Question 1

About two-thirds of Canada's growth rate in the last half century has been due to rising productivity and about one-third has been due to the use of more inputs.

Accepted Answer

A) True 
 B)False

Question 2

Other things equal, if a full-employment economy reallocates a substantial quantity of its resources to capital goods, we would expect:

Accepted Answer

A)   present consumption to rise.
B)   future consumption to fall.
C)   a lower rate of growth of real GDP.
D)   labour productivity to rise.E) B) and C)
F) A) and D)

Question 3

-Refer to the above diagram. If the production possibilities curve of an economy shifts from AB to CD, it is most likely the result of what factor affecting economic growth?

Accepted Answer

A)   a supply factor
B)   a demand factor
C)   an efficiency factor
D)   an allocation factorE) B) and D)
F) B) and C)

Question 4

Which is an efficiency factor in economic growth?

Accepted Answer

A)   an efficient allocation of resources
B)   natural resources
C)   the quantity and quality of labour
D)   technological knowledgeE) None of the above
F) A) and C)

Question 5

A nation's "infrastructure" refers to:

Accepted Answer

A)   its ability to realize economies of scale.
B)   its stock of technological knowledge.
C)   public capital goods such as highways and utilities.
D)   the productivity of its labour force.E) C) and D)
F) None of the above

Question 6

Other: Pick-up
-Refer to the above table, between years 2 and 3:

Accepted Answer

A)   Italy's real GDP grew more rapidly than China's real GDP.
B)   real GDP fell in China.
C)   population growth reduced Italy's real GDP growth to zero.
D)   population fell in Italy's.E) A) and C)
F) A) and B)

Question 7

Critics of the recent rapid advances in new technology say that:

Accepted Answer

A)   it is too early to predict whether recent boosts in Canadian productivity are permanent or transitory.
B)   global competition is a media fiction, not an economic reality.
C)   the growth of service productivity is severely understated.
D)   many of the factors slowing productivity in the past have now reversed themselves.E) All of the above
F) B) and C)

Question 8

-Refer to the above diagram. The most likely cause of a shift from AB to CD would be a(n) :

Accepted Answer

A)   increase in productivity.
B)   increase in the price level.
C)   decrease in the size of the labour force.
D)   recession.E) A) and D)
F) A) and C)

Question 9

Economies of scale are increases in per-unit cost that result in a decrease in the size of markets and firms.

Accepted Answer

A) True 
 B)False

Question 10

Economic growth lessens the burden of scarcity and provides increases in domestic output which can be used to alleviate national economic problems.

Accepted Answer

A) True 
 B)False

Question 11

Assume that in 2012 the nominal GDP was $350 billion and in 2013 it was $375 billion. On the basis of this information we:

Accepted Answer

A)   cannot make a meaningful comparison of the economy's performance in 2013 relative to 2012.
B)   can conclude that the economy was achieving real economic growth.
C)   can conclude that real GDP was higher in 2012 than in 2013.
D)   can conclude that real GDP was lower in 2012 than in 2013.E) A) and B)
F) B) and C)

Question 12

Refer to the diagram below. A shift in the production possibilities curve from AB to CD is most likely due to:

Accepted Answer

A)   the use of the economy's resources in an efficient way.
B)   an increase in the spending of business and consumers.
C)   an increase in government purchase of the economy's output.
D)   an increase in the quantity and quality of labour resources.E) All of the above
F) None of the above

Question 13

A decline in a nation's rate of productivity growth will:

Accepted Answer

A)   reduce the inflation rate.
B)   increase education and training.
C)   slow the growth of the standard of living.
D)   make industry more competitive in world markets.E) All of the above
F) A) and B)

Question 14

The rate of economic growth is best defined as the:

Accepted Answer

A)   increase in investment as a percentage of GDP over time.
B)   percentage increase in nominal GDP over time.
C)   percentage increase in real GDP over time.
D)   percentage increase in the quantity and quality of capital, human, and natural resources which occurs over time.E) A) and D)
F) C) and D)

Question 15

A major argument for economic growth is that it:

Accepted Answer

A)   creates an equal distribution of income.
B)   protects common property resources.
C)   leads to a higher standard of living.
D)   reduces the amount of taxation.E) All of the above
F) A) and D)

Question 16

The knowledge and skill that make for a productive worker are referred to by economists as:

Accepted Answer

A)   human capital.
B)   increasing returns.
C)   resource allocation.
D)   simultaneous consumption.E) C) and D)
F) B) and D)

Question 17

According to some studies in Canada, the productivity advance related to the information technology:

Accepted Answer

A)   has spread to only a few industries.
B)   has not spread to other industries.
C)   has spread to a wide range of industries, but not to services.
D)   has spread to a wide range of industries, including services.E) None of the above
F) All of the above

Question 18

Nominal GDP was $9,500 billion in Year 1 and $10,000 billion in Year 2. The GDP price index was 170 in Year 1 and 175 in Year 2. Between Years 1 and 2, the rate of growth in real GDP was approximately:

Accepted Answer

A)   1.6 percent.
B)   2.3 percent.
C)   4.4 percent.
D)   5.3 percent.E) A) and B)
F) A) and C)

Question 19

A source of increasing returns to scale is:

Accepted Answer

A)   less specialized inputs.
B)   less investment in technology.
C)   simultaneous consumption.
D)   the labour-force participation rate.E) A) and B)
F) A) and C)

Question 20

Growth is advantageous to a nation because it:

Accepted Answer

A)   promotes faster population growth.
B)   lessens the burden of scarcity.
C)   eliminates the economizing problem.
D)   slows the growth of wants.E) A) and B)
F) A) and C)

Exam 6: Economic Growth

Critics of the recent rapid advances in new technology say that:

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Other: Pick-up -Refer to the above table, between years 2 and 3:

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The rate of economic growth is best defined as the:

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Assume that in 2012 the nominal GDP was $350 billion and in 2013 it was $375 billion. On the basis of this information we:

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A major argument for economic growth is that it:

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-Refer to the above diagram. If the production possibilities curve of an economy shifts from AB to CD, it is most likely the result of what factor affecting economic growth?

Correct AnswerverifiedShow Answer

Economies of scale are increases in per-unit cost that result in a decrease in the size of markets and firms.

Correct AnswerverifiedShow Answer

The knowledge and skill that make for a productive worker are referred to by economists as:

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Growth is advantageous to a nation because it:

Correct AnswerverifiedShow Answer

-Refer to the above diagram. The most likely cause of a shift from AB to CD would be a(n) :

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Economic growth lessens the burden of scarcity and provides increases in domestic output which can be used to alleviate national economic problems.

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Refer to the diagram below. A shift in the production possibilities curve from AB to CD is most likely due to:

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According to some studies in Canada, the productivity advance related to the information technology:

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Which is an efficiency factor in economic growth?

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A nation's "infrastructure" refers to:

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About two-thirds of Canada's growth rate in the last half century has been due to rising productivity and about one-third has been due to the use of more inputs.

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A decline in a nation's rate of productivity growth will:

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Other things equal, if a full-employment economy reallocates a substantial quantity of its resources to capital goods, we would expect:

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A source of increasing returns to scale is:

Correct AnswerverifiedShow Answer

Nominal GDP was $9,500 billion in Year 1 and $10,000 billion in Year 2. The GDP price index was 170 in Year 1 and 175 in Year 2. Between Years 1 and 2, the rate of growth in real GDP was approximately:

Correct AnswerverifiedShow Answer

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