Question 1

Advovates of "sustainability":

Accepted Answer

A)  are "eco-bully" extremists 
B)  are concerned with the ecological viability and impacts of economic growth 
C)  argue that all current environmental damage should be tolerated because it is future generations' responsibility to devise solutions 
D)  heavily discount environmental costs

Question 2

Economists have fully explained the productivity slowdown and prescribed the appropriate corrective policies so that it cannot happen again.

Accepted Answer

A) True 
 B)False

Question 3

The vicious circle of poverty experienced by lesser-developed nations starts with low consumption spending.

Accepted Answer

A) True 
 B)False

Question 4

Advanced countries tend to invest more in human capital than developing countries.

Accepted Answer

A) True 
 B)False

Question 5

The final stage of Rostow's theory of economic development is the take-off stage.

Accepted Answer

A) True 
 B)False

Question 6

Low investment in physical and human capital may be attributed to low saving and insufficient aggregate demand.

Accepted Answer

A) True 
 B)False

Question 7

A major concern about whether living standards can continue to rise in the United States is that:

Accepted Answer

A)  the population will be very young and unskilled beyond the mid-1990s 
B)  productivity has been growing at more than 7 percent annually 
C)  the means-wants dilemma has been conquered 
D)  the population is aging and slower labor force growth

Question 8

Real GDP per capita is calculated by dividing real GDP by population.

Accepted Answer

A) True 
 B)False

Question 9

Each decade in the post-World War II period has exhibited a rising average annual growth rate in output per worker-hour.

Accepted Answer

A) True 
 B)False

Exam 12: Maintaining a Rising Level of Output: The Importance of Economic Growth

Advovates of "sustainability":

Economists have fully explained the productivity slowdown and prescribed the appropriate corrective policies so that it cannot happen again.

The vicious circle of poverty experienced by lesser-developed nations starts with low consumption spending.

Advanced countries tend to invest more in human capital than developing countries.

The final stage of Rostow's theory of economic development is the take-off stage.

Low investment in physical and human capital may be attributed to low saving and insufficient aggregate demand.

A major concern about whether living standards can continue to rise in the United States is that:

Real GDP per capita is calculated by dividing real GDP by population.

Each decade in the post-World War II period has exhibited a rising average annual growth rate in output per worker-hour.