Question 1

Gamma has $30,000 of capital per worker,while Omega has $7,500 of capital per worker.In all other respects,the two countries are the same.According to the principle of diminishing returns to capital,an additional unit of capital will increase output ______ in Gamma compared to Omega,holding other factors constant.

Accepted Answer

A)  more
B)  less
C)  not at all
D)  by the same amountE) A) and B)
F) None of the above

Question 2

Economic growth may face environmental limits because:

Accepted Answer

A)  economic growth can take the form of new,different,and "cleaner" goods and services.
B)  economic growth may lead to less,not more,pollution.
C)  the market mechanism mobilizes resources to deal with shortages.
D)  global environmental problems are not handled by markets or national governments.E) C) and D)
F) B) and D)

Question 3

Each of the following increases average labor productivity EXCEPT:

Accepted Answer

A)  more human capital.
B)  more physical capital.
C)  more central planning.
D)  more natural resources.E) A) and B)
F) All of the above

Question 4

Compared to the level of real GDP per person in 1870,by 2008,real GDP in the U.S was ______ times larger,while real GDP per person in Japan was _______.

Accepted Answer

A)  13;smaller
B)  13;13 times larger
C)  13;31 times larger
D)  31;13 times largerE) A) and B)
F) None of the above

Question 5

Managers contribute to increased average labor productivity in each of the following ways EXCEPT by:

Accepted Answer

A)  developing new products.
B)  obtaining financing.
C)  assigning workers to jobs.
D)  dealing with suppliers.E) C) and D)
F) All of the above

Question 6

Usually an abundance of natural resources ______ average labor productivity.

Accepted Answer

A)  doubles
B)  increases
C)  decreases
D)  has no effect onE) None of the above
F) C) and D)

Question 7

The key indicator of a country's living standard and economic well-being is:

Accepted Answer

A)  the interest rate.
B)  nominal GDP per person.
C)  real GDP.
D)  real GDP per person.E) A) and B)
F) A) and C)

Question 8

Bank C promises to pay a compound annual interest rate of 6 percent,while Bank S pays a 10 percent simple annual interest rate on deposits.If you deposit $1,000 in each bank,after 10 years,your deposit in Bank C equals _____,while your deposit in Bank S equals ______.

Accepted Answer

A)  $1,060;$1,100
B)  $1,600;$2,000
C)  $1,600;$2,594
D)  $1,791;$2,000E) C) and D)
F) A) and C)

Question 9

If average labor productivity increases,real GDP per person:

Accepted Answer

A)  increases.
B)  decreases.
C)  remains constant.
D)  may increase or decrease depending on the change in the share of population employed.E) A) and C)
F) A) and D)

Question 10

Suppose when you are 21 years old,you deposit $1,000 into a bank account that pays annual compound interest,and you do not withdraw from the account until your retirement at the age of 65,44 years later.How much more will be in your account if the interest rate is 6 percent rather than 4 percent?

Accepted Answer

A)  $880
B)  $2,390
C)  $5,617
D)  $7,368E) All of the above
F) B) and C)

Question 11

If an economy maintains a small rate of growth for a long period of time,then the size of the economy:

Accepted Answer

A)  can only increase by a small amount.
B)  can increase by a large amount.
C)  can never double.
D)  will stay nearly constant.E) B) and D)
F) B) and C)

Question 12

Arguments that economic growth must be constrained by environmental problems and limits of natural resources ignore the fact that economic growth can:

Accepted Answer

A)  be measured in both nominal and real terms.
B)  involve both average labor productivity and the share of population employed.
C)  take the form of increases in quality as well as increases in quantity.
D)  occur with only benefits and no economic costs.E) A) and C)
F) C) and D)

Question 13

The application of new technologies to the production process will increase:

Accepted Answer

A)  average labor productivity.
B)  the share of the population employed.
C)  the unemployment rate.
D)  the quantity of human capital.E) A) and B)
F) All of the above

Question 14

Mike and Tom debone chicken breasts for Ted's Chicken Co.Mike is new and can only debone 30 chicken breasts per hour,while Tom's experience allows him to debone 60 chicken breasts per hour.Both Mike and Tom work 40 hours per week.Their average hourly productivity as a team is ______ chicken breasts.

Accepted Answer

A)  30
B)  45
C)  60
D)  90E) A) and C)
F) A) and B)

Question 15

The biggest barrier to growth for many of the poorest countries in the world is the need for:

Accepted Answer

A)  larger populations.
B)  more human capital.
C)  more physical capital.
D)  improved legal and political frameworks.E) B) and C)
F) A) and B)

Question 16

Research confirms that government provision of infrastructure:

Accepted Answer

A)  hinders economic growth.
B)  promotes economic growth.
C)  increases human capital.
D)  leads to reduced spending on research and development.E) All of the above
F) A) and B)

Question 17

Business managers are people who:

Accepted Answer

A)  engage exclusively in business travel.
B)  entertain the workers.
C)  run businesses on a day-to-day basis.
D)  own the physical capital used in production.E) C) and D)
F) All of the above

Question 18

Fred and Barney fill egg cartons with eggs.Fred just started the job and can fill only 20 cartons an hour.Barney has significant on-the-job experience that allows him to fill 40 cartons an hour.Both Fred and Barney work 40 hours a week.Fred's average weekly productivity is ______ cartons;Barney's average weekly productivity is ______ cartons;and as a team their average weekly productivity is ______ cartons.

Accepted Answer

A)  20;40;60
B)  20;40;30
C)  800;2,000;1,600
D)  800;1,600;1,200E) B) and D)
F) A) and C)

Question 19

More economic growth is not necessarily better unless the benefits of growth:

Accepted Answer

A)  exceed the costs of growth.
B)  increase average labor productivity.
C)  increase real GDP per capita.
D)  increase human capital.E) None of the above
F) A) and B)

Question 20

A worldwide slowdown in productivity growth occurred:

Accepted Answer

A)  before 1950.
B)  in the 1950s and 1960s.
C)  in the 1960s and 1970s.
D)  in the 1970s and 1980s.E) B) and C)
F) A) and D)

Exam 18: Economic Growth

Correct Answer
verified

Suppose when you are 21 years old,you deposit $1,000 into a bank account that pays annual compound interest,and you do not withdraw from the account until your retirement at the age of 65,44 years later.How much more will be in your account if the interest rate is 6 percent rather than 4 percent?

Correct Answer
verified

Arguments that economic growth must be constrained by environmental problems and limits of natural resources ignore the fact that economic growth can:

Correct Answer
verified

Each of the following increases average labor productivity EXCEPT:

Correct Answer
verified

Usually an abundance of natural resources ______ average labor productivity.

Correct Answer
verified

A worldwide slowdown in productivity growth occurred:

Correct Answer
verified

More economic growth is not necessarily better unless the benefits of growth:

Correct Answer
verified

Research confirms that government provision of infrastructure:

Correct Answer
verified

The biggest barrier to growth for many of the poorest countries in the world is the need for:

Correct Answer
verified

Bank C promises to pay a compound annual interest rate of 6 percent,while Bank S pays a 10 percent simple annual interest rate on deposits.If you deposit $1,000 in each bank,after 10 years,your deposit in Bank C equals _,while your deposit in Bank S equals __.

Correct Answer
verified

The key indicator of a country's living standard and economic well-being is:

Correct Answer
verified

If an economy maintains a small rate of growth for a long period of time,then the size of the economy:

Correct Answer
verified

The application of new technologies to the production process will increase:

Correct Answer
verified

If average labor productivity increases,real GDP per person:

Correct Answer
verified

Managers contribute to increased average labor productivity in each of the following ways EXCEPT by:

Correct Answer
verified

Mike and Tom debone chicken breasts for Ted's Chicken Co.Mike is new and can only debone 30 chicken breasts per hour,while Tom's experience allows him to debone 60 chicken breasts per hour.Both Mike and Tom work 40 hours per week.Their average hourly productivity as a team is ______ chicken breasts.

Correct Answer
verified

Compared to the level of real GDP per person in 1870,by 2008,real GDP in the U.S was times larger,while real GDP per person in Japan was _.

Correct Answer
verified

Correct Answer
verified

Economic growth may face environmental limits because:

Correct Answer
verified

Business managers are people who:

Correct Answer
verified

Exam 18: Economic Growth

Correct AnswerverifiedShow Answer

Suppose when you are 21 years old,you deposit $1,000 into a bank account that pays annual compound interest,and you do not withdraw from the account until your retirement at the age of 65,44 years later.How much more will be in your account if the interest rate is 6 percent rather than 4 percent?

Correct AnswerverifiedShow Answer

Arguments that economic growth must be constrained by environmental problems and limits of natural resources ignore the fact that economic growth can:

Correct AnswerverifiedShow Answer

Each of the following increases average labor productivity EXCEPT:

Correct AnswerverifiedShow Answer

Usually an abundance of natural resources ______ average labor productivity.

Correct AnswerverifiedShow Answer

A worldwide slowdown in productivity growth occurred:

Correct AnswerverifiedShow Answer

More economic growth is not necessarily better unless the benefits of growth:

Correct AnswerverifiedShow Answer

Research confirms that government provision of infrastructure:

Correct AnswerverifiedShow Answer

The biggest barrier to growth for many of the poorest countries in the world is the need for:

Correct AnswerverifiedShow Answer

Bank C promises to pay a compound annual interest rate of 6 percent,while Bank S pays a 10 percent simple annual interest rate on deposits.If you deposit $1,000 in each bank,after 10 years,your deposit in Bank C equals _____,while your deposit in Bank S equals ______.

Correct AnswerverifiedShow Answer

The key indicator of a country's living standard and economic well-being is:

Correct AnswerverifiedShow Answer

If an economy maintains a small rate of growth for a long period of time,then the size of the economy:

Correct AnswerverifiedShow Answer

The application of new technologies to the production process will increase:

Correct AnswerverifiedShow Answer

If average labor productivity increases,real GDP per person:

Correct AnswerverifiedShow Answer

Managers contribute to increased average labor productivity in each of the following ways EXCEPT by:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Compared to the level of real GDP per person in 1870,by 2008,real GDP in the U.S was ______ times larger,while real GDP per person in Japan was _______.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Economic growth may face environmental limits because:

Correct AnswerverifiedShow Answer

Business managers are people who:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Bank C promises to pay a compound annual interest rate of 6 percent,while Bank S pays a 10 percent simple annual interest rate on deposits.If you deposit $1,000 in each bank,after 10 years,your deposit in Bank C equals _,while your deposit in Bank S equals __.

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Compared to the level of real GDP per person in 1870,by 2008,real GDP in the U.S was times larger,while real GDP per person in Japan was _.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified