Exam 7: Economic Growth

Whispering Valley Furniture hires 5 employees working eight hours each to produce 80 rocking chairs. Rocky Gap Furniture hires 10 employees working eight hours each to produce 100 rocking chairs. Which company's workers are more productive?

Which statement about long-run economic growth is TRUE?

Which statement about short-run economic growth is NOT true?

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

In August 2013, Brazil announced that its economy grew 3.3% year-over-year in the second quarter. At this rate, how long will it take for its GDP to double?

Every year in India, about 1 million more people fall into poverty.

Capital is inversely related to production.

The U.S. Patent Office grants Rene a patent for a new method of waterproofing outdoor gear. It is acting in its role to promote economic growth by

The capital-to-labor ratio measures the

When the government funds Head Start, a program that provides early childhood education, it is acting in its role to promote economic growth by

How can the government promote economic growth?

Tariffs that protect U.S. industries foster economic growth.

Which of these is NOT a factor in the production function?

Thomas Malthus thought that world starvation was inevitable.

Breck is in a training program to become a radiology technician, that is, someone who takes diagnostic images, such as x-rays. When he is certified, the amount of human capital in the economy will increase.

An absence of enforcement of contracts would encourage economic development because people would be more willing to incur risks if they did not have to worry about getting sued.

If the actual growth rate of U.S. GDP was 1.25% from the first quarter to the second quarter in a given year, the Bureau of Economic Analysis would report the annualized rate as

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

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

Which of these occurrences is NOT a source of productivity growth?