Question 1

What two things do the rate of growth of the economy depend on?

Accepted Answer

A)  The amount saved out of national income and the amount invested. 
B)  The amount of GDP produced per dollar of investment and the rate of depreciation. 
C)  The amount saved out of national income and the amount of GDP produced per investment dollar. 
D)  The amount saved out of national income and the rate of interest. 
A)  The amount saved out of national income and the amount invested. 
B)  The amount of GDP produced per dollar of investment and the rate of depreciation. 
C)  The amount saved out of national income and the amount of GDP produced per investment dollar. 
D)  The amount saved out of national income and the rate of interest. C

Question 2

Annual growth in industrialized countries is usually measured in terms of

Accepted Answer

A)  consumer spending. 
B)  new net investment. 
C)  income distribution. 
D)  real GDP. 
A)  consumer spending. 
B)  new net investment. 
C)  income distribution. 
D)  real GDP. D

Question 3

According to conservatives, which of the following will be most likely to increase the productivity of capital?

Accepted Answer

A)  More research and development of new technology by government. 
B)  More research and development of new technology by business. 
C)  Increasing the level of gross investment. 
D)  Increasing the rate of depreciation. 
A)  More research and development of new technology by government. 
B)  More research and development of new technology by business. 
C)  Increasing the level of gross investment. 
D)  Increasing the rate of depreciation. B

Question 4

A high level of consumer spending

Accepted Answer

A)  is always a good thing. 
B)  is especially beneficial during a recession. 
C)  is not helpful during an expansion at full employment. 
D)  is beneficial as long as it is accompanied by increased consumer saving. 
A)  is always a good thing. 
B)  is especially beneficial during a recession. 
C)  is not helpful during an expansion at full employment. 
D)  is beneficial as long as it is accompanied by increased consumer saving.

Question 5

The money used to buy equipment and buildings is called

Accepted Answer

A)  physical capital. 
B)  human capital. 
C)  financial capital. 
D)  depreciation. 
A)  physical capital. 
B)  human capital. 
C)  financial capital. 
D)  depreciation.

Question 6

According to conservatives, which policy should government implement to encourage economic growth?

Accepted Answer

A)  Cut taxes on low income individuals to increase consumer spending. 
B)  Cut taxes on the middle class to encourage consumer spending and saving. 
C)  Cut taxes on the wealthy who are more likely to save. 
D)  Increase taxes on the middle class to discourage excess consumer spending. 
A)  Cut taxes on low income individuals to increase consumer spending. 
B)  Cut taxes on the middle class to encourage consumer spending and saving. 
C)  Cut taxes on the wealthy who are more likely to save. 
D)  Increase taxes on the middle class to discourage excess consumer spending.

Question 7

Between 1950 and 1999 the annual rate of GDP growth in the US

Accepted Answer

A)  has been between 1 and 3% 
B)  has been at least 5% 
C)  has been between 3% and 5% 
D)  has been around 10% per year. 
A)  has been between 1 and 3% 
B)  has been at least 5% 
C)  has been between 3% and 5% 
D)  has been around 10% per year.

Question 8

A high rate of military spending by the government

Accepted Answer

A)  is beneficial to the economy during a period of full employment. 
B)  tends to increase investment and consumer goods during a period of full employment. 
C)  will tend to put the economy into a recession. 
D)  will tend to reduce the rate of capital investment over a long period of time. 
A)  is beneficial to the economy during a period of full employment. 
B)  tends to increase investment and consumer goods during a period of full employment. 
C)  will tend to put the economy into a recession. 
D)  will tend to reduce the rate of capital investment over a long period of time.

Question 9

The possibility that there would be sufficient money for investment from savings and a very low rate of investment

Accepted Answer

A)  is predicted by Say's Law. 
B)  will not occur according to Say's Law. 
C)  has never occurred. 
D)  will occur if profit rates are too high. 
A)  is predicted by Say's Law. 
B)  will not occur according to Say's Law. 
C)  has never occurred. 
D)  will occur if profit rates are too high.

Question 10

According to conservatives, what are the two ways to increase the rate of economic growth?

Accepted Answer

A)  Increase savings and increase consumption. 
B)  Increase savings and increase gross investment. 
C)  Increase savings and increase the productivity of capital. 
D)  Increase savings and reduce taxes on wealthy investors. 
A)  Increase savings and increase consumption. 
B)  Increase savings and increase gross investment. 
C)  Increase savings and increase the productivity of capital. 
D)  Increase savings and reduce taxes on wealthy investors.

Question 11

During the 1970s and 1980s

Accepted Answer

A)  the U.S. economy experienced a "golden age" of economic prosperity. 
B)  the United States began to compete effectively with, and in some cases outcompeted, European and Japanese corporations. 
C)  the United States produced over 80% of the world's manufactured goods. 
D)  the United States went through a long period of relative stagnation. 
A)  the U.S. economy experienced a "golden age" of economic prosperity. 
B)  the United States began to compete effectively with, and in some cases outcompeted, European and Japanese corporations. 
C)  the United States produced over 80% of the world's manufactured goods. 
D)  the United States went through a long period of relative stagnation.

Question 12

The percentage of national income that flows into savings each year is

Accepted Answer

A)  the average propensity to save. 
B)  the rate of growth. 
C)  the accumulated profits of businesses. 
D)  the government budget deficit. 
A)  the average propensity to save. 
B)  the rate of growth. 
C)  the accumulated profits of businesses. 
D)  the government budget deficit.

Question 13

A higher rate of national saving

Accepted Answer

A)  is always a good thing. 
B)  is beneficial during an expansion at full employment. 
C)  is not helpful during a recession. 
D)  is beneficial as long as it is accompanied by increased consumer spending. 
A)  is always a good thing. 
B)  is beneficial during an expansion at full employment. 
C)  is not helpful during a recession. 
D)  is beneficial as long as it is accompanied by increased consumer spending.

What two things do the rate of growth of the economy depend on?

Annual growth in industrialized countries is usually measured in terms of

According to conservatives, which of the following will be most likely to increase the productivity of capital?

A high level of consumer spending

The money used to buy equipment and buildings is called

According to conservatives, which policy should government implement to encourage economic growth?

Between 1950 and 1999 the annual rate of GDP growth in the US

A high rate of military spending by the government

The possibility that there would be sufficient money for investment from savings and a very low rate of investment

According to conservatives, what are the two ways to increase the rate of economic growth?

During the 1970s and 1980s

The percentage of national income that flows into savings each year is

A higher rate of national saving

What Is Macroeconomics and the Evolution of Capitalism

The Classical View of the Macro-Economy

The Keynesian Revolution

National Income Accounting

Classical and Keynesian Graphical Analysis

Introduction to Business Cycles

Investment and Profit, and the Multiplier

Consumer Spending, and Credit and Interest

Housing Bubble, Financial Crisis, and Government Spending, Taxes, and Deficits

The Trade Gap

Business Cycles

Globalization and the Spread of Instability

Inflation

Monetary Policy, Financial Regulation, and Debates Over Monetary Policy

Fiscal Policy: How to Stimulate the Economy

Fiscal Policy: Austerians and Deficit Hawks V Stimulus

A Road to Full Employment

Filters

Exam 6: Introduction to Economic Growth

What two things do the rate of growth of the economy depend on?

Annual growth in industrialized countries is usually measured in terms of

According to conservatives, which of the following will be most likely to increase the productivity of capital?

A high level of consumer spending

The money used to buy equipment and buildings is called

According to conservatives, which policy should government implement to encourage economic growth?

Between 1950 and 1999 the annual rate of GDP growth in the US

A high rate of military spending by the government

The possibility that there would be sufficient money for investment from savings and a very low rate of investment

According to conservatives, what are the two ways to increase the rate of economic growth?

During the 1970s and 1980s

The percentage of national income that flows into savings each year is

A higher rate of national saving

What Is Macroeconomics and the Evolution of Capitalism

The Classical View of the Macro-Economy

The Keynesian Revolution

National Income Accounting

Classical and Keynesian Graphical Analysis

Introduction to Business Cycles

Investment and Profit, and the Multiplier

Consumer Spending, and Credit and Interest

Housing Bubble, Financial Crisis, and Government Spending, Taxes, and Deficits

The Trade Gap

Business Cycles

Globalization and the Spread of Instability

Inflation

Monetary Policy, Financial Regulation, and Debates Over Monetary Policy

Fiscal Policy: How to Stimulate the Economy

Fiscal Policy: Austerians and Deficit Hawks V Stimulus

A Road to Full Employment

Filters