Question 1

Higher future living standards require:

Accepted Answer

A)  reduced rates of current consumption.
B)  increased rates of population growth.
C)  increased rates of current consumption.
D)  reduced rates of current investment.E) B) and D)
F) A) and C)

Question 2

Real GDP per person in Richland is $20,000,while real GDP per person in Poorland is $10,000.However,Richland's real GDP per person is growing at 1 percent per year,and Poorland's real GDP per person is growing at 2 percent per year.After 50 years,real GDP per person in Richland minus real GDP in Poorland is:

Accepted Answer

A)  positive and greater than $10,000.
B)  positive but less than $10,000.
C)  zero.
D)  negative.E) All of the above
F) C) and D)

Question 3

An example of a government policy to increase human capital formation is:

Accepted Answer

A)  the construction of an interstate highway system.
B)  the provision of publicly-funded education.
C)  government support for basic research.
D)  maintaining a well-functioning legal system.E) A) and D)
F) A) and C)

Question 4

An example of a government policy to increase physical capital formation is:

Accepted Answer

A)  the construction of an interstate highway system.
B)  government support for basic research.
C)  maintaining a well-functioning legal system.
D)  the provision of publicly-funded education.E) A) and D)
F) All of the above

Question 5

Compound interest is:

Accepted Answer

A)  the payment of interest on the original deposit.
B)  the interest rate adjusted for the rate of inflation.
C)  the real rate of interest compounded by the rate of inflation.
D)  the payment of interest on the original deposit as well as all accumulated interest.E) None of the above
F) C) and D)

Question 6

Entrepreneurs are people who:

Accepted Answer

A)  engage exclusively in business travel.
B)  entertain the workers.
C)  run businesses on a day-to-day basis.
D)  create new economic enterprises.E) B) and D)
F) A) and B) D

Question 7

Which of the following is an example of an investment in human capital?

Accepted Answer

A)  A firm replaces manually controlled production with a computer controlled procedure.
B)  A firm pays for workers to take college classes.
C)  A chemical firm supports research to develop new chemicals.
D)  A firm purchases new equipment for a manufacturing process.E) All of the above
F) None of the above B

Question 8

In the long run,increases in output per person arise primarily from:

Accepted Answer

A)  increases in female labor force participation.
B)  increases in male labor force participation.
C)  an increasing proportion of the population retiring.
D)  increases in average labor productivity.E) A) and B)
F) A) and C)

Question 9

Mike and Tom debone chicken breasts for Ted's Chicken Co.Mike is new and can only debone 30 chicken breasts per hour by hand,while Tom's experience allows him to debone 60 chicken breasts per hour by hand.Ted buys one new machine that can debone 100 chicken breasts per hour.Both Mike and Tom work the same 40 hours per week,but one of them is assigned to operate the machine instead of deboning the chicken breasts by hand.To obtain maximum average hourly productivity,______ is assigned to use the machine and their combined average hourly productivity as a team is ______ chicken breasts

Accepted Answer

A)  Mike;65
B)  Mike;80
C)  Tom;65
D)  Tom;80E) None of the above
F) All of the above

Question 10

Empirical studies indicate that the maximum amount of air pollution occurs ______ levels of real GDP per person.

Accepted Answer

A)  at the highest
B)  at the lowest
C)  at "middle-income"
D)  equally at allE) B) and C)
F) B) and D)

Question 11

To increase future living standards by pursuing higher current rates of investment spending,an economy must:

Accepted Answer

A)  allow higher rates of current consumption.
B)  reduce current rates of consumption spending.
C)  reduce the current capital stock.
D)  decrease the amount of future research and development spending.E) A) and B)
F) A) and C)

Question 12

In order to increase the capital stock,society must divert ______ that could be otherwise used to increase the supply of _____.

Accepted Answer

A)  money;consumer goods
B)  credit;labor
C)  money;labor
D)  resources;consumer goodsE) B) and C)
F) B) and D)

Question 13

A government policy of providing job training for unskilled youths is an example of a policy to promote economic growth by:

Accepted Answer

A)  increasing human capital.
B)  increasing physical capital.
C)  improving technology.
D)  increasing the availability of natural resources.E) C) and D)
F) A) and D)

Question 14

Physical capital is:

Accepted Answer

A)  the factories and machinery used to produce other goods and services.
B)  the talents,training,and education of workers.
C)  the financial resources available for investment.
D)  the physical labor of workers.E) B) and D)
F) A) and D)

Question 15

Real GDP per person equals average labor productivity:

Accepted Answer

A)  times one minus the unemployment rate.
B)  minus the share of population employed.
C)  times the labor force participation rate.
D)  times the share of population employed.E) C) and D)
F) None of the above

Question 16

Empirical studies suggest that as real GDP per person increases the level of pollution:

Accepted Answer

A)  increases.
B)  decreases.
C)  remains constant.
D)  first increases then decreases.E) B) and D)
F) A) and D)

Question 17

If the share of population employed in two countries is the same,average living standards will be higher in the country with:

Accepted Answer

A)  the smaller population.
B)  the larger population.
C)  higher average labor productivity.
D)  lower average labor productivity.E) A) and C)
F) A) and D)

Question 18

A government policy of providing free public education is an example of a policy to promote economic growth by:

Accepted Answer

A)  increasing human capital.
B)  increasing physical capital.
C)  improving technology.
D)  increasing the availability of natural resources.E) None of the above
F) A) and D)

Question 19

Suppose when you are 21 years old,you deposit $1,000 into a bank account that pays annual compound interest,and you do not withdraw from the account until your retirement at the age of 65,44 years later.How much more will be in your account if the interest rate is 6 percent rather than 5 percent?

Accepted Answer

A)  $440
B)  $1,549
C)  $4,428
D)  $8,557E) B) and D)
F) A) and D)

Question 20

The introduction of new technologies to production is ______ source of productivity improvement.

Accepted Answer

A)  the most important
B)  the only
C)  the least important
D)  no longer aE) A) and D)
F) A) and C) A

Exam 18: Economic Growth

Higher future living standards require:

Correct Answer
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Correct Answer
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An example of a government policy to increase human capital formation is:

Correct Answer
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An example of a government policy to increase physical capital formation is:

Correct Answer
verified

Compound interest is:

Correct Answer
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Entrepreneurs are people who:

Correct Answer
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D

Which of the following is an example of an investment in human capital?

Correct Answer
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B

In the long run,increases in output per person arise primarily from:

Correct Answer
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Correct Answer
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Empirical studies indicate that the maximum amount of air pollution occurs ______ levels of real GDP per person.

Correct Answer
verified

To increase future living standards by pursuing higher current rates of investment spending,an economy must:

Correct Answer
verified

In order to increase the capital stock,society must divert __ that could be otherwise used to increase the supply of _.

Correct Answer
verified

A government policy of providing job training for unskilled youths is an example of a policy to promote economic growth by:

Correct Answer
verified

Physical capital is:

Correct Answer
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Real GDP per person equals average labor productivity:

Correct Answer
verified

Empirical studies suggest that as real GDP per person increases the level of pollution:

Correct Answer
verified

If the share of population employed in two countries is the same,average living standards will be higher in the country with:

Correct Answer
verified

A government policy of providing free public education is an example of a policy to promote economic growth by:

Correct Answer
verified

Suppose when you are 21 years old,you deposit $1,000 into a bank account that pays annual compound interest,and you do not withdraw from the account until your retirement at the age of 65,44 years later.How much more will be in your account if the interest rate is 6 percent rather than 5 percent?

Correct Answer
verified

The introduction of new technologies to production is ______ source of productivity improvement.

Correct Answer
verified
A

Exam 18: Economic Growth

Higher future living standards require:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An example of a government policy to increase human capital formation is:

Correct AnswerverifiedShow Answer

An example of a government policy to increase physical capital formation is:

Correct AnswerverifiedShow Answer

Compound interest is:

Correct AnswerverifiedShow Answer

Entrepreneurs are people who:

Correct AnswerverifiedD

Which of the following is an example of an investment in human capital?

Correct AnswerverifiedB

In the long run,increases in output per person arise primarily from:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Empirical studies indicate that the maximum amount of air pollution occurs ______ levels of real GDP per person.

Correct AnswerverifiedShow Answer

To increase future living standards by pursuing higher current rates of investment spending,an economy must:

Correct AnswerverifiedShow Answer

In order to increase the capital stock,society must divert ______ that could be otherwise used to increase the supply of _____.

Correct AnswerverifiedShow Answer

A government policy of providing job training for unskilled youths is an example of a policy to promote economic growth by:

Correct AnswerverifiedShow Answer

Physical capital is:

Correct AnswerverifiedShow Answer

Real GDP per person equals average labor productivity:

Correct AnswerverifiedShow Answer

Empirical studies suggest that as real GDP per person increases the level of pollution:

Correct AnswerverifiedShow Answer

If the share of population employed in two countries is the same,average living standards will be higher in the country with:

Correct AnswerverifiedShow Answer

A government policy of providing free public education is an example of a policy to promote economic growth by:

Correct AnswerverifiedShow Answer

Suppose when you are 21 years old,you deposit $1,000 into a bank account that pays annual compound interest,and you do not withdraw from the account until your retirement at the age of 65,44 years later.How much more will be in your account if the interest rate is 6 percent rather than 5 percent?

Correct AnswerverifiedShow Answer

The introduction of new technologies to production is ______ source of productivity improvement.

Correct AnswerverifiedA

Correct Answer
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D

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B

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In order to increase the capital stock,society must divert __ that could be otherwise used to increase the supply of _.

Correct Answer
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A