Question 1

One of the important points of criticism of industrial policy is that:

Accepted Answer

A) it can lead to stiff competition among the domestic firms in an economy. 
B) small domestic firms will not be able to survive economic clustering. 
C) government sponsored research will end up benefitting foreign countries. 
D) it can prohibit regional innovations. 
E) the knowhow in one firm will not spill over to other firms in an economy. 
A) it can lead to stiff competition among the domestic firms in an economy. 
B) small domestic firms will not be able to survive economic clustering. 
C) government sponsored research will end up benefitting foreign countries. 
D) it can prohibit regional innovations. 
E) the knowhow in one firm will not spill over to other firms in an economy.

Question 2

Productivity is defined as:

Accepted Answer

A) the ratio of a specific measure of output to a specific measure of input. 
B) the production of worthwhile goods and services. 
C) the market value of goods,services,and resources produced per time period (e.g.,per year). 
D) average input divided by average output. 
E) total input divided by average output. 
A) the ratio of a specific measure of output to a specific measure of input. 
B) the production of worthwhile goods and services. 
C) the market value of goods,services,and resources produced per time period (e.g.,per year). 
D) average input divided by average output. 
E) total input divided by average output.

Question 3

Over the past century,the growth of labor productivity in the United States was highest in the _____.

Accepted Answer

A) 1940s 
B) 1950s 
C) 1960s 
D) 1970s 
E) 1980s 
A) 1940s 
B) 1950s 
C) 1960s 
D) 1970s 
E) 1980s

Question 4

In contrast to government research and development,private sector R&D has:

Accepted Answer

A) more impact on productivity since most government R&D focuses narrowly on military applications. 
B) more impact on productivity since most government R&D focuses narrowly on the service sector. 
C) more impact on productivity since most government R&D focuses narrowly on not-for-profit activities. 
D) less impact on productivity since the government is more motivated and able to hire better people and facilities. 
E) less impact on productivity since firms tend to hold back on research when results are easily copied. 
A) more impact on productivity since most government R&D focuses narrowly on military applications. 
B) more impact on productivity since most government R&D focuses narrowly on the service sector. 
C) more impact on productivity since most government R&D focuses narrowly on not-for-profit activities. 
D) less impact on productivity since the government is more motivated and able to hire better people and facilities. 
E) less impact on productivity since firms tend to hold back on research when results are easily copied.

Question 5

Between 1959 and 2003,the average annual growth rate of real GDP per capita in the United States was about _____.

Accepted Answer

A) 0.1 percent per year 
B) 2.2 percent per year 
C) 6.7 percent per year 
D) 9.3 percent per year 
E) 15 percent per year 
A) 0.1 percent per year 
B) 2.2 percent per year 
C) 6.7 percent per year 
D) 9.3 percent per year 
E) 15 percent per year

Question 6

Which of the following factors can influence the production possibilities frontier in the future?

Accepted Answer

A) The amount of capital produced 
B) A fall in the rate of inflation 
C) A decrease in consumption in an economy 
D) An increase in the tax rate 
E) A legal reform that increases transaction costs 
A) The amount of capital produced 
B) A fall in the rate of inflation 
C) A decrease in consumption in an economy 
D) An increase in the tax rate 
E) A legal reform that increases transaction costs

Question 7

If per capita GDP growth exceeds labor productivity growth,then:

Accepted Answer

A) human capital must be increasing. 
B) the labor-capital ratio must be decreasing. 
C) employment must be growing faster than population. 
D) population must be growing faster than employment. 
E) physical capital must be increasing. 
A) human capital must be increasing. 
B) the labor-capital ratio must be decreasing. 
C) employment must be growing faster than population. 
D) population must be growing faster than employment. 
E) physical capital must be increasing.

Question 8

The production possibilities curve for capital and consumer goods is concave to the origin because:

Accepted Answer

A) of decreasing opportunity costs of production. 
B) resources are not perfectly adaptable to the production of both goods. 
C) both consumer goods and capital goods equally contribute to economic growth. 
D) the level of technology along the frontier is assumed to vary. 
E) of constant returns to scale. 
A) of decreasing opportunity costs of production. 
B) resources are not perfectly adaptable to the production of both goods. 
C) both consumer goods and capital goods equally contribute to economic growth. 
D) the level of technology along the frontier is assumed to vary. 
E) of constant returns to scale.

Question 9

Between 1982 and 2002,U.S.GDP per capita grew at an average rate of 5.5 percent per year.

Accepted Answer

A) True 
 B)False

Question 10

Labor cost on an average accounts for about _____ percent of the total cost of production.

Accepted Answer

A) 10 
B) 30 
C) 50 
D) 70 
E) 98 
A) 10 
B) 30 
C) 50 
D) 70 
E) 98

Question 11

Which of the following is the prime objective of an industrial policy for any country?

Accepted Answer

A) To secure a leading global role for selected domestic industries 
B) To promote and encourage the import of goods and services 
C) To secure the interests of migrant workers 
D) To encourage specialization of labor 
E) To ensure a high level of competition for domestic firms 
A) To secure a leading global role for selected domestic industries 
B) To promote and encourage the import of goods and services 
C) To secure the interests of migrant workers 
D) To encourage specialization of labor 
E) To ensure a high level of competition for domestic firms

Question 12

The figure below shows three different per-worker production functions: PF1,PF2,and PF3.If PF1 is the initial per-worker production function for a farm,which of the following reflects an increase in the number of tractors per worker in the farm?

Accepted Answer

A) A movement from point D to point C 
B) An upward shift from PF1 to PF2 
C) A downward shift from PF1 to PF3 
D) A movement from point C to point D 
E) A movement from point D to point B 
A) A movement from point D to point C 
B) An upward shift from PF1 to PF2 
C) A downward shift from PF1 to PF3 
D) A movement from point C to point D 
E) A movement from point D to point B

Question 13

According to Nobel Laureate Simon Kuznets,the greatest increase in output and economic growth comes from changes in the _____.

Accepted Answer

A) quantity of resources 
B) quantity of natural resources (land) 
C) quantity of labor 
D) quality of resources 
E) quantity of capital 
A) quantity of resources 
B) quantity of natural resources (land) 
C) quantity of labor 
D) quality of resources 
E) quantity of capital

Question 14

Over the last century,U.S.labor productivity has:

Accepted Answer

A) fallen. 
B) been constant,on average. 
C) grown at about 2 percent per year. 
D) grown at about 8 percent per year. 
E) grown at about 15 percent per year. 
A) fallen. 
B) been constant,on average. 
C) grown at about 2 percent per year. 
D) grown at about 8 percent per year. 
E) grown at about 15 percent per year.

Question 15

If a nation moves upward along its per-worker production function relating output per worker to capital per worker,then:

Accepted Answer

A) labor productivity rises. 
B) labor productivity falls. 
C) the amount of capital decreases,other things constant. 
D) labor input decreases. 
E) the productivity of capital rises. 
A) labor productivity rises. 
B) labor productivity falls. 
C) the amount of capital decreases,other things constant. 
D) labor input decreases. 
E) the productivity of capital rises.

Question 16

The share of research and development funding supported by the private sector has increased over the past three decades.

Accepted Answer

A) True 
 B)False

Question 17

Surgeons earn more than janitors because:

Accepted Answer

A) of the negative correlation between level of education and productivity. 
B) of the inverse relationship between wages and productivity. 
C) the accumulation of human capital leads to an improvement in productivity. 
D) of the negative relation between productivity and the amount of physical capital. 
E) surgeons spend more time at work than janitors. 
A) of the negative correlation between level of education and productivity. 
B) of the inverse relationship between wages and productivity. 
C) the accumulation of human capital leads to an improvement in productivity. 
D) of the negative relation between productivity and the amount of physical capital. 
E) surgeons spend more time at work than janitors.

Question 18

The figure below shows a per-worker production function.Point C in the figure below represents the level of output per worker that is unattainable with current technology.

Accepted Answer

A) True 
 B)False

Question 19

A breakthrough in technology is most likely to:

Accepted Answer

A) reduce the labor needed to produce a given amount of output. 
B) decrease the demand for all goods and services in a country. 
C) increase the cost of production for a firm. 
D) reduce the availability of skilled workers. 
E) lower the standard of living in a country in the long run. 
A) reduce the labor needed to produce a given amount of output. 
B) decrease the demand for all goods and services in a country. 
C) increase the cost of production for a firm. 
D) reduce the availability of skilled workers. 
E) lower the standard of living in a country in the long run.

Question 20

The per-worker production function illustrates the fact that as the amount of capital per worker increases,output per worker:​

Accepted Answer

A) increases at an increasing rate. 
B) increases then decreases. 
C) decreases but at an increasing rate. 
D) decreases. 
E) increases but at a decreasing rate. 
A) increases at an increasing rate. 
B) increases then decreases. 
C) decreases but at an increasing rate. 
D) decreases. 
E) increases but at a decreasing rate.

One of the important points of criticism of industrial policy is that:

Productivity is defined as:

Over the past century,the growth of labor productivity in the United States was highest in the _____.

In contrast to government research and development,private sector R&D has:

Between 1959 and 2003,the average annual growth rate of real GDP per capita in the United States was about _____.

Which of the following factors can influence the production possibilities frontier in the future?

If per capita GDP growth exceeds labor productivity growth,then:

The production possibilities curve for capital and consumer goods is concave to the origin because:

Between 1982 and 2002,U.S.GDP per capita grew at an average rate of 5.5 percent per year.

Labor cost on an average accounts for about _____ percent of the total cost of production.

Which of the following is the prime objective of an industrial policy for any country?

The figure below shows three different per-worker production functions: PF₁,PF₂,and PF₃.If PF₁ is the initial per-worker production function for a farm,which of the following reflects an increase in the number of tractors per worker in the farm?

According to Nobel Laureate Simon Kuznets,the greatest increase in output and economic growth comes from changes in the _____.

Over the last century,U.S.labor productivity has:

If a nation moves upward along its per-worker production function relating output per worker to capital per worker,then:

The share of research and development funding supported by the private sector has increased over the past three decades.

Surgeons earn more than janitors because:

The figure below shows a per-worker production function.Point C in the figure below represents the level of output per worker that is unattainable with current technology.

A breakthrough in technology is most likely to:

The per-worker production function illustrates the fact that as the amount of capital per worker increases,output per worker:

The Art and Science of Economic Analysis

Some Tools of Economic Analysis

Economic Decision Makers

Demand, Supply, and Markets

Introduction to Macroeconomics

Tracking the U S Economy

Unemployment and Inflation

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

Exam 8: Us Productivity and Growth

One of the important points of criticism of industrial policy is that:

Productivity is defined as:

Over the past century,the growth of labor productivity in the United States was highest in the _____.

In contrast to government research and development,private sector R&D has:

Between 1959 and 2003,the average annual growth rate of real GDP per capita in the United States was about _____.

Which of the following factors can influence the production possibilities frontier in the future?

If per capita GDP growth exceeds labor productivity growth,then:

The production possibilities curve for capital and consumer goods is concave to the origin because:

Between 1982 and 2002,U.S.GDP per capita grew at an average rate of 5.5 percent per year.

Labor cost on an average accounts for about _____ percent of the total cost of production.

Which of the following is the prime objective of an industrial policy for any country?

The figure below shows three different per-worker production functions: PF1,PF2,and PF3.If PF1 is the initial per-worker production function for a farm,which of the following reflects an increase in the number of tractors per worker in the farm?

According to Nobel Laureate Simon Kuznets,the greatest increase in output and economic growth comes from changes in the _____.

Over the last century,U.S.labor productivity has:

If a nation moves upward along its per-worker production function relating output per worker to capital per worker,then:

The share of research and development funding supported by the private sector has increased over the past three decades.

Surgeons earn more than janitors because:

The figure below shows a per-worker production function.Point C in the figure below represents the level of output per worker that is unattainable with current technology.

A breakthrough in technology is most likely to:

The per-worker production function illustrates the fact that as the amount of capital per worker increases,output per worker:​

The Art and Science of Economic Analysis

Some Tools of Economic Analysis

Economic Decision Makers

Demand, Supply, and Markets

Introduction to Macroeconomics

Tracking the U S Economy

Unemployment and Inflation

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

The figure below shows three different per-worker production functions: PF₁,PF₂,and PF₃.If PF₁ is the initial per-worker production function for a farm,which of the following reflects an increase in the number of tractors per worker in the farm?

The per-worker production function illustrates the fact that as the amount of capital per worker increases,output per worker: