Question 1

Give some possible explanations of the productivity slowdown in the United States that occurred in the 1973-1995 period.

Accepted Answer

Several possible explanations have been offered for the slowdown in labor productivity that hit the United States in 1973.One of the most common explanations is the increasing price of energy caused by the OPEC policies of the 1970s.However,this explanation has some flaws since energy prices fell in the 1980s,but productivity did not improve during that period.Another suggested explanation was the decline in labor force quality.Proponents of this argument point to the declines in SAT scores that occurred after the late 1960s.However,other indicators of labor force quality such as school attendance and graduation rates increased during this same time period.The best explanation seems to be a technology lag caused by the time period needed by businesses to realize the benefits of technological innovations produced in the 1970s and the 1980s.Such innovations as the personal computer and the Internet took some time to show a payoff in labor force productivity.An interesting analogy is the development of electric power early in the twentieth century.It took at least two decades for business leaders to realize the best ways to use electricity to increase their productivity.So it seems there might have been a similar "lag" in productivity increases during the 1970s and 1980s while businesses were figuring out the best ways to use all the advances in information technology and other innovations.

Question 2

To stimulate investment spending,Congress would most likely decrease

Accepted Answer

A)  personal income taxes. 
B)  capital gains taxes. 
C)  property taxes. 
D)  real interest rates. 
A)  personal income taxes. 
B)  capital gains taxes. 
C)  property taxes. 
D)  real interest rates. B

Question 3

If a larger percentage of Americans attended college,the wage premium would probably

Accepted Answer

A)  continue rising. 
B)  continue falling. 
C)  rise. 
D)  fall. 
A)  continue rising. 
B)  continue falling. 
C)  rise. 
D)  fall. D

Question 4

The convergence hypothesis suggests that poor countries may close the income gap with rich countries.

Accepted Answer

A) True 
 B)False

Question 5

Compared to college tuition,the prices of automobiles in the United States have

Accepted Answer

A)  fallen. 
B)  risen. 
C)  stayed the same. 
D)  risen at the same rate as the CPI. 
A)  fallen. 
B)  risen. 
C)  stayed the same. 
D)  risen at the same rate as the CPI.

Question 6

Which furniture production process would have the highest furniture prices?

Accepted Answer

A)  furniture made by handsaw and hammer 
B)  furniture made with power equipment 
C)  furniture made by grade school-educated workers 
D)  furniture made in an automated furniture factory 
A)  furniture made by handsaw and hammer 
B)  furniture made with power equipment 
C)  furniture made by grade school-educated workers 
D)  furniture made in an automated furniture factory

Question 7

Human capital is the amount of

Accepted Answer

A)  capital available to workforce. 
B)  skill embodied in the workforce. 
C)  output the labor force can produce. 
D)  healthy work force in the total population. 
A)  capital available to workforce. 
B)  skill embodied in the workforce. 
C)  output the labor force can produce. 
D)  healthy work force in the total population.

Question 8

Increases in the supply of scientists and engineers can increase the level of

Accepted Answer

A)  investment. 
B)  consumption. 
C)  government spending. 
D)  technology. 
A)  investment. 
B)  consumption. 
C)  government spending. 
D)  technology.

Question 9

Private investment from a foreign country is known as

Accepted Answer

A)  development assistance. 
B)  foreign direct investment. 
C)  technical progress. 
D)  the cost disease of personal services. 
A)  development assistance. 
B)  foreign direct investment. 
C)  technical progress. 
D)  the cost disease of personal services.

Question 10

Which of the following was not a factor that contributed to improved productivity from 1995 to 2009?

Accepted Answer

A)  surging investment 
B)  falling energy prices 
C)  advances in information technology 
D)  decreased costs for higher education 
A)  surging investment 
B)  falling energy prices 
C)  advances in information technology 
D)  decreased costs for higher education

Question 11

From 1973 to 1995 the growth rate of labor productivity in the U.S.was approximately

Accepted Answer

A)  −0.8%. 
B)  1.4%. 
C)  2.9%. 
D)  5.1%. 
A)  −0.8%. 
B)  1.4%. 
C)  2.9%. 
D)  5.1%.

Question 12

The production function shifts upward as the capital stock increases.

Accepted Answer

A) True 
 B)False

Question 13

Improvements in human capital and education played a major role in the productivity improvements of the U.S.economy from 1995 to 2009.

Accepted Answer

A) True 
 B)False

Question 14

A productivity decrease would be illustrated by a shift in the production function

Accepted Answer

A)  downward. 
B)  leftward. 
C)  upward. 
D)  rightward. 
A)  downward. 
B)  leftward. 
C)  upward. 
D)  rightward.

Question 15

On-the-job training is the one area of education in the United States most influenced by the

Accepted Answer

A)  business sector. 
B)  government sector. 
C)  household sector. 
D)  foreign sector. 
A)  business sector. 
B)  government sector. 
C)  household sector. 
D)  foreign sector.

Question 16

Which retail operation would have the highest costs per book sold?

Accepted Answer

A)  a small independent bookstore 
B)  a large retail bookstore chain 
C)  an Internet seller of books 
D)  All would have the same costs. 
A)  a small independent bookstore 
B)  a large retail bookstore chain 
C)  an Internet seller of books 
D)  All would have the same costs.

Question 17

The Internet was first developed in the

Accepted Answer

A)  business sector. 
B)  government sector. 
C)  corporate sector. 
D)  college dorm room of Bill Gates. 
A)  business sector. 
B)  government sector. 
C)  corporate sector. 
D)  college dorm room of Bill Gates.

Question 18

Investment spending,capital formation,and rapid technological progress are directly related.

Accepted Answer

A) True 
 B)False

Question 19

Productivity growth rates are usually higher in rich countries than in poor countries.

Accepted Answer

A) True 
 B)False

Question 20

One of the key factors in the economic success of South Korea was

Accepted Answer

A)  an increase in years of schooling. 
B)  a reduction in the amount of imports. 
C)  the creation of new technology. 
D)  all of the above. 
A)  an increase in years of schooling. 
B)  a reduction in the amount of imports. 
C)  the creation of new technology. 
D)  all of the above.

Give some possible explanations of the productivity slowdown in the United States that occurred in the 1973-1995 period.

To stimulate investment spending,Congress would most likely decrease

If a larger percentage of Americans attended college,the wage premium would probably

The convergence hypothesis suggests that poor countries may close the income gap with rich countries.

Compared to college tuition,the prices of automobiles in the United States have

Which furniture production process would have the highest furniture prices?

Human capital is the amount of

Increases in the supply of scientists and engineers can increase the level of

Private investment from a foreign country is known as

Which of the following was not a factor that contributed to improved productivity from 1995 to 2009?

From 1973 to 1995 the growth rate of labor productivity in the U.S.was approximately

The production function shifts upward as the capital stock increases.

Improvements in human capital and education played a major role in the productivity improvements of the U.S.economy from 1995 to 2009.

A productivity decrease would be illustrated by a shift in the production function

On-the-job training is the one area of education in the United States most influenced by the

Which retail operation would have the highest costs per book sold?

The Internet was first developed in the

Investment spending,capital formation,and rapid technological progress are directly related.

Productivity growth rates are usually higher in rich countries than in poor countries.

One of the key factors in the economic success of South Korea was

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand An Initial Look

An Introduction To Macroeconomics

The Goals Of Macroeconomic Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

Filters

Exam 7: Economic Growth Theory And Policy

Give some possible explanations of the productivity slowdown in the United States that occurred in the 1973-1995 period.

To stimulate investment spending,Congress would most likely decrease

If a larger percentage of Americans attended college,the wage premium would probably

The convergence hypothesis suggests that poor countries may close the income gap with rich countries.

Compared to college tuition,the prices of automobiles in the United States have

Which furniture production process would have the highest furniture prices?

Human capital is the amount of

Increases in the supply of scientists and engineers can increase the level of

Private investment from a foreign country is known as

Which of the following was not a factor that contributed to improved productivity from 1995 to 2009?

From 1973 to 1995 the growth rate of labor productivity in the U.S.was approximately

The production function shifts upward as the capital stock increases.

Improvements in human capital and education played a major role in the productivity improvements of the U.S.economy from 1995 to 2009.

A productivity decrease would be illustrated by a shift in the production function

On-the-job training is the one area of education in the United States most influenced by the

Which retail operation would have the highest costs per book sold?

The Internet was first developed in the

Investment spending,capital formation,and rapid technological progress are directly related.

Productivity growth rates are usually higher in rich countries than in poor countries.

One of the key factors in the economic success of South Korea was

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand An Initial Look

An Introduction To Macroeconomics

The Goals Of Macroeconomic Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

Filters