Question 1

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 2000 years.
D)   grows much faster in "leader countries" than in "follower countries."E) A) and B)
F) A) and C)

Question 2

Between 1950 and 2012,U.S.real GDP grew at an average annual rate of about:

Accepted Answer

A)   2.0 percent.
B)   3.1 percent.
C)   5.1 percent.
D)   8.6 percent.E) C) and D)
F) A) and B)

Question 3

Economic growth can be shown as a movement from a point on one production possibilities curve to a point on a curve located farther from the origin.

Accepted Answer

A) True 
 B)False

Question 4

If the growth trend of labor productivity is 3 percent per year,the number of years that it will take for the standard of living to double will be about:

Accepted Answer

A)   15 years.
B)   17 years.
C)   20 years.
D)   23 years.E) A) and C)
F) A) and D)

Question 5

Strong property rights inhibit economic growth by strictly regulating economic behavior.

Accepted Answer

A) True 
 B)False

Question 6

If a nation's real GDP increases from 100 billion to 106 billion and its population jumps from 200 million to 212 million,it real GDP per capita will:

Accepted Answer

A)   remain constant.
B)   fall by 6 percent.
C)   rise by 6 percent.
D)   fall by 12 percent.E) None of the above
F) All of the above

Question 7

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) C) and D)
F) B) and C)

Question 8

In the United States,real GDP per capita has increased more rapidly than real GDP.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)   11½ years.
B)   10 years.
C)   13½ years.
D)   9 years.E) A) and C)
F) None of the above

Question 10

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 scale.E) All of the above
F) A) and D)

Question 11

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 rate.E) B) and C)
F) B) and D)

Question 12

(Consider This) The main point of the Consider This box about hypothetical countries Slogo,Sumgo,and Speedo is that over several decades differing:

Accepted Answer

A)   inflation rates create large differences in real GDP per capita.
B)   economic growth rates create large differences in real GDP per capita.
C)   ratios of defense spending to GDP create large differences in real GDP per capita.
D)   unemployment rates create large differences in real GDP per capita.E) A) and C)
F) C) and D)

Question 13

Use the list below to answer the following question: 1.Improvements in technology.
2) Increases in the supply (stock) of capital goods.
3) Purchases of expanding output.
4) Obtaining the optimal combination of goods,each at least-cost production.
5) Increases in the quantity and quality of natural resources.
6) Increases in the quantity and quality of human resources.
Refer to the list.As distinct from the supply factors and efficiency factor of economic growth,the demand factor(s) of economic growth is (are) :

Accepted Answer

A)   1 only.
B)   4 only.
C)   1 and 3 only.
D)   3 only.E) A) and B)
F) A) and C)

Question 14

Strong patent laws encourage innovation and promote economic growth.

Accepted Answer

A) True 
 B)False

Question 15

The Industrial Revolution and modern economic growth resulted in:

Accepted Answer

A)   the average human lifespan more than doubling.
B)   a major population shift from urban to rural areas.
C)   increased production by local craftsmen.
D)   all of these.E) B) and C)
F) A) and B)

Question 16

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) A) and D)
F) A) and B)

Question 17

An outward shift of a nation's production possibilities curve:

Accepted Answer

A)   ensures the nation of an increase in real GDP per capita.
B)   ensures the nation of an increase in real GDP,but not of real GDP per capita.
C)   ensures a nation neither of an increase in real GDP nor of an increase in real GDP per capita.
D)   ensures a nation of an increase in both real GDP and real GDP per capita.E) All of the above
F) B) and D)

Question 18

Economists who believe that the 1995-2012 rise in the average rate of productivity growth will be long lasting say that:

Accepted Answer

A)   the United States is entering an era of high structural unemployment due to rapid technological change.
B)   technological advance creates its own supply,which in turn creates its own demand.
C)   innovations in computers and communications,together with global capitalism,are greatly boosting U.S.productivity and the economy's potential economic growth rate.
D)   technological change will require more central planning and government regulation.E) A) and B)
F) A) and C)

Question 19

It is expected that by 2050,most nations will have decreasing populations.With the likely decline in the labor force and number of hours of work in the economy,what must occur for real GDP to continue to rise?

Accepted Answer

A)   Increasing amounts of natural resources must be brought into production.
B)   Labor productivity must grow faster than the drop in work hours.
C)   Consumption spending must grow faster than the drop in work hours.
D)   Government spending and tax policy must be altered to stimulate sufficient demand.E) A) and D)
F) A) and C)

Question 20

Economic growth rates in follower countries:

Accepted Answer

A)   tend to be lower than in leader countries because labor forces in follower countries are too small.
B)   tend to exceed those in leader countries because followers can cheaply adopt the new technologies that leaders developed at relatively high costs.
C)   will never bring real GDP per capita up to the same levels as in leader countries,even if follower growth rates are greater than those in leader countries.
D)   typically average about 2 percent per year.E) C) and D)
F) A) and D)

Exam 27: Economic Growth

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

Correct Answer
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Free trade:

Correct Answer
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Economists who believe that the 1995-2012 rise in the average rate of productivity growth will be long lasting say that:

Correct Answer
verified

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

Correct Answer
verified

The Industrial Revolution and modern economic growth resulted in:

Correct Answer
verified

(Consider This) The main point of the Consider This box about hypothetical countries Slogo,Sumgo,and Speedo is that over several decades differing:

Correct Answer
verified

Strong patent laws encourage innovation and promote economic growth.

Correct Answer
verified

Correct Answer
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Economic growth rates in follower countries:

Correct Answer
verified

It is expected that by 2050,most nations will have decreasing populations.With the likely decline in the labor force and number of hours of work in the economy,what must occur for real GDP to continue to rise?

Correct Answer
verified

An outward shift of a nation's production possibilities curve:

Correct Answer
verified

In the United States,real GDP per capita has increased more rapidly than real GDP.

Correct Answer
verified

Economic growth can be shown as a movement from a point on one production possibilities curve to a point on a curve located farther from the origin.

Correct Answer
verified

If the growth trend of labor productivity is 3 percent per year,the number of years that it will take for the standard of living to double will be about:

Correct Answer
verified

Strong property rights inhibit economic growth by strictly regulating economic behavior.

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

Real per capita GDP:

Correct Answer
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A nation's infrastructure refers to:

Correct Answer
verified

If a nation's real GDP increases from 100 billion to 106 billion and its population jumps from 200 million to 212 million,it real GDP per capita will:

Correct Answer
verified

Between 1950 and 2012,U.S.real GDP grew at an average annual rate of about:

Correct Answer
verified

Exam 27: Economic Growth

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

Correct AnswerverifiedShow Answer

Free trade:

Correct AnswerverifiedShow Answer

Economists who believe that the 1995-2012 rise in the average rate of productivity growth will be long lasting say that:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Industrial Revolution and modern economic growth resulted in:

Correct AnswerverifiedShow Answer

(Consider This) The main point of the Consider This box about hypothetical countries Slogo,Sumgo,and Speedo is that over several decades differing:

Correct AnswerverifiedShow Answer

Strong patent laws encourage innovation and promote economic growth.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Economic growth rates in follower countries:

Correct AnswerverifiedShow Answer

It is expected that by 2050,most nations will have decreasing populations.With the likely decline in the labor force and number of hours of work in the economy,what must occur for real GDP to continue to rise?

Correct AnswerverifiedShow Answer

An outward shift of a nation's production possibilities curve:

Correct AnswerverifiedShow Answer

In the United States,real GDP per capita has increased more rapidly than real GDP.

Correct AnswerverifiedShow Answer

Economic growth can be shown as a movement from a point on one production possibilities curve to a point on a curve located farther from the origin.

Correct AnswerverifiedShow Answer

If the growth trend of labor productivity is 3 percent per year,the number of years that it will take for the standard of living to double will be about:

Correct AnswerverifiedShow Answer

Strong property rights inhibit economic growth by strictly regulating economic behavior.

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

Real per capita GDP:

Correct AnswerverifiedShow Answer

A nation's infrastructure refers to:

Correct AnswerverifiedShow Answer

If a nation's real GDP increases from 100 billion to 106 billion and its population jumps from 200 million to 212 million,it real GDP per capita will:

Correct AnswerverifiedShow Answer

Between 1950 and 2012,U.S.real GDP grew at an average annual rate of about:

Correct AnswerverifiedShow Answer

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