Macro Quiz 2

4 March 2023
4.9 (153 reviews)
27 test answers

Unlock all answers in this set

Unlock answers (23)
question
What two factors are the keys to determining labor‚Äč productivity?
answer
technology and the quantity of capital per hour worked.
question
Which of the following describes the growth in real GDP per person in the United States from 1900 to the‚Äč present?
answer
It has increased by more than eight times.
question
If Ebenezer Scrooge spends rather than saves his vast wealth he will
answer
slow economic growth because he is reducing the amount of funds available for investment.
question
Public saving in the economy can be increased by
answer
raising taxes.
question
Inflation tends to‚Äč ________ during the expansion phase of the business cycle and‚Äč ________ during the recession phase of the business cycle.
answer
increase; decrease
question
Significant economic growth did not begin in the world until
answer
1750 AD
question
Which of the following is not one of the three sources of technological‚Äč change?
answer
additional amounts of existing capital
question
Which of the following accurately describes growth rates in the United States from 1900 to the‚Äč present?
answer
Growth rates rose until the‚Äč 1970s, slowed until the‚Äč 1990s, rose again until‚Äč 2005, and then slowed again to the present.
question
Which of the following is an example of foreign portfolio‚Äč investment?
answer
the purchase of a U.S. Treasury bond by a German citizen
question
Which of the following is a normative statement about economic‚Äč growth?
answer
Economic growth hurts developing countries.
question
Which of the following is an example of human‚Äč capital?
answer
a college education
question
The rule of 70 states that
answer
the number of years it takes an economy to double in size is 70 divided by the growth rate.
question
Refer to the diagram to the right. Which of the following is consistent with the‚Äč diagram?
Refer to the diagram to the right. Which of the following is consistent with the‚Äč diagram?
answer
.New government regulations decrease the profitability of new investment.
question
The federal budget deficit can be reduced by
answer
raising taxes.
question
During the recession phase of the business‚Äč cycle,
answer
interest rates are usually falling.
question
The key factors in raising standards of living in lowminus‚ąíincome countries have been increases in
answer
technology and knowledge.
question
If there is a change in the ability of a firm to produce a given level of output with a given level of‚Äč inputs, we say there is
answer
technological change.
question
Which of the following countries actually experienced negative economic growth from 1960 to‚Äč 2011?
answer
Niger
question
Which of the following policies is designed specifically to directly promote technological change in an‚Äč economy?
answer
government subsidization of research and development.
question
Countries with high rates of economic growth tend to have
answer
a labor force that is more productive.
question
Potential GDP in the United States
answer
grows as the economy grows.
question
In a closed‚Äč economy, public saving plus private saving is equal to
answer
investment.
question
When the economy reaches a trough in a business‚Äč cycle, which of the following will‚Äč occur?
answer
Income, production, and employment will begin to rise.
question
Increasing growth rates of GDP per capita and sustaining these growth rates in an economy can
answer
increase standards of living.
question
Which of the following government policies would most likely to result in an increase in economic‚Äč growth?
answer
a decrease in the interest rate at which the government provides student loans.
question
The economic growth model predicts that
answer
the level of real GDP per capita in poor countries will grow faster than in rich countries.
question
Corruption
answer
curtails economic growth.