Question 1

Suppose the growth rate of employment is positive, but labour productivity remains the same.What will happen to real GDP?

Accepted Answer

A)  It will increase. 
B)  It will decrease. 
C)  It will remain constant. 
D)  It will become negative. 
A)  It will increase. 
B)  It will decrease. 
C)  It will remain constant. 
D)  It will become negative. A

Question 2

What does human capital represent?

Accepted Answer

A)  the equipment that labour uses on the job to improve labour productivity 
B)  a direct method of measuring output per worker 
C)  the education, skills, and training embodied in workers 
D)  the technology, developed by humans, that is embodied in equipment 
A)  the equipment that labour uses on the job to improve labour productivity 
B)  a direct method of measuring output per worker 
C)  the education, skills, and training embodied in workers 
D)  the technology, developed by humans, that is embodied in equipment C

Question 3

Which of the following is NOT included in the "rules of the game"?

Accepted Answer

A)  the laws, customs, conventions, and other institutional elements associated with trade 
B)  property rights 
C)  a market process that generates a fair price for all 
D)  a stable political environment 
A)  the laws, customs, conventions, and other institutional elements associated with trade 
B)  property rights 
C)  a market process that generates a fair price for all 
D)  a stable political environment C

Question 4

What will an increase in the amount of capital per worker do to labour and capital productivities?

Accepted Answer

A)  Labour productivity will increase, but capital productivity will stay the same. 
B)  Capital productivity will increase, but labour productivity will stay the same. 
C)  Labour productivity will increase and capital productivity will increase. 
D)  Labour productivity will decrease and capital productivity will decrease. 
A)  Labour productivity will increase, but capital productivity will stay the same. 
B)  Capital productivity will increase, but labour productivity will stay the same. 
C)  Labour productivity will increase and capital productivity will increase. 
D)  Labour productivity will decrease and capital productivity will decrease.

Question 5

One economic theory states that as time passes, economic systems become much more similar, such that they have common rates of growth, common employment levels, and common rates of inflation.What is the name of this theory?

Accepted Answer

A)  divergence theory 
B)  parallel path theory 
C)  convergence theory 
D)  noncompeting economic systems theory 
A)  divergence theory 
B)  parallel path theory 
C)  convergence theory 
D)  noncompeting economic systems theory

Question 6

Which of the following is the least likely to cause an increase in economic growth?

Accepted Answer

A)  a population increase 
B)  an increase in the labour force 
C)  an increase in the labour force participation rate 
D)  technological improvements 
A)  a population increase 
B)  an increase in the labour force 
C)  an increase in the labour force participation rate 
D)  technological improvements

Question 7

Which major industrial country had the lowest growth rate in per capita GDP between 1979 and 2009?

Accepted Answer

A)  the United Kingdom 
B)  Italy 
C)  Canada 
D)  the United States 
A)  the United Kingdom 
B)  Italy 
C)  Canada 
D)  the United States

Question 8

What is the definition of productivity?

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 
D)  the average 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 
D)  the average input divided by average output

Question 9

Which of the following does NOT contribute to an improved standard of living?

Accepted Answer

A)  increases in the amount and quality of available resources 
B)  better technology 
C)  lower prices for the necessities of life 
D)  improvements in the rules of the game 
A)  increases in the amount and quality of available resources 
B)  better technology 
C)  lower prices for the necessities of life 
D)  improvements in the rules of the game

Question 10

What would an improvement in the quality of capital do to the per-worker production function?

Accepted Answer

A)  It would rotate the per-worker production function upward. 
B)  It would make the per-worker production function flatter. 
C)  It would shift the per-worker production function downward. 
D)  It would rotate the per-worker production function downward. 
A)  It would rotate the per-worker production function upward. 
B)  It would make the per-worker production function flatter. 
C)  It would shift the per-worker production function downward. 
D)  It would rotate the per-worker production function downward.

Question 11

Which of the following best explains the meaning of applied research?

Accepted Answer

A)  Applied research is designed to answer particular questions. 
B)  Applied research is more open-ended than basic research. 
C)  Applied research contributes less to visible output changes than basic research does. 
D)  Applied research is research done by a firm to market a good. 
A)  Applied research is designed to answer particular questions. 
B)  Applied research is more open-ended than basic research. 
C)  Applied research contributes less to visible output changes than basic research does. 
D)  Applied research is research done by a firm to market a good.

Question 12

Which of the following would NOT increase labour productivity?

Accepted Answer

A)  technological change 
B)  an increased amount of capital per unit of labour 
C)  a lower unemployment rate 
D)  greater job experience in the work force 
A)  technological change 
B)  an increased amount of capital per unit of labour 
C)  a lower unemployment rate 
D)  greater job experience in the work force

Question 13

According to the per-worker production function, how will the output per worker be affected as the amount of capital per worker increases?

Accepted Answer

A)  It will increase at an increasing rate. 
B)  It will first increase and then decrease. 
C)  It will decrease, but at an increasing rate. 
D)  It will increase, but at a decreasing rate. 
A)  It will increase at an increasing rate. 
B)  It will first increase and then decrease. 
C)  It will decrease, but at an increasing rate. 
D)  It will increase, but at a decreasing rate.

Question 14

Which of the following does NOT contribute to labour productivity growth?

Accepted Answer

A)  a steepening of the per-worker production function 
B)  an increase in the amount of capital per unit of labour 
C)  growth of the labour force 
D)  an improvement in the quality of capital 
A)  a steepening of the per-worker production function 
B)  an increase in the amount of capital per unit of labour 
C)  growth of the labour force 
D)  an improvement in the quality of capital

Question 15

What does labour productivity measure?

Accepted Answer

A)  the input per unit of labour 
B)  the output per unit of labour 
C)  the average input per unit of labour 
D)  the units of capital per unit of labour 
A)  the input per unit of labour 
B)  the output per unit of labour 
C)  the average input per unit of labour 
D)  the units of capital per unit of labour

Question 16

Which of the following is an example of an increase in human capital?

Accepted Answer

A)  a new machine that humans use to produce more wealth 
B)  an increase in wealth 
C)  a more educated labour force 
D)  finding new oil reserves 
A)  a new machine that humans use to produce more wealth 
B)  an increase in wealth 
C)  a more educated labour force 
D)  finding new oil reserves

Question 17

Which resource is often enhanced by technological change?

Accepted Answer

A)  capital 
B)  land 
C)  labour 
D)  entrepreneurship 
A)  capital 
B)  land 
C)  labour 
D)  entrepreneurship

Question 18

Which of the following is likely to cause an increase in labour productivity?

Accepted Answer

A)  a decline in student achievement scores 
B)  a service sector that is growing as a percentage of GDP 
C)  decreased spending on research and development 
D)  increases in capital formation 
A)  a decline in student achievement scores 
B)  a service sector that is growing as a percentage of GDP 
C)  decreased spending on research and development 
D)  increases in capital formation

Question 19

Which of the following best explains the meaning of basic research?

Accepted Answer

A)  Basic research usually has a larger immediate payoff than applied research. 
B)  Basic research is a search for general knowledge without a specific product or procedure in mind. 
C)  Basic research is research done by a firm to market a good. 
D)  Basic research is research done by a firm during production of a good. 
A)  Basic research usually has a larger immediate payoff than applied research. 
B)  Basic research is a search for general knowledge without a specific product or procedure in mind. 
C)  Basic research is research done by a firm to market a good. 
D)  Basic research is research done by a firm during production of a good.

Question 20

According to the law of diminishing marginal returns, what will eventually happen to the output per worker if, other things constant, the quantity of capital per worker increases?

Accepted Answer

A)  Output per worker will increase at a constant rate. 
B)  Output per worker will increase at a decreasing rate. 
C)  Output per worker will increase at an increasing rate. 
D)  Output per worker will remain constant. 
A)  Output per worker will increase at a constant rate. 
B)  Output per worker will increase at a decreasing rate. 
C)  Output per worker will increase at an increasing rate. 
D)  Output per worker will remain constant.

Suppose the growth rate of employment is positive, but labour productivity remains the same.What will happen to real GDP?

What does human capital represent?

Which of the following is NOT included in the "rules of the game"?

What will an increase in the amount of capital per worker do to labour and capital productivities?

One economic theory states that as time passes, economic systems become much more similar, such that they have common rates of growth, common employment levels, and common rates of inflation.What is the name of this theory?

Which of the following is the least likely to cause an increase in economic growth?

Which major industrial country had the lowest growth rate in per capita GDP between 1979 and 2009?

What is the definition of productivity?

Which of the following does NOT contribute to an improved standard of living?

What would an improvement in the quality of capital do to the per-worker production function?

Which of the following best explains the meaning of applied research?

Which of the following would NOT increase labour productivity?

According to the per-worker production function, how will the output per worker be affected as the amount of capital per worker increases?

Which of the following does NOT contribute to labour productivity growth?

What does labour productivity measure?

Which of the following is an example of an increase in human capital?

Which resource is often enhanced by technological change?

Which of the following is likely to cause an increase in labour productivity?

Which of the following best explains the meaning of basic research?

According to the law of diminishing marginal returns, what will eventually happen to the output per worker if, other things constant, the quantity of capital per worker increases?

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, Supply, and Markets

Algebraic Approach to Demand, Supply, and Equilibrium

Introduction to Macroeconomics

Tracking the Canadian Economy

Unemployment and Inflation

Aggregate Expenditure and Aggregate Demand

Aggregate Supply

Fiscal Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy in an Open Economy

Macro Policy Debate: Active or Passive

International Finance

International Trade

Economic Development

Understanding Graphs

Filters

Exam 9: Productivity and Growth

Suppose the growth rate of employment is positive, but labour productivity remains the same.What will happen to real GDP?

What does human capital represent?

Which of the following is NOT included in the "rules of the game"?

What will an increase in the amount of capital per worker do to labour and capital productivities?

One economic theory states that as time passes, economic systems become much more similar, such that they have common rates of growth, common employment levels, and common rates of inflation.What is the name of this theory?

Which of the following is the least likely to cause an increase in economic growth?

Which major industrial country had the lowest growth rate in per capita GDP between 1979 and 2009?

What is the definition of productivity?

Which of the following does NOT contribute to an improved standard of living?

What would an improvement in the quality of capital do to the per-worker production function?

Which of the following best explains the meaning of applied research?

Which of the following would NOT increase labour productivity?

According to the per-worker production function, how will the output per worker be affected as the amount of capital per worker increases?

Which of the following does NOT contribute to labour productivity growth?

What does labour productivity measure?

Which of the following is an example of an increase in human capital?

Which resource is often enhanced by technological change?

Which of the following is likely to cause an increase in labour productivity?

Which of the following best explains the meaning of basic research?

According to the law of diminishing marginal returns, what will eventually happen to the output per worker if, other things constant, the quantity of capital per worker increases?

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, Supply, and Markets

Algebraic Approach to Demand, Supply, and Equilibrium

Introduction to Macroeconomics

Tracking the Canadian Economy

Unemployment and Inflation

Aggregate Expenditure and Aggregate Demand

Aggregate Supply

Fiscal Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy in an Open Economy

Macro Policy Debate: Active or Passive

International Finance

International Trade

Economic Development

Understanding Graphs

Filters