Question 1

What was the primary opportunity cost of the former Soviet Union's policy to heavily invest in capital for economic growth?

Accepted Answer

A)  An inability to trade with other nations
B)  Democracy
C)  Foregone consumer goods
D)  Technological innovations
E)  Foregone military goods

Question 2

For an economy to expand its investment in the production of capital goods,it must

Accepted Answer

A)  Enhance its current level of technology
B)  Forego some production of consumer goods and services
C)  Expand its geographic territory
D)  Increase its real supply of money
E)  Reduce the level of savings by consumers

Question 3

Human capital refers to

Accepted Answer

A)   Foregone earnings of students enrolled in college
B)   Money required to enroll in educational programs
C)   Slaves owned by capitalists
D)   Skills and training that increase a worker's productivity
E)   Factories and equipment owned by workers

Question 4

Another name for the trough of a business cycle is recession.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements is true?

Accepted Answer

A)  In the foreseeable future,real GDP will grow slower than the U.S.population
B)  Based on past economic performance,it is likely that standards of living in the U.S.will fall during the early part of the 21st century
C)  Real per capita GDP will likely increase in the near future due in part to the slowdown in the rate of population growth
D)  In economics,the past is a very poor predictor of the future
E)  The rate of economic growth does not affect individual people

Question 6

The Following Questions Refer to the graph below. 2 B) At point T3 C) Between T1 and T2 D) Between T2 and T3 E) Along the straight line" class="answers-bank-image d-inline" rel="preload" >
-An economic contraction is illustrated on the graph

Accepted Answer

A)  At point T2
B)  At point T3
C)  Between T1 and T2
D)  Between T2 and T3
E)  Along the straight line

Question 7

Initially 10 workers produce 100 units of output in an economy.The next year,20 workers produce 250 units of output in the same economy.Productivity in the economy has

Accepted Answer

A)  Doubled
B)  More than doubled
C)  Increased
D)  Decreased
E)  Not changed

Question 8

Which decade resulted in the lowest average annual rate of economic growth in the U.S.?

Accepted Answer

A)  1950s
B)  1960s
C)  1970s
D)  1980s
E)  Unknown

Question 9

Savings can only occur when the economy is in the expansion phase of a business cyclE.

Accepted Answer

A) True 
 B)False

Question 10

The economic variables that make up the Leading Economic Indicators Index tend to move in the ______ direction as overall economic output and do so _____ changes in real GDP.

Accepted Answer

A)  Opposite; prior to
B)  Same; after
C)  Opposite; after
D)  Same; prior to
E)  Same; simultaneously as

Question 11

Strong economic expansions are sometimes

Accepted Answer

A) True 
 B)False

Question 12

The most important determinants of economic growth are the availability of resources and productivity factors.

Accepted Answer

A) True 
 B)False

Question 13

The last depression experienced by the U.S.economy occurred

Accepted Answer

A)  During the 1970s
B)  In 1982
C)  During the 1930s
D)  Between 1974-1975
E)  In 1990

Question 14

Every business cycle has four distinct phases; expansion,peak,contraction,and trough.

Accepted Answer

A) True 
 B)False

Question 15

What is the result of a growing labor force?

Accepted Answer

A)  Lower rates of interest in the capital market
B)  Higher rates of unemployment
C)  The economy's production possibilities curve shifts outward
D)  The economy's production possibilities curve shifts inward
E)  The economy's rate of growth must slow to accommodate more people

Question 16

The total output produced divided by the total units of labor employed is called the average product of labor.

Accepted Answer

A) True 
 B)False

Question 17

Why do small differences in economic growth rates today result in significant differences in the level of economic activity in the future?

Accepted Answer

A)  Growth rates discount over time
B)  Economic growth compounds year after year
C)  Economics grow in an arithmetic fashion
D)  Business cycles are less likely at higher rates of growth
E)  All of the above

Question 18

Productivity is a measure of how efficiently resources are converted into goods and services through a production process.

Accepted Answer

A) True 
 B)False

Question 19

In an economy,100 workers can produce 500 units of output and 110 workers produce 600 units of output.Which of the following is true? The average product with

Accepted Answer

A)  100 workers is 500
B)  100 workers is 5
C)  110 workers is 600
D)  10 workers is 100
E)  Both a) and c)

Question 20

Productivity gains in the 1990s were a result of which of the following?

Accepted Answer

A)  Capital investment
B)  Improved labor quality
C)  Technological progress
D)  Increased use of computers
E)  All of the above

Exam 11: Economic Growth: Why Is the Economic Road so Bumpy

Why do small differences in economic growth rates today result in significant differences in the level of economic activity in the future?

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Human capital refers to

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Another name for the trough of a business cycle is recession.

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Savings can only occur when the economy is in the expansion phase of a business cyclE.

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What was the primary opportunity cost of the former Soviet Union's policy to heavily invest in capital for economic growth?

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The Following Questions Refer to the graph below. -An economic contraction is illustrated on the graph

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The economic variables that make up the Leading Economic Indicators Index tend to move in the ______ direction as overall economic output and do so _____ changes in real GDP.

Correct AnswerverifiedShow Answer

Initially 10 workers produce 100 units of output in an economy.The next year,20 workers produce 250 units of output in the same economy.Productivity in the economy has

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Productivity gains in the 1990s were a result of which of the following?

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Which decade resulted in the lowest average annual rate of economic growth in the U.S.?

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For an economy to expand its investment in the production of capital goods,it must

Correct AnswerverifiedShow Answer

In an economy,100 workers can produce 500 units of output and 110 workers produce 600 units of output.Which of the following is true? The average product with

Correct AnswerverifiedShow Answer

Productivity is a measure of how efficiently resources are converted into goods and services through a production process.

Correct AnswerverifiedShow Answer

Strong economic expansions are sometimes

Correct AnswerverifiedShow Answer

The most important determinants of economic growth are the availability of resources and productivity factors.

Correct AnswerverifiedShow Answer

The total output produced divided by the total units of labor employed is called the average product of labor.

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Every business cycle has four distinct phases; expansion,peak,contraction,and trough.

Correct AnswerverifiedShow Answer

What is the result of a growing labor force?

Correct AnswerverifiedShow Answer

The last depression experienced by the U.S.economy occurred

Correct AnswerverifiedShow Answer

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The economic variables that make up the Leading Economic Indicators Index tend to move in the __ direction as overall economic output and do so _ changes in real GDP.

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