Question 1

A nation's real GDP was $250 billion in 2015 and $265 billion in 2016.Its population was 120 million in 2015 and 125 million in 2016.What is its real GDP per capita in 2016?

Accepted Answer

A)  $2,120 per person
B)  $212 per person
C)  $21,200 per person
D)  $205 per personE) All of the above
F) A) and B)

Question 2

An outward shift of a nation's production possibilities curve

Accepted Answer

A)  ensures the nation of an increase in real GDP per capita.
B)  ensures the nation of an increase in real GDP, but not of real GDP per capita.
C)  ensures a nation neither of an increase in real GDP nor of an increase in real GDP per capita.
D)  ensures a nation of an increase in both real GDP and real GDP per capita.E) A) and B)
F) C) and D)

Question 3

A nation's infrastructure refers to

Accepted Answer

A)  its ability to realize economies of scale.
B)  its stock of technological knowledge.
C)  public capital goods such as highways and sanitation systems.
D)  the productivity of its labor force.E) B) and C)
F) B) and D)

Question 4

Productivity growth was greater between 1973 and 1995 than between 1995 and 2010.

Accepted Answer

A) True 
 B)False

Question 5

Measured productivity growth for the United States declined following the Great Recession.Which of the following explanations for that phenomenon suggests that measured productivity has failed to account for actual gains?

Accepted Answer

A)  high debt levels, accumulated prior to the Great Recession
B)  creation of new products that are essentially free to consumers
C)  overcapacity of firms, implying a greater ability to produce than is currently measured
D)  stalled technological progress that has encouraged greater consumption of leisure activitiesE) All of the above
F) None of the above

Question 6

Human capital refers to the amount of capital available for the economy's human resources to work with.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

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

Question 8

Which of the following is the largest contributor to the growth of labor productivity in the United States?

Accepted Answer

A)  technological advance
B)  education and training of labor
C)  economies of scale
D)  improved resource allocationE) B) and D)
F) A) and C)

Question 9

In the periods 1953-73 and 1973-95, U.S.real GDP grew at the average annual rates of about

Accepted Answer

A)  5.1 percent and 7.4 percent, respectively.
B)  2.8 percent and 3.6 percent, respectively.
C)  7.4 percent and 5.1 percent, respectively.
D)  3.6 percent and 2.8 percent, respectively.E) C) and D)
F) All of the above

Question 10

The entry of women into the workforce since the 1960s resulted in

Accepted Answer

A)  a shift outward in the production possibilities curve of the United States.
B)  a shift inward in the production possibilities curve of the United States.
C)  a movement along the existing production possibilities curve of the United States.
D)  a falling real wage for female workers in the United States.E) A) and C)
F) All of the above

Question 11

Which of the following statements is correct?

Accepted Answer

A)  The U.S.population has increased more rapidly than real GDP in recent decades.
B)  Improved education and training of labor is the most important source of U.S.productivity growth.
C)  The average American factory worker has about 16 years of formal education.
D)  The amount of real capital used per worker has increased historically in the United States.E) B) and C)
F) A) and B)

Question 12

There are two common measures of economic growth: (1) increases in real GDP over some period of time and (2) increases in real GDP per capita over some time period.

Accepted Answer

A) True 
 B)False

Question 13

Empirical studies suggest that

Accepted Answer

A)  labor productivity has declined throughout U.S.history.
B)  technological advances account for about 40 percent of U.S.productivity growth.
C)  achieving economies of scale is the most important factor in U.S.economic growth.
D)  all U.S.economic growth from between 2001 and 2007 can be attributed to increases in the quantity of labor.E) A) and C)
F) A) and B)

Question 14

The "inverse dependency ratio" is defined as the ratio of

Accepted Answer

A)  the average number of dependents per head of household.
B)  the working-age population to the number of dependents.
C)  the number of dependents to the number of the total population.
D)  the number of parents and grandparents to the number of children.E) A) and B)
F) A) and C)

Question 15

For a nation's real GDP per capita to rise during a year,

Accepted Answer

A)  consumption spending must increase.
B)  real GDP must increase more rapidly than population.
C)  population must increase more rapidly than real GDP.
D)  investment spending must increase.E) B) and D)
F) None of the above

Question 16

One of the basic economic defenses of economic growth rests on the conclusion that

Accepted Answer

A)  growth makes workers less obsolete and more secure in employment.
B)  growth reduces the cost to society of "common property" resources.
C)  growth makes the gap between unlimited wants and scarce resources less acute.
D)  a growth-oriented society confers a "work and look to the future" attitude on the members of society.E) A) and B)
F) None of the above

Question 17

One concern regarding educational attainment in the U.S.is that

Accepted Answer

A)  the percentage of adults finishing college is falling.
B)  there are fewer college graduates in science and engineering.
C)  students are graduating later and later.
D)  fewer high school graduates are going on to college.E) A) and C)
F) A) and B)

Question 18

Proponents of economic growth say that pollution

Accepted Answer

A)  is an inevitable by-product of growth.
B)  occurs, not because of growth, but because common resources are treated as free goods.
C)  declines as a country moves from agriculture to industry.
D)  is detrimental to economic growth.E) B) and C)
F) A) and D)

Question 19

The period in the U.S.economy from 1995 to 2010 is characterized by

Accepted Answer

A)  a higher trend rate of saving.
B)  a higher natural rate of unemployment.
C)  a higher trend rate of productivity growth.
D)  the end of the business cycle.E) A) and D)
F) C) and D)

Question 20

The following factors tend to make the real GDP growth rate understate the growth of economic well-being, except

Accepted Answer

A)  improved product quality.
B)  added leisure.
C)  debasement of the environment.
D)  a lower-stress lifestyle.E) C) and D)
F) A) and B)

Exam 28: Economic Growth

Proponents of economic growth say that pollution

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For a nation's real GDP per capita to rise during a year,

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One concern regarding educational attainment in the U.S.is that

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The following factors tend to make the real GDP growth rate understate the growth of economic well-being, except

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There are two common measures of economic growth: (1) increases in real GDP over some period of time and (2) increases in real GDP per capita over some time period.

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An outward shift of a nation's production possibilities curve

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The period in the U.S.economy from 1995 to 2010 is characterized by

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A nation's real GDP was $250 billion in 2015 and $265 billion in 2016.Its population was 120 million in 2015 and 125 million in 2016.What is its real GDP per capita in 2016?

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Human capital refers to the amount of capital available for the economy's human resources to work with.

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Productivity growth was greater between 1973 and 1995 than between 1995 and 2010.

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The entry of women into the workforce since the 1960s resulted in

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In the periods 1953-73 and 1973-95, U.S.real GDP grew at the average annual rates of about

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The "inverse dependency ratio" is defined as the ratio of

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

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Which of the following is the largest contributor to the growth of labor productivity in the United States?

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Measured productivity growth for the United States declined following the Great Recession.Which of the following explanations for that phenomenon suggests that measured productivity has failed to account for actual gains?

Correct AnswerverifiedShow Answer

Empirical studies suggest that

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A nation's infrastructure refers to

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Which of the following statements is correct?

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One of the basic economic defenses of economic growth rests on the conclusion that

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