Question 1

Over the past half century the growth of real GDP in Canada has been caused primarily by:

Accepted Answer

A)   a falling price level.
B)   the reallocation of labour from manufacturing to agriculture.
C)   increases in the productivity of labour.
D)   the use of fewer inputs of labour.

Question 2

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 3

The rise in productivity seen in the last decade is believed to be due to a significant new wave of technological advance coupled with global competition.

Accepted Answer

A) True 
 B)False

Question 4

Increasing returns would be a situation where a firm increases its workforce and other inputs by:

Accepted Answer

A)   10 percent and its output increases by 5 percent.
B)   5 percent and its output increase by 10 percent.
C)   8 percent and its output increases by 8 percent.
D)   12 percent and its output increases by 10 percent. B

Question 5

Suppose total output (real GDP)  is $10,000 and worker-hours are 20,000. We can conclude that:

Accepted Answer

A)   real GDP per capita must be $200,000.
B)   the price-level index must be less than 100.
C)   labour productivity must be 0.5.
D)   nominal GDP must be between $10,000 and $20,000.

Question 6

If the number of worker-hours in an economy is 100 and its labour productivity is 5 units of output per worker-hour, the economy's real GDP:

Accepted Answer

A)   is $20.
B)   is $500.
C)   is $5000.
D)   cannot be calculated.

Question 7

An anti-growth view would be that there may be a significant trade-off between productivity and:

Accepted Answer

A)   education.
B)   employment.
C)   economies of scale.
D)   the quality of life.

Question 8

Which of the following would be a source of economies of scale?

Accepted Answer

A)   the social environment
B)   the quantity of labour
C)   decreasing returns
D)   more specialized inputs

Question 9

Real GDP per capita is found by:

Accepted Answer

A)   adding real GDP and population.
B)   subtracting population from real GDP.
C)   dividing real GDP by population.
D)   dividing population by real GDP.

Question 10

Which of the following arguments are correct:

Accepted Answer

A)   Canada is entering an era of low structural unemployment due to rapid technological change.
B)   technological advance will result in a lower rate of economic growth.
C)   innovations in computers and communications, together with global competition, are boosting Canadian productivity and the economy's potential economic growth rate.
D)   technological change will require more central planning and government regulation.

Question 11

Suppose total output (real GDP)  is $4000 and labour productivity is 8. We can conclude that:

Accepted Answer

A)   real GDP per capita must be $500.
B)   the price-level index must be greater than 100.
C)   nominal GDP must be $500.
D)   the number of worker-hours must be 500. D

Question 12

Which of the following countries has achieved the highest average annual rate of growth of real GDP from 1960 to 2007?

Accepted Answer

A)   United Kingdom
B)   South Korea
C)   Canada
D)   United States

Question 13

Economic well-being in Canada is understated by growth rates because they:

Accepted Answer

A)   account for pollution expenditures.
B)   account for improvement in products.
C)   account for illegal activity.
D)   don't account for the added leisure of labour.

Question 14

"Show me a pastoral society with an untouched environment, an abundance of leisure, and nonsecular values, and I will show you an underdeveloped, poverty-ridden country." This statement is most likely to be made by a(n) :

Accepted Answer

A)   advocate of learning by doing.
B)   advocate of network effects.
C)   proponent of economic growth.
D)   critic of economic growth.

Question 15

Which is best considered an efficiency factor in economic growth?

Accepted Answer

A)   the quantity of human resources
B)   the quality of human resources
C)   the quantity of natural resources
D)   the full employment of resources

Question 16

One of the main arguments against further growth for industrialized nations focuses on the problem of:

Accepted Answer

A)   technological knowledge.
B)   environmental quality.
C)   feedback mechanisms.
D)   infrastructure. B

Question 17

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 of 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.

Question 18

Real GDP = worker-hours × labour productivity.

Accepted Answer

A) True 
 B)False

Question 19

Suppose nominal GDP in 1996 was $100 billion and in 1998 it was $260 billion. The general price index in 1996 was 100 and in 1998 it was 180. Between 1996 and 1998 the real GDP rose by:

Accepted Answer

A)   160 percent.
B)   44 percent.
C)   37 percent.
D)   12 percent.

Question 20

Other things being equal, all of the following would cause a rise in a country's real per capita GDP, except a(n) :

Accepted Answer

A)   increase in the general price level.
B)   decrease in the population size.
C)   increase in labour productivity.
D)   decrease in imports.

Exam 6: Economic Growth

Over the past half century the growth of real GDP in Canada has been caused primarily 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

The rise in productivity seen in the last decade is believed to be due to a significant new wave of technological advance coupled with global competition.

Correct AnswerverifiedShow Answer

Increasing returns would be a situation where a firm increases its workforce and other inputs by:

Correct AnswerverifiedB

Suppose total output (real GDP) is $10,000 and worker-hours are 20,000. We can conclude that:

Correct AnswerverifiedShow Answer

If the number of worker-hours in an economy is 100 and its labour productivity is 5 units of output per worker-hour, the economy's real GDP:

Correct AnswerverifiedShow Answer

An anti-growth view would be that there may be a significant trade-off between productivity and:

Correct AnswerverifiedShow Answer

Which of the following would be a source of economies of scale?

Correct AnswerverifiedShow Answer

Real GDP per capita is found by:

Correct AnswerverifiedShow Answer

Which of the following arguments are correct:

Correct AnswerverifiedShow Answer

Suppose total output (real GDP) is $4000 and labour productivity is 8. We can conclude that:

Correct AnswerverifiedD

Which of the following countries has achieved the highest average annual rate of growth of real GDP from 1960 to 2007?

Correct AnswerverifiedShow Answer

Economic well-being in Canada is understated by growth rates because they:

Correct AnswerverifiedShow Answer

"Show me a pastoral society with an untouched environment, an abundance of leisure, and nonsecular values, and I will show you an underdeveloped, poverty-ridden country." This statement is most likely to be made by a(n) :

Correct AnswerverifiedShow Answer

Which is best considered an efficiency factor in economic growth?

Correct AnswerverifiedShow Answer

One of the main arguments against further growth for industrialized nations focuses on the problem of:

Correct AnswerverifiedB

Economic growth can best be portrayed as a:

Correct AnswerverifiedShow Answer

Real GDP = worker-hours × labour productivity.

Correct AnswerverifiedShow Answer

Suppose nominal GDP in 1996 was $100 billion and in 1998 it was $260 billion. The general price index in 1996 was 100 and in 1998 it was 180. Between 1996 and 1998 the real GDP rose by:

Correct AnswerverifiedShow Answer

Other things being equal, all of the following would cause a rise in a country's real per capita GDP, except a(n) :

Correct AnswerverifiedShow Answer

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B

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D

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B

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