Question 1

Reasons for the rise in productivity growth between 1995 and 2010 include the following, except

Accepted Answer

A)   the microchip and information technology.
B)   new ﬁrms and increasing returns in production.
C)   global competition.
D)   a decline in population.E) A) and D)
F) None of the above

Question 2

Proponents of economic growth claim that rising living standards can lead to environmental
improvements as people can afford to care more about the environment.

Accepted Answer

A) True 
 B)False

Question 3

Economic growth can best be portrayed as a

Accepted Answer

A)   leftward shift of the production possibilities curve.
B)   movement from a point inside to a point outside the production possibilities curve.
C)   movement from a point near the vertical axis to a point near the horizontal axis on the production possibilities curve.
D)   rightward shift of the production possibilities curve.E) A) and D)
F) All of the above

Question 4

All of the following are sources of increasing returns and economies of scale except

Accepted Answer

A)   network effects.
B)   the multiplier effect.
C)   learning by doing.
D)   simultaneous consumption.E) B) and D)
F) A) and B) B

Question 5

Strong property rights inhibit economic growth by strictly regulating economic behavior.

Accepted Answer

A) True 
 B)False

Question 6

Give the importance of productivity as a source of economic growth in the United States, and list the
various sources that account for this productivity growth and their relative importance.

Accepted Answer

Productivity growth is projected to acco...

Question 7

Proponents of economic growth claim that growth leads to greater equality of income in an
economy.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

If a nation's real GDP increases from 100 billion to 106 billion and its population jumps from 200 million to 212 million, its real GDP per capita will

Accepted Answer

A)   remain constant.
B)   fall by 6 percent.
C)   rise by 6 percent.
D)   fall by 12 percent.E) None of the above
F) A) and C)

Question 10

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) All of the above
F) C) and D)

Question 11

What factors lead to labor productivity?

Accepted Answer

Some of the factors that determine labor...

Question 12

Which of the following trends have we not seen in the U.S. in the past six decades or so?

Accepted Answer

A)   The average length of the workweek remained relatively constant.
B)   The size of the labor force expanded.
C)   Rising birthrates kept the native-born population growing at a steady rate.
D)   Women's labor-force participation rate surged.E) A) and D)
F) C) and D)

Question 13

What are the main characteristics of modern economic growth? What is the effect of modern
economic growth on the cultural, social, and political arrangements of our times?

Accepted Answer

Modern economic growth is characterized ...

Question 14

The achievement of full employment through time will

Accepted Answer

A)   diminish labor productivity.
B)   reduce the level of investment as a percentage of GDP.
C)   increase the realized rate of economic growth.
D)   have no impact on the rate of economic growth.E) B) and C)
F) C) and D) C

Question 15

For a nation's real GDP per capita to rise during a year,

Accepted Answer

A)   consumption spending must increase.
B)   real GDP must increase more rapidly than the population.
C)   the population must increase more rapidly than real GDP.
D)   investment spending must increase.E) C) and D)
F) A) and C)

Question 16

(Last Word)  The entry of women into the workforce since the 1960s resulted in

Accepted Answer

A)   a shift outward in the production possibilities curve of the United States.
B)   a shift inward in the production possibilities curve of the United States.
C)   a movement along the existing production possibilities curve of the United States.
D)   a falling real wage for female workers in the United States.E) B) and C)
F) A) and D)

Question 17

In the periods 1953-73 and 1973-95, U.S. real GDP grew at the average annual rates of about

Accepted Answer

A)   5.1 percent and 7.4 percent, respectively.
B)   2.8 percent and 3.6 percent, respectively.
C)   7.4 percent and 5.1 percent, respectively.
D)   3.6 percent and 2.8 percent, respectively.E) All of the above
F) A) and D) D

Question 18

A nation's average annual real GDP growth rate is 2.5 percent. Based on the rule of 70, the approximate number of years that it would take for this nation's real GDP to double is

Accepted Answer

A)   175 years.
B)   40 years.
C)   28 years.
D)   17.5 years.E) A) and D)
F) None of the above

Question 19

The number of worker-hours available in an economy is determined by the following, except

Accepted Answer

A)   size of the labor force.
B)   length of the average workweek.
C)   unemployment rate of the workforce.
D)   labor force participation rate.E) C) and D)
F) B) and D)

Question 20

There are two common measures of economic growth: (1) increases in real GDP over some period
of time and (2) increases in real GDP per capita over some time period.

Accepted Answer

A) True 
 B)False

Exam 8: Economic Growth

Reasons for the rise in productivity growth between 1995 and 2010 include the following, except

Correct AnswerverifiedShow Answer

Proponents of economic growth claim that rising living standards can lead to environmental improvements as people can afford to care more about the environment.

Correct AnswerverifiedShow Answer

Economic growth can best be portrayed as a

Correct AnswerverifiedShow Answer

All of the following are sources of increasing returns and economies of scale except

Correct AnswerverifiedB

Strong property rights inhibit economic growth by strictly regulating economic behavior.

Correct AnswerverifiedShow Answer

Give the importance of productivity as a source of economic growth in the United States, and list the various sources that account for this productivity growth and their relative importance.

Correct AnswerverifiedProductivity growth is projected to acco...View AnswerShow Answer

Proponents of economic growth claim that growth leads to greater equality of income in an economy.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If a nation's real GDP increases from 100 billion to 106 billion and its population jumps from 200 million to 212 million, its real GDP per capita will

Correct AnswerverifiedShow Answer

Patents and copyrights foster the ﬂow of

Correct AnswerverifiedShow Answer

What factors lead to labor productivity?

Correct AnswerverifiedSome of the factors that determine labor...View AnswerShow Answer

Which of the following trends have we not seen in the U.S. in the past six decades or so?

Correct AnswerverifiedShow Answer

What are the main characteristics of modern economic growth? What is the effect of modern economic growth on the cultural, social, and political arrangements of our times?

Correct AnswerverifiedModern economic growth is characterized ...View AnswerShow Answer

The achievement of full employment through time will

Correct AnswerverifiedC

For a nation's real GDP per capita to rise during a year,

Correct AnswerverifiedShow Answer

(Last Word) The entry of women into the workforce since the 1960s resulted in

Correct AnswerverifiedShow Answer

In the periods 1953-73 and 1973-95, U.S. real GDP grew at the average annual rates of about

Correct AnswerverifiedD

A nation's average annual real GDP growth rate is 2.5 percent. Based on the rule of 70, the approximate number of years that it would take for this nation's real GDP to double is

Correct AnswerverifiedShow Answer

The number of worker-hours available in an economy is determined by the following, except

Correct AnswerverifiedShow Answer

There are two common measures of economic growth: (1) increases in real GDP over some period of time and (2) increases in real GDP per capita over some time period.

Correct AnswerverifiedShow Answer

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B

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Productivity growth is projected to acco...
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Some of the factors that determine labor...
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Modern economic growth is characterized ...
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C

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D

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