Question 1

Which of the following is true of an improvement in technology?

Accepted Answer

A) An improvement in technology shifts the per-worker production upward. 
B) An improvement in technology shifts the per-worker production downward. 
C) An improvement in technology increases the concavity of the production possibilities frontier. 
D) An improvement in technology decreases the concavity of the production possibilities frontier. 
E) An improvement in technology increases the quantity of input in the production process. 
A) An improvement in technology shifts the per-worker production upward. 
B) An improvement in technology shifts the per-worker production downward. 
C) An improvement in technology increases the concavity of the production possibilities frontier. 
D) An improvement in technology decreases the concavity of the production possibilities frontier. 
E) An improvement in technology increases the quantity of input in the production process.

Question 2

Productivity growth is important because:

Accepted Answer

A) it is the only way an economy can increase GDP. 
B) a small decrease in productivity growth causes a large decline in GDP. 
C) a large increase in productivity growth causes a small decrease in GDP. 
D) it causes an increase in the quantity of all resources available to an economy. 
E) it ultimately increases a nation's standard of living. 
A) it is the only way an economy can increase GDP. 
B) a small decrease in productivity growth causes a large decline in GDP. 
C) a large increase in productivity growth causes a small decrease in GDP. 
D) it causes an increase in the quantity of all resources available to an economy. 
E) it ultimately increases a nation's standard of living.

Question 3

Labor productivity in the United States has:

Accepted Answer

A) been growing at ever-increasing rates since World War II. 
B) been growing but at lower rates in the last 25 years compared to the 25 years immediately after World War II. 
C) been falling for the last 50 years. 
D) remained largely unchanged over the last 50 years. 
E) been growing more rapidly in the last 50 years than in most other developed economies. 
A) been growing at ever-increasing rates since World War II. 
B) been growing but at lower rates in the last 25 years compared to the 25 years immediately after World War II. 
C) been falling for the last 50 years. 
D) remained largely unchanged over the last 50 years. 
E) been growing more rapidly in the last 50 years than in most other developed economies.

Question 4

The gross domestic product of Solvasa,a small island country,is U.S.$68 billion.The adult population of the country is 8.70 million and 11.3 million citizens are below 18 years of age.The output per capita of Solvasa is approximately equal to _____.

Accepted Answer

A) $7,800 
B) $3,400 
C) $6,017 
D) $5,201 
E) $6,950 
A) $7,800 
B) $3,400 
C) $6,017 
D) $5,201 
E) $6,950

Question 5

Which of the following best describes the impact of technological change on labor?

Accepted Answer

A) Technology causes unemployment in the short run and lower incomes in the long run. 
B) Technology causes unemployment in the short run and higher incomes in the long run. 
C) Technology causes unemployment in the long run and higher incomes in the short run. 
D) Technology causes unemployment in the long run and lower incomes in the short run. 
E) Technology causes unemployment and lower incomes in both the long run and the short run. 
A) Technology causes unemployment in the short run and lower incomes in the long run. 
B) Technology causes unemployment in the short run and higher incomes in the long run. 
C) Technology causes unemployment in the long run and higher incomes in the short run. 
D) Technology causes unemployment in the long run and lower incomes in the short run. 
E) Technology causes unemployment and lower incomes in both the long run and the short run.

Question 6

Which of the following will be true if employment grows faster than the population as a whole?

Accepted Answer

A) Output per capita will increase faster than productivity per worker. 
B) The standard of living will increase. 
C) Output per capita and productivity per worker will grow at an equal pace. 
D) Output per worker and productivity per worker will remain unaffected. 
E) Output per capita will increase at a diminishing rate. 
A) Output per capita will increase faster than productivity per worker. 
B) The standard of living will increase. 
C) Output per capita and productivity per worker will grow at an equal pace. 
D) Output per worker and productivity per worker will remain unaffected. 
E) Output per capita will increase at a diminishing rate.

Question 7

Critics argue that U.S.industrial policy:

Accepted Answer

A) currently focuses only on developing the airlines industry. 
B) discourages spending on basic research in universities. 
C) should shift from a military to a civilian focus. 
D) gives foreign industries an advantage over domestic producers. 
E) provides too much protection to domestic industries. 
A) currently focuses only on developing the airlines industry. 
B) discourages spending on basic research in universities. 
C) should shift from a military to a civilian focus. 
D) gives foreign industries an advantage over domestic producers. 
E) provides too much protection to domestic industries.

Question 8

The figure below shows a per-worker production function.A technological improvement would make Point C attainable.

Accepted Answer

A) True 
 B)False

Question 9

A(n)_____ implies an increase in human capital.

Accepted Answer

A) addition of a new machine that laborers use in production 
B) increase in wealth 
C) more educated labor force 
D) increase in the number of schools in a country 
E) increase in the quantity of the capital used by a firm 
A) addition of a new machine that laborers use in production 
B) increase in wealth 
C) more educated labor force 
D) increase in the number of schools in a country 
E) increase in the quantity of the capital used by a firm

Question 10

Workers displaced due to technological change usually find it difficult to get new jobs.

Accepted Answer

A) True 
 B)False

Question 11

An increase in the amount of capital per worker always increases the value of output.

Accepted Answer

A) True 
 B)False

Question 12

An increase in the quantity of capital per worker would:

Accepted Answer

A) rotate the per-worker production function outward. 
B) rotate the per-worker production function inward. 
C) shift the per-worker production function downwards. 
D) shift the per-worker production function upwards. 
E) result in a rightward movement along the current per-worker production function. 
A) rotate the per-worker production function outward. 
B) rotate the per-worker production function inward. 
C) shift the per-worker production function downwards. 
D) shift the per-worker production function upwards. 
E) result in a rightward movement along the current per-worker production function.

Question 13

Which of the following is true of small changes in productivity growth rates?

Accepted Answer

A) Small changes in productivity growth rates decrease the productivity of workers in the short run compounding the problem. 
B) The effects of small changes in productivity growth rates are compounded over the years leading to large cumulative effects. 
C) Small increases in productivity growth rates cause output to fall. 
D) The effects of small changes in productivity growth rates are negligible. 
E) Small decreases in productivity growth rates cause output to increase. 
A) Small changes in productivity growth rates decrease the productivity of workers in the short run compounding the problem. 
B) The effects of small changes in productivity growth rates are compounded over the years leading to large cumulative effects. 
C) Small increases in productivity growth rates cause output to fall. 
D) The effects of small changes in productivity growth rates are negligible. 
E) Small decreases in productivity growth rates cause output to increase.

Question 14

Suppose a production possibilities frontier (PPF)has been plotted on a graph.If the horizontal axis of the graph measures the output of capital goods and the vertical axis measures the output of consumer goods,then a point outside the PPF represents:

Accepted Answer

A) a smaller quantity of consumer goods than that represented by a point inside the PPF. 
B) an inefficient output combination of the two goods in the economy. 
C) an unattainable output combination of the two goods in the economy. 
D) an output combination of more consumer goods than capital goods. 
E) a smaller quantity of capital goods than that represented by a point inside the PPF. 
A) a smaller quantity of consumer goods than that represented by a point inside the PPF. 
B) an inefficient output combination of the two goods in the economy. 
C) an unattainable output combination of the two goods in the economy. 
D) an output combination of more consumer goods than capital goods. 
E) a smaller quantity of capital goods than that represented by a point inside the PPF.

Question 15

An economy's standard of living grows over the long run because of:

Accepted Answer

A) better protection of domestic industries from foreign competition. 
B) centralized planning and decision making. 
C) technological improvements. 
D) stringent foreign trade policies. 
E) high growth rate of population. 
A) better protection of domestic industries from foreign competition. 
B) centralized planning and decision making. 
C) technological improvements. 
D) stringent foreign trade policies. 
E) high growth rate of population.

Question 16

The production possibilities frontier of an economy is based on the assumption that the:

Accepted Answer

A) amount of consumer goods produced in the economy is constant during a given year. 
B) quality of labor available in the economy is variable during a given year. 
C) patent laws applicable in the economy are constant during a given year. 
D) level of technology available in the economy is variable during a given year. 
E) economy can either produce capital goods or consumer goods during a given year. 
A) amount of consumer goods produced in the economy is constant during a given year. 
B) quality of labor available in the economy is variable during a given year. 
C) patent laws applicable in the economy are constant during a given year. 
D) level of technology available in the economy is variable during a given year. 
E) economy can either produce capital goods or consumer goods during a given year.

Question 17

An improvement in the quality of capital would:

Accepted Answer

A) rotate the per-worker production function upward. 
B) make the per-worker production function flatter. 
C) shift the per-worker production function downward. 
D) rotate the per-worker production function downward. 
E) have no effect on the per-worker production function. 
A) rotate the per-worker production function upward. 
B) make the per-worker production function flatter. 
C) shift the per-worker production function downward. 
D) rotate the per-worker production function downward. 
E) have no effect on the per-worker production function.

Question 18

Which of the following countries had the highest percentage of young adults with a college degree in 2012?

Accepted Answer

A) Norway 
B) Canada 
C) Japan 
D) France 
E) Italy 
A) Norway 
B) Canada 
C) Japan 
D) France 
E) Italy

Question 19

Technological change leads to unemployment.

Accepted Answer

A) True 
 B)False

Question 20

According to Simon Kuznets,which of the following is likely to induce economic growth in the automobile industry of a country?

Accepted Answer

A) An increase in the amount of labor used in the industry 
B) A government subsidy for automobile production 
C) An increase in the import of spare parts for the engines 
D) An increase in the number of paint bays per factory 
E) The replacement of manual assembly lines with robots 
A) An increase in the amount of labor used in the industry 
B) A government subsidy for automobile production 
C) An increase in the import of spare parts for the engines 
D) An increase in the number of paint bays per factory 
E) The replacement of manual assembly lines with robots

Which of the following is true of an improvement in technology?

Productivity growth is important because:

Labor productivity in the United States has:

The gross domestic product of Solvasa,a small island country,is U.S.$68 billion.The adult population of the country is 8.70 million and 11.3 million citizens are below 18 years of age.The output per capita of Solvasa is approximately equal to _____.

Which of the following best describes the impact of technological change on labor?

Which of the following will be true if employment grows faster than the population as a whole?

Critics argue that U.S.industrial policy:

The figure below shows a per-worker production function.A technological improvement would make Point C attainable.

A(n)_____ implies an increase in human capital.

Workers displaced due to technological change usually find it difficult to get new jobs.

An increase in the amount of capital per worker always increases the value of output.

An increase in the quantity of capital per worker would:

Which of the following is true of small changes in productivity growth rates?

Suppose a production possibilities frontier (PPF)has been plotted on a graph.If the horizontal axis of the graph measures the output of capital goods and the vertical axis measures the output of consumer goods,then a point outside the PPF represents:

An economy's standard of living grows over the long run because of:

The production possibilities frontier of an economy is based on the assumption that the:

An improvement in the quality of capital would:

Which of the following countries had the highest percentage of young adults with a college degree in 2012?

Technological change leads to unemployment.

According to Simon Kuznets,which of the following is likely to induce economic growth in the automobile industry of a country?

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

Which of the following is true of an improvement in technology?

Productivity growth is important because:

Labor productivity in the United States has:

The gross domestic product of Solvasa,a small island country,is U.S.$68 billion.The adult population of the country is 8.70 million and 11.3 million citizens are below 18 years of age.The output per capita of Solvasa is approximately equal to _____.

Which of the following best describes the impact of technological change on labor?

Which of the following will be true if employment grows faster than the population as a whole?

Critics argue that U.S.industrial policy:

The figure below shows a per-worker production function.A technological improvement would make Point C attainable.

A(n)_____ implies an increase in human capital.

Workers displaced due to technological change usually find it difficult to get new jobs.

An increase in the amount of capital per worker always increases the value of output.

An increase in the quantity of capital per worker would:

Which of the following is true of small changes in productivity growth rates?

Suppose a production possibilities frontier (PPF)has been plotted on a graph.If the horizontal axis of the graph measures the output of capital goods and the vertical axis measures the output of consumer goods,then a point outside the PPF represents:

An economy's standard of living grows over the long run because of:

The production possibilities frontier of an economy is based on the assumption that the:

An improvement in the quality of capital would:

Which of the following countries had the highest percentage of young adults with a college degree in 2012?

Technological change leads to unemployment.

According to Simon Kuznets,which of the following is likely to induce economic growth in the automobile industry of a country?

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