Question 1

The productivity curve shifted more in the period between 1975 and 1995 than it did in the period between 1955 and 1975.

Accepted Answer

A) True 
 B)False  False

Question 2

A cell phone is an example of a good that is

Accepted Answer

A) rivalrous and excludable. 
B) nonrivalrous and excludable. 
C) rivalrous and nonexcludable. 
D) nonrivalrous and nonexcludable. 
E) neither rivalrous nor nonrivalrous. 
A) rivalrous and excludable. 
B) nonrivalrous and excludable. 
C) rivalrous and nonexcludable. 
D) nonrivalrous and nonexcludable. 
E) neither rivalrous nor nonrivalrous. A

Question 3

Explain how each of the following can be thought of as technological change, or if it cannot be thought of as technological change, explain why not.

Accepted Answer

The answer of Explain how each of the following can...

Question 4

According to economist Daron Acemoglu, human capital is a proximate cause of economic growth.

Accepted Answer

A) True 
 B)False

Question 5

If the capital stock increases, holding constant labor and technology, output will rise by only a fraction of that amount.

Accepted Answer

A) True 
 B)False

Question 6

Productivity is defined as

Accepted Answer

A) output per person. 
B) output per unit of capital. 
C) output per unit of technology. 
D) output per hour of work. 
E) output per unit of full-time employment. 
A) output per person. 
B) output per unit of capital. 
C) output per unit of technology. 
D) output per hour of work. 
E) output per unit of full-time employment.

Question 7

In terms of encouraging technological innovation, the government should intervene to encourage growth if the market is not providing the right incentives and there is little risk of government failure.

Accepted Answer

A) True 
 B)False

Question 8

The rationale for developing a model in which real GDP depends only on labor is

Accepted Answer

A) to prove that productivity growth was higher before the Industrial Revolution. 
B) to prove that capital and technology play a key role in productivity growth. 
C) to prove that productivity growth can occur without capital. 
D) to prove that productivity growth can occur without technology. 
E) to prove that labor is a key source of productivity growth. 
A) to prove that productivity growth was higher before the Industrial Revolution. 
B) to prove that capital and technology play a key role in productivity growth. 
C) to prove that productivity growth can occur without capital. 
D) to prove that productivity growth can occur without technology. 
E) to prove that labor is a key source of productivity growth.

Question 9

The flattening out of the production function is likely to occur

Accepted Answer

A) only in a model without capital or technology. 
B) in any model where there are fixed factors. 
C) only in a model without labor. 
D) only in a model without technology. 
E) only in a model with labor, capital, and technology. 
A) only in a model without capital or technology. 
B) in any model where there are fixed factors. 
C) only in a model without labor. 
D) only in a model without technology. 
E) only in a model with labor, capital, and technology.

Question 10

What makes technology distinct from other commodities?

Accepted Answer

Technology exhibits nonrivalry, which me

Question 11

Innovations apply only to new types of capital.

Accepted Answer

A) True 
 B)False

Question 12

Explain why the contribution of capital per hour worked to the growth rate of real GDP is multiplied by one-third in the growth accounting formula.

Accepted Answer

According to the text, there are two rea

Question 13

How does the theory of economic growth change when capital is added as a factor of production?

Accepted Answer

The major difference

Question 14

Diminishing returns to labor exists

Accepted Answer

A) in any economy. 
B) only in an economy where most of the output comes from the agricultural sector. 
C) only in an economy with no technological growth. 
D) only in a pre-Industrial Revolution economy. 
E) only in an economy with no capital and technology. 
A) in any economy. 
B) only in an economy where most of the output comes from the agricultural sector. 
C) only in an economy with no technological growth. 
D) only in a pre-Industrial Revolution economy. 
E) only in an economy with no capital and technology.

Question 15

Anything that causes the productivity curve to shift is classified as technological change.

Accepted Answer

A) True 
 B)False

Question 16

The U.S. educational system is falling behind other countries, especially in mathematics and science in grades K through 12.

Accepted Answer

A) True 
 B)False

Question 17

High corruption and a lack of copyright protection help capital accumulation and economic growth.

Accepted Answer

A) True 
 B)False

Question 18

The effect of an increase in capital per hour of work on productivity is best described as an upward shift of the productivity curve.

Accepted Answer

A) True 
 B)False

Question 19

According to Edward Lazear, chair of the President's Council of Economic Advisers, productivity growth is most important because

Accepted Answer

A) higher productivity growth means that companies can pay higher wages. 
B) higher productivity growth means that technology will replace most unwanted workers. 
C) this is the only way to combat the current globalization trend. 
D) All of the above 
E) None of the above 
A) higher productivity growth means that companies can pay higher wages. 
B) higher productivity growth means that technology will replace most unwanted workers. 
C) this is the only way to combat the current globalization trend. 
D) All of the above 
E) None of the above

Question 20

Which of the following is a reason why the coefficient corresponding to the growth rate of capital per hour of work is one-third in Solow's growth accounting formula?

Accepted Answer

A) Capital income plus depreciation is approximately one-third of aggregate income. 
B) Capital income plus depreciation is approximately three times the amount of aggregate income. 
C) The amount of capital in use is approximately one-third of GDP. 
D) The amount of capital in use is approximately three times the level of GDP. 
E) Capital is one of the three factors of production. 
A) Capital income plus depreciation is approximately one-third of aggregate income. 
B) Capital income plus depreciation is approximately three times the amount of aggregate income. 
C) The amount of capital in use is approximately one-third of GDP. 
D) The amount of capital in use is approximately three times the level of GDP. 
E) Capital is one of the three factors of production.

Exam 21: Productivity and Economic Growth

The productivity curve shifted more in the period between 1975 and 1995 than it did in the period between 1955 and 1975.

A cell phone is an example of a good that is

Explain how each of the following can be thought of as technological change, or if it cannot be thought of as technological change, explain why not.

According to economist Daron Acemoglu, human capital is a proximate cause of economic growth.

If the capital stock increases, holding constant labor and technology, output will rise by only a fraction of that amount.

Productivity is defined as

In terms of encouraging technological innovation, the government should intervene to encourage growth if the market is not providing the right incentives and there is little risk of government failure.

The rationale for developing a model in which real GDP depends only on labor is

The flattening out of the production function is likely to occur

What makes technology distinct from other commodities?

Innovations apply only to new types of capital.

Explain why the contribution of capital per hour worked to the growth rate of real GDP is multiplied by one-third in the growth accounting formula.

How does the theory of economic growth change when capital is added as a factor of production?

Diminishing returns to labor exists

Anything that causes the productivity curve to shift is classified as technological change.

The U.S. educational system is falling behind other countries, especially in mathematics and science in grades K through 12.

High corruption and a lack of copyright protection help capital accumulation and economic growth.

The effect of an increase in capital per hour of work on productivity is best described as an upward shift of the productivity curve.

According to Edward Lazear, chair of the President's Council of Economic Advisers, productivity growth is most important because

Which of the following is a reason why the coefficient corresponding to the growth rate of capital per hour of work is one-third in Solow's growth accounting formula?

The Central Idea

Observing and Explaining the Economy

The Supply and Demand Model

Subtleties of the Supply and Demand Model

The Demand Curve and the Behavior of Consumers

The Supply Curve and the Behavior of Firms

The Efficiency of Markets

Costs and the Changes at Firms Over Time

The Rise and Fall of Industries

Monopoly

Product Differentiation, Monopolistic Competition, and Oligopoly

Antitrust Policy and Regulation

Labor Markets

Taxes, Transfers, and Income Distribution

Public Goods, Externalities, and Government Behavior

Capital and Financial Markets

Macroeconomics: the Big Picture

Measuring the Production, Income, and Spending of Nations

The Spending Allocation Model

Unemployment and Employment

Money and Inflation

The Nature and Causes of Economic Fluctuations

The Economic Fluctuations Model

Using the Economic Fluctuations Model

Fiscal Policy

Monetary Policy

Economic Growth Around the World

International Trade

International Finance

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