Question 1

Nation A's real GDP was $520 billion in Year 1 and $550 billion in Year 2. Its population was 150 million in Year 1 and 155 million in Year 2. On the other hand, Nation B's real GDP was $200 billion in
Year 1 and $210 billion in Year 2; and its population was 53 million in Year 1 and 55 million in Year 2.
Which of the following statements is true?

Accepted Answer

A)   Nation A's GDP per capita increased, while Nation B's decreased.
B)   Nation B's GDP per capita increased, while Nation A's decreased.
C)   Nation A's and Nation B's GDP per capita both decreased.
D)   Nation A's and Nation B's GDP per capita both increased.E) B) and C)
F) A) and B)

Question 2

Which of the following is a true statement?

Accepted Answer

A)   Economists who support economic growth say that it is the most practical route to the higher standards of living that the vast majority of people desire.
B)   Most economists believe that the recent rise in the average rate of productivity growth implies an end to the business cycle.
C)   Most economists believe that increases in real GDP actually produce decreases in overall economic well-being because of spillover costs.
D)   Mainstream economists disagree as to whether the rate of productivity growth was higher between 1995 and 2010 or between 1973 and 1995.E) A) and B)
F) None of the above

Question 3

To fully realize economic growth through the eﬃciency factor, an economy must increase its stock
of capital goods and improve its technology.

Accepted Answer

A) True 
 B)False

Question 4

Real GDP per capita is found by

Accepted Answer

A)   adding real GDP and the population.
B)   subtracting the population from real GDP.
C)   dividing real GDP by the population.
D)   dividing the population by real GDP.E) All of the above
F) C) and D)

Question 5

Which of the following statements is most accurate about modern economic growth?

Accepted Answer

A)   Economic historians mark modern economic growth as beginning around A.D. 1500.
B)   Modern economic growth is characterized by sustained and ongoing increases in living standards.
C)   Modern economic growth has virtually eliminated business cycle ﬂuctuations.
D)   Modern economic growth has been distributed more or less equally across nations.E) B) and C)
F) All of the above

Question 6

Growth is advantageous to a nation because it

Accepted Answer

A)   promotes faster population growth.
B)   lessens the burden of scarcity.
C)   eliminates the economizing problem.
D)   slows the growth of wants.E) A) and D)
F) A) and C)

Question 7

Year  Alta (Real GDP)   Zorn (Real GDP)   Alta (Population)   Zorn (Population)  1$2,000$150,00020050022,100152,00020250532,200154,000210508\begin{array} { | c | c | c | c | c | } \hline 	ext { Year } & 	ext { Alta (Real GDP)  } & 	ext { Zorn (Real GDP)  } & 	ext { Alta (Population)  } & 	ext { Zorn (Population)  } \\hline 1 & \$ 2,000 & \$ 150,000 & 200 & 500 \\hline 2 & 2,100 & 152,000 & 202 & 505 \\hline 3 & 2,200 & 154,000 & 210 & 508 \\hline\end{array} Year 123​ Alta (Real GDP)  $2,0002,1002,200​ Zorn (Real GDP)  $150,000152,000154,000​ Alta (Population)  200202210​ Zorn (Population)  500505508​​  Refer to the table. Between years 2 and 3,

Accepted Answer

A)   Alta's real GDP grew more rapidly than Zorn's real GDP.
B)   real GDP fell in Zorn.
C)   population growth reduced Alta's real GDP growth to zero.
D)   population fell in Alta. E) B) and C)
F) All of the above

Question 8

The fundamental invention underpinning the 1995-2010 rise in the average rate of productivity growth is the

Accepted Answer

A)   microchip.
B)   fuel cell.
C)   Internet.
D)   personal computer.E) None of the above
F) A) and B)

Question 9

Economic historians identify which invention as a major factor that started the Industrial Revolution in Britain?

Accepted Answer

A)   steam engine
B)   automobile
C)   telephone
D)   electric motorE) B) and C)
F) All of the above

Question 10

Which of the following statements is most accurate about the prospects for poorer ("follower")  countries catching up with richer ("leader")  countries?

Accepted Answer

A)   Catching up is unlikely to occur because their growth rates are the same on average.
B)   Catching up is unlikely to occur because richer countries tend to grow at a faster rate.
C)   Catching up is possible, but only if growth rates in leader countries fall to zero or become negative.
D)   Catching up is possible, as "follower countries" tend to grow faster than "leader countries."E) A) and D)
F) A) and B)

Question 11

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) All of the above
F) None of the above

Question 12

There tends to be a positive correlation between real wages of workers and the productivity of
labor in the economy.

Accepted Answer

A) True 
 B)False

Question 13

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) None of the above
F) A) and B)

Question 14

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) C) and D)
F) A) and C)

Question 15

In the periods 1995-2007 and 2007-2017, U.S. real GDP grew at the average annual rates of about

Accepted Answer

A)   3.2 percent and 1.6 percent, respectively.
B)   1.7 percent and 3.8 percent, respectively.
C)   8.7 percent and 6.2 percent, respectively.
D)   6.2 percent and 8.7 percent, respectively.E) B) and D)
F) A) and D)

Question 16

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 B)
F) A) and C)

Question 17

A review of the trends in labor productivity growth in the U.S. for the periods 1973-1995, 1995- 2010, and 2010-2018 suggests which of the following patterns?

Accepted Answer

A)   a persistently strong growth averaging about 2.5 percent per year throughout the three periods
B)   an initial strong growth averaging 2.5 percent per year in the period 1973-1995, followed by weak growth in 1995-2010, and a sharp rise again in 2010-2018
C)   an initial modest growth averaging 1.5 percent per year in 1973-1995, followed by much higher growth in 1995-2010, then a collapse to very slow growth in 2010-2018
D)   a relatively steady and modest growth throughout all three periods, averaging about 1.5 percentE) C) and D)
F) A) and C)

Question 18

Labor productivity is deﬁned as

Accepted Answer

A)   total output/worker-hours.
B)   nominal GDP minus real GDP.
C)   the ratio of real capital to worker-hours.
D)   the annual increase in nominal GDP per worker.E) C) and D)
F) None of the above

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

Question 20

An economy with an average growth rate of 10 percent can expect to see its real GDP double in
approximately 7 years.

Accepted Answer

A) True 
 B)False

Exam 8: Economic Growth

To fully realize economic growth through the eﬃciency factor, an economy must increase its stock of capital goods and improve its technology.

Correct Answer
verified

Correct Answer
verified

Labor productivity is deﬁned as

Correct Answer
verified

Which of the following statements is most accurate about the prospects for poorer ("follower") countries catching up with richer ("leader") countries?

Correct Answer
verified

Economic historians identify which invention as a major factor that started the Industrial Revolution in Britain?

Correct Answer
verified

A review of the trends in labor productivity growth in the U.S. for the periods 1973-1995, 1995- 2010, and 2010-2018 suggests which of the following patterns?

Correct Answer
verified

Correct Answer
verified

Labor productivity can only increase if

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Which of the following statements is most accurate about modern economic growth?

Correct Answer
verified

Real GDP per capita is found by

Correct Answer
verified

There tends to be a positive correlation between real wages of workers and the productivity of labor in the economy.

Correct Answer
verified

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

Correct Answer
verified

An economy with an average growth rate of 10 percent can expect to see its real GDP double in approximately 7 years.

Correct Answer
verified

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

Correct Answer
verified

In the periods 1995-2007 and 2007-2017, U.S. real GDP grew at the average annual rates of about

Correct Answer
verified

Which of the following is a true statement?

Correct Answer
verified

Growth is advantageous to a nation because it

Correct Answer
verified

The fundamental invention underpinning the 1995-2010 rise in the average rate of productivity growth is the

Correct Answer
verified

Exam 8: Economic Growth

To fully realize economic growth through the eﬃciency factor, an economy must increase its stock of capital goods and improve its technology.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Labor productivity is deﬁned as

Correct AnswerverifiedShow Answer

Which of the following statements is most accurate about the prospects for poorer ("follower") countries catching up with richer ("leader") countries?

Correct AnswerverifiedShow Answer

Economic historians identify which invention as a major factor that started the Industrial Revolution in Britain?

Correct AnswerverifiedShow Answer

A review of the trends in labor productivity growth in the U.S. for the periods 1973-1995, 1995- 2010, and 2010-2018 suggests which of the following patterns?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Labor productivity can only increase if

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements is most accurate about modern economic growth?

Correct AnswerverifiedShow Answer

Real GDP per capita is found by

Correct AnswerverifiedShow Answer

There tends to be a positive correlation between real wages of workers and the productivity of labor in the economy.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An economy with an average growth rate of 10 percent can expect to see its real GDP double in approximately 7 years.

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

In the periods 1995-2007 and 2007-2017, U.S. real GDP grew at the average annual rates of about

Correct AnswerverifiedShow Answer

Which of the following is a true statement?

Correct AnswerverifiedShow Answer

Growth is advantageous to a nation because it

Correct AnswerverifiedShow Answer

The fundamental invention underpinning the 1995-2010 rise in the average rate of productivity growth is the

Correct AnswerverifiedShow Answer

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