Question 1

A rightward shift of a nation's production possibilities curve is a necessary but not sufficient condition for economic growth.

Accepted Answer

A) True 
 B)False

Question 2

Critics of economic growth say that it will deplete economic resources.

Accepted Answer

A) True 
 B)False

Question 3

Between 19 46 - 20 11, the annual Canadian multifactor productivity has increased by about:

Accepted Answer

A)   4%
B)   2%
C)   5%
D)   7%E) B) and C)
F) A) and D)

Question 4

-Refer to the above diagram. If the production possibilities curve for an economy is at AB but the economy is operating at point 4, the reasons are most likely to be because of:

Accepted Answer

A)   supply and environmental factors.
B)   demand and efficiency factors.
C)   labour inputs and labour productivity.
D)   technological progress.E) A) and D)
F) B) and D)

Question 5

Economic growth can be portrayed as a(n) :

Accepted Answer

A)   outward shift of the production possibilities curve.
B)   inward shift of the production possibilities curve.
C)   movement from a point on to a point inside a production possibilities curve.
D)   movement from one point to another point on a production possibilities curve.E) A) and B)
F) None of the above

Question 6

The average living standards in Canada compared to Africa are much higher because:

Accepted Answer

A)   the economic growth has occurred for nearly two centuries in Africa compared to a few decades in Canada.
B)   the economic growth has occurred for nearly two centuries in Canada compared to more than two centuries in Africa.
C)   the economic growth differences have no relationship to the differences in the average standards of living.
D)   the economic growth has occurred for nearly two centuries in Canada compared to a few decades in Africa.E) A) and B)
F) C) and D)

Question 7

Other: Pick-up
-Refer to the above table, per capita GDP was about:

Accepted Answer

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

Question 8

The countries which have begun modern economic growth later than the others can catch up because:

Accepted Answer

A)   for them, it is quicker to adopt technology rather than inventing one.
B)   for them, it is harder to adopt technology rather than inventing one.
C)   for them, it is as hard to adopt technology as it is to invent one.
D)   for them, it is very easy to invent a new technology with lower cost.E) A) and B)
F) All of the above

Question 9

Economic growth is best defined as an increase in:

Accepted Answer

A)   either real GDP or real GDP per capita.
B)   nominal GDP.
C)   total consumption expenditures.
D)   wealth in the economy.E) B) and C)
F) A) and C)

Question 10

-Refer to the above diagram. Realized economic growth is best represented by a:

Accepted Answer

A)   shift in the production possibilities curve from y on AB to x on CD.
B)   move from x on AB to y on CD.
C)   shift in the production possibilities curve from CD to AB.
D)   move from x to z along AB.E) A) and D)
F) B) and D)

Question 11

There are several institutional structures that promote and sustain economic growth. These factors include:

Accepted Answer

A)   efficient financial institutions, education, free trade, patent and copyrights, property rights and competitive market system.
B)   restricted trade, property rights and, monopoly power.
C)   monopoly power, education and strong market incentives.
D)   both A and BE) None of the above
F) A) and B)

Question 12

Recently, the changes in the educational attainment of the Canadian labour force indicate that the percentage of those:

Accepted Answer

A)   completing high school has been rising, but the percentage of those attending university has declined.
B)   attending university have increased.
C)   completing college has been constant, and the percentage of those attending university has declined.
D)   attending university and community colleges have decreased.E) A) and B)
F) C) and D)

Question 13

Which is best considered a supply factor for long-run economic growth?

Accepted Answer

A)   government spending
B)   the stock of capital goods
C)   full employment of resources
D)   personal consumption expendituresE) B) and D)
F) A) and B)

Question 14

If an economy's real GDP is growing by 5 percent per year, its real domestic output will double in approximately fourteen years.

Accepted Answer

A) True 
 B)False

Question 15

-Refer to the above graph. If the production possibilities curve of an economy shifts from AB to CD, it is most likely caused by:

Accepted Answer

A)   a decrease in the price level.
B)   allocative efficiency.
C)   technological progress.
D)   full employment of resources.E) All of the above
F) C) and D)

Question 16

Labour productivity is measured by:

Accepted Answer

A)   the ratio of capital to labour.
B)   real output per worker hour.
C)   real output per capital.
D)   the ratio of worker hours to nominal GDP.E) A) and D)
F) A) and C)

Question 17

An outward shift in the production possibilities curve is the direct result of improvements in the efficiency factor for economic growth.

Accepted Answer

A) True 
 B)False

Question 18

-Refer to the above diagram. If the production possibilities curve of an economy shifts from AB to EF, it is most likely the result of what factor affecting economic growth?

Accepted Answer

A)   a supply factor
B)   a demand factor
C)   an efficiency factor
D)   an allocation factorE) A) and B)
F) B) and D)

Question 19

A supply factor in economic growth would be:

Accepted Answer

A)   a fall in the efficient use of resources.
B)   a rise in the rate of resource depletion.
C)   an increase in the quantity of labour.
D)   an increase in consumption spending.E) C) and D)
F) All of the above

Question 20

Do the recent high technological advances and productivity rates mean that the business cycle is dead?

Accepted Answer

A)   Yes, the faster rate of productivity growth will eliminate recession.
B)   Yes, the changes in technology have a compound, positive effect on the economy.
C)   No, the trend line for economic growth is just steeper, but there can still be economic downturns.
D)   No, the fact there are many start-up firms means that there will be more bankruptcies that will hurt the economy.E) C) and D)
F) All of the above

Exam 6: Economic Growth

An outward shift in the production possibilities curve is the direct result of improvements in the efficiency factor for economic growth.

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There are several institutional structures that promote and sustain economic growth. These factors include:

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-Refer to the above graph. If the production possibilities curve of an economy shifts from AB to CD, it is most likely caused by:

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Other: Pick-up -Refer to the above table, per capita GDP was about:

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Critics of economic growth say that it will deplete economic resources.

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A rightward shift of a nation's production possibilities curve is a necessary but not sufficient condition for economic growth.

Correct AnswerverifiedShow Answer

If an economy's real GDP is growing by 5 percent per year, its real domestic output will double in approximately fourteen years.

Correct AnswerverifiedShow Answer

Recently, the changes in the educational attainment of the Canadian labour force indicate that the percentage of those:

Correct AnswerverifiedShow Answer

Between 19 46 - 20 11, the annual Canadian multifactor productivity has increased by about:

Correct AnswerverifiedShow Answer

Economic growth can be portrayed as a(n) :

Correct AnswerverifiedShow Answer

-Refer to the above diagram. Realized economic growth is best represented by a:

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Which is best considered a supply factor for long-run economic growth?

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-Refer to the above diagram. If the production possibilities curve for an economy is at AB but the economy is operating at point 4, the reasons are most likely to be because of:

Correct AnswerverifiedShow Answer

Economic growth is best defined as an increase in:

Correct AnswerverifiedShow Answer

Labour productivity is measured by:

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The average living standards in Canada compared to Africa are much higher because:

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The countries which have begun modern economic growth later than the others can catch up because:

Correct AnswerverifiedShow Answer

Do the recent high technological advances and productivity rates mean that the business cycle is dead?

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A supply factor in economic growth would be:

Correct AnswerverifiedShow Answer

-Refer to the above diagram. If the production possibilities curve of an economy shifts from AB to EF, it is most likely the result of what factor affecting economic growth?

Correct AnswerverifiedShow Answer

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