Question 1

Eﬃcient ﬁnancial institutions foster the ﬂow of

Accepted Answer

A)   saving and investment.
B)   spending and income.
C)   resources and products.
D)   inventions and ideas.E) All of the above
F) A) and B)

Question 2

Year  Quantity of Labor  Productivity of Labor 12,000$20022,00021032,000210\begin{array} { | c | c | c | } \hline 	ext { Year } & 	ext { Quantity of Labor } & 	ext { Productivity of Labor } \\hline 1 & 2,000 & \$ 200 \\hline 2 & 2,000 & 210 \\hline 3 & 2,000 & 210 \\hline\end{array} Year 123​ Quantity of Labor 2,0002,0002,000​ Productivity of Labor $200210210​​  The table shows the quantity of labor (measured in hours)  and the productivity of labor (measured in real GDP per hour)  in a hypothetical economy in three different years. In Year 2, the economy's real
GDP was

Accepted Answer

A)   $400,000.
B)   $420,000.
C)   $462,000.
D)   $500,000. E) B) and C)
F) B) and D)

Question 3

Real GDP per capita

Accepted Answer

A)   cannot grow more rapidly than real GDP.
B)   cannot grow more slowly than real GDP.
C)   necessarily grows more rapidly than real GDP.
D)   can grow either more slowly or more rapidly than real GDP.E) All of the above
F) A) and B)

Question 4

About what percentage of the growth in real output in the United States from 2007 to 2017 was due to increases in labor productivity?

Accepted Answer

A)   25 percent
B)   about 33.3 percent
C)   roughly 50 percent
D)   75 percentE) A) and C)
F) B) and C)

Question 5

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

Accepted Answer

A)   more human and natural resources
B)   technological progress and innovation
C)   an increase in the economy's stock of capital goods
D)   an increase in total spending in the economyE) A) and D)
F) A) and C)

Question 6

The shift of labor out of agriculture and into industry in the United States has tended to

Accepted Answer

A)   reduce the rate of productivity growth.
B)   increase unemployment in the agriculture sector.
C)   reduce unemployment in the industrial sector.
D)   increase labor productivity.E) A) and B)
F) All of the above

Question 7

Which of the following best measures improvements in the standard of living of a nation?

Accepted Answer

A)   growth of nominal GDP
B)   growth of real GDP
C)   growth of real GDP per capita
D)   growth of national incomeE) A) and D)
F) B) and D)

Question 8

Real per capita GDP

Accepted Answer

A)   grows at approximately the same rate for all countries.
B)   was much more equal across nations in 1820 than it is today.
C)   has been about 20 times higher in the richer nations than the poorer nations for about 2,000 years.
D)   grows much faster in "leader countries" than in "follower countries."E) A) and B)
F) All of the above

Question 9

Deﬁne worker-hours and labor productivity.

Accepted Answer

The input of labor is measured in the nu...

Question 10

If an economy has 800,000 hours of work, and its labor productivity is $16/hour, then its real GDP
must be $50,000.

Accepted Answer

A) True 
 B)False

Question 11

If a nation's real GDP is growing by 5 percent per year, its real GDP will double in approximately

Accepted Answer

A)   22 years.
B)   20 years.
C)   14 years.
D)   8 years.E) A) and B)
F) A) and D)

Question 12

Economic historians date the start of the Industrial Revolution around the year 1776, when James Watt

Accepted Answer

A)   built the ﬁrst factory for mass production.
B)   invented the steam locomotive.
C)   successfully lobbied British Parliament for the enactment of patent legislation to protect new inventions.
D)   invented and built a more powerful and eﬃcient steam engine.E) All of the above
F) B) and D)

Question 13

Refer to the graph. Growth of production capacity is shown by the

Accepted Answer

A)   shift from AB to CD.
B)   shift from CD to AB.
C)   movement away from point A and toward point B.
D)   movement away from point B and toward point A.E) A) and C)
F) All of the above

Question 14

Human capital refers to

Accepted Answer

A)   the skills and knowledge that enable a worker to be productive.
B)   machinery used by labor in production.
C)   the accumulated ﬁnancial wealth of households.
D)   physical capital owned by households rather than businesses.E) None of the above
F) B) and C)

Question 15

Increases in household and business spending are a demand factor in economic growth.

Accepted Answer

A) True 
 B)False

Question 16

Explain the effect of Internet apps on GDP. Does this mean there is no added beneﬁt to society?

Accepted Answer

Internet apps do not affect GDP very muc...

Question 17

In the period following the Great Recession, the creation of new Internet apps has

Accepted Answer

A)   signiﬁcantly enhanced productivity.
B)   signiﬁcantly reduced productivity by creating excessive distractions for workers.
C)   had little measured effect on GDP or productivity but may create a lot of consumer surplus.
D)   led ﬁrms in these markets to expand capacity beyond what consumers demand.E) All of the above
F) B) and C)

Question 18

How does investment in capital goods and infrastructure contribute to economic growth?

Accepted Answer

More and better plant and equipment make...

Question 19

Real GDP per capita is found by dividing real GDP by the size of the labor force.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 8: Economic Growth

Human capital refers to

Correct Answer
verified

Real GDP per capita is found by dividing real GDP by the size of the labor force.

Correct Answer
verified

Correct Answer
verified

The shift of labor out of agriculture and into industry in the United States has tended to

Correct Answer
verified

If a nation's real GDP is growing by 5 percent per year, its real GDP will double in approximately

Correct Answer
verified

How does investment in capital goods and infrastructure contribute to economic growth?

Correct Answer
verified
More and better plant and equipment make...
View Answer

Refer to the graph. Growth of production capacity is shown by the

Correct Answer
verified

Real GDP per capita

Correct Answer
verified

About what percentage of the growth in real output in the United States from 2007 to 2017 was due to increases in labor productivity?

Correct Answer
verified

Explain the effect of Internet apps on GDP. Does this mean there is no added beneﬁt to society?

Correct Answer
verified
Internet apps do not affect GDP very muc...
View Answer

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

Correct Answer
verified

Deﬁne worker-hours and labor productivity.

Correct Answer
verified
The input of labor is measured in the nu...
View Answer

Eﬃcient ﬁnancial institutions foster the ﬂow of

Correct Answer
verified

Which of the following best measures improvements in the standard of living of a nation?

Correct Answer
verified

Real per capita GDP

Correct Answer
verified

Economic historians date the start of the Industrial Revolution around the year 1776, when James Watt

Correct Answer
verified

If an economy has 800,000 hours of work, and its labor productivity is $16/hour, then its real GDP must be $50,000.

Correct Answer
verified

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

Correct Answer
verified

In the period following the Great Recession, the creation of new Internet apps has

Correct Answer
verified

Increases in household and business spending are a demand factor in economic growth.

Correct Answer
verified

Exam 8: Economic Growth

Human capital refers to

Correct AnswerverifiedShow Answer

Real GDP per capita is found by dividing real GDP by the size of the labor force.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The shift of labor out of agriculture and into industry in the United States has tended to

Correct AnswerverifiedShow Answer

If a nation's real GDP is growing by 5 percent per year, its real GDP will double in approximately

Correct AnswerverifiedShow Answer

How does investment in capital goods and infrastructure contribute to economic growth?

Correct AnswerverifiedMore and better plant and equipment make...View AnswerShow Answer

Refer to the graph. Growth of production capacity is shown by the

Correct AnswerverifiedShow Answer

Real GDP per capita

Correct AnswerverifiedShow Answer

About what percentage of the growth in real output in the United States from 2007 to 2017 was due to increases in labor productivity?

Correct AnswerverifiedShow Answer

Explain the effect of Internet apps on GDP. Does this mean there is no added beneﬁt to society?

Correct AnswerverifiedInternet apps do not affect GDP very muc...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Deﬁne worker-hours and labor productivity.

Correct AnswerverifiedThe input of labor is measured in the nu...View AnswerShow Answer

Eﬃcient ﬁnancial institutions foster the ﬂow of

Correct AnswerverifiedShow Answer

Which of the following best measures improvements in the standard of living of a nation?

Correct AnswerverifiedShow Answer

Real per capita GDP

Correct AnswerverifiedShow Answer

Economic historians date the start of the Industrial Revolution around the year 1776, when James Watt

Correct AnswerverifiedShow Answer

If an economy has 800,000 hours of work, and its labor productivity is $16/hour, then its real GDP must be $50,000.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the period following the Great Recession, the creation of new Internet apps has

Correct AnswerverifiedShow Answer

Increases in household and business spending are a demand factor in economic growth.

Correct AnswerverifiedShow Answer

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More and better plant and equipment make...
View Answer

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verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified
Internet apps do not affect GDP very muc...
View Answer

Correct Answer
verified

Correct Answer
verified
The input of labor is measured in the nu...
View Answer

Correct Answer
verified

Correct Answer
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