Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Other things equal, which of the following would increase labor productivity the most?

Accepted Answer

A)   The stock of real capital and inputs of labor increase proportionately.
B)   The increase in the stock of real capital exceeds the increase in inputs of labor.
C)   The increase in inputs of labor exceeds the increase in the stock of real capital.
D)   Inputs of labor increase and the stock of real capital remains constant.E) None of the above
F) A) and B)

Question 3

Modern economic growth is deﬁned as increases in real GDP over time.

Accepted Answer

A) True 
 B)False

Question 4

Human capital refers to the

Accepted Answer

A)   tools and equipment available to workers.
B)   amount of ﬁnancing available to start-up ﬁrms.
C)   number of workers available in the economy.
D)   education, training, and skills of workers.E) B) and C)
F) A) and D)

Question 5

Critics of economic growth

Accepted Answer

A)   contend that growth and industrialization reduce pollution.
B)   argue that economic growth does not resolve socioeconomic problems such as an unequal distribution of income and wealth.
C)   point out that growth results in greater economic security for workers.
D)   say that its beneﬁts accrue nearly exclusively to white males.E) A) and B)
F) None of the above

Question 6

Global competition has tended to slow down the rate of productivity growth in the United States.

Accepted Answer

A) True 
 B)False

Question 7

Supply factors in economic growth include the following, except

Accepted Answer

A)   improvements in technology.
B)   expansion of capital stock.
C)   increases in purchases of output.
D)   better education and training.E) A) and B)
F) None of the above

Question 8

A competitive market system

Accepted Answer

A)   encourages growth by allowing producers to make proﬁtable investment decisions based on market signals.
B)   encourages growth by ensuring that everyone in society will receive a decent standard of living.
C)   discourages growth because ﬁrms busy competing have no time to innovate or invest.
D)   discourages growth unless government protects domestic ﬁrms from foreign competition.E) None of the above
F) C) and D)

Question 9

Describe the change in productivity that has occurred since the Great Recession. List possible
reasons for the change.

Accepted Answer

There has been a slowdown in productivit...

Question 10

One important growth-promoting institutional structure is the protection of domestic jobs against
outsourcing.

Accepted Answer

A) True 
 B)False

Question 11

Real GDP = worker-hours × labor productivity.

Accepted Answer

A) True 
 B)False

Question 12

Labor productivity is measured by

Accepted Answer

A)   the ratio of capital to labor.
B)   real output per worker-hour.
C)   real output per capita.
D)   the ratio of worker-hours to real GDP.E) A) and D)
F) A) and B)

Question 13

Which of the following economic regions has experienced the least growth in real GDP per capita since 1820?

Accepted Answer

A)   Africa
B)   Asia excluding Japan
C)   Latin America
D)   Western EuropeE) A) and D)
F) A) and B)

Question 14

What is the relevance of productive and allocative eﬃciency to the growth process?

Accepted Answer

An economy must achieve economic eﬃcienc...

Question 15

Which of the following factors is projected to be the dominant source of economic growth in the U.S. from now until 2029?

Accepted Answer

A)   an increase in hours per worker
B)   an increase in the labor force
C)   an increase in the population
D)   an increase in labor productivityE) A) and B)
F) A) and C)

Question 16

Which of the countries below ranked highest in the World Economic Forum's Global Competitiveness Ranking in 2017-2018?

Accepted Answer

A)   Japan
B)   Switzerland
C)   Germany
D)   the United StatesE) A) and B)
F) B) and D)

Question 17

Real per capita GDP in the United States in 2018 was approximately

Accepted Answer

A)   $18,571.
B)   $47,845.
C)   $56,793.
D)   $18.6 trillion.E) None of the above
F) B) and C)

Question 18

Historically, the total amount of real capital per worker in the United States has

Accepted Answer

A)   provided ﬁnancing for the industrial expansion of business.
B)   increased signiﬁcantly and made labor more productive.
C)   been the single most important determinant of economic growth.
D)   remained relatively constant, although the quality of capital has improved dramatically.E) B) and C)
F) A) and D)

Question 19

1. Improvements in technology. 2. Increases in the supply (stock)  of capital goods.
3)  Purchases of expanding output.
4)  Obtaining the optimal combination of goods, each at least-cost production.
5)  Increases in the quantity and quality of natural resources.
6)  Increases in the quantity and quality of human resources.
Which set of items in the accompanying list would move an economy from a point inside its
Production possibilities curve to a point on its production possibilities curve?

Accepted Answer

A)   1, 2, 5, and 6 only
B)   3 and 4 only
C)   3 only
D)   1, 3, and 4 onlyE) A) and B)
F) A) and C)

Question 20

Year  Quantity of Labor  Productivity of Labor 12,000$20022,00021032,000210\begin{array} { | c | c | c | } \hline 	ext { Year } & 	ext { Quantity of Labor } & 	ext { Productivity of Labor } \\hline 1 & 2,000 & \$ 200 \\hline 2 & 2,000 & 210 \\hline 3 & 2,000 & 210 \\hline\end{array} Year 123​ Quantity of Labor 2,0002,0002,000​ Productivity of Labor $200210210​​  The table shows the quantity of labor (measured in hours)  and the productivity of labor (measured in real GDP per hour)  in a hypothetical economy in three different years. Between Year 1 and Year 2,
Real GDP increased by

Accepted Answer

A)   1.5 percent.
B)   2.5 percent.
C)   5.0 percent.
D)   6.0 percent. E) A) and B)
F) B) and D)

Exam 8: Economic Growth

Correct Answer
verified

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

Correct Answer
verified

A competitive market system

Correct Answer
verified

Real per capita GDP in the United States in 2018 was approximately

Correct Answer
verified

Modern economic growth is deﬁned as increases in real GDP over time.

Correct Answer
verified

Which of the following factors is projected to be the dominant source of economic growth in the U.S. from now until 2029?

Correct Answer
verified

Correct Answer
verified

Supply factors in economic growth include the following, except

Correct Answer
verified

What is the relevance of productive and allocative eﬃciency to the growth process?

Correct Answer
verified
An economy must achieve economic eﬃcienc...
View Answer

Real GDP = worker-hours × labor productivity.

Correct Answer
verified

Historically, the total amount of real capital per worker in the United States has

Correct Answer
verified

Which of the countries below ranked highest in the World Economic Forum's Global Competitiveness Ranking in 2017-2018?

Correct Answer
verified

Describe the change in productivity that has occurred since the Great Recession. List possible reasons for the change.

Correct Answer
verified
There has been a slowdown in productivit...
View Answer

Labor productivity is measured by

Correct Answer
verified

Human capital refers to the

Correct Answer
verified

Critics of economic growth

Correct Answer
verified

Other things equal, which of the following would increase labor productivity the most?

Correct Answer
verified

Global competition has tended to slow down the rate of productivity growth in the United States.

Correct Answer
verified

One important growth-promoting institutional structure is the protection of domestic jobs against outsourcing.

Correct Answer
verified

Which of the following economic regions has experienced the least growth in real GDP per capita since 1820?

Correct Answer
verified

Exam 8: Economic Growth

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A competitive market system

Correct AnswerverifiedShow Answer

Real per capita GDP in the United States in 2018 was approximately

Correct AnswerverifiedShow Answer

Modern economic growth is deﬁned as increases in real GDP over time.

Correct AnswerverifiedShow Answer

Which of the following factors is projected to be the dominant source of economic growth in the U.S. from now until 2029?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Supply factors in economic growth include the following, except

Correct AnswerverifiedShow Answer

What is the relevance of productive and allocative eﬃciency to the growth process?

Correct AnswerverifiedAn economy must achieve economic eﬃcienc...View AnswerShow Answer

Real GDP = worker-hours × labor productivity.

Correct AnswerverifiedShow Answer

Historically, the total amount of real capital per worker in the United States has

Correct AnswerverifiedShow Answer

Which of the countries below ranked highest in the World Economic Forum's Global Competitiveness Ranking in 2017-2018?

Correct AnswerverifiedShow Answer

Describe the change in productivity that has occurred since the Great Recession. List possible reasons for the change.

Correct AnswerverifiedThere has been a slowdown in productivit...View AnswerShow Answer

Labor productivity is measured by

Correct AnswerverifiedShow Answer

Human capital refers to the

Correct AnswerverifiedShow Answer

Critics of economic growth

Correct AnswerverifiedShow Answer

Other things equal, which of the following would increase labor productivity the most?

Correct AnswerverifiedShow Answer

Global competition has tended to slow down the rate of productivity growth in the United States.

Correct AnswerverifiedShow Answer

One important growth-promoting institutional structure is the protection of domestic jobs against outsourcing.

Correct AnswerverifiedShow Answer

Which of the following economic regions has experienced the least growth in real GDP per capita since 1820?

Correct AnswerverifiedShow Answer

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
An economy must achieve economic eﬃcienc...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
There has been a slowdown in productivit...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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