Question 1

The largest factor that raised labor productivity in the U.S. economy since the 1950's has been the increased amount of capital available.

Accepted Answer

A) True 
 B)False

Question 2

Supply factors in economic growth include the following, except:

Accepted Answer

A)   Improvements in technology
B)   Expansion of capital stock
C)   Increases in purchases of output
D)   Better education and trainingE) None of the above
F) C) and D)

Question 3

Leader countries that experience modern economic growth early on will always grow faster than follower countries.

Accepted Answer

A) True 
 B)False

Question 4

Total output for an economy is basically equal to total work-hours multiplied by labor productivity.

Accepted Answer

A) True 
 B)False

Question 5

The rapid productivity growth experienced in 1995-2012:

Accepted Answer

A)   Is believed by most economists to be a permanent shift in the economy
B)   Is still debated among many economists as to whether it represents a permanent shift in the economy
C)   Suggests that prospects for lasting increases in productivity growth are rather poor
D)   Suggests that productivity growth can occur without raising the nation's standard of livingE) C) and D)
F) None of the above

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)   Increase in population
B)   Increase in labor productivity
C)   Increase in hours per worker
D)   Increase in labor forceE) A) and B)
F) A) and C)

Question 7

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)   More stress-free lifestyleE) All of the above
F) C) and D)

Question 8

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

Question 9

Factors that have contributed to the increase in women's labor-force participation rate in the U.S. include the following, except:

Accepted Answer

A)   Rising wage earnings brought about by rising productivity
B)   Better education and more professional training
C)   Access to a wider range of job opportunities
D)   Increase in the number of children, requiring mothers to find work along with fathersE) A) and D)
F) A) and C)

Question 10

Which of the following is the single most important source of U.S. economic growth?

Accepted Answer

A)   Stability of the socio-cultural-political environment
B)   Improvement in the legal and human environment
C)   Increases in the quantity of labor
D)   Increases in labor productivityE) All of the above
F) A) and B)

Question 11

Refer to the above graph. If the production possibilities curve for an economy is at CD but the economy is operating at point X, the reasons are most likely to be because of:

Accepted Answer

A)   Technological progress and industrial change
B)   Increases in the quantity and the quality of resources
C)   Improvement in labor productivity and the number of work-hours
D)   Unemployment and inefficient allocation of resourcesE) A) and D)
F) C) and D)

Question 12

The table below 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.  Refer to the above table. Between Year 2 and Year 3, real GDP increased by:

Accepted Answer

A)   2 percent
B)   5 percent
C)   10 percent
D)   15 percentE) All of the above
F) C) and D)

Question 13

Global competition has tended to slow down the rate of productivity growth in the United States.

Accepted Answer

A) True 
 B)False

Question 14

The "rule of 70" is a formula for determining the approximate number of:

Accepted Answer

A)   Years that it would take for a value (like real GDP)  to expand 70 times
B)   Years that it would take for a value (like real GDP)  to double
C)   Times a value (like real GDP)  is a multiple of 70
D)   Times one could double a certain value (like real GDP)  over 70 yearsE) B) and C)
F) A) and B)

Question 15

In the growth debate, defenders of economic growth believe that it is the primary path to raising living standards.

Accepted Answer

A) True 
 B)False

Question 16

Simultaneous consumption and network effects are sources of increasing returns and economies of scale that promote productivity growth.

Accepted Answer

A) True 
 B)False

Question 17

The entry of women into the workforce since the 1960s resulted in:

Accepted Answer

A)   A shift outward in the production possibilities curve of the United States
B)   A shift inward in the production possibilities curve in the United States
C)   A movement along the existing production possibilities curve in the United States
D)   A falling real wage for women workers of the United StatesE) B) and D)
F) A) and D)

Question 18

Economic growth can best be portrayed as a:

Accepted Answer

A)   Leftward shift of the production possibilities curve
B)   Movement from a point inside to a point outside of the production possibilities curve
C)   Movement from a point near the vertical axis to a point near the horizontal axis on the production possibilities curve
D)   Rightward shift of the production possibilities curveE) A) and B)
F) A) and C)

Question 19

Society can increase its output and income by increasing basically one or both of two factors:

Accepted Answer

A)   Its spending and investment
B)   Its private and public sectors of the economy
C)   Its resources and the productivity of the resources
D)   Its markets and pricesE) B) and D)
F) A) and B)

Question 20

One of the basic economic defenses of economic growth rests on the conclusion that:

Accepted Answer

A)   Growth makes workers less obsolete and more secure in employment
B)   Growth reduces the cost to society of "common property" resources
C)   Growth makes the gap between unlimited wants and scarce resources less acute
D)   A growth-oriented society confers a "work and look to the future" attitude on the members of societyE) A) and B)
F) A) and C)

Exam 8: Economic Growth

The table below 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. Refer to the above table. Between Year 2 and Year 3, real GDP increased by:

Correct AnswerverifiedShow Answer

Leader countries that experience modern economic growth early on will always grow faster than follower countries.

Correct AnswerverifiedShow Answer

The "rule of 70" is a formula for determining the approximate number of:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Simultaneous consumption and network effects are sources of increasing returns and economies of scale that promote productivity growth.

Correct AnswerverifiedShow Answer

Supply factors in economic growth include the following, except:

Correct AnswerverifiedShow Answer

Factors that have contributed to the increase in women's labor-force participation rate in the U.S. include the following, except:

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

The rapid productivity growth experienced in 1995-2012:

Correct AnswerverifiedShow Answer

Refer to the above graph. If the production possibilities curve for an economy is at CD but the economy is operating at point X, the reasons are most likely to be because of:

Correct AnswerverifiedShow Answer

One of the basic economic defenses of economic growth rests on the conclusion that:

Correct AnswerverifiedShow Answer

Global competition has tended to slow down the rate of productivity growth in the United States.

Correct AnswerverifiedShow Answer

The entry of women into the workforce since the 1960s resulted in:

Correct AnswerverifiedShow Answer

Economic growth can best be portrayed as a:

Correct AnswerverifiedShow Answer

The largest factor that raised labor productivity in the U.S. economy since the 1950's has been the increased amount of capital available.

Correct AnswerverifiedShow Answer

Society can increase its output and income by increasing basically one or both of two factors:

Correct AnswerverifiedShow Answer

Which of the following is the single most important source of U.S. economic growth?

Correct AnswerverifiedShow Answer

In the growth debate, defenders of economic growth believe that it is the primary path to raising living standards.

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

Total output for an economy is basically equal to total work-hours multiplied by labor productivity.

Correct AnswerverifiedShow Answer

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