Question 1

In Macroland,500,000 of the 1 million people in the country are employed.Average labor productivity in Macroland is $20,000 per worker.Real GDP per person in Macroland totals:

Accepted Answer

A)  $1,000.
B)  $10,000.
C)  $15,000.
D)  $40,000.

Question 2

A government policy to build bridges and dams 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)  improving the social and legal environment.

Question 3

Workers should invest in additional human capital as long as the:

Accepted Answer

A)  marginal benefit exceeds the marginal cost.
B)  marginal cost exceeds the marginal benefit.
C)  opportunity cost exceeds the marginal benefit.
D)  opportunity cost is zero.

Question 4

Human capital is:

Accepted Answer

A)  the factories and machinery used by humans in the production process.
B)  the talents,training,and education of workers.
C)  the financial resources available to humans for investment.
D)  the factories and machinery made by workers.

Question 5

The long-run average annual growth of real GDP per person is the United States is approximately ______ percent.

Accepted Answer

A)  one
B)  two
C)  five
D)  seven

Question 6

Advances in information and communication technology are the principal factors cited for the:

Accepted Answer

A)  slowdown in productivity growth between 1973 and 1995.
B)  speedup in productivity growth between 1973 and 1995.
C)  slowdown in productivity growth since 1995.
D)  speedup in productivity growth since 1995.

Question 7

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 before.
D)  increased over the last 150 years only in the United States and Canada.

Question 8

The key variable in determining changes in a country's standard of living is the:

Accepted Answer

A)  interest rate.
B)  inflation rate.
C)  unemployment rate.
D)  long-run rate of economic growth.

Question 9

Average labor productivity times the proportion of the population employed equals:

Accepted Answer

A)  real GDP.
B)  real GDP per person.
C)  real GDP per worker.
D)  output per worker.

Question 10

The population of Alpha totals one million people,40 percent of whom are employed.Average output per worker in Alpha is $20,000.Real GDP per person in Alpha totals:

Accepted Answer

A)  $8,000.
B)  $12,000.
C)  $20,000.
D)  $50,000.

Question 11

Real GDP per person in both Alpha and Omega is equal to $2,000.Over the next 100 years,real GDP per person grows at a 1 percent annual rate in Alpha and at a 2 percent annual rate in Omega.After 100 years,real GDP per person in Alpha is ______ smaller than real GDP per person in Omega.

Accepted Answer

A)  $2,000
B)  $5,410
C)  $9,080
D)  $11,080

Question 12

Real GDP per person in both Alpha and Omega is equal to $2,000.Over the next 100 years,real GDP per person grows at a 1.5 percent annual rate in Alpha and at a 2.5 percent annual rate in Omega.After 100 years,real GDP per person in Alpha is ______ smaller than real GDP per person in Omega.

Accepted Answer

A)  $2,000
B)  $5,410
C)  $8,864
D)  $14,763

Question 13

In order to promote growth through increased quantities of physical capital,governments must promote:

Accepted Answer

A)  a better educational system.
B)  job training programs.
C)  high rates of saving and investing.
D)  funding for basic science.

Question 14

The growth of real GDP per person in the United States between 1960 and 2008 was the result of:

Accepted Answer

A)  growth in average labor productivity only.
B)  growth in the share of population employed only.
C)  growth in both average labor productivity and the share of population employed.
D)  neither the growth in average labor productivity nor the share of population employed.

Question 15

Government support of basic research by funding scientists through the National Science Foundation is an example of a government 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.

Question 16

In symbolic terms where Y equals real GDP,POP equals total population,and N equals the number of employed workers,Y/POP must equal:

Accepted Answer

A)  Y/N × N/POP.
B)  N/Y × POP/N.
C)  Y/POP × N/POP.
D)  N/Y × N/POP.

Question 17

Organizing production,obtaining financing,assigning workers to jobs,and dealing with suppliers are among the ways that ______ increases average labor productivity.

Accepted Answer

A)  human capital
B)  physical capital
C)  an entrepreneur
D)  a manager

Question 18

The establishment of well-defined property rights increases:

Accepted Answer

A)  average labor productivity.
B)  the amount of pollution.
C)  the unemployment rate.
D)  the labor force participation rate.

Question 19

The average annual growth rates of labor productivity from 1960 to 1973 were ______ the average rates over the period from 1973 to 1995.

Accepted Answer

A)  more rapid than
B)  slower than
C)  about the same as
D)  more rapid in the U.S.,but slower in other industrialized countries

Question 20

The prediction that workers obtain additional training only when the rewards from the training are expected to exceed the costs of the training (including the opportunity costs) is based on the:

Accepted Answer

A)  principle of comparative advantage.
B)  principle of diminishing returns to capital.
C)  scarcity principle.
D)  cost-benefit principle.

Exam 18: Economic Growth

The population of Alpha totals one million people,40 percent of whom are employed.Average output per worker in Alpha is $20,000.Real GDP per person in Alpha totals:

Correct AnswerverifiedShow Answer

In order to promote growth through increased quantities of physical capital,governments must promote:

Correct AnswerverifiedShow Answer

Human capital is:

Correct AnswerverifiedShow Answer

A government policy to build bridges and dams is an example of a policy to promote economic growth by:

Correct AnswerverifiedShow Answer

Organizing production,obtaining financing,assigning workers to jobs,and dealing with suppliers are among the ways that ______ increases average labor productivity.

Correct AnswerverifiedShow Answer

The prediction that workers obtain additional training only when the rewards from the training are expected to exceed the costs of the training (including the opportunity costs) is based on the:

Correct AnswerverifiedShow Answer

Average labor productivity times the proportion of the population employed equals:

Correct AnswerverifiedShow Answer

In symbolic terms where Y equals real GDP,POP equals total population,and N equals the number of employed workers,Y/POP must equal:

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Real GDP per person in both Alpha and Omega is equal to $2,000.Over the next 100 years,real GDP per person grows at a 1.5 percent annual rate in Alpha and at a 2.5 percent annual rate in Omega.After 100 years,real GDP per person in Alpha is ______ smaller than real GDP per person in Omega.

Correct AnswerverifiedShow Answer

Workers should invest in additional human capital as long as the:

Correct AnswerverifiedShow Answer

The key variable in determining changes in a country's standard of living is the:

Correct AnswerverifiedShow Answer

The growth of real GDP per person in the United States between 1960 and 2008 was the result of:

Correct AnswerverifiedShow Answer

The long-run average annual growth of real GDP per person is the United States is approximately ______ percent.

Correct AnswerverifiedShow Answer

Growth in real GDP per capita has:

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The establishment of well-defined property rights increases:

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In Macroland,500,000 of the 1 million people in the country are employed.Average labor productivity in Macroland is $20,000 per worker.Real GDP per person in Macroland totals:

Correct AnswerverifiedShow Answer

Advances in information and communication technology are the principal factors cited for the:

Correct AnswerverifiedShow Answer

Government support of basic research by funding scientists through the National Science Foundation is an example of a government policy to promote economic growth by:

Correct AnswerverifiedShow Answer

Real GDP per person in both Alpha and Omega is equal to $2,000.Over the next 100 years,real GDP per person grows at a 1 percent annual rate in Alpha and at a 2 percent annual rate in Omega.After 100 years,real GDP per person in Alpha is ______ smaller than real GDP per person in Omega.

Correct AnswerverifiedShow Answer

The average annual growth rates of labor productivity from 1960 to 1973 were ______ the average rates over the period from 1973 to 1995.

Correct AnswerverifiedShow Answer

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