Question 1

Which of the following is NOT considered an example of one of the four main factors of production?

Accepted Answer

A)  mineral deposits 
B)  internship programs 
C)  construction cranes 
D)  cash bonds 
A)  mineral deposits 
B)  internship programs 
C)  construction cranes 
D)  cash bonds D

Question 2

Joseph Schumpeter thought that depressions were part of the process of adapting to new innovations.

Accepted Answer

A) True 
 B)False  True

Question 3

An example of intangible infrastructure is:

Accepted Answer

A)  patent laws. 
B)  public education facilities. 
C)  transportation networks. 
D)  power transmission lines. 
A)  patent laws. 
B)  public education facilities. 
C)  transportation networks. 
D)  power transmission lines. A

Question 4

The legal enforcement of contract rights is an important component of intangible infrastructure that promotes economic growth.

Accepted Answer

A) True 
 B)False

Question 5

(Table) According to the table, which country will have the lowest real GDP per capita in 23.67 years? $$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Ecoland } & \text { Macia } & \text { Nomia } & \text { Coland } \
\hline \text { Real GDP per capita, current year } & \$ 10,000 & \$ 22,000 & \$ 28,000 & \$ 30,000 \
\hline \text { Growth rate real GDP per capita } & 12 \% & 6 \% & 3 \% & 3 \% \
\hline
\end{array}$$

Accepted Answer

A)  Ecoland 
B)  Macia 
C)  Nomia 
D)  Coland 
A)  Ecoland 
B)  Macia 
C)  Nomia 
D)  Coland

Question 6

Which statement about the Rule of 70 is true?

Accepted Answer

A)  It is fairly accurate for small growth rates. 
B)  It becomes more accurate over time. 
C)  It provides an exact estimate of compounded values over time. 
D)  It states that the number of years required for a value to double in size is 70 times the growth rate. 
A)  It is fairly accurate for small growth rates. 
B)  It becomes more accurate over time. 
C)  It provides an exact estimate of compounded values over time. 
D)  It states that the number of years required for a value to double in size is 70 times the growth rate.

Question 7

If an economy's GDP will double in 25 years, then its growth rate must be about:

Accepted Answer

A)  2.5%. 
B)  2.8%. 
C)  25%. 
D)  28%. 
A)  2.5%. 
B)  2.8%. 
C)  25%. 
D)  28%.

Question 8

When the government funds Head Start, it is acting in its role to promote economic growth by:

Accepted Answer

A)  ensuring a stable legal system. 
B)  enhancing physical and human capital. 
C)  ensuring a stable and secure financial system. 
D)  promoting free and competitive markets. 
A)  ensuring a stable legal system. 
B)  enhancing physical and human capital. 
C)  ensuring a stable and secure financial system. 
D)  promoting free and competitive markets.

Question 9

There is a positive correlation between countries with the most economic freedom and high levels of per capita GDP.

Accepted Answer

A) True 
 B)False

Question 10

If a country's rate of population growth increases faster than its real GDP growth, the country's standard of living will decline.

Accepted Answer

A) True 
 B)False

Question 11

If the Bureau of Economic Analysis reports that the annualized U.S. growth rate was 2.5% for the second quarter, then the actual growth rate from the first quarter to the second quarter was:

Accepted Answer

A)  0.625%. 
B)  2.5%. 
C)  7.5%. 
D)  10%. 
A)  0.625%. 
B)  2.5%. 
C)  7.5%. 
D)  10%.

Question 12

The government sector is the single largest consumer of goods and services in the United States.

Accepted Answer

A) True 
 B)False

Question 13

From 2002 to 2012, developed countries like the United States, Japan, and Germany have achieved the highest annual growth rates in the world.

Accepted Answer

A) True 
 B)False

Question 14

In the following PPF, between which two points would long-run growth be represented?

Accepted Answer

A)  A to B 
B)  A to C 
C)  B to C 
D)  C to D 
A)  A to B 
B)  A to C 
C)  B to C 
D)  C to D

Question 15

(Table) According to the table, who will have higher real per capita GDP in 11.67 years? $$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Ecoland } & \text { Macia } & \text { Nomia } & \text { Coland } \
\hline \text { Real GDP per capita, current year } & \$ 10,000 & \$ 22,000 & \$ 28,000 & \$ 30,000 \
\hline \text { Growth rate real GDP per capita } & 12 \% & 6 \% & 3 \% & 3 \% \
\hline
\end{array}$$

Accepted Answer

A)  Ecoland because it has a higher growth rate and starting level 
B)  Macia because it has a higher growth rate and starting level 
C)  Ecoland because its output will double and then double again 
D)  Macia because its starting level is high enough that Ecoland will not have enough time to catch up 
A)  Ecoland because it has a higher growth rate and starting level 
B)  Macia because it has a higher growth rate and starting level 
C)  Ecoland because its output will double and then double again 
D)  Macia because its starting level is high enough that Ecoland will not have enough time to catch up

Question 16

Which of the following increases productivity?

Accepted Answer

A)  increased skills in the labor force 
B)  young labor force 
C)  poorly educated labor force 
D)  large labor force 
A)  increased skills in the labor force 
B)  young labor force 
C)  poorly educated labor force 
D)  large labor force

Question 17

If output equals A × (5K + 2L), what is output if A equals 2,000, capital equals 10, and labor equals 100?

Accepted Answer

A)  500,000 
B)  120,000 
C)  50,000 
D)  12,000 
A)  500,000 
B)  120,000 
C)  50,000 
D)  12,000

Question 18

Because it consists of _____ items, a nation's infrastructure is difficult to measure.

Accepted Answer

A)  only tangible 
B)  only intangible 
C)  tangible and intangible 
D)  A nation's infrastructure is not difficult to measure. 
A)  only tangible 
B)  only intangible 
C)  tangible and intangible 
D)  A nation's infrastructure is not difficult to measure.

Question 19

Two developments that contributed to recent economic growth are innovations in telecommunications and in computer technology.

Accepted Answer

A) True 
 B)False

Question 20

The concept of diminishing returns to capital would suggest that an additional unit of capital would be most productive in which of the following countries?

Accepted Answer

A)  Canada, which has 100 units of capital per worker 
B)  Brazil, which has 50 units of capital per worker 
C)  Honduras, which has 20 units of capital per worker 
D)  The additional unit of capital would be equally productive in all three countries. 
A)  Canada, which has 100 units of capital per worker 
B)  Brazil, which has 50 units of capital per worker 
C)  Honduras, which has 20 units of capital per worker 
D)  The additional unit of capital would be equally productive in all three countries.

Which of the following is NOT considered an example of one of the four main factors of production?

Joseph Schumpeter thought that depressions were part of the process of adapting to new innovations.

An example of intangible infrastructure is:

The legal enforcement of contract rights is an important component of intangible infrastructure that promotes economic growth.

(Table) According to the table, which country will have the lowest real GDP per capita in 23.67 years? Ecoland Macia Nomia Coland Real GDP per capita, current year \ 10,000 \ 22,000 \ 28,000 \ 30,000 Growth rate real GDP per capita 12\% 6\% 3\% 3\%

Which statement about the Rule of 70 is true?

If an economy's GDP will double in 25 years, then its growth rate must be about:

When the government funds Head Start, it is acting in its role to promote economic growth by:

There is a positive correlation between countries with the most economic freedom and high levels of per capita GDP.

If a country's rate of population growth increases faster than its real GDP growth, the country's standard of living will decline.

If the Bureau of Economic Analysis reports that the annualized U.S. growth rate was 2.5% for the second quarter, then the actual growth rate from the first quarter to the second quarter was:

The government sector is the single largest consumer of goods and services in the United States.

From 2002 to 2012, developed countries like the United States, Japan, and Germany have achieved the highest annual growth rates in the world.

In the following PPF, between which two points would long-run growth be represented?

(Table) According to the table, who will have higher real per capita GDP in 11.67 years? Ecoland Macia Nomia Coland Real GDP per capita, current year \ 10,000 \ 22,000 \ 28,000 \ 30,000 Growth rate real GDP per capita 12\% 6\% 3\% 3\%

Which of the following increases productivity?

If output equals A × (5K + 2L), what is output if A equals 2,000, capital equals 10, and labor equals 100?

Because it consists of _____ items, a nation's infrastructure is difficult to measure.

Two developments that contributed to recent economic growth are innovations in telecommunications and in computer technology.

The concept of diminishing returns to capital would suggest that an additional unit of capital would be most productive in which of the following countries?

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Introduction to Macroeconomics

Measuring Inflation and Unemployment

Aggregate Expenditures

Aggregate Demand and Supply

Fiscal Policy and Debt

Saving, Investment, and the Financial System

Money Creation and the Federal Reserve

Monetary Policy

Macroeconomic Policy: Challenges in a Global Economy

International Trade

Open Economy Macroeconomics

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Exam 7: Economic Growth

Which of the following is NOT considered an example of one of the four main factors of production?

Joseph Schumpeter thought that depressions were part of the process of adapting to new innovations.

An example of intangible infrastructure is:

The legal enforcement of contract rights is an important component of intangible infrastructure that promotes economic growth.

(Table) According to the table, which country will have the lowest real GDP per capita in 23.67 years? Ecoland Macia Nomia Coland Real GDP per capita, current year \ 10,000 \ 22,000 \ 28,000 \ 30,000 Growth rate real GDP per capita 12\% 6\% 3\% 3\%

Which statement about the Rule of 70 is true?

If an economy's GDP will double in 25 years, then its growth rate must be about:

When the government funds Head Start, it is acting in its role to promote economic growth by:

There is a positive correlation between countries with the most economic freedom and high levels of per capita GDP.

If a country's rate of population growth increases faster than its real GDP growth, the country's standard of living will decline.

If the Bureau of Economic Analysis reports that the annualized U.S. growth rate was 2.5% for the second quarter, then the actual growth rate from the first quarter to the second quarter was:

The government sector is the single largest consumer of goods and services in the United States.

From 2002 to 2012, developed countries like the United States, Japan, and Germany have achieved the highest annual growth rates in the world.

In the following PPF, between which two points would long-run growth be represented?

(Table) According to the table, who will have higher real per capita GDP in 11.67 years? Ecoland Macia Nomia Coland Real GDP per capita, current year \ 10,000 \ 22,000 \ 28,000 \ 30,000 Growth rate real GDP per capita 12\% 6\% 3\% 3\%

Which of the following increases productivity?

If output equals A × (5K + 2L), what is output if A equals 2,000, capital equals 10, and labor equals 100?

Because it consists of _____ items, a nation's infrastructure is difficult to measure.

Two developments that contributed to recent economic growth are innovations in telecommunications and in computer technology.

The concept of diminishing returns to capital would suggest that an additional unit of capital would be most productive in which of the following countries?

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Introduction to Macroeconomics

Measuring Inflation and Unemployment

Aggregate Expenditures

Aggregate Demand and Supply

Fiscal Policy and Debt

Saving, Investment, and the Financial System

Money Creation and the Federal Reserve

Monetary Policy

Macroeconomic Policy: Challenges in a Global Economy

International Trade

Open Economy Macroeconomics

Filters