Question 1

An equation that enables economists to estimate the relative contributions of capital and technology to productivity growth is known as

Accepted Answer

A)   the proportions formula.
B)   the technology growth formula.
C)   the technology proportion formula.
D)   the Sarbanes-Oxley formula.
E)   None of theseF) None of the above
G) C) and D)

Question 2

The productivity curve shifted more in the period between 1975 and 1995 than it did in the period between 1955 and 1975.

Accepted Answer

A) True 
 B)False

Question 3

Productivity continues to grow in the twenty-first century, and in particular it is spreading to countries like India and China.

Accepted Answer

A) True 
 B)False

Question 4

Public agencies are the users of most research funds in the United States.

Accepted Answer

A) True 
 B)False

Question 5

The government should formulate a technology policy because

Accepted Answer

A)   private incentives for technology production may outweigh the social benefits of such production.
B)   research on technology can be kept secret.
C)   the technology being produced is highly excludable.
D)   the incentives are too low without government intervention.
E)   the incentives to produce the technology are too high.F) A) and E)
G) C) and D)

Question 6

If the growth rate of capital per hour of work is 3 percent over a given period of time and the growth rate of technology is 2 percent, then, based on Solow's growth accounting formula, the growth rate of real GDP per hour of work will be

Accepted Answer

A)   3.67 percent.
B)   2.33 percent.
C)   1.33 percent.
D)   1 percent.
E)   3 percent.F) B) and E)
G) A) and D)

Question 7

Increasing the stock of capital enables more output to be produced.

Accepted Answer

A) True 
 B)False

Question 8

If the owner of a type of technology is able to successfully preclude others from using the good, this type of technology could be classified as a(n)

Accepted Answer

A)   nonexcludable good.
B)   excludable good.
C)   rival good.
D)   normal good.
E)   nontradable good.F) A) and C)
G) B) and E)

Question 9

If capital per hour of work is growing at a rate of 3 percent and the government wants output per hour of work to grow at 3 percent, how high does the growth rate of technology have to be?

Accepted Answer

A)   0 percent
B)   4 percent
C)   2 percent
D)   6 percent
E)   1 percentF) A) and E)
G) B) and E)

Question 10

Because technology exhibits nonrivalry and nonexcludability, there will likely be

Accepted Answer

A)   learning by doing.
B)   an underproduction of technology.
C)   specialization.
D)   an overproduction of technology.
E)   human capital development.F) C) and E)
G) None of the above

Question 11

All inventions result in innovations.

Accepted Answer

A) True 
 B)False

Question 12

Innovations apply only to new types of capital.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following has not been proposed by mainstream economists as a policy measure to encourage productivity growth?

Accepted Answer

A)   Stimulating technology by subsidizing research
B)   Keeping taxes on investment low
C)   Erecting quotas on foreign goods that are technologically advanced
D)   All of the above have commonly been suggested.
E)   None of the above have commonly been suggested.F) A) and B)
G) A) and C)

Question 14

The more technology contributes to economic growth, the greater the noninvestment share of GDP will be.

Accepted Answer

A) True 
 B)False

Question 15

Since World War II,

Accepted Answer

A)   most R&D spending has been used to support civilian research.
B)   most R&D spending has been used to support defense-related research.
C)   there has been very little R&D spending in the United States.
D)   the United States has used an industrial-policy approach to target companies that received government money for R&D.
E)   the government has played a very minor role in the R&D process.F) A) and B)
G) B) and E)

Question 16

New data have just been released showing that the growth rate of technology has dropped. Write a short memo that explains what the government can do to improve the situation. What if the data had also showed a drop in capital per hour of work?

Accepted Answer

Answers will vary. They should...

Question 17

The decision to invest in human capital is influenced by considerations similar to those that motivate a firm to invest in physical capital. Therefore, if interest rates rise, fewer people will tend to invest in college education, since this is an investment that commonly involves borrowing money to afford tuition.

Accepted Answer

A) True 
 B)False

Question 18

Suppose a worker at a computer company rearranges existing machines and labor and increases production in the process. Using the production function, with output on the vertical axis and labor on the horizontal axis, this would be described as

Accepted Answer

A)   an upward shift of the curve combined with an upward movement along the curve.
B)   a movement upward along the curve.
C)   a movement downward along the curve.
D)   a downward shift of the curve.
E)   an upward shift of the curve.F) A) and C)
G) A) and B)

Question 19

If the government determines that a slowdown in the growth of productivity is caused by a slowdown in technological growth, it might elect to

Accepted Answer

A)   implement tax laws to encourage more investment.
B)   devote more resources to military spending.
C)   implement policies to improve the educational system.
D)   devote more resources to improving roads and highways.
E)   reduce the taxes paid by workers to encourage an increase in aggregate hours.F) B) and C)
G) A) and D)

Question 20

The purpose of the growth accounting formula is to

Accepted Answer

A)   explain why economies stop growing.
B)   determine the role of government in affecting growth.
C)   measure the rate at which GDP grows.
D)   identify the limits to growth.
E)   determine how much productivity growth is due to changes in the capital stock and how much is due to changes in technology.F) B) and E)
G) D) and E)

Exam 9: Productivity and Economic Growth

Correct Answer
verified

If capital per hour of work is growing at a rate of 3 percent and the government wants output per hour of work to grow at 3 percent, how high does the growth rate of technology have to be?

Correct Answer
verified

All inventions result in innovations.

Correct Answer
verified

An equation that enables economists to estimate the relative contributions of capital and technology to productivity growth is known as

Correct Answer
verified

New data have just been released showing that the growth rate of technology has dropped. Write a short memo that explains what the government can do to improve the situation. What if the data had also showed a drop in capital per hour of work?

Correct Answer
verified
Answers will vary. They should...
View Answer

Public agencies are the users of most research funds in the United States.

Correct Answer
verified

If the government determines that a slowdown in the growth of productivity is caused by a slowdown in technological growth, it might elect to

Correct Answer
verified

The more technology contributes to economic growth, the greater the noninvestment share of GDP will be.

Correct Answer
verified

The productivity curve shifted more in the period between 1975 and 1995 than it did in the period between 1955 and 1975.

Correct Answer
verified

The purpose of the growth accounting formula is to

Correct Answer
verified

Which of the following has not been proposed by mainstream economists as a policy measure to encourage productivity growth?

Correct Answer
verified

If the growth rate of capital per hour of work is 3 percent over a given period of time and the growth rate of technology is 2 percent, then, based on Solow's growth accounting formula, the growth rate of real GDP per hour of work will be

Correct Answer
verified

Innovations apply only to new types of capital.

Correct Answer
verified

Suppose a worker at a computer company rearranges existing machines and labor and increases production in the process. Using the production function, with output on the vertical axis and labor on the horizontal axis, this would be described as

Correct Answer
verified

Increasing the stock of capital enables more output to be produced.

Correct Answer
verified

Since World War II,

Correct Answer
verified

Because technology exhibits nonrivalry and nonexcludability, there will likely be

Correct Answer
verified

If the owner of a type of technology is able to successfully preclude others from using the good, this type of technology could be classified as a(n)

Correct Answer
verified

Productivity continues to grow in the twenty-first century, and in particular it is spreading to countries like India and China.

Correct Answer
verified

The government should formulate a technology policy because

Correct Answer
verified

Exam 9: Productivity and Economic Growth

Correct AnswerverifiedShow Answer

If capital per hour of work is growing at a rate of 3 percent and the government wants output per hour of work to grow at 3 percent, how high does the growth rate of technology have to be?

Correct AnswerverifiedShow Answer

All inventions result in innovations.

Correct AnswerverifiedShow Answer

An equation that enables economists to estimate the relative contributions of capital and technology to productivity growth is known as

Correct AnswerverifiedShow Answer

New data have just been released showing that the growth rate of technology has dropped. Write a short memo that explains what the government can do to improve the situation. What if the data had also showed a drop in capital per hour of work?

Correct AnswerverifiedAnswers will vary. They should...View AnswerShow Answer

Public agencies are the users of most research funds in the United States.

Correct AnswerverifiedShow Answer

If the government determines that a slowdown in the growth of productivity is caused by a slowdown in technological growth, it might elect to

Correct AnswerverifiedShow Answer

The more technology contributes to economic growth, the greater the noninvestment share of GDP will be.

Correct AnswerverifiedShow Answer

The productivity curve shifted more in the period between 1975 and 1995 than it did in the period between 1955 and 1975.

Correct AnswerverifiedShow Answer

The purpose of the growth accounting formula is to

Correct AnswerverifiedShow Answer

Which of the following has not been proposed by mainstream economists as a policy measure to encourage productivity growth?

Correct AnswerverifiedShow Answer

If the growth rate of capital per hour of work is 3 percent over a given period of time and the growth rate of technology is 2 percent, then, based on Solow's growth accounting formula, the growth rate of real GDP per hour of work will be

Correct AnswerverifiedShow Answer

Innovations apply only to new types of capital.

Correct AnswerverifiedShow Answer

Suppose a worker at a computer company rearranges existing machines and labor and increases production in the process. Using the production function, with output on the vertical axis and labor on the horizontal axis, this would be described as

Correct AnswerverifiedShow Answer

Increasing the stock of capital enables more output to be produced.

Correct AnswerverifiedShow Answer

Since World War II,

Correct AnswerverifiedShow Answer

Because technology exhibits nonrivalry and nonexcludability, there will likely be

Correct AnswerverifiedShow Answer

If the owner of a type of technology is able to successfully preclude others from using the good, this type of technology could be classified as a(n)

Correct AnswerverifiedShow Answer

Productivity continues to grow in the twenty-first century, and in particular it is spreading to countries like India and China.

Correct AnswerverifiedShow Answer

The government should formulate a technology policy because

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Answers will vary. They should...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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