Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Exhibit 8-2 
 
-A technological improvement would make point C in Exhibit 8-2 attainable.

Accepted Answer

A) True 
 B)False

Question 3

An example of industrial clustering is

Accepted Answer

A) Hollywood stock brokerages 
B) Broadway casinos 
C) Boston theme parks 
D) Silicon Valley software makers 
E) Wall Street theaters 
A) Hollywood stock brokerages 
B) Broadway casinos 
C) Boston theme parks 
D) Silicon Valley software makers 
E) Wall Street theaters

Question 4

If per capita GDP growth exceeds labor productivity growth,

Accepted Answer

A) human capital must be increasing 
B) the labor-capital ratio must be decreasing 
C) employment must be growing faster than the population 
D) the data are incorrect; this could not occur 
E) physical capital must be increasing 
A) human capital must be increasing 
B) the labor-capital ratio must be decreasing 
C) employment must be growing faster than the population 
D) the data are incorrect; this could not occur 
E) physical capital must be increasing

Question 5

Labor productivity is measured by

Accepted Answer

A) total employment/total output 
B) total output/total employment 
C) labor force/total output 
D) total output/labor force 
E) total output/potential employment 
A) total employment/total output 
B) total output/total employment 
C) labor force/total output 
D) total output/labor force 
E) total output/potential employment

Question 6

Over the last 100 years,U.S.labor productivity grew the fastest

Accepted Answer

A) during the Depression 
B) in the 1940s 
C) in the first half of the period 
D) during the 1960s 
E) during the 1980s 
A) during the Depression 
B) in the 1940s 
C) in the first half of the period 
D) during the 1960s 
E) during the 1980s

Question 7

Between 1982 and 2002,U.S.GDP per capita grew at an average rate of 2.2 percent per year.

Accepted Answer

A) True 
 B)False

Question 8

In order for a society to have a rising standard of living,output per worker must grow

Accepted Answer

A) more slowly than the labor force 
B) at the same rate as the population 
C) faster than the population 
D) more slowly than the population 
E) at a rate of 3 percent per year and population must grow at a rate of 5 percent per year 
A) more slowly than the labor force 
B) at the same rate as the population 
C) faster than the population 
D) more slowly than the population 
E) at a rate of 3 percent per year and population must grow at a rate of 5 percent per year

Question 9

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 10

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 11

Which of the following would increase labor productivity?

Accepted Answer

A) a decrease in amount of capital per unit of labor 
B) technological change 
C) a decrease in the unemployment rate 
D) an increase in the number of inexperienced workers entering the labor force 
E) a decrease in the quality of capital 
A) a decrease in amount of capital per unit of labor 
B) technological change 
C) a decrease in the unemployment rate 
D) an increase in the number of inexperienced workers entering the labor force 
E) a decrease in the quality of capital

Question 12

In the period 1996-2010,the annual productivity growth rate has been approximately

Accepted Answer

A) 2.7 percent per year 
B) 3 percent per year 
C) 4.2 percent per year 
D) 5 percent per year 
E) 6 percent per year 
A) 2.7 percent per year 
B) 3 percent per year 
C) 4.2 percent per year 
D) 5 percent per year 
E) 6 percent per year

Question 13

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 14

A small change in the rate of productivity growth will have

Accepted Answer

A) a small impact on output in both the short run and the long run 
B) a large impact on output in both the short run and the long run 
C) a small impact on output in the short run but a large impact in the long run 
D) a large impact on output in the short run but a small impact in the long run 
E) no effect on output at all 
A) a small impact on output in both the short run and the long run 
B) a large impact on output in both the short run and the long run 
C) a small impact on output in the short run but a large impact in the long run 
D) a large impact on output in the short run but a small impact in the long run 
E) no effect on output at all

Question 15

Which of the following best describes the impact of technological change on labor?

Accepted Answer

A) It causes unemployment in the short run and lower incomes in the long run. 
B) It causes unemployment in the short run and higher incomes in the long run. 
C) It causes unemployment in the long run and higher incomes in the short run. 
D) It causes unemployment in the long run and lower incomes in the short run. 
E) It causes unemployment and lower incomes in both the long run and the short run. 
A) It causes unemployment in the short run and lower incomes in the long run. 
B) It causes unemployment in the short run and higher incomes in the long run. 
C) It causes unemployment in the long run and higher incomes in the short run. 
D) It causes unemployment in the long run and lower incomes in the short run. 
E) It causes unemployment and lower incomes in both the long run and the short run.

Question 16

In the long run,the economy needs applied research,which is geared toward specific products,more than it needs basic research,which is not motivated by or directed toward manufacturing.

Accepted Answer

A) True 
 B)False

Question 17

What is the definition of productivity?

Accepted Answer

A) output plus quantity of input 
B) output minus quantity of input 
C) quantity of input divided by output 
D) output divided by quantity of input 
E) output times quantity of input 
A) output plus quantity of input 
B) output minus quantity of input 
C) quantity of input divided by output 
D) output divided by quantity of input 
E) output times quantity of input

Question 18

If on-the-job experience causes labor productivity to increase,that is the result of an improvement in human capital.

Accepted Answer

A) True 
 B)False

Question 19

If labor productivity growth slows,the standard of living must decrease.

Accepted Answer

A) True 
 B)False

Question 20

Since 1982,the major industrial country with the lowest growth rate in per capita GDP has been

Accepted Answer

A) West Germany 
B) Italy 
C) the United States 
D) Great Britain 
E) Canada 
A) West Germany 
B) Italy 
C) the United States 
D) Great Britain 
E) Canada

Exam 8: Productivity and Growth

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

Exhibit 8-2 -A technological improvement would make point C in Exhibit 8-2 attainable.

An example of industrial clustering is

If per capita GDP growth exceeds labor productivity growth,

Labor productivity is measured by

Over the last 100 years,U.S.labor productivity grew the fastest

Between 1982 and 2002,U.S.GDP per capita grew at an average rate of 2.2 percent per year.

In order for a society to have a rising standard of living,output per worker must grow

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

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

Which of the following would increase labor productivity?

In the period 1996-2010,the annual productivity growth rate has been approximately

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

A small change in the rate of productivity growth will have

Which of the following best describes the impact of technological change on labor?

In the long run,the economy needs applied research,which is geared toward specific products,more than it needs basic research,which is not motivated by or directed toward manufacturing.

What is the definition of productivity?

If on-the-job experience causes labor productivity to increase,that is the result of an improvement in human capital.

If labor productivity growth slows,the standard of living must decrease.

Since 1982,the major industrial country with the lowest growth rate in per capita GDP has been

The Art and Science of Economic Analysis

Economic Tools and Economics Systems

Economic Decision Makers

Demand, supply, and Markets

Introduction to Macroeconomics

Tracking the Useconomy

Unemployment and Inflation

Aaggregate Expenditure and Aggregate Demand

Baggregate 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

Externalities and the Environment

International Finance

Economic Development

understanding Graphs

National Income Accounts

The Algebra of Demand-Side Equilibrium

Filters