Which of the following factors contribute to economic growth?
answer
a - a decrease in the quantity of labor due to emigration
b - a decrease in the productivity of labor
c - the discovery of new oil reserves
d - a decline in the stock of physical capital
Correct Answer: C
question
Assuming a country's economy maintains an 8% rate of growth, young adults starting at age 20 would see the average standard of living in their country more than double by the time they had reached age __________.
answer
a - 30
b - 40
c - 50
d - 60
Correct Answer: A
question
Which of the government policies below is most unlikely to encourage per capita economic growth?
answer
a - high taxes on companies that spend a lot on capital formation
b - the use of tax revenues for investment and capital formation
c - special subsidies for capital-intensive forms of production
d - promotion of education and training programs for workers
Correct Answer: A
question
In certain African countries like Niger, Tanzania, Nigeria, and Sudan, for example, GDP per capita at the start of the 2000s was still less than $___________.
answer
a - 30
b - 300
c - 3000
d - 30,000
Correct Answer: B
question
Since the late 1950s, economists have performed "growth accounting" studies in the United States. These have determined that ________________ is typically the most important contributor to U.S. economic growth.
answer
a - human capital
b - physical capital
c - technology
d - a market orientation
Correct Answer: C
question
A nation can achieve higher economic growth if:
answer
A. it devotes more resources to research and development.
B. the productivity of labor declines
C. taxes are imposed on investment in capital.
D. more resources are allocated to consumption goods.
Correct Answer: A
question
Two countries - Country One and Country Two initially have the same real GDP per capita. Country One experiences no economic growth, while Country Two grows at a sustained rate of 5 percent. IN 14 years, Country One's GDP will be approximately ___________ that of Country Two.
answer
a - one-fourth
b - one-half
c - double
d - triple
Correct Answer: One-half
question
Some recent economic research has suggested that African countries' economic growth may have been limited by __________.
answer
a - Population
b - Geography and climate
c - government interventionism
d - technological challenges
Correct Answer: B
question
A country will roughly double its GDP in twenty years if its annual growth rate is:
answer
a - 12 percent
b - 7.6 percent
c - 3.6 percent
d - 2.6 percent
Correct Answer: C
question
In macroeconomics, the connection from inputs to outputs for the entire economy is called _______________.
answer
a - a production function
b - an aggregate production function
c - human capital
d - physical capital
Correct Answer: B
question
To achieve a high standard of living, a nation should:
answer
a - increase the tax deduction for child dependents.
b - promote economic growth.
c - use less capital and more labor in the production process.
d - increase welfare payments to the poor.
Correct Answer: B
question
Which of the following did not result in economic growth?
answer
a - Installing a network of irrigation ditches and pumping stations in order to grow fruits and vegetables in parts of southern California.
b - The invention of a threshing machine for harvesting grains.
c - Increased government funding of post-secondary education.
d - Many citizens emigrating from Zimbabwe when a politically repressive regime took office.
Correct Answer: D
question
Which of the following is unlikely to affect the rate of economic growth ?
answer
a - the quality of available resources
b - the quantity of available resources
c - the level of government spending
d - technological change
Correct Answer: C
question
Country A-Land and Country Z-Land initially have the same real GDP per capita. Country A-Land experiences no economic growth, while Country Z-land grows at a sustained rate of 7 percent. In 12 years, Country Z-land's GDP will be approximately _________ that of Country A-land.
answer
a - triple
b - double
c - one-half
d - one-fourth
Correct Answer: B
question
The value of what is produced per worker, or per hour worked, is called __________.
answer
a - economic growth
b - human capital
c - productivity
d - GDP per capita
Correct Answer: C
question
______________ is output per hour in the business sector.
answer
a - Net exports
b - Productivity
c - Investment
d - GDP per capita
Correct Answer: B
question
Refer to Exhibit 17-2. Assume that the starting point is always point 1. Which of the production function graphs shown, (a) or (b), represents an increase in the quantity of labor, and which represents an increase in the technology coefficient, respectively?
answer
a - (a); (b)
b - (b); (a)
c - (a); (a)
d - (b); (b)
Correct Answer: A
question
Human Capital represents
answer
accumulated skills and knowledge of labor acquired through education and training.
question
Increased use of large tractors and combines in farming is an example of
answer
Capita deepening
question
Productivity is a a measure of
answer
Real output per unit of input
question
Rights of individuals and firms to own property and use it as they see fit.
answer
Property rights
question
A $500 billion economy grew at 2.5%/year for 10 years.
answer
Low-income countries
question
Apple's use of various patented technologies to create and improve the iPhone
answer
Innovation
question
The life indicator for coffins patented by John Krichbaum in 1882 to save a person accidentally buried alive.
answer
Invention
question
The Law of Diminishing Returns
answer
After a certain point, increasing human and physical capital (capital deepening) yields successively lower level of additional output
question
Higher GDP per capita leads to
answer
Improvement in standard of living
question
Advancement in Technology
answer
Can help offset the diminishing returns associated with human and physical capita deepening.
question
Which of the following is correct?
answer
a - An increase in the quantity of labor always leads to economic growth.
b - Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital.
c - A decrease in the productivity of labor leads to economic growth.
d - Third World countries are rich in human capital.
Correct Answer: B
question
When society has a higer level of capital per person, it is called _________.
answer
a - Physical Capital
b - Human Capital
c - Capital Deepening
d - Technological gains
Correct Answer: C
question
In the long run, the most important source of increase in a nation's standard of living is a:
answer
a - zero rate of population growth
b - high rate of economic growth
c - high rate of consumption
d - high rate of labor force growth
Correct Answer: B
question
Which of the following factors contribute to economic growth?
answer
a - an increase in the average wage rate paid to workers.
b - an increase in the standard of living.
c - a decrease in the productivity of labor.
d - an increase in the proportion of the population that is college educated.
Correct Answer: D
question
Increased investment alone will guarantee economic growth.
answer
a - This is a true statement, because growth occurs only with savings.
b - This is a true statement, because money is the only resource needed for growth.
c - This is a false statement, because an economy must rely on capital injections from abroad.
d - This is a false statement, because economic growth hinges on the quality and type of investment as well as the human capital and improvements in technology.
Correct Answer: D
question
A nations prosperity and the standard of living of its citizens are best measured in terms of _________.
answer
a - GNP
b - GDP
c - GDP per capita
d - economic output
Correct Answer: C
question
Economists typically measure economic growth by tracking:
answer
a - the employment rate
b - the unemployment rate
c - averaged GNP growth
d - real GDP per capita
Correct Answer: D
question
Investment in human capital:
answer
a - is of minor importance to economic growth.
b - can be acquired through on-the-job training.
c - is a major source of economic fluctuations.
d - is characterized by both on-the-job training and economic growth.
Correct Answer:
Haven't found what you need?
Search for quizzes and test answers now
Quizzes.studymoose.com uses cookies. By continuing you agree to our cookie policy
