Chapter 8 example #10136

A nation's infrastructure refers to: A) its ability to realize economies of scale. B) its stock of technological knowledge. C) public capital goods such as highways and sanitation systems. d) the productivity of its labor force.

Labor productivity is measured by: A) the ratio of capital to labor. B) real output per worker hour. C) real output per capita. D) the ratio of worker hours to real GDP.

Growth is advantageous to a nation because it: -promotes faster population growth. -lessens the burden of scarcity. -eliminates the economizing problem. -slows the growth of wants

(Consider This) The Consider This box on patents and innovation demonstrates that: --patent protection for U.S. companies may not be as effective when other countries do not respect or enforce U.S. patent laws. --patent laws are relatively uniform across nations. countries like India have no incentive to enact or enforce patent laws. --follower countries tend to have stronger patent laws than leader countries.

Which of the following statements is most accurate about the prospects for poorer ("follower") countries catching up with richer ("leader") countries? --Catching up is unlikely to occur because their growth rates are the same on average. --Catching up is unlikely to occur because richer countries tend to grow at a faster rate. --Catching up is possible, but only if growth rates in leader countries fall to zero or become negative. --Catching up is possible as "follower countries" tend to grow faster than "leader countries."

Countries that have experienced modern economic growth have also tended to: --adopt feudalistic institutions. --restrict women and minorities from holding certain economic and political positions. --move toward more democratic forms of government. --have less leisure time for sport and artistic activities.

The historical reallocation of labor from agriculture to manufacturing in the United States has: been inflationary. had no effect on the average productivity of labor. increased the average productivity of labor. reduced the average productivity of labor.

All of the following are sources of increasing returns and economies of scale except: network effects. the multiplier effect. learning by doing. simultaneous consumption.

For comparing changes in potential military strength and political preeminence, the most meaningful measure of economic growth would be changes in: total nominal output. total real output. per capita output. per family output.

Critics of economic growth: contend that growth and industrialization reduce pollution. argue that economic growth does not resolve socioeconomic problems such as an unequal distribution of income and wealth. point out that growth results in greater economic security for workers. say that its benefits accrue nearly exclusively to white males.

Given the annual rate of economic growth, the "rule of 70" allows one to: determine the accompanying rate of inflation. calculate the size of the GDP gap. calculate the number of years required for real GDP to double. determine the growth rate of per capita GDP.

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 efficiency factor of economic growth, the demand factor(s) of economic growth is (are): 1 only. 4 only. 1 and 3 only. 3 only.

Skeptics of the 1995-2012 rise in the average rate of productivity growth say that: it is too soon to judge whether the high productivity advances between 1995 and 2012 are long lasting or transitory. the difficulties of the dot.com companies in 2001 will eventually undermine productivity. between 1995 and 2012 the economy moved below its natural rate of unemployment and paid the price in the form of accelerating inflation. the improved growth performance of the U.S. economy between 1995 and 2012 resulted from shrewd monetary policy and not from increases in productivity.

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

(Consider This) Rising wages for women in the United States have increased: the proportion of women working part time compared to working full time. labor costs and thus shifted the nation's production possibilities curve inward. average family size in the United States. the percentage of married women in the workforce.

Other things equal, if a full-employment economy reallocated a substantial quantity of its resources to capital goods, we would expect: present consumption to rise. future consumption to fall. a lower rate of growth of real GDP. labor productivity to rise.

An outward shift of a nation's production possibilities curve: ensures the nation of an increase in real GDP per capita. ensures the nation of an increase in real GDP, but not of real GDP per capita. ensures a nation neither of an increase in real GDP nor of an increase in real GDP per capita. ensures a nation of an increase in both real GDP and real GDP per capita.

(Last Word) It is expected that by 2050, most nations will have decreasing populations. With the likely decline in the labor force and number of hours of work in the economy, what must occur for real GDP to continue to rise? Increasing amounts of natural resources must be brought into production. Labor productivity must grow faster than the drop in work hours. Consumption spending must grow faster than the drop in work hours. Government spending and tax policy must be altered to stimulate sufficient demand.

If the economy's real GDP doubles in 18 years, we can: not say anything about the average annual rate of growth. conclude that its average annual rate of growth is about 5.5 percent. conclude that its average annual rate of growth is about 2.4 percent. conclude that its average annual rate of growth is about 3.9 percent.

Empirical studies suggest that: labor productivity has declined throughout U.S. history. technological advances account for about 40 percent of U.S. productivity growth. the achieving of economies of scale is the most important factor in U.S. economic growth. all U.S. economic growth from between 2001 and 2007 can be attributed to increases in the quantity of labor.

Economies of scale refer to: the idea that proprietorships are less bureaucratic and therefore more efficient than corporations. public investments in highways, schools, utilities, and such. the fact that large producers may be able to use more efficient technologies than smaller producers. the reallocation of labor from less-productive to more-productive uses.

Other things equal, which of the following would decrease the rate of economic growth, as measured by changes in real GDP? An increase in the educational attainment of the labor force. A permanent decrease in frictional unemployment. An increase in the amount of capital per worker. A decrease in the labor force participation rate.

Between 1950 and 2012, U.S. real GDP grew at an average annual rate of about: 2.0 percent. 3.1 percent. 5.1 percent. 8.6 percent.

Increases in the value of a product to each user, including existing users, as the total number of users rises are called: information cascades. learning effects. network effects. scale economies.

Which of the following is correct? Total output = labor productivity/worker-hours. Labor productivity = worker-hours/total output. Total output = worker-hours × labor productivity. Worker-hours = labor productivity × total output.

(Consider This) According to the Consider This box about hypothetical countries Slogo, Sumgo, and Speedo, small differences in __________ make for large differences in _________ over several decades, assuming the same growth of population for each country. inflation rates; unemployment rates unemployment rates; economic growth rates economic growth rates; real GDP per capita tax rates; real GDP per capita

Which of the following statements is most accurate about modern economic growth? Economic historians mark modern economic growth as beginning around A.D. 1500. Modern economic growth is characterized by sustained and ongoing increases in living standards. Modern economic growth has virtually eliminated business cycle fluctuations. Modern economic growth has been distributed more or less equally across nations.

Which of the following is a true statement? Economists who support economic growth say that it is the most practical route to the higher standards of living that the vast majority of people desire. Most economists believe that the recent rise in the average rate of productivity growth implies an end to the business cycle. Most economists believe that increases in real GDP actually produce decreases in overall economic well-being because of spillover costs. Mainstream economists disagree as to whether the rate of productivity growth was higher between 1995 and 2012 or between 1973 and 1995.

Free trade: discourages growth by increasing competitive pressures on domestic firms. encourages growth by effectively eliminating all patent and copyright barriers to growth. discourages growth compared to situations where the government strongly controls foreign trade. encourages growth by promoting the rapid spread of new inventions and innovations.

More than half the growth of real GDP in the United States is caused by: a falling price level. the reallocation of labor from manufacturing to agriculture. increases in the productivity of labor. the use of fewer inputs of labor.

Which of the following is not a supply factor in economic growth? The stock of capital. Technological advance. The size and quality of the labor force. Aggregate expenditures of households, businesses, and government.

(Last Word) The inverse dependency ratio is defined as: the number of people of working age divided by the number of dependents. the number of dependents divided by the number of people of working age. the number of seniors over age 65 divided by the number of youths under age 20. the number of youths under age 20 divided by the number of seniors over age 65.

Suppose that an economy's labor productivity and total worker-hours each grew by 4 percent between year 1 and year 2. We could conclude that this economy's: real GDP also increased by 4 percent. real GDP remained constant. production possibilities curve shifted outward. capital stock increased by 4 percent.

(Consider This) The main point of the Consider This box about hypothetical countries Slogo, Sumgo, and Speedo is that over several decades differing: inflation rates create large differences in real GDP per capita. economic growth rates create large differences in real GDP per capita. ratios of defense spending to GDP create large differences in real GDP per capita. unemployment rates create large differences in real GDP per capita.

What percentage of the U.S. adult population has at least a high school education (as of 2012)? 31 percent. 41 percent. 88 percent. 95 percent.

Which of the following institutional structures is most likely to promote growth? A well-enforced system of patents and copyrights. A tightly regulated market system. A system of tariffs and other trade barriers to protect domestic companies. All of these.