Question 1

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) A) and B)
F) All of the above

Question 2

Society can increase its output and income by increasing basically one or both of two factors:

Accepted Answer

A)  its spending and investment.
B)  its private and public sectors of the economy.
C)  its resources and the productivity of the resources.
D)  its markets and prices.E) A) and B)
F) C) and D)

Question 3

In the period following the Great Recession, the creation of new Internet apps has

Accepted Answer

A)  significantly enhanced productivity.
B)  significantly reduced productivity by creating excessive distractions for workers.
C)  had little measured effect on GDP or productivity but may create a lot of consumer surplus.
D)  led firms in these markets to expand capacity beyond what consumers demand.E) C) and D)
F) A) and B)

Question 4

Free trade

Accepted Answer

A)  discourages growth by increasing competitive pressures on domestic firms.
B)  encourages growth by effectively eliminating all patent and copyright barriers to growth.
C)  discourages growth compared to situations where the government strongly controls foreign trade.
D)  encourages growth by promoting the rapid spread of new inventions and innovations.E) A) and B)
F) A) and C)

Question 5

Compared with the period from 1973 to 1995, the annual rate of productivity growth from 1995 to 2010 was about

Accepted Answer

A)  the same.
B)  one-and-a-half times faster.
C)  three times faster.
D)  10 percent slower.E) All of the above
F) None of the above

Question 6

Efficient financial institutions foster the flow of

Accepted Answer

A)  saving and investment.
B)  spending and income.
C)  resources and products.
D)  inventions and ideas.E) A) and B)
F) A) and C)

Question 7

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

Accepted Answer

A)  network effects.
B)  simultaneous consumption.
C)  learning by doing.
D)  the spreading of development costs.E) B) and C)
F) All of the above

Question 8

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

Question 9

Under what circumstances do rates of economic growth understate the growth of economic well-being?

Accepted Answer

A)  Economic growth has occurred because of the increased length of the workweek.
B)  Product quality has improved.
C)  Air quality has declined as real GDP has increased.
D)  Population has grown faster than real output.E) A) and B)
F) A) and C)

Question 10

Economic growth is best defined as an increase in

Accepted Answer

A)  either real GDP or real GDP per capita.
B)  nominal GDP.
C)  total consumption expenditures.
D)  wealth in the economy.E) None of the above
F) A) and B)

Question 11

Economic growth can best be portrayed as a

Accepted Answer

A)  leftward shift of the production possibilities curve.
B)  movement from a point inside to a point outside the production possibilities curve.
C)  movement from a point near the vertical axis to a point near the horizontal axis on the production possibilities curve.
D)  rightward shift of the production possibilities curve.E) All of the above
F) C) and D)

Question 12

Improvements in technology are considered a demand factor in economic growth.

Accepted Answer

A) True 
 B)False

Question 13

The rate of growth of labor productivity in the U.S.declined from the period 1973-1995 to the period 1995-2010.

Accepted Answer

A) True 
 B)False

Question 14

Real GDP, or total output, in any year is equal to

Accepted Answer

A)  labor productivity divided by number of worker-hours.
B)  labor productivity multiplied by real output.
C)  number of worker-hours multiplied by labor productivity.
D)  number of worker-hours divided by labor productivity.E) B) and C)
F) B) and D)

Question 15

If an economy has 800,000 work-hours employed, and its labor productivity is $16/hour, then its real GDP must be $50,000.

Accepted Answer

A) True 
 B)False

Question 16

In the period 1960 to 2010, the U.S.experienced a more rapid annual growth in real GDP per capita than countries like Ireland, Singapore, and South Korea.

Accepted Answer

A) True 
 B)False

Question 17

Between 1950 and 2015, U.S.real GDP per capita grew at an average annual rate of about

Accepted Answer

A)  5.5 percent.
B)  4.2 percent.
C)  3.2 percent.
D)  2.0 percent.E) A) and B)
F) A) and C)

Question 18

The largest factor that raised labor productivity in the U.S.economy since the 1950s has been the increased amount of capital available.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is the so-called efficiency factor of economic growth?

Accepted Answer

A)  having an efficient financial system
B)  reaching full production potential
C)  having free trade
D)  enhanced quantity and quality of human resourcesE) All of the above
F) None of the above

Question 20

From 2010 to 2050, the "inverse dependency ratio" in the U.S.is expected to

Accepted Answer

A)  rise from 1.2 to 1.8.
B)  fall from 1.5 to 1.2.
C)  remain stable at 2.1.
D)  rise from 1.5 to 2.8.E) A) and C)
F) A) and B)

Exam 28: Economic Growth

The rate of growth of labor productivity in the U.S.declined from the period 1973-1995 to the period 1995-2010.

Correct AnswerverifiedShow Answer

Which of the following is the so-called efficiency factor of economic growth?

Correct AnswerverifiedShow Answer

Efficient financial institutions foster the flow of

Correct AnswerverifiedShow Answer

Society can increase its output and income by increasing basically one or both of two factors:

Correct AnswerverifiedShow Answer

Improvements in technology are considered a demand factor in economic growth.

Correct AnswerverifiedShow Answer

Between 1950 and 2015, U.S.real GDP per capita grew at an average annual rate of about

Correct AnswerverifiedShow Answer

The largest factor that raised labor productivity in the U.S.economy since the 1950s has been the increased amount of capital available.

Correct AnswerverifiedShow Answer

If an economy has 800,000 work-hours employed, and its labor productivity is $16/hour, then its real GDP must be $50,000.

Correct AnswerverifiedShow Answer

Compared with the period from 1973 to 1995, the annual rate of productivity growth from 1995 to 2010 was about

Correct AnswerverifiedShow Answer

Economic growth can best be portrayed as a

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Under what circumstances do rates of economic growth understate the growth of economic well-being?

Correct AnswerverifiedShow Answer

In the period following the Great Recession, the creation of new Internet apps has

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the period 1960 to 2010, the U.S.experienced a more rapid annual growth in real GDP per capita than countries like Ireland, Singapore, and South Korea.

Correct AnswerverifiedShow Answer

Economic growth is best defined as an increase in

Correct AnswerverifiedShow Answer

From 2010 to 2050, the "inverse dependency ratio" in the U.S.is expected to

Correct AnswerverifiedShow Answer

Real GDP, or total output, in any year is equal to

Correct AnswerverifiedShow Answer

Free trade

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