Question 1

Productivity is not influenced by the law of diminishing returns.

Accepted Answer

A) True 
 B)False

Question 2

Each phase of a business cycle has approximately the same duration.

Accepted Answer

A) True 
 B)False

Question 3

Which phase of the business cycle best describes an economy that is experiencing a positive rate of economic growth?

Accepted Answer

A)  Expansion
B)  Peak
C)  Contraction
D)  Trough
E)  Depression

Question 4

How do you calculate the average product of labor?

Accepted Answer

A)  Total quantity of inputs divided by total output
B)  The average number of workers times the average level of output produced
C)  Total output produced divided by total units of labor employed
D)  Total units of labor employed divided by the total output produced
E)  The average number of labor units employed times the quantity of capital employed

Question 5

What is the average length of a typical business cycle in the modern U.S.economy?

Accepted Answer

A)  12 months
B)  36 months
C)  60 months
D)  95 months
E)  120 months

Question 6

Which of the following is a "pro-growth" economic policy?

Accepted Answer

A)  Raising the tax on capital gains
B)  Encouraging people to save less
C)  Reducing public dollars available for education
D)  Investing in human capital
E)  None of the above

Question 7

The components of the Index of Leading Economic Indicators lead changes in the aggregate economy,but move in an opposite direction.

Accepted Answer

A) True 
 B)False

Question 8

Real business cycle theorists postulate that economic fluctuations are primarily due to changes in aggregate demanD.

Accepted Answer

A) True 
 B)False

Question 9

The quantity of capital in the U.S.economy has grown at a rate ________ the growth in the labor forcE.

Accepted Answer

A)  Slower than
B)  About the same as
C)  Faster than
D)  Only half as much as
E)  Unknown

Question 10

What was the first theory put forth by an economist to explain the phenomena of business cycles?

Accepted Answer

A)  Inventory theory
B)  Schumpeter's theory of innovation
C)  Real business cycle theories
D)  Theory of expectations
E)  Jevons' sunspot theory

Question 11

An exceptionally strong and prolonged contraction is known as

Accepted Answer

A)  A trough
B)  A recession
C)  An economic bust
D)  A super contraction
E)  A business cycle

Question 12

The Following Questions Refer to the graph below. 
-A movement from point D to point C is consistent with

Accepted Answer

A)  An increase in capital goods without a decrease in consumer goods
B)  Technological change between 2012 and 2017
C)  An increase in productivity between 2012 and 2017
D)  All of the above
E)  None of the above

Question 13

When the economy ends an expansion,it enters which phase of the business cycle?

Accepted Answer

A)  Expansion
B)  Peak
C)  Contraction
D)  Trough
E)  Depression

Question 14

What is the "crowding out" effect?

Accepted Answer

A)  Consumption spending is reduced because of spending on capital
B)  Capital spending is reduced because people purchase great quantities of consumer goods
C)  Private investment is reduced because government borrowing diverts dollars away
D)  Government spending creates a larger demand for capital goods
E)  Savings is insufficient to support the level of capital investment in the economy

Question 15

The index of leading economic indicators is used by economists to forecast changes in economic performance over timE.

Accepted Answer

A) True 
 B)False

Question 16

As an economy's labor force increases in size,its production possibilities frontier shifts outwarD.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following terms is used to describe the purchase of capital?

Accepted Answer

A)  Savings
B)  Consumption
C)  Technology
D)  Investment
E)  Production

Question 18

Joseph Schumpeter theorized that business cycles were determined primarily by long-run waves of innovation.

Accepted Answer

A) True 
 B)False

Exam 11: Economic Growth: Why Is the Economic Road so Bumpy

Which of the following is a "pro-growth" economic policy?

Correct Answer
verified

Productivity is not influenced by the law of diminishing returns.

Correct Answer
verified

What is the average length of a typical business cycle in the modern U.S.economy?

Correct Answer
verified

Which phase of the business cycle best describes an economy that is experiencing a positive rate of economic growth?

Correct Answer
verified

The index of leading economic indicators is used by economists to forecast changes in economic performance over timE.

Correct Answer
verified

The components of the Index of Leading Economic Indicators lead changes in the aggregate economy,but move in an opposite direction.

Correct Answer
verified

What was the first theory put forth by an economist to explain the phenomena of business cycles?

Correct Answer
verified

What is the "crowding out" effect?

Correct Answer
verified

How do you calculate the average product of labor?

Correct Answer
verified

When the economy ends an expansion,it enters which phase of the business cycle?

Correct Answer
verified

As an economy's labor force increases in size,its production possibilities frontier shifts outwarD.

Correct Answer
verified

Each phase of a business cycle has approximately the same duration.

Correct Answer
verified

The Following Questions Refer to the graph below. -A movement from point D to point C is consistent with

Correct Answer
verified

Joseph Schumpeter theorized that business cycles were determined primarily by long-run waves of innovation.

Correct Answer
verified

An exceptionally strong and prolonged contraction is known as

Correct Answer
verified

Real business cycle theorists postulate that economic fluctuations are primarily due to changes in aggregate demanD.

Correct Answer
verified

The quantity of capital in the U.S.economy has grown at a rate ________ the growth in the labor forcE.

Correct Answer
verified

Which of the following terms is used to describe the purchase of capital?

Correct Answer
verified

Exam 11: Economic Growth: Why Is the Economic Road so Bumpy

Which of the following is a "pro-growth" economic policy?

Correct AnswerverifiedShow Answer

Productivity is not influenced by the law of diminishing returns.

Correct AnswerverifiedShow Answer

What is the average length of a typical business cycle in the modern U.S.economy?

Correct AnswerverifiedShow Answer

Which phase of the business cycle best describes an economy that is experiencing a positive rate of economic growth?

Correct AnswerverifiedShow Answer

The index of leading economic indicators is used by economists to forecast changes in economic performance over timE.

Correct AnswerverifiedShow Answer

The components of the Index of Leading Economic Indicators lead changes in the aggregate economy,but move in an opposite direction.

Correct AnswerverifiedShow Answer

What was the first theory put forth by an economist to explain the phenomena of business cycles?

Correct AnswerverifiedShow Answer

What is the "crowding out" effect?

Correct AnswerverifiedShow Answer

How do you calculate the average product of labor?

Correct AnswerverifiedShow Answer

When the economy ends an expansion,it enters which phase of the business cycle?

Correct AnswerverifiedShow Answer

As an economy's labor force increases in size,its production possibilities frontier shifts outwarD.

Correct AnswerverifiedShow Answer

Each phase of a business cycle has approximately the same duration.

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -A movement from point D to point C is consistent with

Correct AnswerverifiedShow Answer

Joseph Schumpeter theorized that business cycles were determined primarily by long-run waves of innovation.

Correct AnswerverifiedShow Answer

An exceptionally strong and prolonged contraction is known as

Correct AnswerverifiedShow Answer

Real business cycle theorists postulate that economic fluctuations are primarily due to changes in aggregate demanD.

Correct AnswerverifiedShow Answer

The quantity of capital in the U.S.economy has grown at a rate ________ the growth in the labor forcE.

Correct AnswerverifiedShow Answer

Which of the following terms is used to describe the purchase of capital?

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

Correct Answer
verified

Correct Answer
verified