Question 1

A government policy of providing job training for unskilled youths is an example of a policy to promote economic growth by:

Accepted Answer

A)  increasing human capital.
B)  increasing physical capital.
C)  improving technology.
D)  increasing the availability of natural resources.E) A) and D)
F) C) and D)

Question 2

The benefits of economic growth are _____, while the costs of economic growth are _____.

Accepted Answer

A)  increased output per person; too small for concern
B)  increased output per person; the consumption sacrificed in exchange for capital formation
C)  increased output per person; less future consumption
D)  more current consumption; less future consumptionE) A) and D)
F) A) and B)

Question 3

Entrepreneurs are people who:

Accepted Answer

A)  engage exclusively in business travel.
B)  entertain the workers.
C)  run businesses on a day-to-day basis.
D)  create new economic enterprises.E) A) and B)
F) C) and D)

Question 4

Arguing that economic growth will eventually stop because we will run out of natural resources:

Accepted Answer

A)  must be correct because scarcity exists.
B)  will only be correct if growth takes the form of newer, more efficient goods and services.
C)  ignores the power of markets to recognize shortages and induce changes in behavior.
D)  is supported today by the fact that richer countries have fewer natural resources.E) B) and D)
F) A) and B)

Question 5

An example of a government policy to provide a framework within which the private sector can operate productively is:

Accepted Answer

A)  the taxation of savings.
B)  the suppression of political dissent.
C)  maintaining a well-functioning legal system.
D)  government ownership of capital.E) A) and C)
F) B) and C)

Question 6

Growth in real GDP per capita has:

Accepted Answer

A)  been steady over the course of human history.
B)  slowed since the mid-nineteenth century compared to before.
C)  been more rapid since the mid-nineteenth century than ever before.
D)  increased over the last 150 years only in the United States and Canada.E) A) and B)
F) All of the above

Question 7

An example of a government policy to increase human capital formation is:

Accepted Answer

A)  the construction of an interstate highway system.
B)  the provision of publicly-funded education.
C)  government support for basic research.
D)  maintaining a well-functioning legal system.E) A) and C)
F) B) and C)

Question 8

Gamma has $30,000 of capital per worker, while Omega has $7,500 of capital per worker.In all other respects, the two countries are the same.According to the principle of diminishing returns to capital, an additional unit of capital will increase output ______ in Gamma compared to Omega, holding other factors constant.

Accepted Answer

A)  more
B)  less
C)  not at all
D)  by the same amountE) A) and D)
F) A) and C)

Question 9

In Econland, 500,000 of the 2 million people in the country are employed.Average labor productivity in Econland is $15,000 per worker.Real GDP per person in Econland totals:

Accepted Answer

A)  $1,250.
B)  $3,750.
C)  $11,250.
D)  $60,000.E) All of the above
F) B) and C)

Question 10

The principle of diminishing returns to capital states that if the amount of labor and other inputs employed is held constant, then the greater the amount of capital in use the:

Accepted Answer

A)  less is produced.
B)  less production is wasted.
C)  the more an additional unit of capital adds to production.
D)  the less an additional unit of capital adds to production.E) None of the above
F) A) and D)

Question 11

Real GDP per person can increase:

Accepted Answer

A)  only if the share of the population employed increases.
B)  only if the share of the population employed decreases.
C)  only if average labor productivity increases.
D)  if the share of population employed and/or average labor productivity increases.E) A) and B)
F) C) and D)

Question 12

The biggest problem thwarting economic growth in the poorest countries, compared to the richest countries, is:

Accepted Answer

A)  insufficient human capital.
B)  outdated physical capital.
C)  no access to technology.
D)  a legal and/or political environment unfavorable to economic growth.E) All of the above
F) B) and C)

Question 13

Mike and Tom debone chicken breasts for Ted's Chicken Co.Mike is new and can only debone 30 chicken breasts per hour by hand, while Tom's experience allows him to debone 60 chicken breasts per hour by hand.Ted buys one new machine that can debone 100 chicken breasts per hour.Both Mike and Tom work the same 40 hours per week, but one of them is assigned to operate the machine instead of deboning the chicken breasts by hand.To obtain maximum average hourly productivity, ______ is assigned to use the machine and their combined average hourly productivity as a team is ______ chicken breasts

Accepted Answer

A)  Mike; 65
B)  Mike; 80
C)  Tom; 65
D)  Tom; 80E) C) and D)
F) All of the above

Question 14

Because of diminishing returns to capital, there is a limit to the increases in average labor productivity that can be gained from additional or improved ______.

Accepted Answer

A)  availability of land and natural resources
B)  physical capital
C)  imports
D)  entrepreneurshipE) None of the above
F) All of the above

Question 15

Economists refer to the talents, training, and education of workers as:

Accepted Answer

A)  human capital.
B)  physical capital.
C)  average labor productivity.
D)  labor supply.E) A) and C)
F) B) and C)

Question 16

Over the period from 1870 to 2010, the growth of real GDP per capita tended to be more rapid between _____, particularly for _____.

Accepted Answer

A)  1870-1950; Japan
B)  1870-1950; the United States
C)  1870-1950; Canada
D)  1950-2010; JapanE) C) and D)
F) B) and C)

Question 17

Assume that average labor productivity is the same in each country.Based on the information in the table, which country has the smallest real GDP per capita?

Accepted Answer

A)  Country A
B)  Country B
C)  Country D
D)  Country EE) A) and D)
F) B) and C)

Question 18

If the share of population employed in two countries is the same, average living standards will be higher in the country with:

Accepted Answer

A)  the smaller population.
B)  the larger population.
C)  higher average labor productivity.
D)  lower average labor productivity.E) A) and B)
F) A) and C)

Question 19

If real GDP per person in a country equals $40,000 and 60 percent of the population is employed, then average labor productivity equals:

Accepted Answer

A)  $24,000.
B)  $40,000.
C)  $60,000.
D)  $66,667.E) C) and D)
F) B) and D)

Question 20

Governments contribute to increased average labor productivity in each of the following ways except by:

Accepted Answer

A)  establishing well-defined property rights.
B)  maintaining political stability.
C)  imposing taxes on wages.
D)  allowing the free and open exchange of ideas.E) A) and C)
F) All of the above

Exam 7: Economic Growth

If real GDP per person in a country equals $40,000 and 60 percent of the population is employed, then average labor productivity equals:

Correct Answer
verified

An example of a government policy to increase human capital formation is:

Correct Answer
verified

Because of diminishing returns to capital, there is a limit to the increases in average labor productivity that can be gained from additional or improved ______.

Correct Answer
verified

Correct Answer
verified

The benefits of economic growth are _, while the costs of economic growth are _.

Correct Answer
verified

Over the period from 1870 to 2010, the growth of real GDP per capita tended to be more rapid between _, particularly for _.

Correct Answer
verified

In Econland, 500,000 of the 2 million people in the country are employed.Average labor productivity in Econland is $15,000 per worker.Real GDP per person in Econland totals:

Correct Answer
verified

Arguing that economic growth will eventually stop because we will run out of natural resources:

Correct Answer
verified

Governments contribute to increased average labor productivity in each of the following ways except by:

Correct Answer
verified

Correct Answer
verified

If the share of population employed in two countries is the same, average living standards will be higher in the country with:

Correct Answer
verified

An example of a government policy to provide a framework within which the private sector can operate productively is:

Correct Answer
verified

Assume that average labor productivity is the same in each country.Based on the information in the table, which country has the smallest real GDP per capita?

Correct Answer
verified

Real GDP per person can increase:

Correct Answer
verified

Growth in real GDP per capita has:

Correct Answer
verified

The principle of diminishing returns to capital states that if the amount of labor and other inputs employed is held constant, then the greater the amount of capital in use the:

Correct Answer
verified

A government policy of providing job training for unskilled youths is an example of a policy to promote economic growth by:

Correct Answer
verified

The biggest problem thwarting economic growth in the poorest countries, compared to the richest countries, is:

Correct Answer
verified

Economists refer to the talents, training, and education of workers as:

Correct Answer
verified

Entrepreneurs are people who:

Correct Answer
verified

Exam 7: Economic Growth

If real GDP per person in a country equals $40,000 and 60 percent of the population is employed, then average labor productivity equals:

Correct AnswerverifiedShow Answer

An example of a government policy to increase human capital formation is:

Correct AnswerverifiedShow Answer

Because of diminishing returns to capital, there is a limit to the increases in average labor productivity that can be gained from additional or improved ______.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The benefits of economic growth are _____, while the costs of economic growth are _____.

Correct AnswerverifiedShow Answer

Over the period from 1870 to 2010, the growth of real GDP per capita tended to be more rapid between _____, particularly for _____.

Correct AnswerverifiedShow Answer

In Econland, 500,000 of the 2 million people in the country are employed.Average labor productivity in Econland is $15,000 per worker.Real GDP per person in Econland totals:

Correct AnswerverifiedShow Answer

Arguing that economic growth will eventually stop because we will run out of natural resources:

Correct AnswerverifiedShow Answer

Governments contribute to increased average labor productivity in each of the following ways except by:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If the share of population employed in two countries is the same, average living standards will be higher in the country with:

Correct AnswerverifiedShow Answer

An example of a government policy to provide a framework within which the private sector can operate productively is:

Correct AnswerverifiedShow Answer

Assume that average labor productivity is the same in each country.Based on the information in the table, which country has the smallest real GDP per capita?

Correct AnswerverifiedShow Answer

Real GDP per person can increase:

Correct AnswerverifiedShow Answer

Growth in real GDP per capita has:

Correct AnswerverifiedShow Answer

The principle of diminishing returns to capital states that if the amount of labor and other inputs employed is held constant, then the greater the amount of capital in use the:

Correct AnswerverifiedShow Answer

A government policy of providing job training for unskilled youths is an example of a policy to promote economic growth by:

Correct AnswerverifiedShow Answer

The biggest problem thwarting economic growth in the poorest countries, compared to the richest countries, is:

Correct AnswerverifiedShow Answer

Economists refer to the talents, training, and education of workers as:

Correct AnswerverifiedShow Answer

Entrepreneurs are people who:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The benefits of economic growth are _, while the costs of economic growth are _.

Correct Answer
verified

Over the period from 1870 to 2010, the growth of real GDP per capita tended to be more rapid between _, particularly for _.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified