F) B) and D)

Question 19

Which is best considered a supply factor for long-run economic growth?

Accepted Answer

A)  government spending
B)  the stock of capital goods
C)  full employment of resources
D)  personal consumption expendituresE) B) and C)
F) A) and B)

Question 20

Refer to the above diagram.If the production possibilities curve for an economy is at AB but the economy is operating at point 4, the reasons are most likely to be because of:

Accepted Answer

A)  supply and environmental factors.
B)  demand and efficiency factors.
C)  labour inputs and labour productivity.
D)  technological progress.E) B) and D)
F) None of the above

Exam 8: Part B: Economic Growth

An outward shift of a nation's production possibilities curve:

Correct AnswerverifiedShow Answer

Real GDP = worker-hours ×\times× labour productivity.

Correct AnswerverifiedShow Answer

Refer to the above diagram.If the production possibilities curve of an economy shifts from AB to EF, it is most likely the result of what factor affecting economic growth?

Correct AnswerverifiedShow Answer

Economic well-being in Canada is understated by growth rates because they:

Correct AnswerverifiedShow Answer

Which is a demand factor in economic growth?

Correct AnswerverifiedShow Answer

If the economy's real GDP doubles in 18 years, we can:

Correct AnswerverifiedShow Answer

Economic growth can be portrayed as a(n) :

Correct AnswerverifiedShow Answer

Other things being equal, all of the following would cause a rise in a country's real per capita GDP, except a(n) :

Correct AnswerverifiedShow Answer

An outward shift in the production possibilities curve is the direct result of improvements in the efficiency factor for economic growth.

Correct AnswerverifiedShow Answer

Which of the following would not be expected to increase labour productivity?

Correct AnswerverifiedShow Answer

Which is an efficiency factor in economic growth?

Correct AnswerverifiedShow Answer

Over the past half century the growth of real GDP in Canada has been caused primarily by:

Correct AnswerverifiedShow Answer

Refer to the above table, per capita GDP was about:

Correct AnswerverifiedShow Answer

Which is best considered a supply factor for long-run economic growth?

Correct AnswerverifiedShow Answer

Refer to the above diagram.If the production possibilities curve for an economy is at AB but the economy is operating at point 4, the reasons are most likely to be because of:

Correct AnswerverifiedShow Answer

The knowledge and skill that make for a productive worker are referred to by economists as:

Correct AnswerverifiedShow Answer

Between 1946 - 2011, the annual Canadian multifactor productivity has increased by about:

Correct AnswerverifiedShow Answer

According to some studies in Canada, the productivity advance related to the information technology:

Correct AnswerverifiedShow Answer

Critics of economic growth say that it will deplete economic resources.

Correct AnswerverifiedShow Answer

How does the environment react to waste, assuming that the standard of living is increasing?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Real GDP = worker-hours $\times$ labour productivity.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified