Question 1

Offer a defense of economic growth.

Accepted Answer

In defense of economic growth, many beli...

Question 2

An increase in total spending generates economic growth by shifting the production possibilities
curve farther from the origin.

Accepted Answer

A) True 
 B)False

Question 3

(Last Word) Explain the trend of the rising number of women in the workforce.

Accepted Answer

Women are better educated and more likel...

Question 4

Under what circumstances do rates of economic growth understate the growth of economic well- being?

Accepted Answer

A)   Economic growth has occurred because of the increased length of the workweek.
B)   Product quality has improved.
C)   Air quality has declined as real GDP has increased.
D)   Population has grown faster than real output.E) A) and B)
F) B) and D)

Question 5

Free trade

Accepted Answer

A)   discourages growth by increasing competitive pressures on domestic ﬁrms.
B)   encourages growth by effectively eliminating all patent and copyright barriers to growth.
C)   discourages growth compared to situations where the government strongly controls foreign trade.
D)   encourages growth by promoting the rapid spread of new inventions and innovations.E) A) and C)
F) A) and B)

Question 6

Which of the following factors has been the dominant source of economic growth in the U.S. (except in 1973-1995) ?

Accepted Answer

A)   increases in population
B)   increases in labor productivity
C)   increases in hours per worker
D)   increases in the labor forceE) B) and C)
F) All of the above

Question 7

Suppose total output (real GDP)  is $4,000 and labor 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.E) C) and D)
F) None of the above

Question 8

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

Accepted Answer

A)   an increase in the stock of real capital
B)   improvements in the quality of the nation's education and training system
C)   technological progress
D)   an increase in the size of the labor forceE) None of the above
F) A) and B)

Question 9

Refer to the accompanying diagram. Which of the following is the most likely cause for a shift in the production possibilities curve from AB to CD?

Accepted Answer

A)   the use of the economy's resources in a more eﬃcient way
B)   an increase in the spending of business and consumers
C)   an increase in government purchases of the economy's output
D)   an increase in the quantity and quality of labor resourcesE) B) and C)
F) A) and C)

Question 10

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) C) and D)

Question 11

If real GDP grows at an average annual rate of 2.0 percent instead of 3.5 percent, then it would take
about 35 years-instead of 20 years-for real GDP to double.

Accepted Answer

A) True 
 B)False

Question 12

In the growth debate, critics of economic growth deﬁne "making a better living" as identical to "the
good life."

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is a measure of economic growth that is most useful for measuring geopolitical preeminence or military potential?

Accepted Answer

A)   growth in nominal GDP
B)   decreases in the rate of unemployment
C)   increases in real GDP per capita
D)   increases in real GDPE) A) and C)
F) A) and B)

Question 14

Assume a nation's current production possibilities are represented by the curve AB in the accompanying diagram. Economic growth would best be indicated by a

Accepted Answer

A)   shift in the curve from AB to CD.
B)   shift in the curve from AB to EF.
C)   movement from point 1 to point 2.
D)   movement from point 3 to point 4.E) A) and D)
F) A) and B)

Exam 8: Economic Growth

Offer a defense of economic growth.

Correct Answer
verified
In defense of economic growth, many beli...
View Answer

In the growth debate, critics of economic growth deﬁne "making a better living" as identical to "the good life."

Correct Answer
verified

Which of the following is a measure of economic growth that is most useful for measuring geopolitical preeminence or military potential?

Correct Answer
verified

Assume a nation's current production possibilities are represented by the curve AB in the accompanying diagram. Economic growth would best be indicated by a

Correct Answer
verified

If real GDP grows at an average annual rate of 2.0 percent instead of 3.5 percent, then it would take about 35 years-instead of 20 years-for real GDP to double.

Correct Answer
verified

Under what circumstances do rates of economic growth understate the growth of economic well- being?

Correct Answer
verified

Free trade

Correct Answer
verified

Which of the following factors has been the dominant source of economic growth in the U.S. (except in 1973-1995) ?

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

An increase in total spending generates economic growth by shifting the production possibilities curve farther from the origin.

Correct Answer
verified

Refer to the accompanying diagram. Which of the following is the most likely cause for a shift in the production possibilities curve from AB to CD?

Correct Answer
verified

Suppose total output (real GDP) is $4,000 and labor productivity is $8. We can conclude that

Correct Answer
verified

(Last Word) Explain the trend of the rising number of women in the workforce.

Correct Answer
verified
Women are better educated and more likel...
View Answer

Exam 8: Economic Growth

Offer a defense of economic growth.

Correct AnswerverifiedIn defense of economic growth, many beli...View AnswerShow Answer

In the growth debate, critics of economic growth deﬁne "making a better living" as identical to "the good life."

Correct AnswerverifiedShow Answer

Which of the following is a measure of economic growth that is most useful for measuring geopolitical preeminence or military potential?

Correct AnswerverifiedShow Answer

Assume a nation's current production possibilities are represented by the curve AB in the accompanying diagram. Economic growth would best be indicated by a

Correct AnswerverifiedShow Answer

If real GDP grows at an average annual rate of 2.0 percent instead of 3.5 percent, then it would take about 35 years-instead of 20 years-for real GDP to double.

Correct AnswerverifiedShow Answer

Under what circumstances do rates of economic growth understate the growth of economic well- being?

Correct AnswerverifiedShow Answer

Free trade

Correct AnswerverifiedShow Answer

Which of the following factors has been the dominant source of economic growth in the U.S. (except in 1973-1995) ?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An increase in total spending generates economic growth by shifting the production possibilities curve farther from the origin.

Correct AnswerverifiedShow Answer

Refer to the accompanying diagram. Which of the following is the most likely cause for a shift in the production possibilities curve from AB to CD?

Correct AnswerverifiedShow Answer

Suppose total output (real GDP) is $4,000 and labor productivity is $8. We can conclude that

Correct AnswerverifiedShow Answer

(Last Word) Explain the trend of the rising number of women in the workforce.

Correct AnswerverifiedWomen are better educated and more likel...View AnswerShow Answer

Correct Answer
verified
In defense of economic growth, many beli...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified
Women are better educated and more likel...
View Answer