Question 1

Having achieved sustained rapid growth, Chile is an exception to the disappointing slow economic growth among most other Latin American nations.

Accepted Answer

A) True 
 B)False

Question 2

Factors that influence productivity and therefore growth are:

Accepted Answer

A)  physical and human capital per worker and technological advances.
B)  government independence.
C)  more government intervention in the marketplace.
D)  increased consumption and less investment spending.

Question 3

In 2010, China saved:

Accepted Answer

A)  less than the United States saved.
B)  more and spent more on investment as a percentage of its GDP than the United States.
C)  less and spent less on investment as a percentage of its GDP than the United States.
D)  more but still had an economic growth rate less than that of the United States.

Question 4

The aggregate production function typically increases at an increasing rate with additions to capital.

Accepted Answer

A) True 
 B)False

Question 5

Use the following to answer questions :
Scenario: Growth Rates in Two Countries
India is growing at a rate of 9% per year, and its real GDP per capita is about $3,500, while the United States is growing at a rate of 3% per year, and its real GDP per capita is about $47,000.
-(Scenario: Growth Rates in Two Countries)  Look at the scenario Growth Rates in Two Countries. About how much will India's real GDP per capita be in 20 years?

Accepted Answer

A)  $19,600
B)  $56,000
C)  $14,000
D)  $28,000

Question 6

Technological progress is advanced through:

Accepted Answer

A)  research and development.
B)  government regulation.
C)  consumption.
D)  infrastructure.

Question 7

All of the following are factors that drive productivity growth EXCEPT:

Accepted Answer

A)  growth convergence.
B)  physical capital.
C)  technological progress.
D)  human capital.

Question 8

The main reason South Korea has grown so rapidly is that because it was so poor:

Accepted Answer

A)  it could take advantage of international financial aid for poor countries.
B)  people left to go to more prosperous countries.
C)  it could skip forward, or leapfrog, to use new-generation technology as it developed.
D)  it could import highly trained engineers from other countries.

Question 9

Growth accounting is a fast-growing industry that assists taxpayers in filing their taxes online.

Accepted Answer

A) True 
 B)False

Question 10

When tracking economic growth, why do economists prefer real GDP per capita over:
a. real GDP?
b. nominal GDP per capita?

Accepted Answer

a. Tracking real total GDP would ignore ...

Question 11

Infrastructure includes:

Accepted Answer

A)  the water supply system.
B)  government bonds.
C)  corporate stock.
D)  the water supply system, government bonds, and corporate stock.

Question 12

A nation's real GDP increased from $225 billion to $230 billion in one year. In that same year, the nation's population increased from 125 million to 126 million.
a. Calculate the nation's real GDP per capita growth rate.
b. If this nation maintained this growth rate, how many years would it take for real GDP per capita to double?

Accepted Answer

a. Real GDP per capita in year 1 is ($22...

Question 13

Use the following to answer questions :
Scenario: Productivity
The economy has grown by 4% per year over the past 30 years. During the same period the labor force has grown by 1% per year and the quantity of physical capital has grown by 5% per year. Each 1% increase in physical capital per worker is estimated to increase productivity by 0.4%. Assume that human capital has not changed during the past 30 years.
-(Scenario: Productivity)  Look at the scenario Productivity. How much has growing physical capital per worker contributed as a percentage of total productivity growth?

Accepted Answer

A)  80%
B)  53%
C)  30%
D)  9%

Question 14

If technology advances:

Accepted Answer

A)  GDP per capita declines.
B)  physical capital is less productive.
C)  workers can produce more with fixed amounts of physical and human capital.
D)  human capital is less useful.

Question 15

Today China is the fastest-growing major economy and it also:

Accepted Answer

A)  spends a lower share of its GDP on investment goods than did other major economies.
B)  spends a higher share of its GDP on investment goods than did other major economies.
C)  spends more of its GDP on national defense than any other country except for North Korea.
D)  was the first Asian country to join the European Union.

Question 16

Among the public goods important for economic growth is (are) :

Accepted Answer

A)  publicly held companies like Ford.
B)  political stability.
C)  public regulation of businesses.
D)  low taxes.

Question 17

In 1798, the Essay on the Principle of Population was published by:

Accepted Answer

A)  Adam Smith.
B)  Karl Marx.
C)  Thomas Malthus.
D)  David Ricardo.

Question 18

The aggregate production function measures productivity as:

Accepted Answer

A)  real GDP per worker.
B)  nominal GDP per worker.
C)  median income per worker.
D)  average disposable income.

Question 19

Which of the following are sources of funds for investment spending?
I. domestic savings
II. foreign savings
III. consumption

Accepted Answer

A)  I only
B)  II only
C)  I and II
D)  I, II, and III

Question 20

Use the following to answer questions :
Scenario: Productivity
The economy has grown by 4% per year over the past 30 years. During the same period the labor force has grown by 1% per year and the quantity of physical capital has grown by 5% per year. Each 1% increase in physical capital per worker is estimated to increase productivity by 0.4%. Assume that human capital has not changed during the past 30 years.
-(Scenario: Productivity)  Look at the scenario Productivity. How much has technological progress contributed to productivity growth?

Accepted Answer

A)  1.4%
B)  1.6%
C)  2%
D)  3%

Exam 9: Long-Run Economic Growth

Correct Answer
verified

Factors that influence productivity and therefore growth are:

Correct Answer
verified

Infrastructure includes:

Correct Answer
verified

Technological progress is advanced through:

Correct Answer
verified

Among the public goods important for economic growth is (are) :

Correct Answer
verified

All of the following are factors that drive productivity growth EXCEPT:

Correct Answer
verified

Growth accounting is a fast-growing industry that assists taxpayers in filing their taxes online.

Correct Answer
verified

Correct Answer
verified

If technology advances:

Correct Answer
verified

In 2010, China saved:

Correct Answer
verified

Today China is the fastest-growing major economy and it also:

Correct Answer
verified

The aggregate production function measures productivity as:

Correct Answer
verified

The aggregate production function typically increases at an increasing rate with additions to capital.

Correct Answer
verified

Correct Answer
verified
a. Real GDP per capita in year 1 is ($22...
View Answer

Having achieved sustained rapid growth, Chile is an exception to the disappointing slow economic growth among most other Latin American nations.

Correct Answer
verified

In 1798, the Essay on the Principle of Population was published by:

Correct Answer
verified

The main reason South Korea has grown so rapidly is that because it was so poor:

Correct Answer
verified

Which of the following are sources of funds for investment spending? I. domestic savings II. foreign savings III. consumption

Correct Answer
verified

When tracking economic growth, why do economists prefer real GDP per capita over: a. real GDP? b. nominal GDP per capita?

Correct Answer
verified
a. Tracking real total GDP would ignore ...
View Answer

Correct Answer
verified

Exam 9: Long-Run Economic Growth

Correct AnswerverifiedShow Answer

Factors that influence productivity and therefore growth are:

Correct AnswerverifiedShow Answer

Infrastructure includes:

Correct AnswerverifiedShow Answer

Technological progress is advanced through:

Correct AnswerverifiedShow Answer

Among the public goods important for economic growth is (are) :

Correct AnswerverifiedShow Answer

All of the following are factors that drive productivity growth EXCEPT:

Correct AnswerverifiedShow Answer

Growth accounting is a fast-growing industry that assists taxpayers in filing their taxes online.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If technology advances:

Correct AnswerverifiedShow Answer

In 2010, China saved:

Correct AnswerverifiedShow Answer

Today China is the fastest-growing major economy and it also:

Correct AnswerverifiedShow Answer

The aggregate production function measures productivity as:

Correct AnswerverifiedShow Answer

The aggregate production function typically increases at an increasing rate with additions to capital.

Correct AnswerverifiedShow Answer

Correct Answerverifieda. Real GDP per capita in year 1 is ($22...View AnswerShow Answer

Having achieved sustained rapid growth, Chile is an exception to the disappointing slow economic growth among most other Latin American nations.

Correct AnswerverifiedShow Answer

In 1798, the Essay on the Principle of Population was published by:

Correct AnswerverifiedShow Answer

The main reason South Korea has grown so rapidly is that because it was so poor:

Correct AnswerverifiedShow Answer

Which of the following are sources of funds for investment spending? I. domestic savings II. foreign savings III. consumption

Correct AnswerverifiedShow Answer

When tracking economic growth, why do economists prefer real GDP per capita over: a. real GDP? b. nominal GDP per capita?

Correct Answerverifieda. Tracking real total GDP would ignore ...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified
a. Real GDP per capita in year 1 is ($22...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a. Tracking real total GDP would ignore ...
View Answer

Correct Answer
verified