Question 1

By how many times was the richest area in the world richer than the poorest area in the world in 1820?

Accepted Answer

A)  3
B)  2
C)  5
D)  10E) A) and B)
F) A) and C)

Question 2

Which of the following would be a source of economies of scale?

Accepted Answer

A)  the social environment
B)  the quantity of labour
C)  decreasing returns
D)  more specialized inputsE) B) and D)
F) B) and C)

Question 3

Real GDP or total output in any year is equal to:

Accepted Answer

A)  labour inputs divided by resource outputs.
B)  labour productivity multiplied by real output.
C)  worker-hours multiplied by labour productivity.
D)  worker-hours divided by labour productivity.E) All of the above
F) B) and C)

Question 4

Which of the following is an effect of economic growth on the production possibilities curve?

Accepted Answer

A)  An outward shift of the curve
B)  A downward movement along the curve
C)  An upward movement along the curve
D)  An inward shift of the curveE) All of the above
F) B) and D)

Question 5

Economic well-being in Canada is understated by growth rates because they:

Accepted Answer

A)  account for pollution expenditures.
B)  account for improvement in products.
C)  account for illegal activity.
D)  don't account for the added leisure of labour.E) A) and B)
F) A) and C)

Question 6

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 allocation.E) A) and C)
F) B) and C)

Question 7

What economic concept would be most closely associated with a situation where an aluminum plant uses extensive computerization on the production line to reduce per-unit costs of production?

Accepted Answer

A)  infrastructure
B)  human capital
C)  network effects
D)  economies of scaleE) B) and D)
F) C) and D)

Question 8

The most important contributor to increases in the productivity of Canadian labour is:

Accepted Answer

A)  the reallocation of labour from agriculture to manufacturing.
B)  improvements in labour quality.
C)  increases in the quantity of capital.
D)  technological advance.E) A) and C)
F) All of the above

Question 9

Refer to the above diagram.If the production possibilities curve of an economy shifts from AB to CD, 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) B) and C)
F) A) and B)

Question 10

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) A) and D)
F) None of the above

Question 11

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) None of the above

Question 12

Economic growth lessens the burden of scarcity and provides increases in domestic output which can be used to alleviate national economic problems.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following has made the largest contribution to the growth of labour productivity in Canada?

Accepted Answer

A)  technological advance
B)  education and training of labour
C)  economies of scale
D)  improved resource allocationE) A) and C)
F) A) and B)

Question 14

An anti-growth view would be that there may be a significant trade-off between productivity and:

Accepted Answer

A)  education.
B)  employment.
C)  economies of scale.
D)  the quality of life.E) C) and D)
F) All of the above

Question 15

If a nation's real GDP is growing by 3 percent per year, its real domestic output will double in approximately:

Accepted Answer

A)  21 years.
B)  23 years.
C)  29 years.
D)  42 years.E) B) and D)
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 utilities.
D)  the productivity of its labour force.E) A) and D)
F) A) and B)

Question 17

During 1945-2016, the labour force in Canada has increased by about:

Accepted Answer

A)  13.5 million workers.
B)  18 million workers.
C)  4.5 million workers.
D)  15.5 million workers.E) All of the above
F) A) and D)

Question 18

The slowdown of a nation's rate of productivity growth may:

Accepted Answer

A)  slow the growth of its standard of living.
B)  contribute to deflation.
C)  make its industries more competitive in world markets.
D)  reduce real wages.E) None of the above
F) B) and C)

Question 19

Which is best considered an efficiency factor in economic growth?

Accepted Answer

A)  the quantity of human resources
B)  the quality of human resources
C)  the quantity of natural resources
D)  the full employment of resourcesE) A) and D)
F) B) and C)

Question 20

Economies of scale are increases in per-unit cost that result in a decrease in the size of markets and firms.

Accepted Answer

A) True 
 B)False

Exam 8: Part B: Economic Growth

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

Correct AnswerverifiedShow Answer

What economic concept would be most closely associated with a situation where an aluminum plant uses extensive computerization on the production line to reduce per-unit costs of production?

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A supply factor in economic growth would be:

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An anti-growth view would be that there may be a significant trade-off between productivity and:

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Economic growth lessens the burden of scarcity and provides increases in domestic output which can be used to alleviate national economic problems.

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

Economies of scale are increases in per-unit cost that result in a decrease in the size of markets and firms.

Correct AnswerverifiedShow Answer

Which of the following has made the largest contribution to the growth of labour productivity in Canada?

Correct AnswerverifiedShow Answer

A nation's "infrastructure" refers to:

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If a nation's real GDP is growing by 3 percent per year, its real domestic output will double in approximately:

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By how many times was the richest area in the world richer than the poorest area in the world in 1820?

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The most important contributor to increases in the productivity of Canadian labour is:

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Economic well-being in Canada is understated by growth rates because they:

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Real GDP or total output in any year is equal to:

Correct AnswerverifiedShow Answer

The slowdown of a nation's rate of productivity growth may:

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Which of the following is an effect of economic growth on the production possibilities curve?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following would be a source of economies of scale?

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Which is best considered an efficiency factor in economic growth?

Correct AnswerverifiedShow Answer

During 1945-2016, the labour force in Canada has increased by about:

Correct AnswerverifiedShow Answer

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