Question 1

If a country has a larger real GDP than another country, then it should also have a higher real GDP per capita that the other country.

Accepted Answer

A) True 
 B)False

Question 2

Compared with the period from 1973-1995, the annual rate of productivity growth from 1995-2012 was about:

Accepted Answer

A)   The same
B)   One-and-a-half times faster
C)   Three times faster
D)   10% slowerE) A) and B)
F) All of the above

Question 3

Growth-promoting institutional structures include the following, except:

Accepted Answer

A)   Patents and copyrights
B)   Efficient financial institutions
C)   Protection of domestic firms from foreign rivals
D)   Stable political systemE) B) and D)
F) A) and B)

Question 4

If an economy has 800,000 work-hours employed, and its labor productivity is $16/hour, then its real GDP must be $50,000.

Accepted Answer

A) True 
 B)False

Question 5

There is unanimous agreement that economic growth is both desirable and sustainable.

Accepted Answer

A) True 
 B)False

Question 6

Human capital refers to the amount of capital available for the economy's human resources to work with.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is best considered a demand factor in economic growth?

Accepted Answer

A)   The quantity of human resources
B)   The quality of natural resources
C)   The stock of capital goods
D)   The full employment of resourcesE) None of the above
F) B) and C)

Question 8

From 2010 to 2050, the "inverse dependency ratio" in the U.S. is expected to:

Accepted Answer

A)   Rise from 1.2 to 1.8
B)   Fall from 1.5 to 1.2
C)   Remain stable at 2.1
D)   Rise from 1.5 to 2.8E) All of the above
F) A) and B)

Question 9

Suppose that an economy is initially operating at a point on its PPC. If it then experiences an expansion in its production capacity, but its total spending does not rise as fast as its capacity, the economy will end up:

Accepted Answer

A)   Still on its PPC
B)   Outside its PPC
C)   Inside its PPC
D)   On one of the axes of its PPCE) A) and D)
F) A) and C)

Question 10

Increasing returns would be a situation where a firm increases its workforce and other inputs by:

Accepted Answer

A)   8 percent and its output increases by 5 percent
B)   5 percent and its output increase by 8 percent
C)   8 percent and its output increases by 8 percent
D)   12 percent and its output increases by 10 percentE) A) and B)
F) A) and C)

Question 11

Rising real wages for women in the U.S. workforce since the 1960s have:

Accepted Answer

A)   Reduced access to job opportunities for women
B)   Increased the opportunity cost of staying at home
C)   Led to a rise in the number of lifetime births per woman
D)   Reallocated labor resources from urban to rural areas of the nationE) B) and D)
F) None of the above

Question 12

The rate of growth of labor productivity in the U.S. has declined from the period 1973-1995 to the period 1995-2012.

Accepted Answer

A) True 
 B)False

Question 13

Increased labor productivity has been less important as a source of growth than the increased labor inputs in the U.S. economy since the 1950's.

Accepted Answer

A) True 
 B)False

Question 14

Refer to the above graph. If the production possibilities curve of an economy shifts from AB to CD, it is most likely caused by which of the following factors?

Accepted Answer

A)   A decrease in the price level
B)   Allocative efficiency
C)   Technological progress
D)   Full employment of resourcesE) B) and C)
F) A) and B)

Exam 8: Economic Growth

If a country has a larger real GDP than another country, then it should also have a higher real GDP per capita that the other country.

Correct Answer
verified

Suppose that an economy is initially operating at a point on its PPC. If it then experiences an expansion in its production capacity, but its total spending does not rise as fast as its capacity, the economy will end up:

Correct Answer
verified

Refer to the above graph. If the production possibilities curve of an economy shifts from AB to CD, it is most likely caused by which of the following factors?

Correct Answer
verified

Rising real wages for women in the U.S. workforce since the 1960s have:

Correct Answer
verified

From 2010 to 2050, the "inverse dependency ratio" in the U.S. is expected to:

Correct Answer
verified

Increasing returns would be a situation where a firm increases its workforce and other inputs by:

Correct Answer
verified

Growth-promoting institutional structures include the following, except:

Correct Answer
verified

Which of the following is best considered a demand factor in economic growth?

Correct Answer
verified

If an economy has 800,000 work-hours employed, and its labor productivity is $16/hour, then its real GDP must be $50,000.

Correct Answer
verified

There is unanimous agreement that economic growth is both desirable and sustainable.

Correct Answer
verified

The rate of growth of labor productivity in the U.S. has declined from the period 1973-1995 to the period 1995-2012.

Correct Answer
verified

Increased labor productivity has been less important as a source of growth than the increased labor inputs in the U.S. economy since the 1950's.

Correct Answer
verified

Human capital refers to the amount of capital available for the economy's human resources to work with.

Correct Answer
verified

Compared with the period from 1973-1995, the annual rate of productivity growth from 1995-2012 was about:

Correct Answer
verified

Exam 8: Economic Growth

If a country has a larger real GDP than another country, then it should also have a higher real GDP per capita that the other country.

Correct AnswerverifiedShow Answer

Suppose that an economy is initially operating at a point on its PPC. If it then experiences an expansion in its production capacity, but its total spending does not rise as fast as its capacity, the economy will end up:

Correct AnswerverifiedShow Answer

Refer to the above graph. If the production possibilities curve of an economy shifts from AB to CD, it is most likely caused by which of the following factors?

Correct AnswerverifiedShow Answer

Rising real wages for women in the U.S. workforce since the 1960s have:

Correct AnswerverifiedShow Answer

From 2010 to 2050, the "inverse dependency ratio" in the U.S. is expected to:

Correct AnswerverifiedShow Answer

Increasing returns would be a situation where a firm increases its workforce and other inputs by:

Correct AnswerverifiedShow Answer

Growth-promoting institutional structures include the following, except:

Correct AnswerverifiedShow Answer

Which of the following is best considered a demand factor in economic growth?

Correct AnswerverifiedShow Answer

If an economy has 800,000 work-hours employed, and its labor productivity is $16/hour, then its real GDP must be $50,000.

Correct AnswerverifiedShow Answer

There is unanimous agreement that economic growth is both desirable and sustainable.

Correct AnswerverifiedShow Answer

The rate of growth of labor productivity in the U.S. has declined from the period 1973-1995 to the period 1995-2012.

Correct AnswerverifiedShow Answer

Increased labor productivity has been less important as a source of growth than the increased labor inputs in the U.S. economy since the 1950's.

Correct AnswerverifiedShow Answer

Human capital refers to the amount of capital available for the economy's human resources to work with.

Correct AnswerverifiedShow Answer

Compared with the period from 1973-1995, the annual rate of productivity growth from 1995-2012 was about:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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