Question 1

In the U.S.economic-growth experience,

Accepted Answer

A)  most capital substitutes for labor.
B)  most capital is complementary to labor.
C)  the amount of capital available per worker has been relatively constant.
D)  the amount of capital available per worker has been decreasing.E) All of the above
F) B) and C) B

Question 2

Based on the annual number of hours worked per capita, labor supply in the United States exceeds that of France by about percent.

Accepted Answer

A)  20
B)  34
C)  51
D)  58E) None of the above
F) A) and B) B

Question 3

If 40,000 worker-hours produced a total output of $600,000 in an economy, then the labor productivity is

Accepted Answer

A)  $10/worker-hour.
B)  $15/worker-hour.
C)  $24/worker-hour.
D)  $240/worker-hour.E) C) and D)
F) A) and C)

Question 4

Suppose that an economy's labor productivity fell by 3 percent and its total worker-hours remained constant between year 1 and year 2.We could conclude that this economy's

Accepted Answer

A)  real GDP declined.
B)  capital stock increased.
C)  production possibilities curve shifted outward.
D)  actual production moved from one point to another on a fixed production possibilities curve.E) A) and D)
F) None of the above

Question 5

A piece of software that benefits many users at the same time would be an example of

Accepted Answer

A)  network effects.
B)  learning by doing.
C)  multiple production.
D)  simultaneous consumption.E) A) and B)
F) A) and C)

Question 6

The annual growth of U.S.labor productivity

Accepted Answer

A)  was greater between 1973 and 1995 than between 1995 and 2010.
B)  was greater between 1995 and 2010 than between 1973 and 1995.
C)  was negative in the late 1990s.
D)  averaged nearly 5 percent in the 1990s.E) B) and C)
F) C) and D)

Question 7

If a country has a larger real GDP than another country, then it should also have a higher real GDP per capita than the other country.

Accepted Answer

A) True 
 B)False

Question 8

Increases in the quantity and quality of human resources.Which set of items in the accompanying list would move an economy from a point inside its production possibilities curve to a point on its production possibilities curve?

Accepted Answer

A)  1, 2, 5, and 6 only
B)  3 and 4 only
C)  3 only
D)  1, 3, and 4 onlyE) A) and B)
F) C) and D)

Question 9

In the United States, real GDP per capita has increased more rapidly than real GDP.

Accepted Answer

A) True 
 B)False

Question 10

If the secular trend of labor productivity rises from 2 percent per year to 4 percent, the number of years that it will take for the standard of living to double will decline by about

Accepted Answer

A)  5.2 years.
B)  10.1 years.
C)  17.5 years.
D)  23.8 years.E) C) and D)
F) All of the above

Question 11

Reasons for the rise in productivity growth between 1995 and 2010 include the following, except

Accepted Answer

A)  the microchip and information technology.
B)  new firms and increasing returns in production.
C)  global competition.
D)  a decline in population.E) A) and C)
F) B) and C)

Question 12

Increased labor productivity has been less important as a source of growth than the increased labor inputs in the U.S.economy since the 1950s.

Accepted Answer

A) True 
 B)False  False

Question 13

Real GDP per capita in the United States (as of 2010)  exceeds that of France primarily because

Accepted Answer

A)  the United States had higher annual rates of growth than France from 1960 through 2010.
B)  the United States has a much larger population than France.
C)  the United States has a higher percentage of the working-age population in the labor force and because U.S.employees average about 14 percent more hours worked per year.
D)  European Union rules severely limit France's access to technologies developed outside the region.E) B) and D)
F) A) and C)

Question 14

In the modern economic growth process, it is typical to find that

Accepted Answer

A)  leader countries continue to grow faster than follower countries.
B)  follower countries can grow faster than leader countries.
C)  large countries cannot grow faster than leader countries.
D)  the gap between the leader countries and the follower countries stays constant.E) B) and C)
F) None of the above

Question 15

At what average annual rate have real GDP and real GDP per capita grown from 1950 to 2015?

Accepted Answer

A)  7.5 percent and about 5 percent, respectively
B)  3.1 percent and about 2 percent, respectively
C)  5.1 percent and about 3 percent, respectively
D)  1.1 percent and about 0.5 percent, respectivelyE) A) and B)
F) A) and D)

Question 16

A nation's average annual real GDP growth rate is 2.5 percent.Based on the rule of 70, the approximate number of years that it would take for this nation's real GDP to double is

Accepted Answer

A)  175 years.
B)  40 years.
C)  28 years.
D)  17.5 years.E) None of the above
F) B) and D)

Question 17

The main cause for the vast differences in per capita GDP levels seen across the globe today is the

Accepted Answer

A)  huge differences in the natural-resource endowments of different countries.
B)  major differences in the population sizes of various societies.
C)  different starting dates of modern economic growth in different parts of the world.
D)  differences in religions that different societies around the world believe in.E) B) and D)
F) A) and B)

Question 18

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

Accepted Answer

A)  is $20.
B)  is $500.
C)  is $5,000.
D)  cannot be calculated.E) B) and C)
F) All of the above

Question 19

Which of the following explanations is consistent with the decline in productivity growth that followed the Great Recession?

Accepted Answer

A)  High levels of debt incurred prior to the Great Recession have hindered firms' ability to make productivity-enhancing investments.
B)  The Federal Reserve kept interest rates too high, stifling investments that would increase productivity.
C)  High levels of inflation following the Great Recession created too much uncertainty for firms, discouraging productivity-enhancing investments.
D)  Consumer demand following the Great Recession exceeded firms' capacity to satisfy that demand.E) B) and C)
F) B) and D)

Question 20

Which of the following will not increase the average productivity of labor?

Accepted Answer

A)  an increase in the stock of real capital
B)  improvement in the education and health of the population
C)  technological progress
D)  an increase in the size of the labor forceE) All of the above
F) A) and D)

Exam 28: Economic Growth

In the U.S.economic-growth experience,

Correct AnswerverifiedB

Based on the annual number of hours worked per capita, labor supply in the United States exceeds that of France by about percent.

Correct AnswerverifiedB

If 40,000 worker-hours produced a total output of $600,000 in an economy, then the labor productivity is

Correct AnswerverifiedShow Answer

Suppose that an economy's labor productivity fell by 3 percent and its total worker-hours remained constant between year 1 and year 2.We could conclude that this economy's

Correct AnswerverifiedShow Answer

A piece of software that benefits many users at the same time would be an example of

Correct AnswerverifiedShow Answer

The annual growth of U.S.labor productivity

Correct AnswerverifiedShow Answer

If a country has a larger real GDP than another country, then it should also have a higher real GDP per capita than the other country.

Correct AnswerverifiedShow Answer

Increases in the quantity and quality of human resources.Which set of items in the accompanying list would move an economy from a point inside its production possibilities curve to a point on its production possibilities curve?

Correct AnswerverifiedShow Answer

In the United States, real GDP per capita has increased more rapidly than real GDP.

Correct AnswerverifiedShow Answer

If the secular trend of labor productivity rises from 2 percent per year to 4 percent, the number of years that it will take for the standard of living to double will decline by about

Correct AnswerverifiedShow Answer

Reasons for the rise in productivity growth between 1995 and 2010 include the following, except

Correct AnswerverifiedShow Answer

Increased labor productivity has been less important as a source of growth than the increased labor inputs in the U.S.economy since the 1950s.

Correct AnswerverifiedFalse

Real GDP per capita in the United States (as of 2010) exceeds that of France primarily because

Correct AnswerverifiedShow Answer

In the modern economic growth process, it is typical to find that

Correct AnswerverifiedShow Answer

At what average annual rate have real GDP and real GDP per capita grown from 1950 to 2015?

Correct AnswerverifiedShow Answer

A nation's average annual real GDP growth rate is 2.5 percent.Based on the rule of 70, the approximate number of years that it would take for this nation's real GDP to double is

Correct AnswerverifiedShow Answer

The main cause for the vast differences in per capita GDP levels seen across the globe today is the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following explanations is consistent with the decline in productivity growth that followed the Great Recession?

Correct AnswerverifiedShow Answer

Which of the following will not increase the average productivity of labor?

Correct AnswerverifiedShow Answer

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False

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