Question 1

1. Improvements in technology. 2. Increases in the supply (stock)  of capital goods.
3)  Purchases of expanding output.
4)  Obtaining the optimal combination of goods, each at least-cost production.
5)  Increases in the quantity and quality of natural resources.
6)  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.E) A) and B)
F) None of the above

Question 2

Explain the demand factor in economic growth.

Accepted Answer

The demand factor is a condition that st...

Question 3

If a country has a larger real GDP than another country, then it should also have a higher real GDP
per capita than the other country.

Accepted Answer

A) True 
 B)False

Question 4

Economic growth is best deﬁned as an increase in

Accepted Answer

A)   either real GDP or real GDP per capita.
B)   nominal GDP.
C)   total consumption expenditures.
D)   wealth in the economy.E) All of the above
F) A) and B)

Question 5

Between 1950 and 2018, U.S. real GDP grew at an average annual rate of about

Accepted Answer

A)   2.0 percent.
B)   3.1 percent.
C)   5.1 percent.
D)   8.6 percent.E) A) and D)
F) C) and D)

Question 6

Empirical studies suggest that

Accepted Answer

A)   labor productivity has declined throughout U.S. history.
B)   technological advances account for about 40 percent of U.S. productivity growth.
C)   achieving economies of scale is the most important factor in U.S. economic growth.
D)   all U.S. economic growth from between 2001 and 2007 can be attributed to increases in the quantity of labor.E) None of the above
F) A) and B)

Question 7

Which of the following institutional structures is most likely to promote growth?

Accepted Answer

A)   a well-enforced system of patents and copyrights
B)   a tightly regulated market system
C)   a system of tariffs and other trade barriers to protect domestic companies
D)   all of theseE) B) and D)
F) C) and D)

Question 8

If the growth trend of labor productivity is 3 percent per year, the number of years that it will take for the standard of living to double will be about

Accepted Answer

A)   15 years.
B)   17 years.
C)   20 years.
D)   23 years.E) B) and D)
F) None of the above

Question 9

Critics of economic growth say studies show that people are not interested in achieving higher
standards of living.

Accepted Answer

A) True 
 B)False

Question 10

The annual growth of U.S. labor productivity

Accepted Answer

A)   was greater between 1973 and 1995 than between 1995 and 2010.
B)   was greater between 1995 and 2010 than between 1973 and 1995.
C)   was negative in the late 1990s.
D)   averaged nearly 5 percent in the 1990s.E) B) and C)
F) None of the above

Question 11

If the number of worker-hours in an economy is 100 and its labor productivity is $5 of output per worker-hour, the economy's real GDP

Accepted Answer

A)   is $20.
B)   is $500.
C)   is $5,000.
D)   cannot be calculated.E) B) and C)
F) A) and B)

Question 12

In the growth debate, defenders of economic growth believe that it is the primary path to raising
living standards.

Accepted Answer

A) True 
 B)False

Question 13

Network effects are

Accepted Answer

A)   increases in the value of a product to each user, including existing users, as the total number of users rises.
B)   reductions in per-unit production cost as ﬁrms learn by doing.
C)   increases in demand resulting from products being mentioned positively in a television program.
D)   the change in real GDP resulting from a change in investment or government spending.E) None of the above
F) All of the above

Question 14

One of the main arguments against further growth for industrialized nations focuses on the problem of

Accepted Answer

A)   technological knowledge.
B)   environmental quality.
C)   feedback mechanisms.
D)   infrastructure.E) A) and D)
F) None of the above

Question 15

One concern regarding educational attainment in the U.S. is that

Accepted Answer

A)   the percentage of adults ﬁnishing college is falling.
B)   there are fewer college graduates in science and engineering.
C)   students are graduating later and later.
D)   fewer high school graduates are going on to college.E) All of the above
F) B) and C)

Question 16

Given the annual rate of economic growth, the "rule of 70" allows one to

Accepted Answer

A)   determine the accompanying rate of inﬂation.
B)   calculate the size of the GDP gap.
C)   calculate the number of years required for real GDP to double.
D)   determine the growth rate of per capita GDP.E) None of the above
F) A) and B)

Question 17

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

Accepted Answer

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

Question 18

Trends in educational attainment in the U.S. since 1960 indicate that the percentage of adults

Accepted Answer

A)   completing high school has been rising, and so has the percentage who do not go to high school nor complete elementary school.
B)   completing college has been rising, and so has the percentage completing high school.
C)   completing college has been constant, but the percentage completing high school has been rising.
D)   who do not go to high school has been falling, but the percentage who do not complete elementary school has been rising.E) C) and D)
F) None of the above

Question 19

Strong patent laws encourage innovation and promote economic growth.

Accepted Answer

A) True 
 B)False

Question 20

Improvements in education and training explain about 80 percent of the historical growth of U.S.
labor productivity.

Accepted Answer

A) True 
 B)False

Exam 8: Economic Growth

Strong patent laws encourage innovation and promote economic growth.

Correct Answer
verified

One of the main arguments against further growth for industrialized nations focuses on the problem of

Correct Answer
verified

Correct Answer
verified

One concern regarding educational attainment in the U.S. is that

Correct Answer
verified

In the growth debate, defenders of economic growth believe that it is the primary path to raising living standards.

Correct Answer
verified

Between 1950 and 2018, U.S. real GDP grew at an average annual rate of about

Correct Answer
verified

If the number of worker-hours in an economy is 100 and its labor productivity is $5 of output per worker-hour, the economy's real GDP

Correct Answer
verified

Economic growth is best deﬁned as an increase in

Correct Answer
verified

Improvements in education and training explain about 80 percent of the historical growth of U.S. labor productivity.

Correct Answer
verified

Trends in educational attainment in the U.S. since 1960 indicate that the percentage of adults

Correct Answer
verified

If the growth trend of labor productivity is 3 percent per year, the number of years that it will take for the standard of living to double will be about

Correct Answer
verified

Network effects are

Correct Answer
verified

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

Correct Answer
verified

The annual growth of U.S. labor productivity

Correct Answer
verified

Which of the following institutional structures is most likely to promote growth?

Correct Answer
verified

Explain the demand factor in economic growth.

Correct Answer
verified
The demand factor is a condition that st...
View Answer

If a country has a larger real GDP than another country, then it should also have a higher real GDP per capita than the other country.

Correct Answer
verified

Given the annual rate of economic growth, the "rule of 70" allows one to

Correct Answer
verified

Empirical studies suggest that

Correct Answer
verified

Critics of economic growth say studies show that people are not interested in achieving higher standards of living.

Correct Answer
verified

Exam 8: Economic Growth

Strong patent laws encourage innovation and promote economic growth.

Correct AnswerverifiedShow Answer

One of the main arguments against further growth for industrialized nations focuses on the problem of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

One concern regarding educational attainment in the U.S. is that

Correct AnswerverifiedShow Answer

In the growth debate, defenders of economic growth believe that it is the primary path to raising living standards.

Correct AnswerverifiedShow Answer

Between 1950 and 2018, U.S. real GDP grew at an average annual rate of about

Correct AnswerverifiedShow Answer

If the number of worker-hours in an economy is 100 and its labor productivity is $5 of output per worker-hour, the economy's real GDP

Correct AnswerverifiedShow Answer

Economic growth is best deﬁned as an increase in

Correct AnswerverifiedShow Answer

Improvements in education and training explain about 80 percent of the historical growth of U.S. labor productivity.

Correct AnswerverifiedShow Answer

Trends in educational attainment in the U.S. since 1960 indicate that the percentage of adults

Correct AnswerverifiedShow Answer

If the growth trend of labor productivity is 3 percent per year, the number of years that it will take for the standard of living to double will be about

Correct AnswerverifiedShow Answer

Network effects are

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The annual growth of U.S. labor productivity

Correct AnswerverifiedShow Answer

Which of the following institutional structures is most likely to promote growth?

Correct AnswerverifiedShow Answer

Explain the demand factor in economic growth.

Correct AnswerverifiedThe demand factor is a condition that st...View AnswerShow Answer

If a country has a larger real GDP than another country, then it should also have a higher real GDP per capita than the other country.

Correct AnswerverifiedShow Answer

Given the annual rate of economic growth, the "rule of 70" allows one to

Correct AnswerverifiedShow Answer

Empirical studies suggest that

Correct AnswerverifiedShow Answer

Critics of economic growth say studies show that people are not interested in achieving higher standards of living.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The demand factor is a condition that st...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified