Question 1

Refer to the diagram. The most likely cause of a shift from AB to CD would be a(n)

Accepted Answer

A)   increase in productivity.
B)   increase in the price level.
C)   decrease in the size of the labor force.
D)   increase in government spending.E) C) and D)
F) B) and C)

Question 2

The ability to expand production is suﬃcient for a nation to achieve maximum possible growth.

Accepted Answer

A) True 
 B)False

Question 3

Growth is a widely held economic goal primarily because it creates a more equal distribution of
wealth and income.

Accepted Answer

A) True 
 B)False

Question 4

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 real GDP growth in Year 2 is higher than Nation B's.
B)   Nation B's real GDP growth in Year 2 is higher than Nation A's.
C)   Nation A's real GDP growth in Year 2 is identical to Nation B's.
D)   Nation A's and Nation B's real GDP growth rates in Year 2 are both higher than 10 percent.E) A) and B)
F) A) and C)

Question 5

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

Question 6

Follower countries achieve high rates of growth by adopting technologies developed by leader
countries.

Accepted Answer

A) True 
 B)False

Question 7

If a nation's productivity grows by 3 percent rather than 1.5 percent over many years, what will be
the difference in the nation's standard of living? Explain.

Accepted Answer

A nation with a 3 percent growth rate wi...

Question 8

The historical reallocation of labor from agriculture to manufacturing in the United States has

Accepted Answer

A)   been inﬂationary.
B)   had no effect on the average productivity of labor.
C)   increased the average productivity of labor.
D)   reduced the average productivity of labor.E) B) and C)
F) A) and B)

Question 9

Improvements in technology are considered a demand factor in economic growth.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is best considered a demand factor in economic growth?

Accepted Answer

A)   the quantity of human resources
B)   the quality of natural resources
C)   the stock of capital goods
D)   expanded purchases of goods and servicesE) A) and D)
F) C) and D)

Question 11

An increase in the quantity and quality of natural resources is an example of a demand factor of
economic growth.

Accepted Answer

A) True 
 B)False

Question 12

In the growth debate, critics of economic growth say that it will deplete our ﬁnite economic
resources.

Accepted Answer

A) True 
 B)False

Question 13

Suppose total output (real GDP)  is $10,000 and worker-hours are 20,000. We can conclude that

Accepted Answer

A)   real GDP per capita must be $200,000.
B)   the price-level index must be less than 100.
C)   labor productivity must be $0.50.
D)   nominal GDP must be between $10,000 and $20,000.E) C) and D)
F) B) and C)

Question 14

If the economy's real GDP doubles in 18 years, we can

Accepted Answer

A)   not say anything about the average annual rate of growth.
B)   conclude that its average annual rate of growth is about 5.5 percent.
C)   conclude that its average annual rate of growth is about 2.4 percent.
D)   conclude that its average annual rate of growth is about 3.9 percent.E) A) and D)
F) C) and D)

Question 15

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

Question 16

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

Accepted Answer

A)   mass-production 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) None of the above
F) All of the above

Question 17

If the working-age population in an economy shrinks, real GDP can still grow if

Accepted Answer

A)   work hours per week decreases, to spread work among more workers.
B)   labor productivity increases rapidly enough.
C)   consumption by households increases rapidly.
D)   spending by ﬁrms and the government increases.E) A) and B)
F) B) and C)

Question 18

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. Per capita GDP was about

Accepted Answer

A)   $105 in year 3 in Alta.
B)   $303 in year 3 in Zorn.
C)   $200 in year 1 in Zorn.
D)   $5 in year 2 in Alta. E) C) and D)
F) A) and B)

Question 19

Refer to the diagram. Increases in the quantity and quality of human resources and capital are best represented by a

Accepted Answer

A)   shift in the production possibilities curve from AB to CD.
B)   move from Y on CD to X on AB.
C)   shift in the production possibilities curve from CD to AB.
D)   move from X to Z along AB.E) A) and B)
F) A) and C)

Question 20

Labor productivity = worker-hours/real GDP.

Accepted Answer

A) True 
 B)False

Exam 8: Economic Growth

Refer to the diagram. Increases in the quantity and quality of human resources and capital are best represented by a

Correct Answer
verified

The ability to expand production is suﬃcient for a nation to achieve maximum possible growth.

Correct Answer
verified

The historical reallocation of labor from agriculture to manufacturing in the United States has

Correct Answer
verified

Labor productivity = worker-hours/real GDP.

Correct Answer
verified

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 Answer
verified

Refer to the diagram. The most likely cause of a shift from AB to CD would be a(n)

Correct Answer
verified

If a nation's productivity grows by 3 percent rather than 1.5 percent over many years, what will be the difference in the nation's standard of living? Explain.

Correct Answer
verified
A nation with a 3 percent growth rate wi...
View Answer

Correct Answer
verified

Correct Answer
verified

If the working-age population in an economy shrinks, real GDP can still grow if

Correct Answer
verified

If the economy's real GDP doubles in 18 years, we can

Correct Answer
verified

An increase in the quantity and quality of natural resources is an example of a demand factor of economic growth.

Correct Answer
verified

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

Correct Answer
verified

Improvements in technology are considered a demand factor in economic growth.

Correct Answer
verified

In the growth debate, critics of economic growth say that it will deplete our ﬁnite economic resources.

Correct Answer
verified

Follower countries achieve high rates of growth by adopting technologies developed by leader countries.

Correct Answer
verified

Growth is a widely held economic goal primarily because it creates a more equal distribution of wealth and income.

Correct Answer
verified

Which of the following is best considered a demand factor in economic growth?

Correct Answer
verified

Suppose total output (real GDP) is $10,000 and worker-hours are 20,000. We can conclude that

Correct Answer
verified

A nation's infrastructure refers to

Correct Answer
verified

Exam 8: Economic Growth

Refer to the diagram. Increases in the quantity and quality of human resources and capital are best represented by a

Correct AnswerverifiedShow Answer

The ability to expand production is suﬃcient for a nation to achieve maximum possible growth.

Correct AnswerverifiedShow Answer

The historical reallocation of labor from agriculture to manufacturing in the United States has

Correct AnswerverifiedShow Answer

Labor productivity = worker-hours/real GDP.

Correct AnswerverifiedShow Answer

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

Refer to the diagram. The most likely cause of a shift from AB to CD would be a(n)

Correct AnswerverifiedShow Answer

If a nation's productivity grows by 3 percent rather than 1.5 percent over many years, what will be the difference in the nation's standard of living? Explain.

Correct AnswerverifiedA nation with a 3 percent growth rate wi...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If the working-age population in an economy shrinks, real GDP can still grow if

Correct AnswerverifiedShow Answer

If the economy's real GDP doubles in 18 years, we can

Correct AnswerverifiedShow Answer

An increase in the quantity and quality of natural resources is an example of a demand factor of economic growth.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Improvements in technology are considered a demand factor in economic growth.

Correct AnswerverifiedShow Answer

In the growth debate, critics of economic growth say that it will deplete our ﬁnite economic resources.

Correct AnswerverifiedShow Answer

Follower countries achieve high rates of growth by adopting technologies developed by leader countries.

Correct AnswerverifiedShow Answer

Growth is a widely held economic goal primarily because it creates a more equal distribution of wealth and income.

Correct AnswerverifiedShow Answer

Which of the following is best considered a demand factor in economic growth?

Correct AnswerverifiedShow Answer

Suppose total output (real GDP) is $10,000 and worker-hours are 20,000. We can conclude that

Correct AnswerverifiedShow Answer

A nation's infrastructure refers to

Correct AnswerverifiedShow Answer

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A nation with a 3 percent growth rate wi...
View Answer

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