Question 1

Which of the following statements concerning the United States' expenditures on research and development (R&D)  is true?

Accepted Answer

A)   The United States spends more on R&D as a share of GDP and less in total compared to other countries.
B)   The United States spends less on R&D as a share of GDP and less in total compared to other countries.
C)   The United States spends less on R&D as a share of GDP and more in total compared to other countries.
D)   The United States spends the same on R&D as a share of GDP and less in total compared to other countries.
E)   The United States spends more on R&D as a share of GDP and more in total compared to other countries.F) A) and B)
G) A) and C)

Question 2

Innovations apply only to new types of capital.

Accepted Answer

A) True 
 B)False

Question 3

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) A) and E)
G) B) and C)

Question 4

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) A) and C)
G) B) and D)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Approximately one-third of aggregate income is used to compensate the owners of capital.

Accepted Answer

A) True 
 B)False

Question 7

The U.S. educational system is falling behind other countries, especially in mathematics and science in grades K through 12.

Accepted Answer

A) True 
 B)False  True

Question 8

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) All of the above
G) None of the above

Question 9

If technology grows, output will rise by only a fraction of the increase.

Accepted Answer

A) True 
 B)False

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) A) and B)
G) C) and D) B

Question 11

The growth rate of productivity due to an increase in capital income equals

Accepted Answer

A)   the share of capital income in aggregate income.
B)   the slope of the productivity function.
C)   the growth rate of capital per hour worked times the share of capital income in aggregate income.
D)   the growth rate of capital per hour worked.
E)   the growth rate of technology.F) All of the above
G) A) and B)

Question 12

Use the analysis presented in the text to explain why Apple Computer does not document how to transfer music from an iPod (portable music player) to iTunes (a program on the computer to store music).

Accepted Answer

Apple's decision, most likely, was made ...

Question 13

Provide a definition of technology, and explain how it is possible to come up with an estimate of technological growth.

Accepted Answer

Technology is anything that means that m...

Question 14

In terms of encouraging technological innovation, the government should intervene to encourage growth if the market is not providing the right incentives and there is little risk of government failure.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements is true about an economy whose production function includes only capital and labor?

Accepted Answer

A)   Diminishing returns to capital can occur for the economy as a whole.
B)   Adding more capital per worker cannot raise real GDP beyond some limit.
C)   The production function yields a pessimistic conclusion about economic growth.
D)   To get to the point where the return from an additional unit of capital equals zero requires an extremely large investment share of GDP.
E)   All of theseF) A) and E)
G) A) and B)

Question 16

Diminishing returns to labor means that

Accepted Answer

A)   the greater the amount of output, the less labor that is needed.
B)   as more labor is employed, total output declines.
C)   as more labor is employed, each additional worker produces less additional output.
D)   as more labor is employed, total output will increase.
E)   the greater the amount of output, the less additional labor that is needed.F) A) and C)
G) B) and D)

Question 17

An engineering company has developed a gadget to help families control the amount of time their children watch TV. What would be an example of a technological spillover in this case? Technological reasons aside, how could this engineering company prevent this kind of technological spillover from occurring?

Accepted Answer

A similar type of gadget could be used t...

Question 18

Society usually benefits more from an innovation than the person who develops it.

Accepted Answer

A) True 
 B)False  True

Question 19

Anything that causes the productivity curve to shift is classified as technological change.

Accepted Answer

A) True 
 B)False

Question 20

Technology is

Accepted Answer

A)   anything that will enable a given amount of capital and labor to produce more output.
B)   another name for capital.
C)   another name for productivity.
D)   any type of invention.
E)   the application of science to production.F) D) and E)
G) A) and C)

Exam 9: Productivity and Economic Growth

Which of the following statements concerning the United States' expenditures on research and development (R&D) is true?

Correct Answer
verified

Innovations apply only to new types of capital.

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

The purpose of the growth accounting formula is to

Correct Answer
verified

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

Correct Answer
verified

Approximately one-third of aggregate income is used to compensate the owners of capital.

Correct Answer
verified

The U.S. educational system is falling behind other countries, especially in mathematics and science in grades K through 12.

Correct Answer
verified
True

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

If technology grows, output will rise by only a fraction of the increase.

Correct Answer
verified

Because technology exhibits nonrivalry and nonexcludability, there will likely be

Correct Answer
verified
B

The growth rate of productivity due to an increase in capital income equals

Correct Answer
verified

Use the analysis presented in the text to explain why Apple Computer does not document how to transfer music from an iPod (portable music player) to iTunes (a program on the computer to store music).

Correct Answer
verified
Apple's decision, most likely, was made ...
View Answer

Provide a definition of technology, and explain how it is possible to come up with an estimate of technological growth.

Correct Answer
verified
Technology is anything that means that m...
View Answer

In terms of encouraging technological innovation, the government should intervene to encourage growth if the market is not providing the right incentives and there is little risk of government failure.

Correct Answer
verified

Which of the following statements is true about an economy whose production function includes only capital and labor?

Correct Answer
verified

Diminishing returns to labor means that

Correct Answer
verified

Correct Answer
verified
A similar type of gadget could be used t...
View Answer

Society usually benefits more from an innovation than the person who develops it.

Correct Answer
verified
True

Anything that causes the productivity curve to shift is classified as technological change.

Correct Answer
verified

Technology is

Correct Answer
verified

Exam 9: Productivity and Economic Growth

Which of the following statements concerning the United States' expenditures on research and development (R&D) is true?

Correct AnswerverifiedShow Answer

Innovations apply only to new types of capital.

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

The purpose of the growth accounting formula is to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Approximately one-third of aggregate income is used to compensate the owners of capital.

Correct AnswerverifiedShow Answer

The U.S. educational system is falling behind other countries, especially in mathematics and science in grades K through 12.

Correct AnswerverifiedTrue

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

If technology grows, output will rise by only a fraction of the increase.

Correct AnswerverifiedShow Answer

Because technology exhibits nonrivalry and nonexcludability, there will likely be

Correct AnswerverifiedB

The growth rate of productivity due to an increase in capital income equals

Correct AnswerverifiedShow Answer

Use the analysis presented in the text to explain why Apple Computer does not document how to transfer music from an iPod (portable music player) to iTunes (a program on the computer to store music).

Correct AnswerverifiedApple's decision, most likely, was made ...View AnswerShow Answer

Provide a definition of technology, and explain how it is possible to come up with an estimate of technological growth.

Correct AnswerverifiedTechnology is anything that means that m...View AnswerShow Answer

In terms of encouraging technological innovation, the government should intervene to encourage growth if the market is not providing the right incentives and there is little risk of government failure.

Correct AnswerverifiedShow Answer

Which of the following statements is true about an economy whose production function includes only capital and labor?

Correct AnswerverifiedShow Answer

Diminishing returns to labor means that

Correct AnswerverifiedShow Answer

Correct AnswerverifiedA similar type of gadget could be used t...View AnswerShow Answer

Society usually benefits more from an innovation than the person who develops it.

Correct AnswerverifiedTrue

Anything that causes the productivity curve to shift is classified as technological change.

Correct AnswerverifiedShow Answer

Technology is

Correct AnswerverifiedShow Answer

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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True

Correct Answer
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Correct Answer
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Correct Answer
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B

Correct Answer
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Correct Answer
verified
Apple's decision, most likely, was made ...
View Answer

Correct Answer
verified
Technology is anything that means that m...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A similar type of gadget could be used t...
View Answer

Correct Answer
verified
True

Correct Answer
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Correct Answer
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