Question 1

What percentage of the U.S. adult population has a college or post-college education (as of 2018) ?

Accepted Answer

A)   8 percent
B)   35 percent
C)   41 percent
D)   88 percentE) B) and C)
F) None of the above

Question 2

There tends to be a high positive correlation between the rate of productivity growth and the rate of
economic growth.

Accepted Answer

A) True 
 B)False

Question 3

The number of years required for real GDP to double can be found by

Accepted Answer

A)   dividing the annual growth rate by 0.07.
B)   multiplying the annual growth rate by 70.
C)   dividing 70 by the annual growth rate.
D)   adding 14 to annual growth rate.E) B) and D)
F) All of the above

Question 4

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) All of the above
F) B) and C)

Question 5

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

Question 6

A nation's real GDP was $250 billion last year and $265 billion this year. Its population was 122 million last year and 125 million this year. What is the growth rate of real GDP per capita in this year?

Accepted Answer

A)   1.1 percent
B)   2.5 percent
C)   5.0 percent
D)   3.4 percentE) A) and B)
F) B) and C)

Question 7

Which of the following would not be expected to increase labor productivity?

Accepted Answer

A)   technological advance
B)   the acquisition of more education and training by the labor force
C)   an increase in the size of the labor force
D)   the realization of economies of scaleE) None of the above
F) C) and D)

Question 8

Which of the following is a main source of increasing returns in recent years?

Accepted Answer

A)   more learning by doing
B)   the concentration of development costs
C)   the use of less specialized inputs as ﬁrms grow
D)   more resources devoted to agricultural productionE) B) and D)
F) A) and D)

Question 9

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

Accepted Answer

A)   a decline in the average length of the workweek
B)   a decrease in the labor force participation rate
C)   an increase in the size of the working-age population
D)   a decline in the amount of capital per workerE) A) and D)
F) C) and D)

Question 10

Assume that an economy has 1,500 workers, each working 2,000 hours per year. If the average real output per worker-hour is $20, then total output, or real GDP, will be

Accepted Answer

A)   $3 million.
B)   $30 million.
C)   $45 million.
D)   $60 million.E) None of the above
F) C) and D)

Question 11

Growth in well-being tends to be understated by growth in real GDP because of increases in leisure
time.

Accepted Answer

A) True 
 B)False

Question 12

Total output for an economy is basically equal to total hours of work multiplied by labor productivity.

Accepted Answer

A) True 
 B)False

Question 13

Suppose that an economy is initially operating at a point on its PPC. If it then experiences an expansion in its production capacity, but its total spending does not rise as fast as its capacity, the
Economy will end up

Accepted Answer

A)   still on its production possibilities curve.
B)   outside its production possibilities curve.
C)   inside its production possibilities curve.
D)   on one of the axes of its production possibilities curve.E) None of the above
F) A) and C)

Question 14

Globally, on average test scores of eighth-grade math and science students, the U.S. ranks (as of 2015)

Accepted Answer

A)   5th and 7th, respectively.
B)   1st and 1st, respectively.
C)   10th and 10th, respectively.
D)   8th and 6th, respectively.E) All of the above
F) B) and C)

Question 15

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 16

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) A) and B)
F) A) and C)

Question 17

Which of the following institutional arrangements is most likely to promote growth?

Accepted Answer

A)   patents and copyrights that expire quickly and are loosely enforced
B)   strong government control over resource allocation decisions
C)   unrestricted trade between nations
D)   all of theseE) B) and C)
F) B) and D)

Question 18

Which of the following statements is correct?

Accepted Answer

A)   Between 1953 and 2018, all growth in U.S. real GDP can be attributed to increases in labor productivity.
B)   Between 1953 and 2018, increases in labor productivity account for more of the growth in U.S. real GDP than do increases in the quantity of labor.
C)   Between 1953 and 2018, increases in the quantity of labor account for more of the growth in U.S. real GDP than do increases in labor productivity.
D)   Between 1953 and 2018, increases in labor productivity and increases in the quantity of labor contributed equally to the growth in U.S. real GDP.E) B) and D)
F) A) and D)

Question 19

In 2018, what approximate percentage of adults in the U.S. were college graduates or higher?

Accepted Answer

A)   10 percent
B)   35 percent
C)   50 percent
D)   70 percentE) A) and D)
F) B) and C)

Question 20

At an annual growth rate of 7 percent, real GDP will double in about

Accepted Answer

A)    111/2 years. 11_{1 / 2} 	ext { years. }111/2​ years.  
B)   10 years.
C)    131/2 years. 13_{1 / 2} 	ext { years. }131/2​ years.  
D)   9 years. E) A) and B)
F) All of the above

Exam 8: Economic Growth

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

Correct AnswerverifiedShow Answer

The number of years required for real GDP to double can be found by

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Which of the following institutional arrangements is most likely to promote growth?

Correct AnswerverifiedShow Answer

Suppose that an economy is initially operating at a point on its PPC. If it then experiences an expansion in its production capacity, but its total spending does not rise as fast as its capacity, the Economy will end up

Correct AnswerverifiedShow Answer

In 2018, what approximate percentage of adults in the U.S. were college graduates or higher?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

There tends to be a high positive correlation between the rate of productivity growth and the rate of economic growth.

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 AnswerverifiedShow Answer

Which of the following would not be expected to increase labor productivity?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

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Globally, on average test scores of eighth-grade math and science students, the U.S. ranks (as of 2015)

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Total output for an economy is basically equal to total hours of work multiplied by labor productivity.

Correct AnswerverifiedShow Answer

At an annual growth rate of 7 percent, real GDP will double in about

Correct AnswerverifiedShow Answer

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

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A nation's real GDP was $250 billion last year and $265 billion this year. Its population was 122 million last year and 125 million this year. What is the growth rate of real GDP per capita in this year?

Correct AnswerverifiedShow Answer

Which of the following is a main source of increasing returns in recent years?

Correct AnswerverifiedShow Answer

What percentage of the U.S. adult population has a college or post-college education (as of 2018) ?

Correct AnswerverifiedShow Answer

Growth in well-being tends to be understated by growth in real GDP because of increases in leisure time.

Correct AnswerverifiedShow Answer

Increasing returns in production imply the following, except

Correct AnswerverifiedShow Answer

Assume that an economy has 1,500 workers, each working 2,000 hours per year. If the average real output per worker-hour is $20, then total output, or real GDP, will be

Correct AnswerverifiedShow Answer

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