Question 1

The invention of the steam engine ushered in the following developments, except

Accepted Answer

A)  massproduction in industrial factories, for the first time.
B)  much easier and cheaper transportation of resources and products.
C)  a sharp reduction in trade as many societies specialized.
D)  major population shifts, from farms to towns and cities.E) A) and B)
F) A) and C)

Question 2

Economic growth in the U.S.since 1950 has been characterized by

Accepted Answer

A)  an average growth rate in real GDP that is slower than the growth rate of the population.
B)  aquadrupling of real GDP from 1950 to 2015.
C)  an average growth rate in real GDP that is faster than the growth rate of the population.
D)  an average growth rate in real GDP per capita of about 6 percent per year.E) C) and D)
F) B) and D)

Question 3

Which of the following trends have we not seen in the U.S.in the past six decades or so?

Accepted Answer

A)  The average length of the workweek remained relatively constant.
B)  The size of the labor force expanded.
C)  Rising birthrates kept the native-born population growing at a steady rate.
D)  Women's labor-force participation rate surged.E) None of the above
F) B) and C)

Question 4

If the annual growth in a nation's productivity is 2.8 percent rather than 1.5 percent, then the nation's standard of living will double in about

Accepted Answer

A)  20 years instead of 40 years.
B)  25 years instead of 47 years.
C)  46 years instead of 70 years.
D)  55 years instead of 115 years.E) A) and C)
F) B) and C)

Question 5

Factors that have contributed to the increase in women's labor-force participation rate in the U.S.include the following, except

Accepted Answer

A)  rising wage earnings brought about by rising productivity.
B)  better education and more professional training.
C)  access to a wider range of job opportunities.
D)  an increase in the number of children, requiring mothers to find work along with fathers.E) A) and B)
F) B) and D)

Question 6

More than half the growth of real GDP in the United States is caused by

Accepted Answer

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

Question 7

Growth is a widely held economic goal primarily because it creates a more equal distribution of wealth and income.Topic: Is Growth Desirable and Sustainable?

Accepted Answer

A) True 
 B)False

Question 8

Globally, on average test scores of eighth-grade math and science students, the U.S.ranks (as of 2011)

Accepted Answer

A)  5th and 7th, respectively.
B)  1st and 1st, respectively.
C)  9th and 10th, respectively.
D)  8th and 6th, respectively.E) B) and C)
F) C) and D)

Question 9

Sources of increasing returns that help raise productivity growth include the following, except

Accepted Answer

A)  more specialized inputs.
B)  the spreading of development costs.
C)  network effects.
D)  low unemployment.E) None of the above
F) A) and C)

Question 10

Labor productivity can only increase if

Accepted Answer

A)  labor increases faster than capital.
B)  capital increases faster than labor.
C)  labor increases while capital decreases.
D)  labor and capital increase at the same rate.E) A) and B)
F) A) and C)

Question 11

Other things equal, if a full-employment economy reallocated a substantial quantity of its resources to capital goods, we would expect

Accepted Answer

A)  present consumption to rise.
B)  future consumption to fall.
C)  a lower rate of growth of real GDP.
D)  labor productivity to rise.E) B) and D)
F) C) and D)

Question 12

The reasons why per capita GDP in the U.S.is significantly higher than in some other rich countries like, say, France, include the following, except

Accepted Answer

A)  substantially higher work hours put in by U.S.citizens than bycitizens of France.
B)  cultural differences between the U.S.and France regarding the right balance between labor and leisure.
C)  differences in the tax structure and the resulting incentive effects of taxes.
D)  communication technology due to language differences.E) B) and D)
F) B) and C)

Question 13

Which of the following best measures improvements in the standard of living of a nation?

Accepted Answer

A)  growth of nominal GDP
B)  growth of real GDP
C)  growth of real GDP per capita
D)  growth of national incomeE) A) and C)
F) None of the above

Question 14

Other things equal, which of the following would decrease the rate of economic growth, as measured by changes in real GDP?

Accepted Answer

A)  an increase in the educational attainment of the labor force
B)  a permanent decrease in frictional unemployment
C)  an increase in the amount of capital per worker
D)  a decrease in the labor force participation rateE) A) and D)
F) None of the above

Question 15

Which of the following economic regions has experienced the least growth in real GDP per capita since 1820?

Accepted Answer

A)  Africa
B)  Asia excluding Japan
C)  Latin America
D)  Western EuropeE) A) and B)
F) C) and D)

Question 16

From 1960 to today, women's labor-force participation rate in the U.S.

Accepted Answer

A)  stayed relatively stable at 50 percent.
B)  increased from about 40 percent to 60 percent.
C)  fell from 50 percent to 40 percent.
D)  increased slightly from 60 percent to 65 percent.E) A) and D)
F) A) and C)

Question 17

What economic concept would be most closely associated with a situation where an aluminum plant expands its operations and uses extensive computerization in the production line to reduce per-unit costs of production?

Accepted Answer

A)  infrastructure
B)  human capital
C)  network effects
D)  economies of scaleE) A) and B)
F) A) and C)

Question 18

Increasing returns in production imply the following, except

Accepted Answer

A)  increasing labor-requirements per unit of output.
B)  decreasing per-unit production costs.
C)  economies of scale.
D)  an increase in the productivity of inputs.E) C) and D)
F) None of the above

Question 19

Which of the following is not a supply factor in economic growth?

Accepted Answer

A)  the stock of capital
B)  technological advance
C)  the size and quality of the labor force
D)  aggregate expenditures of households, businesses, and governmentE) A) and D)
F) A) and C)

Question 20

Labor productivity is measured by

Accepted Answer

A)  the ratio of capital to labor.
B)  real output per worker-hour.
C)  real output per capita.
D)  the ratio of worker-hours to real GDP.E) All of the above
F) B) and C)

Exam 28: Economic Growth

Which of the following trends have we not seen in the U.S.in the past six decades or so?

Correct AnswerverifiedShow Answer

Growth is a widely held economic goal primarily because it creates a more equal distribution of wealth and income.Topic: Is Growth Desirable and Sustainable?

Correct AnswerverifiedShow Answer

Factors that have contributed to the increase in women's labor-force participation rate in the U.S.include the following, except

Correct AnswerverifiedShow Answer

If the annual growth in a nation's productivity is 2.8 percent rather than 1.5 percent, then the nation's standard of living will double in about

Correct AnswerverifiedShow Answer

What economic concept would be most closely associated with a situation where an aluminum plant expands its operations and uses extensive computerization in the production line to reduce per-unit costs of production?

Correct AnswerverifiedShow Answer

Which of the following economic regions has experienced the least growth in real GDP per capita since 1820?

Correct AnswerverifiedShow Answer

The invention of the steam engine ushered in the following developments, except

Correct AnswerverifiedShow Answer

Other things equal, which of the following would decrease the rate of economic growth, as measured by changes in real GDP?

Correct AnswerverifiedShow Answer

From 1960 to today, women's labor-force participation rate in the U.S.

Correct AnswerverifiedShow Answer

Labor productivity is measured by

Correct AnswerverifiedShow Answer

Increasing returns in production imply the following, except

Correct AnswerverifiedShow Answer

Sources of increasing returns that help raise productivity growth include the following, except

Correct AnswerverifiedShow Answer

Globally, on average test scores of eighth-grade math and science students, the U.S.ranks (as of 2011)

Correct AnswerverifiedShow Answer

Labor productivity can only increase if

Correct AnswerverifiedShow Answer

Other things equal, if a full-employment economy reallocated a substantial quantity of its resources to capital goods, we would expect

Correct AnswerverifiedShow Answer

The reasons why per capita GDP in the U.S.is significantly higher than in some other rich countries like, say, France, include the following, except

Correct AnswerverifiedShow Answer

More than half the growth of real GDP in the United States is caused by

Correct AnswerverifiedShow Answer

Economic growth in the U.S.since 1950 has been characterized by

Correct AnswerverifiedShow Answer

Which of the following best measures improvements in the standard of living of a nation?

Correct AnswerverifiedShow Answer

Which of the following is not a supply factor in economic growth?

Correct AnswerverifiedShow Answer

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