Question 1

(Consider This)  According to the Consider This box on patents and innovation, the cost for U.S.and European drug companies to research, patent, and safety-test a new drug is about

Accepted Answer

A)  $100 million.
B)  $750 million.
C)  $1 billion.
D)  $10 billion.

Question 2

The rule of 70 is used to find how long it will take an economy to grow by 70 percent.

Accepted Answer

A) True 
 B)False

Question 3

Increases in the quantity and quality of human resources.Use the accompanying list to answer the following question.As distinct from the demand and efficiency factors of economic growth, the supply factors of economic growth are

Accepted Answer

A)  2, 5, and 6 only.
B)  2, 4, 5, and 6 only.
C)  1, 2, 5, and 6 only.
D)  1, 3, and 4 only.

Question 4

A major effect of the rise in the rate of productivity growth in the United States is a(n)

Accepted Answer

A)  rise in the rate of inflation.
B)  rise in the growth of living standards.
C)  increase in the relative prices of U.S.goods in foreign markets.
D)  increase in the competitiveness of U.S.goods in foreign markets.

Question 5

In 1998, living standards in the United States were nearly times higher than those in Africa.

Accepted Answer

A)  3
B)  8
C)  14
D)  20

Question 6

The fundamental invention underpinning the 1995-2010 rise in the average rate of productivity growth is the

Accepted Answer

A)  microchip.
B)  fuel cell.
C)  Internet.
D)  personal computer.

Question 7

Which of the following statements is true about productivity growth in the United States since the Great Recession?

Accepted Answer

A)  The productivity growth rate has stagnated to about 3 percent per year.
B)  The productivity growth rate fell to 0.4 percent from 2010 to 2015.
C)  Productivity growth grew as new products, particularly Internet apps, were introduced.
D)  Firms have lacked the capacity to meet consumer demand, causing measured productivity to fall.

Question 8

Suppose that an economy is initially operating at a point on its PPC.If it then experiences an expansion in its production capacity, but its total spending does not rise as fast as its capacity, the economy will end up

Accepted Answer

A)  still on its PPC.
B)  outside its PPC.
C)  inside its PPC.
D)  on one of the axes of its PPC.Accessibility: Keyboard Navigation

Question 9

(Last Word)  It is expected that by 2050, most nations will have decreasing populations.With the likely decline in the labor force and number of hours of work in the economy, what must occur for real GDP to continue to rise?

Accepted Answer

A)  Increasing amounts of natural resources must be brought into production.
B)  Labor productivity must grow faster than the drop in work hours.
C)  Consumption spending must grow faster than the drop in work hours.
D)  Government spending and tax policy must be altered to stimulate sufficient demand.

Question 10

Human capital refers to

Accepted Answer

A)  the skills and knowledge that enable a worker to be productive.
B)  machinery used by labor in production.
C)  the accumulated financial wealth of households.
D)  physical capital owned by households rather than businesses.

Question 11

If the working-age population in an economy shrinks, real GDP can still grow if

Accepted Answer

A)  work hours per week decreases, to spread work among more workers.
B)  labor productivity increases rapidly enough.
C)  consumption by households increases rapidly.
D)  spending by firms and the government increases.

Question 12

The significant increase in U.S.labor-productivity growth experienced in the period 1995-2010 continued to be observed in the period 2010-2015.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following factors has been the dominant source of economic growth in the U.S.(except in 1973-1995) ?

Accepted Answer

A)  increase in population
B)  increase in labor productivity
C)  increase in hours per worker
D)  increase in labor force

Question 14

The percentage of U.S.adults with a high school education has

Accepted Answer

A)  remained constant since the 1960s.
B)  risen from 8 percent in 1960 to 33 percent in 2015.
C)  risen to over 90 percent in the 21st century.
D)  risen from 41 percent in 1960 to 88 percent in 2015.

Question 15

Which of the following is correct?

Accepted Answer

A)  Total output = labor productivity/worker-hours.
B)  Labor productivity = worker-hours/total output.
C)  Total output = worker-hours × labor productivity.
D)  Worker-hours = labor productivity × total output.

Question 16

The Industrial Revolution and modern economic growth resulted in

Accepted Answer

A)  the average human lifespan more than doubling.
B)  a major population shift from urban to rural areas.
C)  increased production by local craftspeople.
D)  all of these.

Question 17

(Consider This)  According to the Consider This box about hypothetical countries Slogo, Sumgo, and Speedo, small differences in make for large differences in over several decades, assuming the same growth of population for each country.

Accepted Answer

A)  inflation rates; unemployment rates
B)  unemployment rates; economic growth rates
C)  economic growth rates; real GDP per capita
D)  tax rates; real GDP per capita

Question 18

To fully realize economic growth through the efficiency factor, an economy must increase its stock of capital goods and improve its technology.

Accepted Answer

A) True 
 B)False

Question 19

Increases in the quantity and quality of human resources.Use the accompanying list to answer the following question.As distinct from the supply factors and demand factor of economic growth, the efficiency factor(s)  of economic growth is (are)

Accepted Answer

A)  1 only.
B)  4 only.
C)  1 and 3 only.
D)  3 only.

Question 20

One major economic benefit of global competition is

Accepted Answer

A)  lower unemployment.
B)  increased protection of domestic firms.
C)  pressure to innovate.
D)  more leisure opportunities.

Exam 28: Economic Growth

In 1998, living standards in the United States were nearly times higher than those in Africa.

Correct AnswerverifiedShow Answer

The significant increase in U.S.labor-productivity growth experienced in the period 1995-2010 continued to be observed in the period 2010-2015.

Correct AnswerverifiedShow Answer

Which of the following statements is true about productivity growth in the United States since the Great Recession?

Correct AnswerverifiedShow Answer

(Consider This) According to the Consider This box on patents and innovation, the cost for U.S.and European drug companies to research, patent, and safety-test a new drug is about

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Which of the following factors has been the dominant source of economic growth in the U.S.(except in 1973-1995) ?

Correct AnswerverifiedShow Answer

(Consider This) According to the Consider This box about hypothetical countries Slogo, Sumgo, and Speedo, small differences in make for large differences in over several decades, assuming the same growth of population for each country.

Correct AnswerverifiedShow Answer

The percentage of U.S.adults with a high school education has

Correct AnswerverifiedShow Answer

The Industrial Revolution and modern economic growth resulted in

Correct AnswerverifiedShow Answer

One major economic benefit of global competition is

Correct AnswerverifiedShow Answer

The fundamental invention underpinning the 1995-2010 rise in the average rate of productivity growth is the

Correct AnswerverifiedShow Answer

Increases in the quantity and quality of human resources.Use the accompanying list to answer the following question.As distinct from the supply factors and demand factor of economic growth, the efficiency factor(s) of economic growth is (are)

Correct AnswerverifiedShow Answer

To fully realize economic growth through the efficiency factor, an economy must increase its stock of capital goods and improve its technology.

Correct AnswerverifiedShow Answer

(Last Word) It is expected that by 2050, most nations will have decreasing populations.With the likely decline in the labor force and number of hours of work in the economy, what must occur for real GDP to continue to rise?

Correct AnswerverifiedShow Answer

Increases in the quantity and quality of human resources.Use the accompanying list to answer the following question.As distinct from the demand and efficiency factors of economic growth, the supply factors of economic growth are

Correct AnswerverifiedShow Answer

A major effect of the rise in the rate of productivity growth in the United States is a(n)

Correct AnswerverifiedShow Answer

If the working-age population in an economy shrinks, real GDP can still grow if

Correct AnswerverifiedShow Answer

The rule of 70 is used to find how long it will take an economy to grow by 70 percent.

Correct AnswerverifiedShow Answer

Suppose that an economy is initially operating at a point on its PPC.If it then experiences an expansion in its production capacity, but its total spending does not rise as fast as its capacity, the economy will end up

Correct AnswerverifiedShow Answer

Human capital refers to

Correct AnswerverifiedShow Answer

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