Deck 16: Economic Growth and Productivity

Question 1

The industrial revolution began around the year ____.

A)1650
B)1750
C)1850
D)1950

Answer 1

B

Question 2

Until the mid-20^th century,nearly all economic growth took place in

A)Europe.
B)Canada and the United States.
C)Australia and New Zealand.
D)Japan.
E)Hong Kong,Taiwan,South Korea,and SingaporE.

Answer 2

E

Question 3

Immigration has _____ our rate of economic growth.

A)increased
B)slowed
C)had no effect on

Answer 3

A

Question 4

Our rate of productivity growth in the 1970s and 1980s was _____ the rate of productivity growth in the 1960s.

A)twice
B)one and a half times
C)equal to
D)one third

Question 5

Since 1990,the average number of hours worked per year has

A)Increased.
B)Stayed about the same.
C)Decreased.
D)Decreased by more than one thirD.

Question 6

India and China are

A)LDCs.
B)NICs.
C)industrialized countries.

Question 7

Around the year _____,growth in the world output per head accelerated sharply.

A)1350
B)1500
C)1650
D)1800

Question 8

Our gross savings as a percentage of GDP has declined from over 20% in 1960 to ________ percent in 2009.

A)about 14
B)just under 12
C)a little over 10
D)about 6

Question 9

Which statement is true?

A)Immigration is higher today than at any other time during this century.
B)The immigration into this county slows our rate of economic growth.
C)There is virtually no restriction on immigration into the United States.
D)Immigration has been a great source of strength to the United States.

Question 10

Compared to China,our rate of savings is _____ and our rate of capital formation is ____.

A)lower;lower
B)higher;higher
C)lower;higher
D)higher;lower

Question 11

Each of the following would be an example of technological change,except

A)increases in output due to increases in capital.
B)improvements in the qualities of resources.
C)improved knowledge about how to combine resources.
D)the introduction of totally new production processes.

Question 12

In the 1970s and 1980s our productivity

A)Increased at an increasing rate.
B)Increased at a decreasing rate.
C)Stayed about the same.
D)DecreaseD.

Question 13

The Malthusian theory said that population tended to grow in a(n)_____ progression,while the food supply tended to grow in a(n)_____ progression.

A)arithmetic;arithmetic
B)geometric;geometric
C)geometric;arithmetic
D)arithmetic;geometric

Question 14

The most important reason for our slow rate of productivity growth over the last three decades (of those listed below)is

A)lagging business sales.
B)foreign imports.
C)our low savings rate.
D)high tax rates.

Question 15

Since the 1980s,most of the economic growth has come from

A)emerging economies in AfricA.
B)eastern European countries.
C)emerging economies of Asia.
D)middle eastern countries.

Question 16

Gross saving is the total of

A)personal saving and business saving.
B)personal saving and government saving.
C)business saving and government saving.
D)personal,business,and government saving.

Question 17

The United States experienced the lowest rate of productivity growth during the

A)1950s.
B)1960s.
C)1970s and 1980s.
D)1990s and 2000s.

Question 18

The age of mass production,which began in the United States during the early years of the 20^th century,was the ______ phase of the Industrial Revolution.

A)first
B)second
C)third
D)fourth

Question 19

The very poorest LDCs have relatively

A)low rates of economic growth and relatively high rates of population growth.
B)high rates of economic growth and relatively low rates of population growth.
C)low rates of both population growth and economic growth.
D)high rates of both population growth and economic growth.

Question 20

Which statement is false?

A)Health and safety regulations diverted resources from investment.
B)Higher energy costs stimulated economic growth.
C)Environmental protection legislation slowed economic growth.
D)Government regulation has increased the cost of doing business.

Question 21

Most of the LDCs find it difficult to accumulate capital goods because

A)the terms of trade prohibit the inflow of private capital from the advanced nations.
B)it is very difficult to restrict consumption in order to free resources for capital goods production.
C)domestic monetary policies designed to achieve price stability result in low interest.
D)investment is interest inelastic in LDCs.

Question 22

Which statement is true?

A)The average workweek is about 50 percent lower than it was in 1900.
B)The average workweek is about the same as it was in 1900.
C)Most Americans work more hours per year than do most Western Europeans.
D)Most American workers work less hours than workers in other industrialized countries.

Question 23

Edward Denison identified which of the following as the main source of productivity growth in the United States between 1929 and 1982?

A)Added labor and capital.
B)The increase in labor's education and training.
C)Advances in knowledge obtained through research and development.
D)The improved quality of corporate management.

Question 24

According to the Reverend Thomas Malthus

A)population tends to grow until checked by a shortage of food.
B)population tends to grow until checked by a shortage of oxygen.
C)population tends to grow unless checked by religious or moral restraints.
D)economics is a dismal science.

Question 25

The nation whose workers work less hours per year than any other industrial nation is

A)the United States.
B)Germany.
C)Japan.
D)Britain.

Question 26

Since the mid 1990s the welfare roles have been __________ and the crime rate has _________.

A)increasing;increased
B)decreasing;increased
C)decreasing;decreased
D)increasing;decreased

Question 27

The major problem with the transportation system in the United States is the lack of

A)more and better qualified truck drivers.
B)a better system of highways.
C)a viable railroad and train system.
D)adequate airport facilities.

Question 28

During the recent past,production and income have grown faster than population in highly developed economies because

A)of the availability of expensive and ineffective birth control devices.
B)of rapid technological advancements.
C)accumulation of both physical and human capital has slowed down.
D)famine,war,and pestilence have greatly reduced the population.

Question 29

Historically our rate of economic growth has been about ______% a year.

A)9.5
B)7.5
C)5.5
D)3.5
E)1.5

Question 30

Between 1973 and 1995,productivity in the United States had

A)been rising at a faster rate than it was before 1973.
B)been rising at a slower rate than it was before 1973.
C)been rising at about the same rate as it was before 1973.
D)not risen.
E)been falling.

Question 31

Statement I: If we could raise our savings rate to the level of the Chinese rate,our growth rate would also rise to the level of the Chinese rate.
Statement II: Our economy did not grow between 1985 and 1994.

A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.

Question 32

The intellectual ability of 18 year olds graduating from high school can best be described as follows:

A)the best and brightest in the world.
B)are very competitive with graduates from other industrialized countries.
C)cannot do simple arithmetiC.
D)are well trained for relatively high paying technical jobs.

Question 33

What form of production predominates in less developed countries?

A)Manufacturing
B)Service
C)Government
D)Wholesale
E)Agriculture

Question 34

Leaders in underdeveloped countries can enhance development by

A)increasing population growth.
B)reducing capital per worker.
C)implementing improved technology.
D)creating new natural resources.

Question 35

Which statement is true?

A)The United States has the highest standard of living in the world.
B)Within the next two decades,the United States will no longer have the largest economy in the world.
C)The information phase of the Industrial Revolution took off in the 1990s.
D)The American economy has been going downhill since the mid-1990s.

Question 36

Which statement is FALSE?

A)Our average workweek has declined by more than one third since 1900.
B)Americans work more hours per year than workers in most other industrial nations.
C)The number of paid holidays enjoyed by American workers has increased since the 1950s.
D)American workers get more vacation time than workers in other industrialized nations.

Question 37

High military spending during the 2000's has _____ the economic growth of the United States.

A)greatly sped up
B)slightly sped up
C)had no effect upon
D)slowed

Question 38

Leaders in the lower level underdeveloped countries can enhance per capita income by

A)providing better health care
B)encouraging citizens to leave the cities and enter agricultural production
C)encouraging smaller families
D)implementing a social security program

Question 39

Over the last ten years,the ____ quality of our labor force has been a factor in ____ our rate of economic growth.

A)increasing;decreasing
B)increasing;increasing
C)decreasing;increasing
D)decreasing;decreasing

Question 40

The performance of the children of immigrants graduating from high schools in the United States compared to nonimmigrant children is as follows:

A)forty percent of the students with deficient skills are children of immigrant parents.
B)sixty percent of the top math and science graduates have immigrant parents.
C)none of the students selected in the Intel Science Talent Search have ever been from immigrant parents.
D)children of immigrant parents have reduced the performance averages of our high school graduates.

Question 41

In the year 2005,the rate of personal savings in the United States was below _____ percent.

A)15
B)10
C)5
D)1

Question 42

Statement I: Beginning in 1885,Japan doubled its per capita GDP in 34 years.
Statement II: China is presently doubling its per capita GDP every 10 years.

A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.

Question 43

During a year,the average American worker puts in about _____ hours on the job.

A)3200
B)2800
C)2400
D)2000
E)1800

Question 44

Statement I: Thomas Robert Malthus had a very pessimistic outlook.
Statement II: The Malthusian theory of population has been proven almost completely correct.

A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.

Question 45

Which one of these would be considered an LDC?

A)Malawi
B)Taiwan
C)Hong Kong
D)South Korea

Question 46

Since 1985 which of these countries has had the fastest rate of economic growth?

A)The United States
B)China
C)Britain
D)The former Soviet Union

Question 47

Which statement is true?

A)Almost one-half of the world's population lives in less developed countries.
B)The economies of most of the NICs are growing very slowly.
C)The output of the United States today is smaller than it was in 1990.
D)Our education system is second to none.

Question 48

From 1970 to 1997,the federal government ran a _____ and the state and local governments combined ran a ___.

A)deficit;deficit
B)surplus;surplus
C)surplus;deficit
D)deficit;surplus

Question 49

Thomas Robert Malthus said that

A)the food supply doubled every 25 years.
B)the population doubled every 25 years.
C)both the food supply and population doubled every 25 years.
D)neither the food supply nor population doubled every 25 years.

Question 50

The net national savings rate for the United States,compared with that of other industrial nations is

A)much higher.
B)a little higher.
C)lower.

Question 51

What is the primary difference between the very expensive health care system in the United States and the cheaper systems in the Top Ten Countries in 2008?

A)Our system is more expensive because it is much better.
B)The other countries have some form of universal health care.
C)We have too many doctors in the U.S.
D)The other countries have many more health insurance companies.

Question 52

Over the last two decades,what is the single factor that has caused the increase in the percent of GDP spent on the military?

A)Our tremendous need for imported oil to fuel our inefficient transportation system and large military.
B)Our obligations to protect our friends in Asia.
C)Our obligations to provide protection for the Americas and the Caribbean island countries.
D)Play the role of world protector.

Question 53

American productivity growth was highest in the decade of the

A)1960's.
B)1970's.
C)1980's.
D)1990's.

Question 54

Most of the LDCs are:

A)located primarily in Northern Europe.
B)located primarily in Western Europe.
C)located primarily in Africa.
D)more or less evenly distributed over the various continents.

Question 55

One of the major drags placed on our economic growth is the results of our form of government because large amounts of resources are expended on:

A)the salaries of the members of the administration.
B)the salaries of members of congress.
C)the money wasted on lobbyist.
D)the interference of the Supreme Court in economic policy.

Question 56

According to Malthusian population theory,

A)the world's food supply increases geometrically.
B)the world's population tends to grow geometrically.
C)a psychological standard of living regulates population growth.
D)population growth is an unimportant determinant of standards of living.

Question 57

The extremely low savings rate in the United States has forced us to borrow almost $_____ billion a day to finance our federal budget deficit and trade deficit.

A)1
B)2
C)3
D)4

Question 58

Most of the world's population lives in

A)North AmericA.
B)the LDCs.
C)Western Europe.
D)the NICs.

Question 59

From 1970 to 1995,American productivity

A)fell.
B)stayed about the same.
C)rose at a slower rate.
D)rose at a faster rate.

Question 60

Which of the following would NOT be expected to increase labor productivity?

A)Technological advance
B)The acquisition of more education and training by the labor force
C)An increase in the size of the labor force
D)The realization of economies of scale

Question 61

Which statement is TRUE?

A)There is no such thing in the United States as a permanent underclass.
B)There is no relationship between poverty and the twin problems of crime and drugs.
C)Poverty,crime,and welfare dependency have all fallen since the mid-1990s.

Question 62

Statement I: It can be argued that the industrial revolution had four phases,the last of which began in the 1990s.
Statement II: Every generation of Americans has done better than its parents.

A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.

Question 63

Which of the following statements is TRUE about education in America?

A)Less than half of our high school graduates can function at the eighth grade level.
B)The U.S.has the largest number of engineering students of any country of the world.
C)Ninety percent of all PhD's in engineering and sciences awarded in the U.S.are foreign students.
D)American's education system is second to none.

Question 64

Statement I: The generation that came of age in the 1980s did better than its parents' generation.
Statement II: Our standard of living today is much higher than it was 20 years ago.

A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.

Question 65

Which statement is true?

A)Our lower rate of productivity growth has been affected by our low rate of savings.
B)Our lower rate of productivity growth has been caused almost entirely by our high rate of savings.
C)Our high rate of productivity growth has been caused almost entirely by our high rate of savings.
D)Our high rate of productivity growth has been caused almost entirely by our low rate of savings.

Question 66

Most of the world's population lives in

A)industrialized nations.
B)newly industrializing countries.
C)less developed countries.
D)None of the choices are correct.

Question 67

Which statement is TRUE?

A)Health care costs now total over 20 percent of our GDP.
B)The United States spends more on health care per capita than any other industrial nation.
C)Our heavy investment in health care has speeded up our rate of economic growth.
D)None of the statements are true.

Question 68

In which countries of the world has Malthus's prediction come closest to being true?

A)The highly industrialized countries
B)The less developed countries
C)The non-Christian countries
D)The countries in the temperate zone

Question 69

Our rate of economic growth

A)is negatively related to our rate of productivity growth.
B)has no relation to our rate of productivity growth.
C)is slightly related to our rate of productivity growth.
D)is closely related to our rate of productivity growth.

Question 70

As economic development in LDCs progresses,

A)children become an increasingly valuable economic asset.
B)the birth rate eventually declines.
C)consumption rises faster than production.
D)fewer children survive to adulthooD.

Question 71

The most obvious measure of low levels of development is

A)oil production.
B)lack of water.
C)low per capita income levels.
D)bilingualism.
E)a dual economy.

Question 72

The populations of the LDCs are growing

A)at about 5 percent per year.
B)at about the same rate as those of the industrially advanced nations.
C)slower than those of the industrially advanced nations.
D)faster than those of the industrially advanced nations.

Question 73

The theory of population of _____ predicted that the world's population would increase faster than the food supply.

A)Thomas Robert Malthus
B)Mancur Olson
C)Lester Thurow
D)Edward Denison

Question 74

The increase in productivity in the 2000s was most similar to that of the

A)1960s
B)1970s
C)1980s
D)1990s

Question 75

Increases in the total real output of any LDCs do not increase the nation's standard of living because

A)the proceeds must be used to repay foreign lenders.
B)population increases may dissipate the increase in real output.
C)disguised unemployment in agriculture will persist.
D)surplus farm labor may move from rural areas to industrial areas and thereby cause unemployment.

Question 76

Statement I.Although more people than ever are attending college,our labor force is less educated than those of previous generations.
Statement II.Although the United States has less than 5 percent of the world's population,Americans have won about 60 percent of the Nobel prizes in economics,physics,and medicine.

A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.

Question 77

The birth rate in most LDCs is

A)much lower than that of most industrial countries.
B)slightly lower than that of most industrial countries.
C)slightly higher than that of most industrial countries.
D)much higher than that of most industrial countries.

Question 78

According to Thomas Robert Malthus,the wage rate would be depressed to the subsistence level because of

A)the power of monopolies.
B)the desire of capitalists to exploit the working class.
C)the natural tendency of population to grow more rapidly than the production of food.
D)the long-run downward trend in investment.
E)pestilence,war,and faminE.

Question 79

With economic development comes each of the following,except

A)a decline in the birth rate.
B)an increase in the stock of capital.
C)rising per capita GDP.
D)a declining wage rate.

Question 80

For a country in the process of development,a high saving rate is generally

A)helpful,because it makes resources available for investment.
B)helpful,because it causes a rapid growth of aggregate demand and thus makes it easier to capture economies of scale.
C)harmful,because it causes a stagnation of aggregate demand.
D)harmful,because it promotes imports of consumer goods.
E)unimportant;there is no observable relationship (either positive or negative)between saving and growth.