Question 1

If a nation's real GDP is growing by 5 percent per year,its real GDP will double in approximately:

Accepted Answer

A)   22 years.
B)   20 years.
C)   14 years.
D)   8 years.E) A) and C)
F) C) and D)

Question 2

Critics of economic growth say studies show that people are not interested in achieving higher standards of living.

Accepted Answer

A) True 
 B)False

Question 3

Countries that have experienced modern economic growth have also tended to:

Accepted Answer

A)   adopt feudalistic institutions.
B)   restrict women and minorities from holding certain economic and political positions.
C)   move toward more democratic forms of government.
D)   have less leisure time for sport and artistic activities.E) None of the above
F) B) and D)

Question 4

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

Accepted Answer

A)   Japan.
B)   United States.
C)   Latin America.
D)   Western Europe.E) A) and D)
F) All of the above

Question 5

A competitive market system promotes growth by providing producers with market signals on which to base investment and production decisions.

Accepted Answer

A) True 
 B)False

Question 6

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) None of the above
F) A) and D)

Question 7

Between 1953 and 2011,rising labor productivity contributed more to U.S.economic growth than did increases in inputs.

Accepted Answer

A) True 
 B)False

Question 8

(Consider This) According to the Consider This box on patents and innovation,the cost for U.S.and European drug companies to research,patent,and safety-test a new drug is about:

Accepted Answer

A)   $100 million.
B)   $750 million.
C)   $1 billion.
D)   $10 billion.E) A) and C)
F) None of the above

Question 9

Human capital refers to:

Accepted Answer

A)   the skills and knowledge that enable a worker to be productive.
B)   machinery used by labor in production.
C)   the accumulated financial wealth of households.
D)   physical capital owned by households rather than businesses.E) C) and D)
F) None of the above

Question 10

(Consider This) Rising wages for women in the United States have increased:

Accepted Answer

A)   the proportion of women working part time compared to working full time.
B)   labor costs and thus shifted the nation's production possibilities curve inward.
C)   average family size in the United States.
D)   the percentage of married women in the workforce.E) B) and D)
F) B) and C)

Question 11

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 worker.E) A) and B)
F) C) and D)

Question 12

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) None of the above
F) B) and C)

Question 13

Between 1995 and 2012,the U.S.productivity rate:

Accepted Answer

A)   was slightly negative,mainly because of record levels of employment growth.
B)   grew substantially compared to prior years,leading some economists to predict a long-lasting resurgence of productivity growth.
C)   slowed considerably relative to the high rates between 1990 and 1995.
D)   reached record low levels for the United States' economy,leading some economists to talk of a long-term trend of stagnation.E) A) and B)
F) B) and C)

Question 14

Increases in the value of a product to each user,including existing users,as the total number of users rises are called:

Accepted Answer

A)   information cascades.
B)   learning effects.
C)   network effects.
D)   scale economies.E) A) and B)
F) B) and C)

Question 15

Productivity growth was greater between 1973 and 1995 than between 1995 and 2012.

Accepted Answer

A) True 
 B)False

Question 16

More than half the growth of real GDP in the United States is caused by:

Accepted Answer

A)   a falling price level.
B)   the reallocation of labor from manufacturing to agriculture.
C)   increases in the productivity of labor.
D)   the use of fewer inputs of labor.E) A) and B)
F) B) and C)

Question 17

Follower countries achieve high rates of growth by adopting technologies developed by leader countries.

Accepted Answer

A) True 
 B)False

Question 18

What percentage of the U.S.adult population has at least a high school education (as of 2012) ?

Accepted Answer

A)   31 percent.
B)   41 percent.
C)   88 percent.
D)   95 percent.E) B) and D)
F) A) and B)

Question 19

Suppose total output (real GDP) is $10,000 and worker-hours are 20,000.We can conclude that:

Accepted Answer

A)   real GDP per capita must be $200,000.
B)   the price-level index must be less than 100.
C)   labor productivity must be $0.50.
D)   nominal GDP must be between $10,000 and $20,000.E) A) and D)
F) All of the above

Question 20

Suppose that an economy's labor productivity and total worker-hours each grew by 3 percent between year 1 and year 2.We could conclude that this economy's:

Accepted Answer

A)   real GDP remained constant.
B)   capital stock increased by 3 percent.
C)   production possibilities curve shifted inward.
D)   production possibilities curve shifted outward.E) B) and C)
F) A) and D)

Exam 27: Economic Growth

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

Correct AnswerverifiedShow Answer

If a nation's real GDP is growing by 5 percent per year,its real GDP will double in approximately:

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(Consider This) Rising wages for women in the United States have increased:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Productivity growth was greater between 1973 and 1995 than between 1995 and 2012.

Correct AnswerverifiedShow Answer

(Consider This) According to the Consider This box on patents and innovation,the cost for U.S.and European drug companies to research,patent,and safety-test a new drug is about:

Correct AnswerverifiedShow Answer

Human capital refers to:

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More than half the growth of real GDP in the United States is caused by:

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

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Countries that have experienced modern economic growth have also tended to:

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What percentage of the U.S.adult population has at least a high school education (as of 2012) ?

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Critics of economic growth say studies show that people are not interested in achieving higher standards of living.

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A competitive market system promotes growth by providing producers with market signals on which to base investment and production decisions.

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

Suppose total output (real GDP) is $10,000 and worker-hours are 20,000.We can conclude that:

Correct AnswerverifiedShow Answer

Suppose that an economy's labor productivity and total worker-hours each grew by 3 percent between year 1 and year 2.We could conclude that this economy's:

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Follower countries achieve high rates of growth by adopting technologies developed by leader countries.

Correct AnswerverifiedShow Answer

Between 1953 and 2011,rising labor productivity contributed more to U.S.economic growth than did increases in inputs.

Correct AnswerverifiedShow Answer

Between 1995 and 2012,the U.S.productivity rate:

Correct AnswerverifiedShow Answer

Increases in the value of a product to each user,including existing users,as the total number of users rises are called:

Correct AnswerverifiedShow Answer

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