Question 1

Critics of economic growth say that it will deplete economic resources.

Accepted Answer

A) True 
 B)False

Question 2

-Refer to the above diagram.If the production possibilities curve of an economy shifts from AB to CD,it is most likely the result of what factor affecting economic growth?

Accepted Answer

A)   a supply factor
B)   a demand factor
C)   an efficiency factor
D)   an allocation factor

Question 3

The average living standards in Canada compared to Africa are much higher because:

Accepted Answer

A)   the economic growth has occurred for nearly two centuries in Africa compared to a few decades in Canada.
B)   the economic growth has occurred for nearly two centuries in Canada compared to more than two centuries in Africa.
C)   the economic growth differences have no relationship to the differences in the average standards of living.
D)   the economic growth has occurred for nearly two centuries in Canada compared to a few decades in Africa.

Question 4

The different starting dates for modern economic growth in different parts of the world are the main cause of:

Accepted Answer

A)   today's small differences in per capita GDP levels around the world.
B)   today's large differences in per capita GDP levels around the world.
C)   today's small differences in nominal GDP levels around the world.
D)   today's large differences in population levels around the world.

Question 5

Simultaneous consumption is a source of increasing returns and economies of scale.

Accepted Answer

A) True 
 B)False

Question 6

If an economy's real GDP doubles in fourteen years,then the average annual rate of growth in real GDP is about:

Accepted Answer

A)   3 percent.
B)   4 percent.
C)   5 percent.
D)   6 percent.

Question 7

Labour productivity is measured by:

Accepted Answer

A)   the ratio of capital to labour.
B)   real output per worker hour.
C)   real output per capital.
D)   the ratio of worker hours to nominal GDP.

Question 8

The knowledge and skill that make for a productive worker are referred to by economists as:

Accepted Answer

A)   human capital.
B)   increasing returns.
C)   resource allocation.
D)   simultaneous consumption.

Question 9

Over a year,a nation's GDP at current prices rose by 15 percent while the price index increased from 100 to 110.GDP at constant prices rose by about:

Accepted Answer

A)   3 percent.
B)   5 percent.
C)   7 percent.
D)   9 percent.

Question 10

Between 1945 - 2011,the labour force in Canada has increased by about:

Accepted Answer

A)   13.5 million workers.
B)   18 million workers.
C)   4.5 million workers.
D)   15 million workers.

Question 11

An increase in the quantity and quality of natural resources is a demand factor for economic growth.

Accepted Answer

A) True 
 B)False

Question 12

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.

Question 13

During the last decade,the innovations in computers and telecommunications,together with global competition,have resulted in:

Accepted Answer

A)   rational expectations theory.
B)   lower growth in capital stock.
C)   higher growth in labour force.
D)   higher productivity growth.

Question 14

Do the recent high technological advances and productivity rates mean that the business cycle is dead?

Accepted Answer

A)   Yes,the faster rate of productivity growth will eliminate recession.
B)   Yes,the changes in technology have a compound,positive effect on the economy.
C)   No,the trend line for economic growth is just steeper,but there can still be economic downturns.
D)   No,the fact there are many start-up firms means that there will be more bankruptcies that will hurt the economy.

Question 15

Labour productivity may best be defined as:

Accepted Answer

A)   total output/worker-hours.
B)   nominal GDP minus real GDP.
C)   the ratio of real capital to worker-hours.
D)   the annual increase in nominal GDP per worker.

Question 16

Nominal GDP was $9,500 billion in Year 1 and $10,000 billion in Year 2.The GDP price index was 170 in Year 1 and 175 in Year 2.Between Years 1 and 2,the rate of growth in real GDP was approximately:

Accepted Answer

A)   1.6 percent.
B)   2.3 percent.
C)   4.4 percent.
D)   5.3 percent.

Question 17

In Canada,real GDP per capita has increased more rapidly than real GDP.

Accepted Answer

A) True 
 B)False

Question 18

Which is an efficiency factor in economic growth?

Accepted Answer

A)   an efficient allocation of resources
B)   natural resources
C)   the quantity and quality of labour
D)   technological knowledge

Question 19

Between 1946 - 2011,the annual Canadian multifactor productivity has increased by about:

Accepted Answer

A)   4%
B)   2%
C)   5%
D)   7%

Question 20

Critics of the recent rapid advances in new technology say that:

Accepted Answer

A)   it is too early to predict whether recent boosts in Canadian productivity are permanent or transitory.
B)   global competition is a media fiction,not an economic reality.
C)   the growth of service productivity is severely understated.
D)   many of the factors slowing productivity in the past have now reversed themselves.

Exam 8: Economic Growth

Over a year,a nation's GDP at current prices rose by 15 percent while the price index increased from 100 to 110.GDP at constant prices rose by about:

Correct AnswerverifiedShow Answer

The average living standards in Canada compared to Africa are much higher because:

Correct AnswerverifiedShow Answer

Economic growth is best defined as an increase in:

Correct AnswerverifiedShow Answer

Between 1946 - 2011,the annual Canadian multifactor productivity has increased by about:

Correct AnswerverifiedShow Answer

Do the recent high technological advances and productivity rates mean that the business cycle is dead?

Correct AnswerverifiedShow Answer

Which is an efficiency factor in economic growth?

Correct AnswerverifiedShow Answer

Critics of economic growth say that it will deplete economic resources.

Correct AnswerverifiedShow Answer

During the last decade,the innovations in computers and telecommunications,together with global competition,have resulted in:

Correct AnswerverifiedShow Answer

Labour productivity may best be defined as:

Correct AnswerverifiedShow Answer

Simultaneous consumption is a source of increasing returns and economies of scale.

Correct AnswerverifiedShow Answer

Nominal GDP was $9,500 billion in Year 1 and $10,000 billion in Year 2.The GDP price index was 170 in Year 1 and 175 in Year 2.Between Years 1 and 2,the rate of growth in real GDP was approximately:

Correct AnswerverifiedShow Answer

In Canada,real GDP per capita has increased more rapidly than real GDP.

Correct AnswerverifiedShow Answer

An increase in the quantity and quality of natural resources is a demand factor for economic growth.

Correct AnswerverifiedShow Answer

The knowledge and skill that make for a productive worker are referred to by economists as:

Correct AnswerverifiedShow Answer

Between 1945 - 2011,the labour force in Canada has increased by about:

Correct AnswerverifiedShow Answer

-Refer to the above diagram.If the production possibilities curve of an economy shifts from AB to CD,it is most likely the result of what factor affecting economic growth?

Correct AnswerverifiedShow Answer

Labour productivity is measured by:

Correct AnswerverifiedShow Answer

The different starting dates for modern economic growth in different parts of the world are the main cause of:

Correct AnswerverifiedShow Answer

Critics of the recent rapid advances in new technology say that:

Correct AnswerverifiedShow Answer

If an economy's real GDP doubles in fourteen years,then the average annual rate of growth in real GDP is about:

Correct AnswerverifiedShow Answer

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