Question 1

An advance in technology that results in increased productivity results in a

Accepted Answer

A)  rightward shift of the labor supply curve. 
B)  rightward shift of the labor demand curve. 
C)  rightward shift of both the labor supply and labor demand curves. 
D)  no change to the production function. 
A)  rightward shift of the labor supply curve. 
B)  rightward shift of the labor demand curve. 
C)  rightward shift of both the labor supply and labor demand curves. 
D)  no change to the production function. B

Question 2

Along the aggregate production function,as the quantity of labor rises,real GDP

Accepted Answer

A)  rises 
B)  falls 
C)  stays the same 
D)  may fall, rise, or stay the same 
A)  rises 
B)  falls 
C)  stays the same 
D)  may fall, rise, or stay the same A

Question 3

In neoclassical growth theory,technological change ________.

Accepted Answer

A)  occurs by chance 
B)  is influenced by population growth 
C)  is influenced by the rate of economic growth 
D)  occurs at a steady rate 
A)  occurs by chance 
B)  is influenced by population growth 
C)  is influenced by the rate of economic growth 
D)  occurs at a steady rate A

Question 4

Countries or regions in which real GDP per person has not grown as fast as in the United States since 1960 include

Accepted Answer

A)  Japan. 
B)  countries in Africa. 
C)  Hong Kong. 
D)  Canada. 
A)  Japan. 
B)  countries in Africa. 
C)  Hong Kong. 
D)  Canada.

Question 5

Suppose there is a rise in the price level,but no change in the money wage rate.As a result,the quantity of labor demanded

Accepted Answer

A)  increases. 
B)  decreases. 
C)  does not change because there is no change in the real wage rate. 
D)  decreases only if the money wage rate also decreases. 
A)  increases. 
B)  decreases. 
C)  does not change because there is no change in the real wage rate. 
D)  decreases only if the money wage rate also decreases.

Question 6

If real GDP is $13,000 billion and aggregate hours are 270 billion,labor productivity equals

Accepted Answer

A)  $6.50 per hour. 
B)  $45 per hour. 
C)  $48 per hour. 
D)  $650 per hour. 
A)  $6.50 per hour. 
B)  $45 per hour. 
C)  $48 per hour. 
D)  $650 per hour.

Question 7

An advance in technology that increases productivity and an increase in the working-age population results in a

Accepted Answer

A)  rightward shift of the labor supply curve. 
B)  rightward shift of the labor demand curve. 
C)  rightward shift of the labor demand curve and of the labor supply curve. 
D)  no change to the production function. 
A)  rightward shift of the labor supply curve. 
B)  rightward shift of the labor demand curve. 
C)  rightward shift of the labor demand curve and of the labor supply curve. 
D)  no change to the production function.

Question 8

If the price level rises by 3 percent and workers' money wage rates increase by 2 percent,then the

Accepted Answer

A)  quantity of labor demanded will decrease. 
B)  quantity of labor demanded will increase. 
C)  quantity of labor demanded does not change because there is no change in the real wage rate. 
D)  real wage rate increases. 
A)  quantity of labor demanded will decrease. 
B)  quantity of labor demanded will increase. 
C)  quantity of labor demanded does not change because there is no change in the real wage rate. 
D)  real wage rate increases.

Question 9

"IT Policy Can Spur Economic Growth,Industry Says" As staffers on Capitol Hill know all too well,the growth of technology has created an economy increasingly reliant on energy consumption,as BlackBerrys,laptops,and other devices become everyday necessities.The right policies,however,can make IT growth a part of the energy solution rather than the problem,IT representatives said Monday at a forum,in a congressional office,hosted by the Information Technology & Innovation Foundation.
Information technology could reduce the expected growth in carbon emissions by one third over 10 years,said Daniel Castro,a senior analyst with the ITIF.
Information and communication technology has "great promise in driving economic growth as well as reducing emissions," added David Isaacs,director of government affairs for Hewlett-Packard,but "policy should drive these results."
In order to drive economic growth in real GDP per person,the changes in information technology that the article addresses must

Accepted Answer

A)  cause a movement along the aggregate production function. 
B)  increase labor productivity. 
C)  increase labor supply. 
D)  decrease the demand for labor. 
A)  cause a movement along the aggregate production function. 
B)  increase labor productivity. 
C)  increase labor supply. 
D)  decrease the demand for labor.

Question 10

Human capital is the

Accepted Answer

A)  machinery used by humans to produce GDP. 
B)  technology used by humans to produce GDP. 
C)  skill and knowledge accumulated by humans. 
D)  plant and equipment produced by humans and not by machines. 
A)  machinery used by humans to produce GDP. 
B)  technology used by humans to produce GDP. 
C)  skill and knowledge accumulated by humans. 
D)  plant and equipment produced by humans and not by machines.

Question 11

The U.S.employment-to-population ratio peaked in 2000 and in 2012 fell to 58 percent,a level not seen since the early 1980s. This fall in the employment-to-population ratio shifts the ________ curve ________.

Accepted Answer

A)  labor supply; leftward 
B)  labor supply; rightward 
C)  labor demand; leftward 
D)  labor demand; rightward 
A)  labor supply; leftward 
B)  labor supply; rightward 
C)  labor demand; leftward 
D)  labor demand; rightward

Question 12

An assumption of classical growth theory is that when ________ the population growth rate ________.

Accepted Answer

A)  real GDP per person exceeds the subsistence level; increases 
B)  people become more skilled; decreases 
C)  the real wage rate falls; increases 
D)  saving declines; decreases 
A)  real GDP per person exceeds the subsistence level; increases 
B)  people become more skilled; decreases 
C)  the real wage rate falls; increases 
D)  saving declines; decreases

Question 13

Which of the following statements about world growth during the last half of the 20th century is correct?

Accepted Answer

A)  In every decade, Japan has experienced faster growth than the United States. 
B)  Growth rates in South American countries have exceeded those in North America. 
C)  Real GDP per person in Hong Kong and Singapore are approaching or surpassing that in the United States. 
D)  Due to rapid growth, real GDP per person in China is now about 50 percent of that in the United States. 
A)  In every decade, Japan has experienced faster growth than the United States. 
B)  Growth rates in South American countries have exceeded those in North America. 
C)  Real GDP per person in Hong Kong and Singapore are approaching or surpassing that in the United States. 
D)  Due to rapid growth, real GDP per person in China is now about 50 percent of that in the United States.

Question 14

-In the above figure,what is the full-employment real wage rate and quantity of hours per year?

Accepted Answer

A)  $40 and 60 billion hours per year 
B)  $50 and 100 billion hours per year 
C)  $35 and 100 billion hours per year 
D)  $50 and 40 billion hours per year 
A)  $40 and 60 billion hours per year 
B)  $50 and 100 billion hours per year 
C)  $35 and 100 billion hours per year 
D)  $50 and 40 billion hours per year

Question 15

What is the effect on real GDP per person if labor productivity increases?

Accepted Answer

Real GDP equals (aggregate hours) × (lab

Question 16

Classical growth theory argues that when real GDP per person rises above the subsistence level,

Accepted Answer

A)  technological change slows down, stagnating the economy. 
B)  population growth increases, driving real GDP per person back to subsistence level. 
C)  people don't want to work as much, decreasing labor supply. 
D)  the economy enjoys a period of permanent growth. 
A)  technological change slows down, stagnating the economy. 
B)  population growth increases, driving real GDP per person back to subsistence level. 
C)  people don't want to work as much, decreasing labor supply. 
D)  the economy enjoys a period of permanent growth.

Question 17

If the price level falls by 5 percent and workers' money wage rates remain constant,firms'

Accepted Answer

A)  quantity of labor demanded will decrease. 
B)  quantity of labor demanded will increase. 
C)  supply of jobs will increase. 
D)  None of the above answers are correct. 
A)  quantity of labor demanded will decrease. 
B)  quantity of labor demanded will increase. 
C)  supply of jobs will increase. 
D)  None of the above answers are correct.

Question 18

If real GDP is $11,750 billion and aggregate hours are 175 billion,labor productivity equals

Accepted Answer

A)  $23.50 per hour. 
B)  $52 per hour. 
C)  $67 per hour. 
D)  $235 per hour. 
A)  $23.50 per hour. 
B)  $52 per hour. 
C)  $67 per hour. 
D)  $235 per hour.

Question 19

The classical growth theory's view of the economy and its ability to achieve growth can be compared to a perpetual motion machine.

Accepted Answer

A) True 
 B)False

Question 20

An increase in labor productivity relates to

Accepted Answer

A)  working harder over time. 
B)  working longer over time. 
C)  producing the same output with fewer labor hours. 
D)  producing the same output with more labor hours. 
A)  working harder over time. 
B)  working longer over time. 
C)  producing the same output with fewer labor hours. 
D)  producing the same output with more labor hours.

An advance in technology that results in increased productivity results in a

Along the aggregate production function,as the quantity of labor rises,real GDP

In neoclassical growth theory,technological change ________.

Countries or regions in which real GDP per person has not grown as fast as in the United States since 1960 include

Suppose there is a rise in the price level,but no change in the money wage rate.As a result,the quantity of labor demanded

If real GDP is $13,000 billion and aggregate hours are 270 billion,labor productivity equals

An advance in technology that increases productivity and an increase in the working-age population results in a

If the price level rises by 3 percent and workers' money wage rates increase by 2 percent,then the

Human capital is the

The U.S.employment-to-population ratio peaked in 2000 and in 2012 fell to 58 percent,a level not seen since the early 1980s. This fall in the employment-to-population ratio shifts the curve .

An assumption of classical growth theory is that when the population growth rate .

Which of the following statements about world growth during the last half of the 20th century is correct?

-In the above figure,what is the full-employment real wage rate and quantity of hours per year?

What is the effect on real GDP per person if labor productivity increases?

Classical growth theory argues that when real GDP per person rises above the subsistence level,

If the price level falls by 5 percent and workers' money wage rates remain constant,firms'

If real GDP is $11,750 billion and aggregate hours are 175 billion,labor productivity equals

The classical growth theory's view of the economy and its ability to achieve growth can be compared to a perpetual motion machine.

An increase in labor productivity relates to

What Is Economics

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

Exam 6: Economic Growth

An advance in technology that results in increased productivity results in a

Along the aggregate production function,as the quantity of labor rises,real GDP

In neoclassical growth theory,technological change ________.

Countries or regions in which real GDP per person has not grown as fast as in the United States since 1960 include

Suppose there is a rise in the price level,but no change in the money wage rate.As a result,the quantity of labor demanded

If real GDP is $13,000 billion and aggregate hours are 270 billion,labor productivity equals

An advance in technology that increases productivity and an increase in the working-age population results in a

If the price level rises by 3 percent and workers' money wage rates increase by 2 percent,then the

Human capital is the

The U.S.employment-to-population ratio peaked in 2000 and in 2012 fell to 58 percent,a level not seen since the early 1980s. This fall in the employment-to-population ratio shifts the ________ curve ________.

An assumption of classical growth theory is that when ________ the population growth rate ________.

Which of the following statements about world growth during the last half of the 20th century is correct?

-In the above figure,what is the full-employment real wage rate and quantity of hours per year?

What is the effect on real GDP per person if labor productivity increases?

Classical growth theory argues that when real GDP per person rises above the subsistence level,

If the price level falls by 5 percent and workers' money wage rates remain constant,firms'

If real GDP is $11,750 billion and aggregate hours are 175 billion,labor productivity equals

The classical growth theory's view of the economy and its ability to achieve growth can be compared to a perpetual motion machine.

An increase in labor productivity relates to

What Is Economics

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

The U.S.employment-to-population ratio peaked in 2000 and in 2012 fell to 58 percent,a level not seen since the early 1980s. This fall in the employment-to-population ratio shifts the curve .

An assumption of classical growth theory is that when the population growth rate .