Question 1

Over the last 100 years, the U.S. labor productivity growth rate experienced its largest declines

Accepted Answer

A) during the Great Depression 
B) in the 1940s 
C) during the 1950s 
D) during the 1980s 
E) a and c 
A) during the Great Depression 
B) in the 1940s 
C) during the 1950s 
D) during the 1980s 
E) a and c

Question 2

Which of the following would not be considered a developed country?

Accepted Answer

A) Pakistan 
B) the United States 
C) Japan 
D) Australia 
E) Belgium 
A) Pakistan 
B) the United States 
C) Japan 
D) Australia 
E) Belgium

Question 3

Labor productivity the United States has never fallen has never fallen from one year to the next.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is the most important backbone of market exchange?

Accepted Answer

A) laws 
B) manners 
C) customs 
D) conventions 
E) All the answers are equally important 
A) laws 
B) manners 
C) customs 
D) conventions 
E) All the answers are equally important

Question 5

The per-worker production function illustrates the fact that as the amount of capital per worker increases, output per worker

Accepted Answer

A) increases at an increasing rate 
B) increases then decreases 
C) decreases but at an increasing rate 
D) decreases 
E) increases but at a decreasing rate 
A) increases at an increasing rate 
B) increases then decreases 
C) decreases but at an increasing rate 
D) decreases 
E) increases but at a decreasing rate

Question 6

Long-term growth in production can be explained by

Accepted Answer

A) an improvement in the quality of resources available 
B) a gradual but consistent rise in the price level 
C) a rapid and accelerating increase in the price level 
D) a trade surplus that leads to the accumulation of gold 
E) the peaks and troughs of economic fluctuations 
A) an improvement in the quality of resources available 
B) a gradual but consistent rise in the price level 
C) a rapid and accelerating increase in the price level 
D) a trade surplus that leads to the accumulation of gold 
E) the peaks and troughs of economic fluctuations

Question 7

Labor productivity tends to fall as the capital-labor ratio rises.

Accepted Answer

A) True 
 B)False

Question 8

An increase in labor productivity necessarily means an increase in real GDP per capita if

Accepted Answer

A) real GDP increases 
B) the employment growth rate is greater than the population growth rate 
C) the employment growth rate is less than the population growth rate 
D) the size of the labor force remains constant 
E) real GDP increases more rapidly than nominal GDP 
A) real GDP increases 
B) the employment growth rate is greater than the population growth rate 
C) the employment growth rate is less than the population growth rate 
D) the size of the labor force remains constant 
E) real GDP increases more rapidly than nominal GDP

Question 9

Technological change leads to unemployment.

Accepted Answer

A) True 
 B)False

Question 10

Per capita GDP in the United States has declined since 1950.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is the best indicator of the standard of living?

Accepted Answer

A) nominal GDP 
B) real GDP 
C) real GDP per capita 
D) productivity 
E) productivity per unit of labor 
A) nominal GDP 
B) real GDP 
C) real GDP per capita 
D) productivity 
E) productivity per unit of labor

Question 12

If Q is total real output, K is capital in use, and L is labor employed, the productivity of labor is measured by

Accepted Answer

A) K/L 
B) L/K 
C) Q/L 
D) Q/K 
E) (Q + K)/L 
A) K/L 
B) L/K 
C) Q/L 
D) Q/K 
E) (Q + K)/L

Question 13

According to Simon Kuznets,

Accepted Answer

A) the main force behind economic growth is increases in the quantity of labor 
B) the main force behind economic growth is increases in the quantity of capital 
C) the main force behind economic growth is increases in the quality of inputs 
D) government regulations increase labor productivity 
E) government regulations decrease labor productivity 
A) the main force behind economic growth is increases in the quantity of labor 
B) the main force behind economic growth is increases in the quantity of capital 
C) the main force behind economic growth is increases in the quality of inputs 
D) government regulations increase labor productivity 
E) government regulations decrease labor productivity

Question 14

Labor productivity in the United States has been

Accepted Answer

A) growing at ever-increasing rates since World War II 
B) growing but at lower rates in the last 25 years compared to the 25 years immediately after World War II 
C) falling for the last 50 years 
D) largely unchanged over the last 50 years 
E) growing more rapidly in the last 50 years than in most other developed economies 
A) growing at ever-increasing rates since World War II 
B) growing but at lower rates in the last 25 years compared to the 25 years immediately after World War II 
C) falling for the last 50 years 
D) largely unchanged over the last 50 years 
E) growing more rapidly in the last 50 years than in most other developed economies

Question 15

The resource whose productivity is most commonly measured is

Accepted Answer

A) labor 
B) capital 
C) land 
D) energy 
E) money 
A) labor 
B) capital 
C) land 
D) energy 
E) money

Question 16

Which of the following would be likely to cause a decrease in the labor productivity growth rate?

Accepted Answer

A) an increase in student achievement scores 
B) a service sector that is growing as a percentage of GDP 
C) increased spending on research and development 
D) increases in capital formation 
E) technological change 
A) an increase in student achievement scores 
B) a service sector that is growing as a percentage of GDP 
C) increased spending on research and development 
D) increases in capital formation 
E) technological change

Question 17

Economies grow for a variety of reasons. Which of the following is not a primary cause of economic growth?

Accepted Answer

A) government regulation 
B) growth in the availability of productive resources 
C) improvements in the quality of resources 
D) technological change 
E) changes in the rules of the game that enhance production 
A) government regulation 
B) growth in the availability of productive resources 
C) improvements in the quality of resources 
D) technological change 
E) changes in the rules of the game that enhance production

Question 18

A country that has a higher percentage of younger adults with at least a college degree is

Accepted Answer

A) Norway 
B) Canada 
C) Japan 
D) France 
E) Italy 
A) Norway 
B) Canada 
C) Japan 
D) France 
E) Italy

Question 19

Basic research

Accepted Answer

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

Question 20

Since 1870, U.S. labor productivity growth has averaged roughly 2.1 percent annually.

Accepted Answer

A) True 
 B)False

Exam 9: Productivity and Growth

Over the last 100 years, the U.S. labor productivity growth rate experienced its largest declines

Which of the following would not be considered a developed country?

Labor productivity the United States has never fallen has never fallen from one year to the next.

Which of the following is the most important backbone of market exchange?

The per-worker production function illustrates the fact that as the amount of capital per worker increases, output per worker

Long-term growth in production can be explained by

Labor productivity tends to fall as the capital-labor ratio rises.

An increase in labor productivity necessarily means an increase in real GDP per capita if

Technological change leads to unemployment.

Per capita GDP in the United States has declined since 1950.

Which of the following is the best indicator of the standard of living?

If Q is total real output, K is capital in use, and L is labor employed, the productivity of labor is measured by

According to Simon Kuznets,

Labor productivity in the United States has been

The resource whose productivity is most commonly measured is

Which of the following would be likely to cause a decrease in the labor productivity growth rate?

Economies grow for a variety of reasons. Which of the following is not a primary cause of economic growth?

A country that has a higher percentage of younger adults with at least a college degree is

Basic research

Since 1870, U.S. labor productivity growth has averaged roughly 2.1 percent annually.

The Art and Science of Economic Analysis

Understanding Graphs-Appendix

Economic Tools and Economics Systems

Economic Decision Makers

Demand, Supply, and Markets

Introduction to Macroeconomics

Tracking the Us Economy

Unemployment and Inflation

Aaggregate Expenditure and Agregate Demand

Aggregate Expenditure and Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters