Question 1

If 40,000 worker-hours produced a total output of $600,000 in an economy, then the labor productivity is:

Accepted Answer

A)   $10/worker-hour
B)   $15/worker-hour
C)   $24/worker-hour
D)   $240/worker-hourE) C) and D)
F) None of the above

Question 2

Which of the following is a measure of economic growth that is most useful for measuring geopolitical preeminence or military potential?

Accepted Answer

A)   Growth in nominal GDP
B)   Decreases in the rate of unemployment
C)   Increases in real GDP per capita
D)   Increases in real GDPE) C) and D)
F) All of the above

Question 3

The movement of workers from lower productivity jobs to higher productivity jobs would be an example of a(n) :

Accepted Answer

A)   Technological advance
B)   Network effects
C)   Simultaneous consumption
D)   Improved resource allocationE) B) and C)
F) A) and D)

Question 4

In the modern economic growth process, it is typical to find that:

Accepted Answer

A)   Leader countries continue to grow faster than follower countries
B)   Follower countries can grow faster than leader countries
C)   Large countries cannot grow faster than leader countries
D)   The gap between the leader countries and the follower countries stays constantE) None of the above
F) A) and B)

Question 5

Factors that contributed to the higher U.S. labor productivity growth in 1995-2012 relative to the earlier period include the following, except:

Accepted Answer

A)   Microchip and information technologies
B)   New start-up firms and increasing returns
C)   Global competition
D)   Population growthE) All of the above
F) B) and C)

Question 6

Sources of increasing returns that help raise productivity growth include the following, except:

Accepted Answer

A)   More specialized inputs
B)   Spreading of development costs
C)   Network effects
D)   Low unemploymentE) B) and D)
F) B) and C)

Question 7

Modern economic growth often results in the following, except:

Accepted Answer

A)   Less time for ordinary people to enjoy leisure activities because the primary focus is on production and work
B)   Vast increases in wealth and living standards for many groups in the economy
C)   Spread of universal education and elimination of ancient social norms
D)   Movement towards democracy and the abolishment of feudalismE) A) and B)
F) A) and C)

Question 8

Since the 1950's, the U.S. average annual rate of growth of real GDP was higher than the average annual growth of real GDP per capita.

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Which of the following does not correctly characterize modern economic growth?

Accepted Answer

A)   It spread slowly across the globe, with some societies not having experienced it yet
B)   It has occurred only in the last 200 or so years
C)   It drastically alters the culture and politics of society
D)   It has not affected the average lifespan of human beingsE) A) and B)
F) None of the above

Question 12

Human capital refers to the:

Accepted Answer

A)   Tools and equipment available to workers
B)   Amount of financing available to start-up firms
C)   Number of workers available in the economy
D)   Education, training, and skills of workersE) None of the above
F) B) and D)

Question 13

An antigrowth view would be that there may be a significant tradeoff between productivity and:

Accepted Answer

A)   Education
B)   Employment
C)   Economies of scale
D)   The quality of lifeE) A) and B)
F) None of the above

Question 14

Increasing returns in production implies the following, except:

Accepted Answer

A)   Increasing labor-requirements per unit of output
B)   Decreasing per-unit production costs
C)   Economies of scale
D)   An increase in the productivity of inputsE) B) and C)
F) A) and D)

Question 15

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

Question 16

In the period 1960 to 2010, the U.S. experienced a more rapid annual growth in real GDP per capita than countries like Ireland, Singapore, and South Korea.

Accepted Answer

A) True 
 B)False

Question 17

Before the Industrial Revolution, living standards in the world:

Accepted Answer

A)   Were relatively stagnant for long periods of time
B)   Were already rising significantly for many decades
C)   Are not known, for lack of reliable records from that period
D)   Were declining because of rapid increases in populationE) C) and D)
F) A) and C)

Question 18

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 19

The reasons why per capita GDP in the U.S. is significantly higher than in some other rich countries like, say, France include the following, except:

Accepted Answer

A)   U.S. citizens put in substantially more work hours than do citizens of France
B)   Cultural differences between the U.S. and France regarding the right balance between labor and leisure
C)   Differences in the tax structure and the resulting incentive effects of taxes
D)   Differences is the communication technology due to language differencesE) B) and C)
F) A) and B)

Question 20

The real GDP of the United States has grown since the 1950's largely because of increases in labor productivity.

Accepted Answer

A) True 
 B)False

Exam 8: Economic Growth

In the modern economic growth process, it is typical to find that:

Correct AnswerverifiedShow Answer

In the period 1960 to 2010, the U.S. experienced a more rapid annual growth in real GDP per capita than countries like Ireland, Singapore, and South Korea.

Correct AnswerverifiedShow Answer

Factors that contributed to the higher U.S. labor productivity growth in 1995-2012 relative to the earlier period include the following, except:

Correct AnswerverifiedShow Answer

The reasons why per capita GDP in the U.S. is significantly higher than in some other rich countries like, say, France include the following, except:

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Human capital refers to the:

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An antigrowth view would be that there may be a significant tradeoff between productivity and:

Correct AnswerverifiedShow Answer

The movement of workers from lower productivity jobs to higher productivity jobs would be an example of a(n) :

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The real GDP of the United States has grown since the 1950's largely because of increases in labor productivity.

Correct AnswerverifiedShow Answer

Before the Industrial Revolution, living standards in the world:

Correct AnswerverifiedShow Answer

Since the 1950's, the U.S. average annual rate of growth of real GDP was higher than the average annual growth of real GDP per capita.

Correct AnswerverifiedShow Answer

If 40,000 worker-hours produced a total output of $600,000 in an economy, then the labor productivity is:

Correct AnswerverifiedShow Answer

Modern economic growth often results in the following, except:

Correct AnswerverifiedShow Answer

Labor productivity can only increase if:

Correct AnswerverifiedShow Answer

Increasing returns in production implies the following, except:

Correct AnswerverifiedShow Answer

Sources of increasing returns that help raise productivity growth include the following, except:

Correct AnswerverifiedShow Answer

Which of the following does not correctly characterize modern economic growth?

Correct AnswerverifiedShow Answer

Which of the following is a measure of economic growth that is most useful for measuring geopolitical preeminence or military potential?

Correct AnswerverifiedShow Answer

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

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

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