Question 1

The ability to expand production is sufficient for a nation to achieve maximum possible growth.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is a measure of economic growth that is most useful for comparing living standards?

Accepted Answer

A)   Growth in nominal GDP
B)   Decreases in the rate of unemployment
C)   Increases in real GDP per capita
D)   Increases in real GDPE) B) and D)
F) B) and C)

Question 3

One major aspect of the socio-cultural-political environment of the United States which has generally been conducive to economic growth is the:

Accepted Answer

A)   Enforcement of contracts by the market
B)   Denial of the rights of property ownership
C)   Favorable attitude toward work and risk-taking
D)   Strict social regulation of production and progressE) B) and C)
F) A) and B)

Question 4

A nation's average annual real GDP growth rate is 2.5%. 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 yearsD) None of the above
E) All of the above

Question 5

Technological advances that contribute to economic growth include the following, except:

Accepted Answer

A)   Innovative production techniques
B)   New managerial methods
C)   Innovative digital gadgets for consumers
D)   New forms of business organizationE) All of the above
F) C) and D)

Question 6

The main cause for the vast differences in per capita GDP levels seen across the globe today is the:

Accepted Answer

A)   Huge differences in the natural-resource endowments of different countries
B)   Major differences in the population sizes of various societies
C)   Different starting dates of modern economic growth in different parts of the world
D)   Differences in religions that different societies around the world believe inE) None of the above
F) A) and B)

Question 7

Trends in educational attainment in the U.S. since 1960 indicate that the percentage of adults:

Accepted Answer

A)   Completing high school has been rising, and so has the percentage who do not go to high school nor complete elementary school
B)   Completing college has been rising, and so has the percentage completing high school
C)   Completing college has been constant, but the percentage completing high school has been rising
D)   Who do not go to high school has been falling, but the percentage who do not complete elementary school has been risingE) None of the above
F) A) and D)

Question 8

Which of the following will NOT increase the average productivity of labor?

Accepted Answer

A)   An increase in the stock of real capital
B)   Improvement in the education and health of the population
C)   Technological progress
D)   An increase in the size of the labor forceE) A) and C)
F) None of the above

Question 9

Which of the following factors is projected to be the dominant source of economic growth in the U.S. from now until 2020?

Accepted Answer

A)   Increase in hours per worker
B)   Increase in labor force
C)   Increase in population
D)   Increase in labor productivityE) None of the above
F) All of the above

Question 10

Nation A's real GDP was $520 billion in 2013 and $550 billion in 2014. Its population was 150 million in 2013 and 155 million in 2014. On the other hand, Nation B's real GDP was $200 billion in 2013 and $210 billion in 2014; and its population was 53 million in 2013 and 55 million in 2014. Which of the following statements is true?

Accepted Answer

A)   Nation A's real GDP growth in 2014 is higher than Nation B's
B)   Nation B's real GDP growth in 2014 is higher than Nation A's
C)   Nation A's real GDP growth in 2014 is identical to Nation B's
D)   Nation A's and Nation B's real GDP growth rates in 2014 are both higher than 10%E) C) and D)
F) None of the above

Question 11

If the working-age population in an economy shrinks, real GDP can still grow if:

Accepted Answer

A)   Work hours per week decreases, to spread work among more workers
B)   Labor productivity increases rapidly enough
C)   Consumption by households increase rapidly
D)   Spending by firms and the government increasesE) A) and B)
F) A) and C)

Question 12

A major effect of the rise in the rate of productivity growth in the United States is a(n) :

Accepted Answer

A)   Rise in the rate of inflation
B)   Rise in the growth of living standards
C)   Increase in the relative prices of U.S. goods in foreign markets
D)   Increase in the competitiveness of U.S. goods in foreign marketsE) C) and D)
F) B) and C)

Question 13

One concern regarding educational attainment in the U.S. is that:

Accepted Answer

A)   The percentage of adults finishing college is falling
B)   There are fewer college graduates in science and engineering
C)   Students are graduating later and later
D)   Fewer high school graduates are going on to collegeE) A) and B)
F) B) and C)

Question 14

Technological advance is very tightly intertwined with:

Accepted Answer

A)   Capital formation
B)   Household consumption
C)   Government spending
D)   Population growthE) B) and C)
F) A) and B)

Question 15

"Show me a pastoral society with an untouched environment, an abundance of leisure, and non-secular values, and I will show you an underdeveloped, poverty-ridden country." This statement is most likely to be made by a(n) :

Accepted Answer

A)   Advocate of learning by doing
B)   Advocate of network effects
C)   Proponent of economic growth
D)   Critic of economic growthE) B) and D)
F) A) and B)

Question 16

The factor accounting for the largest increase in the productivity of labor in the United States has been:

Accepted Answer

A)   The education and training of workers
B)   Improved resource allocation
C)   The quantity of capital
D)   Technological advanceE) None of the above
F) A) and B)

Question 17

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 rateE) None of the above
F) All of the above

Question 18

A nation's real GDP was $250 billion in 2013 and $265 billion in 2014. Its population was 120 million in 2013 and 125 million in 2014. What is its real GDP per capita in 2014?

Accepted Answer

A)   $2,120 per person
B)   $212 per person
C)   $21,200 per person
D)   $205 per personE) C) and D)
F) B) and D)

Question 19

Efficient financial institutions foster the flow of:

Accepted Answer

A)   Saving and investment
B)   Spending and income
C)   Resources and products
D)   Inventions and ideasE) B) and C)
F) B) and D)

Question 20

There tends to be a positive correlation between real wages of workers and the productivity of labor in the economy.

Accepted Answer

A) True 
 B)False

Exam 8: Economic Growth

There tends to be a positive correlation between real wages of workers and the productivity of labor in the economy.

Correct Answer
verified

Which of the following is a measure of economic growth that is most useful for comparing living standards?

Correct Answer
verified

Correct Answer
verified

A major effect of the rise in the rate of productivity growth in the United States is a(n) :

Correct Answer
verified

A nation's real GDP was $250 billion in 2013 and $265 billion in 2014. Its population was 120 million in 2013 and 125 million in 2014. What is its real GDP per capita in 2014?

Correct Answer
verified

Which of the following will NOT increase the average productivity of labor?

Correct Answer
verified

A nation's average annual real GDP growth rate is 2.5%. 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 Answer
verified

If the working-age population in an economy shrinks, real GDP can still grow if:

Correct Answer
verified

The ability to expand production is sufficient for a nation to achieve maximum possible growth.

Correct Answer
verified

"Show me a pastoral society with an untouched environment, an abundance of leisure, and non-secular values, and I will show you an underdeveloped, poverty-ridden country." This statement is most likely to be made by a(n) :

Correct Answer
verified

Technological advances that contribute to economic growth include the following, except:

Correct Answer
verified

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

Correct Answer
verified

One major aspect of the socio-cultural-political environment of the United States which has generally been conducive to economic growth is the:

Correct Answer
verified

Technological advance is very tightly intertwined with:

Correct Answer
verified

The main cause for the vast differences in per capita GDP levels seen across the globe today is the:

Correct Answer
verified

The factor accounting for the largest increase in the productivity of labor in the United States has been:

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 2020?

Correct Answer
verified

One concern regarding educational attainment in the U.S. is that:

Correct Answer
verified

Efficient financial institutions foster the flow of:

Correct Answer
verified

Trends in educational attainment in the U.S. since 1960 indicate that the percentage of adults:

Correct Answer
verified

Exam 8: Economic Growth

There tends to be a positive correlation between real wages of workers and the productivity of labor in the economy.

Correct AnswerverifiedShow Answer

Which of the following is a measure of economic growth that is most useful for comparing living standards?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A major effect of the rise in the rate of productivity growth in the United States is a(n) :

Correct AnswerverifiedShow Answer

A nation's real GDP was $250 billion in 2013 and $265 billion in 2014. Its population was 120 million in 2013 and 125 million in 2014. What is its real GDP per capita in 2014?

Correct AnswerverifiedShow Answer

Which of the following will NOT increase the average productivity of labor?

Correct AnswerverifiedShow Answer

A nation's average annual real GDP growth rate is 2.5%. 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

If the working-age population in an economy shrinks, real GDP can still grow if:

Correct AnswerverifiedShow Answer

The ability to expand production is sufficient for a nation to achieve maximum possible growth.

Correct AnswerverifiedShow Answer

"Show me a pastoral society with an untouched environment, an abundance of leisure, and non-secular values, and I will show you an underdeveloped, poverty-ridden country." This statement is most likely to be made by a(n) :

Correct AnswerverifiedShow Answer

Technological advances that contribute to economic growth include the following, except:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

One major aspect of the socio-cultural-political environment of the United States which has generally been conducive to economic growth is the:

Correct AnswerverifiedShow Answer

Technological advance is very tightly intertwined with:

Correct AnswerverifiedShow Answer

The main cause for the vast differences in per capita GDP levels seen across the globe today is the:

Correct AnswerverifiedShow Answer

The factor accounting for the largest increase in the productivity of labor in the United States has been:

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 2020?

Correct AnswerverifiedShow Answer

One concern regarding educational attainment in the U.S. is that:

Correct AnswerverifiedShow Answer

Efficient financial institutions foster the flow of:

Correct AnswerverifiedShow Answer

Trends in educational attainment in the U.S. since 1960 indicate that the percentage of adults:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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