Question 1

In the late 1990s and early 2000s,in the United States

Accepted Answer

A)  negative increases in productivity were experienced. 
B)  productivity growth improved, returning to levels closer to those of the 1960s. 
C)  increases in productivity averaged zero. 
D)  productivity achieved the lowest values in history. 
E)  the measurement of productivity was discontinued because of the ambiguity surrounding its interpretation. 
A)  negative increases in productivity were experienced. 
B)  productivity growth improved, returning to levels closer to those of the 1960s. 
C)  increases in productivity averaged zero. 
D)  productivity achieved the lowest values in history. 
E)  the measurement of productivity was discontinued because of the ambiguity surrounding its interpretation.

Question 2

In recent decades research and development activities in the United States have been

Accepted Answer

A)  funded primarily by universities and nonprofit institutions. 
B)  carried out by independent inventors inside commercial research laboratories. 
C)  noticeably declining in importance as a source of economic growth. 
D)  generally directed toward making incremental improvements rather than major advances. 
E)  directed primarily toward achieving civilian rather than military or political objectives. 
A)  funded primarily by universities and nonprofit institutions. 
B)  carried out by independent inventors inside commercial research laboratories. 
C)  noticeably declining in importance as a source of economic growth. 
D)  generally directed toward making incremental improvements rather than major advances. 
E)  directed primarily toward achieving civilian rather than military or political objectives.

Question 3

The following question are based on the following Laffer curve:
  
-Tax revenues rise when the rate is

Accepted Answer

A)  reduced from 0c to 0b. 
B)  raised from 0d to 0e. 
C)  reduced from 0a to 0. 
D)  raised from 0b to 0e. 
E)  reduced from 0b to 0a. 
A)  reduced from 0c to 0b. 
B)  raised from 0d to 0e. 
C)  reduced from 0a to 0. 
D)  raised from 0b to 0e. 
E)  reduced from 0b to 0a.

Question 4

It is sometimes hard to separate the impact of technology from that of investment because

Accepted Answer

A)  you can directly measure investment, but there is no way to quantify new technology. 
B)  neither has been a major factor in economic growth for about 10 years now. 
C)  technology has grown at a such a variable rate that its impact cannot be effectively measured. 
D)  new technology is useful only when it is embodied in the physical capital financed through investment. 
E)  neither activity is reflected in the prices we pay for goods and services. 
A)  you can directly measure investment, but there is no way to quantify new technology. 
B)  neither has been a major factor in economic growth for about 10 years now. 
C)  technology has grown at a such a variable rate that its impact cannot be effectively measured. 
D)  new technology is useful only when it is embodied in the physical capital financed through investment. 
E)  neither activity is reflected in the prices we pay for goods and services.

Question 5

High rates of economic growth are clearly related to high rates of

Accepted Answer

A)  unemployment. 
B)  consumption. 
C)  inflation. 
D)  technological change. 
E)  taxes on profits. 
A)  unemployment. 
B)  consumption. 
C)  inflation. 
D)  technological change. 
E)  taxes on profits.

Question 6

In the video,Nariman Behravesh argued that the supply-side impact of the Reagan tax cuts was

Accepted Answer

A)  very large, leading to increased government tax revenues. 
B)  about equal in magnitude to the demand-side impact of those cuts. 
C)  enough to ensure that the size of the federal budget deficit would decrease. 
D)  small at first but likely to grow as time went on. 
E)  virtually nonexistent, although they did boost investment and lead to higher productivity. 
A)  very large, leading to increased government tax revenues. 
B)  about equal in magnitude to the demand-side impact of those cuts. 
C)  enough to ensure that the size of the federal budget deficit would decrease. 
D)  small at first but likely to grow as time went on. 
E)  virtually nonexistent, although they did boost investment and lead to higher productivity.

Question 7

As compared to earlier years,the rate of growth of labor productivity in the United States from the 1970s through the mid-1990s

Accepted Answer

A)  increased dramatically. 
B)  increased slightly. 
C)  slowed considerably. 
D)  increased in the 1970s and declined in the late 1980s. 
E)  remained constant. 
A)  increased dramatically. 
B)  increased slightly. 
C)  slowed considerably. 
D)  increased in the 1970s and declined in the late 1980s. 
E)  remained constant.

Question 8

The source of the largest share of research and development funds in the United States is

Accepted Answer

A)  the federal government. 
B)  universities and colleges. 
C)  industry. 
D)  nonprofit foundations. 
E)  the stock market. 
A)  the federal government. 
B)  universities and colleges. 
C)  industry. 
D)  nonprofit foundations. 
E)  the stock market.

Question 9

The commercial introduction of new products and processes for the first time is called

Accepted Answer

A)  research and development. 
B)  capitalization. 
C)  patent pending. 
D)  innovation. 
E)  derived demand. 
A)  research and development. 
B)  capitalization. 
C)  patent pending. 
D)  innovation. 
E)  derived demand.

Question 10

The average annual growth rate of labor productivity

Accepted Answer

A)  has remained relatively constant at about 3 percent. 
B)  fell to an average rate of about 1.5 percent during the period 1977 to 1995 and has averaged 3.2 percent since then. 
C)  steadily rose to about 4.5 percent in the late 1990s and early 2000s. 
D)  fell steadily to its postwar low in 1984 but has risen rapidly since then. 
E)  reached a peak in 1995 but has fallen steadily since then. 
A)  has remained relatively constant at about 3 percent. 
B)  fell to an average rate of about 1.5 percent during the period 1977 to 1995 and has averaged 3.2 percent since then. 
C)  steadily rose to about 4.5 percent in the late 1990s and early 2000s. 
D)  fell steadily to its postwar low in 1984 but has risen rapidly since then. 
E)  reached a peak in 1995 but has fallen steadily since then.

Question 11

Increased government regulation is said to have contributed to the slowdown in U.S.productivity because such regulation

Accepted Answer

A)  led to the substitution of research and development for goods and services available to consumers. 
B)  reduced the labor force by requiring limited resources to be used for compliance. 
C)  generated both litigation and uncertainty, discouraging business investment. 
D)  reduced the quality of the work environment, lowering worker morale. 
E)  lowered the cost of production, making many goods unprofitable. 
A)  led to the substitution of research and development for goods and services available to consumers. 
B)  reduced the labor force by requiring limited resources to be used for compliance. 
C)  generated both litigation and uncertainty, discouraging business investment. 
D)  reduced the quality of the work environment, lowering worker morale. 
E)  lowered the cost of production, making many goods unprofitable.

Question 12

New methods of producing existing products and new designs that make it possible to create new products are best regarded as examples of

Accepted Answer

A)  innovation. 
B)  investment. 
C)  technological change. 
D)  supply-side economics. 
E)  asymmetric information. 
A)  innovation. 
B)  investment. 
C)  technological change. 
D)  supply-side economics. 
E)  asymmetric information.

Question 13

Most R&D funds provided by the federal government are spent on

Accepted Answer

A)  national security and education. 
B)  space technology and defense. 
C)  education and medicine. 
D)  education and space technology. 
E)  subsidies to start up high-tech small businesses. 
A)  national security and education. 
B)  space technology and defense. 
C)  education and medicine. 
D)  education and space technology. 
E)  subsidies to start up high-tech small businesses.

Question 14

The Laffer curve

Accepted Answer

A)  shows the relationship between sales taxes and income taxes in the United States. 
B)  indicates that tax revenues are greatest when marginal tax rates are greatest. 
C)  relates the size of the government debt to the level of national output. 
D)  shows an inverse relationship between tax revenues and government spending. 
E)  has been used to demonstrate that a decline in the marginal tax rate may cause a rise in total tax revenue. 
A)  shows the relationship between sales taxes and income taxes in the United States. 
B)  indicates that tax revenues are greatest when marginal tax rates are greatest. 
C)  relates the size of the government debt to the level of national output. 
D)  shows an inverse relationship between tax revenues and government spending. 
E)  has been used to demonstrate that a decline in the marginal tax rate may cause a rise in total tax revenue.

Question 15

Generally,in the field of technology,the United States has been

Accepted Answer

A)  a world leader for much of its history. 
B)  a step behind most European nations, even in recent years. 
C)  ahead of Europe but far behind Japan. 
D)  a leader in science but not in manufacturing. 
E)  a user rather than a creator of new technologies. 
A)  a world leader for much of its history. 
B)  a step behind most European nations, even in recent years. 
C)  ahead of Europe but far behind Japan. 
D)  a leader in science but not in manufacturing. 
E)  a user rather than a creator of new technologies.

Question 16

The basic argument for government grants and contracts in support of civilian technology is that they

Accepted Answer

A)  make it easier to predict the social costs and benefits of a proposed project. 
B)  are both direct and selective. 
C)  provide better investment qualities than market incentives. 
D)  enable the government to earn money on the patents it acquires as a result of these grants. 
E)  decrease the market rate of interest on investment funds since banks need to be responsible for funding high-risk R&D activities. 
A)  make it easier to predict the social costs and benefits of a proposed project. 
B)  are both direct and selective. 
C)  provide better investment qualities than market incentives. 
D)  enable the government to earn money on the patents it acquires as a result of these grants. 
E)  decrease the market rate of interest on investment funds since banks need to be responsible for funding high-risk R&D activities.

Question 17

The federal government is the source of over ________ of all research and development (R&D)funds.

Accepted Answer

A)  one-third 
B)  one-half 
C)  two-thirds 
D)  three-quarters 
E)  four-fifths 
A)  one-third 
B)  one-half 
C)  two-thirds 
D)  three-quarters 
E)  four-fifths

Question 18

To produce a rightward shift in the aggregate supply curve,supply-siders argue for

Accepted Answer

A)  a large surplus of unemployed workers to hold down wage rates. 
B)  large government deficits to hold down aggregate demand. 
C)  higher taxes on personal and corporate incomes. 
D)  financial incentives to encourage additional saving. 
E)  a money supply that is absolutely fixed over time. 
A)  a large surplus of unemployed workers to hold down wage rates. 
B)  large government deficits to hold down aggregate demand. 
C)  higher taxes on personal and corporate incomes. 
D)  financial incentives to encourage additional saving. 
E)  a money supply that is absolutely fixed over time.

Exam 23: Productivity,growth,and Technology Policy

In the late 1990s and early 2000s,in the United States

In recent decades research and development activities in the United States have been

The following question are based on the following Laffer curve: -Tax revenues rise when the rate is

It is sometimes hard to separate the impact of technology from that of investment because

High rates of economic growth are clearly related to high rates of

In the video,Nariman Behravesh argued that the supply-side impact of the Reagan tax cuts was

As compared to earlier years,the rate of growth of labor productivity in the United States from the 1970s through the mid-1990s

The source of the largest share of research and development funds in the United States is

The commercial introduction of new products and processes for the first time is called

The average annual growth rate of labor productivity

Increased government regulation is said to have contributed to the slowdown in U.S.productivity because such regulation

New methods of producing existing products and new designs that make it possible to create new products are best regarded as examples of

Most R&D funds provided by the federal government are spent on

The Laffer curve

Generally,in the field of technology,the United States has been

The basic argument for government grants and contracts in support of civilian technology is that they

The federal government is the source of over ________ of all research and development (R&D)funds.

To produce a rightward shift in the aggregate supply curve,supply-siders argue for

What is Economics

Markets and Prices

The Business Firm: Organization,motivation,and Optimal Input Decisions

Getting Behind the Demand and Supply Curves

Market Demand and Price Elasticity

Economic Efficiency,market Supply,and Perfect Competition

Monopoly and Its Regulation

Monopolistic Competition,oligopoly,and Antitrust Policy

Pollution and the Environment

The Supply and Demand for Labor

Interest,rent,and Profit

Poverty,income Inequality,and Discrimination

Economic Growth

Public Goods and the Role of the Government

National Income and Product

Business Fluctuations and Unemployment

The Determination of National Output and the Keynesian Multiplier

Fiscal Policy and National Output

Inflation

Money and the Banking System

The Federal Reserve and Monetary Policy

Supply Shocks and Inflation

Surpluses,deficits,public Debt,and the Federal Budget

Monetary Policy,interest Rates,and Economic Activity

Controversies Over Stabilization Policy

International Trade

Exchange Rates and the Balance of Payments

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