Question 1

A company uses 200 workers and 50 units of capital to produce 1,000 units of output.Its average labor productivity is

Accepted Answer

A)  4.
B)  5.
C)  20.
D)  25.

Question 2

Economic growth allows a society to consume

Accepted Answer

A)  more goods per person.
B)  a higher quality of goods.
C)  a wider variety of goods.
D)  all of the above

Question 3

An important source of increasing productivity is

Accepted Answer

A)  an increase in the ratio of capital to labor.
B)  an increase in the ratio of labor to capital.
C)  a decrease in the ratio of capital to labor.
D)  faster growth in the labor force than in the capital stock.

Question 4

An explanation for the "inverted U" is that increased industrialization and growth initially ________ the environment,and in the long run,environmental quality ________.

Accepted Answer

A)  degrades;continues to get worse
B)  improves;improves even more
C)  improves;gets worse
D)  degrades;improves

Question 5

Labor productivity growth is the growth rate of output

Accepted Answer

A)  per person in the economy.
B)  per worker in the economy.
C)  for labor-intensive economies.
D)  for the entire economy.

Question 6

Technical change that results in a change in the production process is known as disembodied technical change.

Accepted Answer

A) True 
 B)False

Question 7

Refer to the information provided in Figure 17.2 below to answer the questions that follow.  Figure 17.2
-Refer to Figure 17.2.Point ________ can not be produced by the people of this society.

Accepted Answer

A)  A
B)  B
C)  C
D)  D

Question 8

Higher energy prices in the 1970s reduced labor productivity because

Accepted Answer

A)  energy and capital are substitute inputs.
B)  the rise in energy prices tended to push firms away from labor-intensive measures and toward more capital-intensive techniques.
C)  a great deal of investment went into transforming the existing capital stock into more energy-efficient forms.
D)  labor productivity has been lower when used with more capital-intensive techniques.

Question 9

Which of the following is NOT an investment in human capital?

Accepted Answer

A)  local governments begin providing free hepatitis vaccinations to any resident who wants one
B)  the Precision Tool Company teaches all its workers how to repair all the machines in the factory
C)  older workers return to school to update their skills
D)  the Ferris Advertising Agency replaces its secretaries' typewriters with personal computers

Question 10

The relation between growth,as measured in ________,is an inverted U.

Accepted Answer

A)  per capita income and pollution
B)  income and expenditure
C)  saving and investment
D)  human capital and physical capital

Question 11

As growth progresses and countries become richer,pollution

Accepted Answer

A)  tends to fall.
B)  rises exponentially.
C)  rarely changes.
D)  levels double.

Question 12

In Polynomia,real GDP increased by 8% and the population increased by 3% in 2012.In 2012,Polynomia experienced

Accepted Answer

A)  economic growth,but not an increase in living standards.
B)  economic growth and an increase in living standards.
C)  no economic growth,but an increase in living standards.
D)  an economic decline.

Question 13

An increase in the capital stock

Accepted Answer

A)  can increase output,even if it is not accompanied by an increase in the labor force.
B)  provides valuable services directly,but not indirectly.
C)  can increase output,but only if it is accompanied by an increase in the labor force.
D)  cannot increase output,even if it is accompanied by an increase in the labor force.

Question 14

Refer to the information provided in Figure 17.1 below to answer the questions that follow.  Figure 17.1
-Refer to Figure 17.1.Economic growth is represented by

Accepted Answer

A)  a movement from point D to point C.
B)  a movement from point A to point C.
C)  a movement from point D to point A.
D)  all of the above

Question 15

Refer to the information provided in Figure 17.1 below to answer the questions that follow.  Figure 17.1
-Refer to Figure 17.1.An economic decline is represented by a movement from

Accepted Answer

A)  point A to point B.
B)  point D to point A.
C)  point C to point A.
D)  point B to point A.

Question 16

Human capital increases with on-the-job training.

Accepted Answer

A) True 
 B)False

Question 17

Zuliu Hu and Mohsin Khan have stated that the productivity gains in China over the past 20 years are,in large part,a result of market reforms from incorporating business into the public sector.

Accepted Answer

A) True 
 B)False

Question 18

The aggregate production function is Y = 2K0.5L0.5.If there are 225 units of capital and 196 units of labor,aggregate output is

Accepted Answer

A)  420 units.
B)  508 units.
C)  700 units.
D)  842 units.

Question 19

The mathematical representation of the technological relationship between inputs and national output is known as the

Accepted Answer

A)  aggregate supply function.
B)  production possibilities frontier.
C)  aggregate production function.
D)  input-output table.

Question 20

Thomas Malthus and David Ricardo believed that to increase agricultural output,people would be forced to

Accepted Answer

A)  farm land more intensively,in which case the returns to successive increases in population would diminish.
B)  farm land less intensively,in which case the returns to successive increases in population would increase.
C)  farm land more intensively,in which case the returns to successive increases in population would increase.
D)  farm land less intensively,in which case the returns to successive increases in population would diminish.

Exam 17: Long-Run Growth

Economic growth allows a society to consume

Correct AnswerverifiedShow Answer

Labor productivity growth is the growth rate of output

Correct AnswerverifiedShow Answer

Refer to the information provided in Figure 17.1 below to answer the questions that follow. Figure 17.1 -Refer to Figure 17.1.An economic decline is represented by a movement from

Correct AnswerverifiedShow Answer

The aggregate production function is Y = 2K0.5L0.5.If there are 225 units of capital and 196 units of labor,aggregate output is

Correct AnswerverifiedShow Answer

The relation between growth,as measured in ________,is an inverted U.

Correct AnswerverifiedShow Answer

In Polynomia,real GDP increased by 8% and the population increased by 3% in 2012.In 2012,Polynomia experienced

Correct AnswerverifiedShow Answer

An important source of increasing productivity is

Correct AnswerverifiedShow Answer

The mathematical representation of the technological relationship between inputs and national output is known as the

Correct AnswerverifiedShow Answer

A company uses 200 workers and 50 units of capital to produce 1,000 units of output.Its average labor productivity is

Correct AnswerverifiedShow Answer

Which of the following is NOT an investment in human capital?

Correct AnswerverifiedShow Answer

Refer to the information provided in Figure 17.2 below to answer the questions that follow. Figure 17.2 -Refer to Figure 17.2.Point ________ can not be produced by the people of this society.

Correct AnswerverifiedShow Answer

Human capital increases with on-the-job training.

Correct AnswerverifiedShow Answer

As growth progresses and countries become richer,pollution

Correct AnswerverifiedShow Answer

Refer to the information provided in Figure 17.1 below to answer the questions that follow. Figure 17.1 -Refer to Figure 17.1.Economic growth is represented by

Correct AnswerverifiedShow Answer

An increase in the capital stock

Correct AnswerverifiedShow Answer

An explanation for the "inverted U" is that increased industrialization and growth initially ________ the environment,and in the long run,environmental quality ________.

Correct AnswerverifiedShow Answer

Higher energy prices in the 1970s reduced labor productivity because

Correct AnswerverifiedShow Answer

Zuliu Hu and Mohsin Khan have stated that the productivity gains in China over the past 20 years are,in large part,a result of market reforms from incorporating business into the public sector.

Correct AnswerverifiedShow Answer

Technical change that results in a change in the production process is known as disembodied technical change.

Correct AnswerverifiedShow Answer

Thomas Malthus and David Ricardo believed that to increase agricultural output,people would be forced to

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

An explanation for the "inverted U" is that increased industrialization and growth initially the environment,and in the long run,environmental quality .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified