Question 1

In the periods 1995-2007 and 2007-2015, U.S.real GDP grew at the average annual rates of about

Accepted Answer

A)  3.2 percent and 1.2 percent, respectively.
B)  1.7 percent and 3.8 percent, respectively.
C)  8.7 percent and 6.2 percent, respectively.
D)  6.2 percent and 8.7 percent, respectively.E) All of the above
F) A) and B)

Question 2

Leader countries tend to have higher growth rates than follower countries.

Accepted Answer

A) True 
 B)False

Question 3

Technological advance is tightly intertwined with

Accepted Answer

A)  capital formation.
B)  household consumption.
C)  government spending.
D)  population growth.E) A) and B)
F) A) and C)

Question 4

An economy with an average growth rate of 10 percent can expect to see its real GDP double in approximately 7 years.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following would not be expected to increase labor productivity?

Accepted Answer

A)  technological advance
B)  the acquisition of more education and training by the labor force
C)  an increase in the size of the labor force
D)  the realization of economies of scaleE) A) and B)
F) B) and C)

Question 6

There tends to be a positive correlation between real wages of workers and the productivity of labor in the economy.

Accepted Answer

A) True 
 B)False

Question 7

A nation's real GDP will increase by increasing the following, except

Accepted Answer

A)  number of workers.
B)  labor productivity.
C)  technological progress.
D)  average price level.E) C) and D)
F) B) and D)

Question 8

Real GDP per capita is found by dividing real GDP by the size of the labor force.

Accepted Answer

A) True 
 B)False

Question 9

One hypothesis for declining productivity growth rates since the Great Recession is that individuals and firms have focused more on paying off debt than on making productive investments.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not an explanation put forward to explain the recent productivity slowdown?

Accepted Answer

A)  Consumers and firms are paying down highlevels of debt instead of investing in productive projects.
B)  Overinvestment during the boom that preceded the Great Recession created overcapacity.
C)  Technological progress itself may have stalled, until invention and innovation levels bounce back.
D)  A massive influx of immigrant labor has caused the labor force to expand much faster than real GDP.E) B) and C)
F) C) and D)

Question 11

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) None of the above
F) All of the above

Question 12

Increases in the quantity and quality of human resources.Use the accompanying list to answer the following question.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) B) and D)
F) C) and D)

Question 13

Growth is advantageous to a nation because it

Accepted Answer

A)  promotes faster population growth.
B)  lessens the burden of scarcity.
C)  eliminates the economizing problem.
D)  slows the growth of wants.Topic: Is Growth Desirable and Sustainable?E) C) and D)
F) None of the above

Question 14

Which of the following is best considered a demand factor in economic growth?

Accepted Answer

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

Question 15

Labor productivity in the U.S.in the periods 1973-1995 and 1995-2010 grew at average rates of

Accepted Answer

A)  7.5 percent and 5.2 percent, respectively.
B)  1.5 percent and 2.6 percent, respectively.
C)  3.1 percent and 1.5 percent, respectively.
D)  4.1 percent and 4.3 percent, respectively.E) A) and B)
F) C) and D)

Question 16

Which of the following statements is most accurate about the prospects for poorer ("follower")  countries catching up with richer ("leader")  countries?

Accepted Answer

A)  Catching up is unlikely to occur because their growth rates are the same on average.
B)  Catching up is unlikely to occur because richer countries tend to grow at a faster rate.
C)  Catching up is possible, but only if growth rates in leader countries fall to zero or become negative.
D)  Catching up is possible, as "follower countries" tend to grow faster than "leader countries."E) All of the above
F) B) and C)

Question 17

Because of the recent rise in the average rate of productivity growth, the business cycle is dead.

Accepted Answer

A) True 
 B)False

Question 18

The shift of labor out of agriculture and into industry in the United States has tended to

Accepted Answer

A)  reduce the rate of productivity growth.
B)  increase unemployment in the agriculture sector.
C)  reduce unemployment in the industrial sector.
D)  increase labor productivity.E) A) and D)
F) A) and B)

Question 19

Which of the following is not an argument made by proponents of economic growth?

Accepted Answer

A)  Growth is the basic means of improving living standards.
B)  It is easier to reduce poverty when the economy is growing than when it is not.
C)  There is a direct relationship between a growing real GDP and rising pollution.
D)  Growth provides an economic environment favorable to education and self-fulfillment.E) A) and B)
F) B) and D)

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 28: Economic Growth

One hypothesis for declining productivity growth rates since the Great Recession is that individuals and firms have focused more on paying off debt than on making productive investments.

Correct AnswerverifiedShow Answer

Technological advance is tightly intertwined with

Correct AnswerverifiedShow Answer

In the periods 1995-2007 and 2007-2015, U.S.real GDP grew at the average annual rates of about

Correct AnswerverifiedShow Answer

A nation's real GDP will increase by increasing the following, except

Correct AnswerverifiedShow Answer

Which of the following statements is most accurate about the prospects for poorer ("follower") countries catching up with richer ("leader") countries?

Correct AnswerverifiedShow Answer

Which of the following is not an explanation put forward to explain the recent productivity slowdown?

Correct AnswerverifiedShow Answer

Which of the following is not an argument made by proponents of economic growth?

Correct AnswerverifiedShow Answer

There tends to be a positive correlation between real wages of workers and the productivity of labor in the economy.

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

Leader countries tend to have higher growth rates than follower countries.

Correct AnswerverifiedShow Answer

An economy with an average growth rate of 10 percent can expect to see its real GDP double in approximately 7 years.

Correct AnswerverifiedShow Answer

The shift of labor out of agriculture and into industry in the United States has tended to

Correct AnswerverifiedShow Answer

Increases in the quantity and quality of human resources.Use the accompanying list to answer the following question.As distinct from the supply factors and demand factor of economic growth, the efficiency factor(s) of economic growth is (are)

Correct AnswerverifiedShow Answer

Real GDP per capita is found by dividing real GDP by the size of the labor force.

Correct AnswerverifiedShow Answer

Which of the following is best considered a demand factor in economic growth?

Correct AnswerverifiedShow Answer

Growth is advantageous to a nation because it

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Labor productivity in the U.S.in the periods 1973-1995 and 1995-2010 grew at average rates of

Correct AnswerverifiedShow Answer

Because of the recent rise in the average rate of productivity growth, the business cycle is dead.

Correct AnswerverifiedShow Answer

Which of the following would not be expected to increase labor productivity?

Correct AnswerverifiedShow Answer

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