Question 1

Other things equal, which of the following would increase the rate of economic growth, as measured by changes in real GDP?

Accepted Answer

A)  a decline in the average length of the workweek
B)  a decrease in the labor force participation rate
C)  an increase in the size of the working-age population
D)  a decline in the amount of capital per workerE) A) and D)
F) All of the above

Question 2

Economic growth can be shown as a movement from a point on one production possibilities curve to a point on a curve located farther from the origin.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is the single most important source of U.S.economic growth?

Accepted Answer

A)  stability of the socio-cultural-political environment
B)  improvement in the legal and human environment
C)  increases in the quantity of labor
D)  increases in labor productivityE) A) and D)
F) C) and D)

Question 4

The supply factors of economic growth are those factors that shift a country's production possibilities curve.

Accepted Answer

A) True 
 B)False

Question 5

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 nation.E) None of the above
F) A) and B)

Question 6

In the growth debate, defenders of economic growth believe that it is the primary path to raising living standards.

Accepted Answer

A) True 
 B)False

Question 7

(Last Word)  The inverse dependency ratio is predicted to fall to about 1.16 by 2050.What is the most likely effect of this decline?

Accepted Answer

A)  It will likely cause worker productivity to decline.
B)  The Social Security system will be on stronger financial footing.
C)  Innovation will increase significantly as dependents take advantage of their otherwise idle time.
D)  Living standards will fall if productivity gains don't sufficiently offset the decline in the ratio.E) B) and D)
F) A) and B)

Question 8

A nation's real GDP was $250 billion in 2015 and $265 billion in 2016.Its population was 122 million in 2015 and 125 million in 2016.What is the growth rate of real GDP per capita in 2016?

Accepted Answer

A)  1.1 percent
B)  2.5 percent
C)  5.0 percent
D)  3.4 percentE) A) and B)
F) All of the above

Question 9

Critics of economic growth Accessibility: Keyboard Navigation Blooms: Understand

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) B) and C)
F) A) and C)

Question 10

For comparing changes in potential military strength and political preeminence, the most meaningful measure of economic growth would be changes in

Accepted Answer

A)  total nominal output.
B)  total real output.
C)  per capita output.
D)  per family output.E) A) and C)
F) A) and D)

Question 11

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 2.4 percent.
D)  conclude that its average annual rate of growth is about 3.9 percent.E) All of the above
F) A) and B)

Question 12

The size of the labor force depends on the size of the working-age population and the

Accepted Answer

A)  participation rate.
B)  employment rate.
C)  unemployment rate.
D)  inflation rate.E) All of the above
F) B) and D)

Question 13

The so-called Rule of 70 is a formula for finding the approximate number of times that a value will double in a period of 70 years.

Accepted Answer

A) True 
 B)False

Question 14

Economic historians identify which invention as a major factor that started the Industrial Revolution in Britain?

Accepted Answer

A)  steam engine
B)  automobile
C)  telephone
D)  electric motorE) A) and C)
F) B) and D)

Question 15

The movement of workers from lower productivity jobs to higher productivity jobs would be an example of a(n)

Accepted Answer

A)  technological advance.
B)  network effects.
C)  simultaneous consumption.
D)  improved resource allocation.E) B) and C)
F) None of the above

Question 16

Total output for an economy is basically equal to total work-hours multiplied by labor productivity.

Accepted Answer

A) True 
 B)False

Question 17

Patents and copyrights foster the flow of

Accepted Answer

A)  saving and investment.
B)  spending and income.
C)  resources and products.
D)  inventions and ideas.E) A) and D)
F) C) and D)

Question 18

A review of the trends in labor productivity growth in the U.S.for the periods 1973-1995, 1995-2010, and 2010-2015 suggests which of the following patterns?

Accepted Answer

A)  a persistently strong growth averaging about 2.5 percent per year throughout the three periods
B)  an initial strong growth averaging 2.5 percent per year in the period 1973-1995, followed by weak growth in 1995-2010, and a sharp rise again in 2010-2015
C)  an initial modest growth averaging 1.5 percent per year in 1973-1995, followed by much higher growth in 1995-2010, then a collapse to very slow growth in 2010-2015
D)  a relatively steady and modest growth throughout all three periods, averaging about 1.5 percentE) B) and D)
F) None of the above

Question 19

The historical reallocation of labor from agriculture to manufacturing in the United States has

Accepted Answer

A)  been inflationary.
B)  had no effect on the average productivity of labor.
C)  increased the average productivity of labor.
D)  reduced the average productivity of labor.E) A) and B)
F) None of the above

Question 20

(Consider This)  The Consider This box on patents and innovation demonstrates that

Accepted Answer

A)  patent protection for U.S.companies may not be as effective when other countries do not respect or enforce U.S.patent laws.
B)  patent laws are relatively uniform across nations.
C)  countries like India have no incentive to enact or enforce patent laws.
D)  follower countries tend to have stronger patent laws than leader countries.E) A) and B)
F) A) and C)

Exam 28: Economic Growth

The so-called Rule of 70 is a formula for finding the approximate number of times that a value will double in a period of 70 years.

Correct AnswerverifiedShow Answer

Critics of economic growth Accessibility: Keyboard Navigation Blooms: Understand

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In the growth debate, defenders of economic growth believe that it is the primary path to raising living standards.

Correct AnswerverifiedShow Answer

The movement of workers from lower productivity jobs to higher productivity jobs would be an example of a(n)

Correct AnswerverifiedShow Answer

The historical reallocation of labor from agriculture to manufacturing in the United States has

Correct AnswerverifiedShow Answer

Patents and copyrights foster the flow of

Correct AnswerverifiedShow Answer

Total output for an economy is basically equal to total work-hours multiplied by labor productivity.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

For comparing changes in potential military strength and political preeminence, the most meaningful measure of economic growth would be changes in

Correct AnswerverifiedShow Answer

A nation's real GDP was $250 billion in 2015 and $265 billion in 2016.Its population was 122 million in 2015 and 125 million in 2016.What is the growth rate of real GDP per capita in 2016?

Correct AnswerverifiedShow Answer

Economic growth can be shown as a movement from a point on one production possibilities curve to a point on a curve located farther from the origin.

Correct AnswerverifiedShow Answer

Economic historians identify which invention as a major factor that started the Industrial Revolution in Britain?

Correct AnswerverifiedShow Answer

A review of the trends in labor productivity growth in the U.S.for the periods 1973-1995, 1995-2010, and 2010-2015 suggests which of the following patterns?

Correct AnswerverifiedShow Answer

The size of the labor force depends on the size of the working-age population and the

Correct AnswerverifiedShow Answer

Other things equal, which of the following would increase the rate of economic growth, as measured by changes in real GDP?

Correct AnswerverifiedShow Answer

(Last Word) The inverse dependency ratio is predicted to fall to about 1.16 by 2050.What is the most likely effect of this decline?

Correct AnswerverifiedShow Answer

The supply factors of economic growth are those factors that shift a country's production possibilities curve.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is the single most important source of U.S.economic growth?

Correct AnswerverifiedShow Answer

(Consider This) The Consider This box on patents and innovation demonstrates that

Correct AnswerverifiedShow Answer

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