Question 1

Which of the following would not slow down productivity growth?

Accepted Answer

A)  The composition of the work force changes so that more young people and fewer middle-aged people are working.
B)  The composition of the work force changes so that more women,who enter and leave the work force more frequently than men,are included.
C)  The quality of education decreases.
D)  Investment declines.
E)  Firms switch from providing services to producing goods.F) D) and E)
G) B) and C)

Question 2

The reason why productivity growth is so important is that

Accepted Answer

A)  it is the key to long-run increases in the standard of living
B)  per capita GDP ultimately depends on labor productivity
C)  total GDP cannot increase without increases in resource productivity levels
D)  all of the above
E)  both a and bF) C) and E)
G) A) and B) E

Question 3

Which of the following would not increase labor productivity?

Accepted Answer

A)  technological change
B)  an increased amount of capital per unit of labor
C)  a lower unemployment rate
D)  greater job experience for the work force
E)  all of the above increase labor productivityF) None of the above
G) A) and B)

Question 4

Over the long run,technological change increases both labor productivity and unemployment rates.

Accepted Answer

A) True 
 B)False

Question 5

According to Nobel prize winner Simon Kuznets,the greatest increase in output and economic growth comes from changes in the

Accepted Answer

A)  quantities of resources
B)  quantities of natural resources (land) 
C)  quantities of labor
D)  qualities of resources
E)  quantities of capitalF) A) and E)
G) C) and D)

Question 6

Most economists agree that the most important factor contributing to the recent reduction in U.S.labor productivity growth rate has been the increased level of government regulation.

Accepted Answer

A) True 
 B)False

Question 7

An increase in the amount of capital per worker is called

Accepted Answer

A)  capital deepening
B)  marginal capital
C)  per-worker production function
D)  human capital
E)  diminishing marginal returns from capitalF) A) and E)
G) A) and D)

Question 8

What was the average yearly increase in U.S.labor productivity growth between the 1870s and the early years of the 21st century?

Accepted Answer

A)  about 1 percent
B)  about 2 percent
C)  about 5 percent
D)  about 10 percent
E)  between 0 and 1 percentF) C) and E)
G) A) and E)

Question 9

Productivity is defined as

Accepted Answer

A)  the ratio of a specific measure of output to a specific measure of input
B)  the production of worthwhile goods and services
C)  the market value of goods,services,and resources produced per time period (e.g.,per year) 
D)  the average input divided by average output
E)  total input divided by average outputF) A) and E)
G) D) and E)

Question 10

Labor productivity is measured as

Accepted Answer

A)  the value of total output times total employment
B)  total output of all workers employed
C)  total output divided by the number of units of labor employed
D)  total labor input divided by output
E)  average output per unit of capitalF) C) and E)
G) None of the above

Question 11

All of the following might cause an increase in economic growth,but which would be least certain to do so?

Accepted Answer

A)  a population increase
B)  an increase in the number in the labor force
C)  an increase in the labor force participation rate
D)  an increase in the resource base
E)  technological improvementsF) A) and D)
G) A) and E)

Question 12

Productivity growth is important because

Accepted Answer

A)  it is the only way an economy can increase GDP
B)  a small decrease in productivity growth causes a large decline in GDP
C)  a large increase in productivity growth causes a small decrease in GDP
D)  it causes an increase in the quantity of all resources available to an economy
E)  it ultimately increases a nation's standard of livingF) All of the above
G) B) and D) E

Question 13

An example of an increase in human capital would be

Accepted Answer

A)  a new machine that humans use to produce more capital
B)  an increase in wealth
C)  a more educated labor force
D)  all of the above
E)  both a and cF) A) and D)
G) A) and E)

Question 14

In the U.S.the proportion of people who say they are happy has grown substantially after 60 years of economic growth.

Accepted Answer

A) True 
 B)False

Question 15

Exhibit 8-1 
-In Exhibit 8-1,Tasmania is currently operating at point A on the per-worker production function.If the number of workers is stable while Tasmania's capital stock is growing it will produce a movement from A to

Accepted Answer

A)  B
B)  D
C)  E
D)  F
E)  GF) C) and D)
G) A) and B) A

Question 16

Exhibit 8-1 
-In Exhibit 8-1,Tasmania is currently operating at point A on the per-worker production function.An improvement in the "rules of the game" will produce a movement from A to

Accepted Answer

A)  B
B)  D
C)  E
D)  F
E)  GF) None of the above
G) B) and D)

Question 17

Income and happiness are __________ related.

Accepted Answer

A)  negatively
B)  independently
C)  reluctantly
D)  positively
E)  Economist do not study such questionsF) A) and B)
G) C) and D)

Question 18

If a nation moves upward along its per-worker production function relating output per worker to capital per worker,

Accepted Answer

A)  labor productivity rises
B)  labor productivity falls
C)  the amount of capital decreases,other things constant
D)  labor input decreases
E)  none of the aboveF) A) and E)
G) C) and D)

Question 19

If the ratio of capital to labor increases,we can expect that labor productivity will increase.

Accepted Answer

A) True 
 B)False

Question 20

An increase in the amount of capital per worker will

Accepted Answer

A)  increase labor productivity but not capital productivity
B)  increase capital productivity but not labor productivity
C)  increase both labor and capital productivity
D)  shift the per-worker production function upward
E)  increase total output but not the productivity levels of individual workersF) B) and C)
G) A) and E)

Exam 8: Productivity and Growth

Which of the following would not slow down productivity growth?

Correct AnswerverifiedShow Answer

The reason why productivity growth is so important is that

Correct AnswerverifiedE

Which of the following would not increase labor productivity?

Correct AnswerverifiedShow Answer

Over the long run,technological change increases both labor productivity and unemployment rates.

Correct AnswerverifiedShow Answer

According to Nobel prize winner Simon Kuznets,the greatest increase in output and economic growth comes from changes in the

Correct AnswerverifiedShow Answer

Most economists agree that the most important factor contributing to the recent reduction in U.S.labor productivity growth rate has been the increased level of government regulation.

Correct AnswerverifiedShow Answer

An increase in the amount of capital per worker is called

Correct AnswerverifiedShow Answer

What was the average yearly increase in U.S.labor productivity growth between the 1870s and the early years of the 21st century?

Correct AnswerverifiedShow Answer

Productivity is defined as

Correct AnswerverifiedShow Answer

Labor productivity is measured as

Correct AnswerverifiedShow Answer

All of the following might cause an increase in economic growth,but which would be least certain to do so?

Correct AnswerverifiedShow Answer

Productivity growth is important because

Correct AnswerverifiedE

An example of an increase in human capital would be

Correct AnswerverifiedShow Answer

In the U.S.the proportion of people who say they are happy has grown substantially after 60 years of economic growth.

Correct AnswerverifiedShow Answer

Exhibit 8-1 -In Exhibit 8-1,Tasmania is currently operating at point A on the per-worker production function.If the number of workers is stable while Tasmania's capital stock is growing it will produce a movement from A to

Correct AnswerverifiedA

Exhibit 8-1 -In Exhibit 8-1,Tasmania is currently operating at point A on the per-worker production function.An improvement in the "rules of the game" will produce a movement from A to

Correct AnswerverifiedShow Answer

Income and happiness are __________ related.

Correct AnswerverifiedShow Answer

If a nation moves upward along its per-worker production function relating output per worker to capital per worker,

Correct AnswerverifiedShow Answer

If the ratio of capital to labor increases,we can expect that labor productivity will increase.

Correct AnswerverifiedShow Answer

An increase in the amount of capital per worker will

Correct AnswerverifiedShow Answer

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E

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A

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