Question 1

Skeptics of the 1995-2012 rise in the average rate of productivity growth say that:

Accepted Answer

A)   it is too soon to judge whether the high productivity advances between 1995 and 2012 are long lasting or transitory.
B)   the difficulties of the dot.com companies in 2001 will eventually undermine productivity.
C)   between 1995 and 2012 the economy moved below its natural rate of unemployment and paid the price in the form of accelerating inflation.
D)   the improved growth performance of the U.S.economy between 1995 and 2012 resulted from shrewd monetary policy and not from increases in productivity.E) A) and D)
F) A) and C)

Question 2

If an economy is currently producing on its production possibilities curve,a rightward shift of the curve is a necessary but not sufficient condition for economic growth.

Accepted Answer

A) True 
 B)False

Question 3

Real GDP per capita:

Accepted Answer

A)   cannot grow more rapidly than real GDP.
B)   cannot grow more slowly than real GDP.
C)   necessarily grows more rapidly than real GDP.
D)   can grow either more slowly or more rapidly than real GDP.E) B) and D)
F) A) and D)

Question 4

(Consider This) The Consider This box on patents and innovation demonstrates that:

Accepted Answer

A)   patent protection for U.S.companies may not be as effective when other countries do not respect or enforce U.S.patent laws.
B)   patent laws are relatively uniform across nations.
C)   countries like India have no incentive to enact or enforce patent laws.
D)   follower countries tend to have stronger patent laws than leader countries.E) A) and C)
F) A) and D)

Question 5

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 demand factor of economic growth,the efficiency factor(s) of economic growth is (are) :

Accepted Answer

A)   1 only.
B)   4 only.
C)   1 and 3 only.
D)   3 only.E) None of the above
F) B) and C) B

Question 6

Between 2011 and 2022,productivity growth is expected to account for about ________ percent of the growth of real GDP in the United States.

Accepted Answer

A)   23
B)   40
C)   75
D)   92E) None of the above
F) A) and C)

Question 7

The economy of 1995-2012 was characterized by greater productivity growth and greater economic growth than in the immediately preceding two decades.

Accepted Answer

A) True 
 B)False

Question 8

Under what circumstances do rates of economic growth understate the growth of economic well-being?

Accepted Answer

A)   Economic growth has occurred because of the increased length of the workweek.
B)   Product quality has improved.
C)   Air quality has declined as real GDP has increased.
D)   Population has grown faster than real output.E) A) and B)
F) None of the above

Question 9

The intense competition of free trade prevents the investment that generates economic growth.

Accepted Answer

A) True 
 B)False

Question 10

Labor productivity = worker-hours/real GDP.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is correct?

Accepted Answer

A)   Total output = labor productivity/worker-hours.
B)   Labor productivity = worker-hours/total output.
C)   Total output = worker-hours × labor productivity.
D)   Worker-hours = labor productivity × total output.E) A) and D)
F) C) and D)

Question 12

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 demand and efficiency factors of economic growth,the supply factors of economic growth are:

Accepted Answer

A)   2,5,and 6 only.
B)   2,4,5,and 6 only.
C)   1,2,5,and 6 only.
D)   1,3,and 4 only.E) B) and C)
F) B) and D) C

Question 13

A competitive market system:

Accepted Answer

A)   encourages growth by allowing producers to make profitable investment decisions based on market signals.
B)   encourages growth by ensuring that everyone in society will receive a decent standard of living.
C)   discourages growth because firms busy competing have no time to innovate or invest.
D)   discourages growth unless government protects domestic firms from foreign competition.E) None of the above
F) A) and B)

Question 14

Which of the following statements is correct?

Accepted Answer

A)   Between 1953 and 2011,all growth in U.S.real GDP can be attributed to increases in labor productivity.
B)   Between 1953 and 2011,increases in labor productivity account for more of the growth in U.S.real GDP than do increases in the quantity of labor.
C)   Between 1953 and 2011,increases in the quantity of labor account for more of the growth in U.S.real GDP than do increases in labor productivity.
D)   Between 1953 and 2011,all growth in U.S.real GDP can be attributed to increases in the quantity of labor.E) All of the above
F) B) and D)

Question 15

Strong economic growth since 1960 has allowed nations like Singapore and Ireland to surpass nations such as the United Kingdom and France in real GDP per capita.

Accepted Answer

A) True 
 B)False

Question 16

All of the following are sources of increasing returns and economies of scale except:

Accepted Answer

A)   network effects.
B)   the multiplier effect.
C)   learning by doing.
D)   simultaneous consumption.E) A) and C)
F) None of the above

Question 17

Proponents of economic growth say that pollution:

Accepted Answer

A)   is an inevitable by-product of growth.
B)   occurs,not because of growth,but because common resources are treated as free goods.
C)   declines as a country moves from agriculture to industry.
D)   is detrimental to economic growth.E) B) and D)
F) A) and B) B

Question 18

Which of the following institutional arrangements is most likely to promote growth?

Accepted Answer

A)   Patents and copyrights that expire quickly and are loosely enforced.
B)   Strong government control over resource allocation decisions.
C)   Unrestricted trade between nations.
D)   All of these.E) All of the above
F) B) and C)

Question 19

Economies of scale refer to:

Accepted Answer

A)   the idea that proprietorships are less bureaucratic and therefore more efficient than corporations.
B)   public investments in highways,schools,utilities,and such.
C)   the fact that large producers may be able to use more efficient technologies than smaller producers.
D)   the reallocation of labor from less-productive to more-productive uses.E) B) and C)
F) None of the above

Question 20

All of the following are economic implications of the 1995-2012 rise in the average rate of productivity growth except:

Accepted Answer

A)   a lower natural rate of unemployment.
B)   larger outward shifts of the economy's production possibilities curve.
C)   an end to the business cycle.
D)   a greater rate of economic growth.E) A) and B)
F) All of the above

Exam 27: Economic Growth

Skeptics of the 1995-2012 rise in the average rate of productivity growth say that:

Correct Answer
verified

If an economy is currently producing on its production possibilities curve,a rightward shift of the curve is a necessary but not sufficient condition for economic growth.

Correct Answer
verified

Real GDP per capita:

Correct Answer
verified

(Consider This) The Consider This box on patents and innovation demonstrates that:

Correct Answer
verified

Correct Answer
verified
B

Between 2011 and 2022,productivity growth is expected to account for about ________ percent of the growth of real GDP in the United States.

Correct Answer
verified

The economy of 1995-2012 was characterized by greater productivity growth and greater economic growth than in the immediately preceding two decades.

Correct Answer
verified

Under what circumstances do rates of economic growth understate the growth of economic well-being?

Correct Answer
verified

The intense competition of free trade prevents the investment that generates economic growth.

Correct Answer
verified

Labor productivity = worker-hours/real GDP.

Correct Answer
verified

Which of the following is correct?

Correct Answer
verified

Correct Answer
verified
C

A competitive market system:

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

Strong economic growth since 1960 has allowed nations like Singapore and Ireland to surpass nations such as the United Kingdom and France in real GDP per capita.

Correct Answer
verified

All of the following are sources of increasing returns and economies of scale except:

Correct Answer
verified

Proponents of economic growth say that pollution:

Correct Answer
verified
B

Which of the following institutional arrangements is most likely to promote growth?

Correct Answer
verified

Economies of scale refer to:

Correct Answer
verified

All of the following are economic implications of the 1995-2012 rise in the average rate of productivity growth except:

Correct Answer
verified

Exam 27: Economic Growth

Skeptics of the 1995-2012 rise in the average rate of productivity growth say that:

Correct AnswerverifiedShow Answer

If an economy is currently producing on its production possibilities curve,a rightward shift of the curve is a necessary but not sufficient condition for economic growth.

Correct AnswerverifiedShow Answer

Real GDP per capita:

Correct AnswerverifiedShow Answer

(Consider This) The Consider This box on patents and innovation demonstrates that:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedB

Between 2011 and 2022,productivity growth is expected to account for about ________ percent of the growth of real GDP in the United States.

Correct AnswerverifiedShow Answer

The economy of 1995-2012 was characterized by greater productivity growth and greater economic growth than in the immediately preceding two decades.

Correct AnswerverifiedShow Answer

Under what circumstances do rates of economic growth understate the growth of economic well-being?

Correct AnswerverifiedShow Answer

The intense competition of free trade prevents the investment that generates economic growth.

Correct AnswerverifiedShow Answer

Labor productivity = worker-hours/real GDP.

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedC

A competitive market system:

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Strong economic growth since 1960 has allowed nations like Singapore and Ireland to surpass nations such as the United Kingdom and France in real GDP per capita.

Correct AnswerverifiedShow Answer

All of the following are sources of increasing returns and economies of scale except:

Correct AnswerverifiedShow Answer

Proponents of economic growth say that pollution:

Correct AnswerverifiedB

Which of the following institutional arrangements is most likely to promote growth?

Correct AnswerverifiedShow Answer

Economies of scale refer to:

Correct AnswerverifiedShow Answer

All of the following are economic implications of the 1995-2012 rise in the average rate of productivity growth except:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified