Question 1

Which of the following is a source of economic growth?

Accepted Answer

A) more resources 
B) active economic policies 
C) technology 
D) both A and C 
A) more resources 
B) active economic policies 
C) technology 
D) both A and C D

Question 2

A firm used to produce a product using three units of labor and one unit of capital.The firm discovers that it can produce more output at a lower cost if it combines two units of labor with two units of capital.This is an example of

Accepted Answer

A) an innovation. 
B) an invention. 
C) increasing returns. 
D) economic growth. 
A) an innovation. 
B) an invention. 
C) increasing returns. 
D) economic growth. A

Question 3

A decrease in capital/labor ratio enhances economic growth.

Accepted Answer

A) True 
 B)False  False

Question 4

Convergence theory suggests that when less developed countries begin to develop,they typically have higher growth rates as they catch up with more developed nations.

Accepted Answer

A) True 
 B)False

Question 5

Technological progress shifts the production possibility curve away from the origin.

Accepted Answer

A) True 
 B)False

Question 6

The aggregate production function is Y = 3KL.If there are 30 units of capital and 40 units of labor,aggregate output is

Accepted Answer

A) 3,600 units. 
B) 2,500 units. 
C) 2,100 units. 
D) 400 units. 
A) 3,600 units. 
B) 2,500 units. 
C) 2,100 units. 
D) 400 units.

Question 7

Average productivity of labor is measured as the additional output produced by an additional worker.

Accepted Answer

A) True 
 B)False

Question 8

Related to the Economics in Practice on p.640: The emigration of Jewish scientists from Germany to the United States in the late 1930s and early 1940s is an example of a(n)________ in the United States.

Accepted Answer

A) increase in human capital 
B) increase in physical capital 
C) decrease in embodied technical change 
D) decrease in disembodied technical change 
A) increase in human capital 
B) increase in physical capital 
C) decrease in embodied technical change 
D) decrease in disembodied technical change

Question 9

One reason that labor productivity has increased is because of disembodied technical change.

Accepted Answer

A) True 
 B)False

Question 10

The production possibility frontier shows the maximum output a nation can produce with available resources.

Accepted Answer

A) True 
 B)False

Question 11

Diminishing returns to a factor implies that with capital fixed,

Accepted Answer

A) as labor increases output always increases. 
B) as output increases,labor increases. 
C) as labor increases,output decreases. 
D) as labor increases,labor productivity eventually decreases. 
A) as labor increases output always increases. 
B) as output increases,labor increases. 
C) as labor increases,output decreases. 
D) as labor increases,labor productivity eventually decreases.

Question 12

In all economies experiencing modern economic growth,

Accepted Answer

A) labor expands at a more rapid pace than capital. 
B) capital and labor expand at a constant rate. 
C) capital expands at a more rapid pace than labor. 
D) capital expands,but labor remains constant. 
A) labor expands at a more rapid pace than capital. 
B) capital and labor expand at a constant rate. 
C) capital expands at a more rapid pace than labor. 
D) capital expands,but labor remains constant.

Question 13

If a society gets more capital,its production possibility curve increases.

Accepted Answer

A) True 
 B)False

Question 14

Of the following countries,which one had the highest average growth rate per year from 1993-2012?

Accepted Answer

A) China 
B) the United States 
C) India 
D) Japan 
A) China 
B) the United States 
C) India 
D) Japan

Question 15

Refer to the information provided in Figure 17.1 below to answer the questions that follow.   Figure 17.1
-Refer to Figure 17.1.Which of the following causes the ppf to shift from ppf2 to ppf3?

Accepted Answer

A) technological progress 
B) a decrease in capital stock 
C) a decrease in the labor force 
D) an increase in the population 
A) technological progress 
B) a decrease in capital stock 
C) a decrease in the labor force 
D) an increase in the population

Question 16

Output growth is defined as the growth rate of output

Accepted Answer

A) per person in the economy. 
B) per worker in the economy. 
C) for capitalist economies. 
D) of the entire economy. 
A) per person in the economy. 
B) per worker in the economy. 
C) for capitalist economies. 
D) of the entire economy.

Question 17

Much of the growth in ________ is due to export-manufacturing,and ________ have based their growth on resource extraction.

Accepted Answer

A) Sub-Saharan Africa;most Central American nations 
B) Southeast Asia;many African nations 
C) Western Europe;the former Soviet-bloc countries 
D) South America;North American countries 
A) Sub-Saharan Africa;most Central American nations 
B) Southeast Asia;many African nations 
C) Western Europe;the former Soviet-bloc countries 
D) South America;North American countries

Question 18

If an economy experiences growth in productivity without growth in its labor force,it will grow.

Accepted Answer

A) True 
 B)False

Question 19

A company uses 100 workers and 30 units of capital to produce 500 units of output.If this company increases its capital to 50 units and,as a result,its output increases by 300 units,the productivity of labor ________ to ________ units per worker.

Accepted Answer

A) increases;8 
B) increases;1 
C) increases;3 
D) decreases;4 
A) increases;8 
B) increases;1 
C) increases;3 
D) decreases;4

Question 20

With a fixed amount of capital,300 workers produce 9,000 cars.The average labor productivity is

Accepted Answer

A) 0.03. 
B) 3. 
C) 27. 
D) 30. 
A) 0.03. 
B) 3. 
C) 27. 
D) 30.

Exam 17: Long-Run Growth

Which of the following is a source of economic growth?

A firm used to produce a product using three units of labor and one unit of capital.The firm discovers that it can produce more output at a lower cost if it combines two units of labor with two units of capital.This is an example of

A decrease in capital/labor ratio enhances economic growth.

Convergence theory suggests that when less developed countries begin to develop,they typically have higher growth rates as they catch up with more developed nations.

Technological progress shifts the production possibility curve away from the origin.

The aggregate production function is Y = 3KL.If there are 30 units of capital and 40 units of labor,aggregate output is

Average productivity of labor is measured as the additional output produced by an additional worker.

Related to the Economics in Practice on p.640: The emigration of Jewish scientists from Germany to the United States in the late 1930s and early 1940s is an example of a(n)________ in the United States.

One reason that labor productivity has increased is because of disembodied technical change.

The production possibility frontier shows the maximum output a nation can produce with available resources.

Diminishing returns to a factor implies that with capital fixed,

In all economies experiencing modern economic growth,

If a society gets more capital,its production possibility curve increases.

Of the following countries,which one had the highest average growth rate per year from 1993-2012?

Refer to the information provided in Figure 17.1 below to answer the questions that follow. Figure 17.1 -Refer to Figure 17.1.Which of the following causes the ppf to shift from ppf2 to ppf3?

Output growth is defined as the growth rate of output

Much of the growth in ________ is due to export-manufacturing,and ________ have based their growth on resource extraction.

If an economy experiences growth in productivity without growth in its labor force,it will grow.

A company uses 100 workers and 30 units of capital to produce 500 units of output.If this company increases its capital to 50 units and,as a result,its output increases by 300 units,the productivity of labor ________ to ________ units per worker.

With a fixed amount of capital,300 workers produce 9,000 cars.The average labor productivity is

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand,supply,and Market Equilibrium

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment, inflation, and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

The Money Supply and the Federal Reserve System

Money Demand and the Equilibrium Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Costs Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Alternative Views in Macroeconomics

International Trade,comparative Advantage,and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing and Transitional Economies

Filters

Much of the growth in is due to export-manufacturing,and have based their growth on resource extraction.

A company uses 100 workers and 30 units of capital to produce 500 units of output.If this company increases its capital to 50 units and,as a result,its output increases by 300 units,the productivity of labor to units per worker.