Question 1

Other: Pick-up
-Refer to the above table. Between years 1 and 2, real GDP per capita grew by _____ percent in Italy:

Accepted Answer

A)   3
B)   4
C)   5
D)   10E) All of the above
F) None of the above

Question 2

Other things equal, in which of the following instances would the increase in labour productivity be the greatest?

Accepted Answer

A)   the stock of real capital and inputs of labour increase proportionately
B)   the increase in the stock of real capital exceeds the increase in inputs of labour
C)   the increase in inputs of labour exceeds the increase in the stock of real capital
D)   inputs of labour increase and the stock of real capital remains constantE) A) and D)
F) All of the above

Question 3

The most important contributor to increases in the productivity of Canadian labour is:

Accepted Answer

A)   the reallocation of labour from agriculture to manufacturing.
B)   improvements in labour quality.
C)   increases in the quantity of capital.
D)   technological advance.E) B) and D)
F) A) and B)

Question 4

In Canada, real GDP per capita has increased more rapidly than real GDP.

Accepted Answer

A) True 
 B)False

Question 5

Economies of scale indicates:

Accepted Answer

A)   the idea that proprietorships are less bureaucratic and therefore more efficient than corporations.
B)   public investments in highways, schools, utilities, and such.
C)   the fact that large producers may be able to use more efficient technologies than smaller producers.
D)   the reallocation of labour from less-productive to more-productive uses.E) C) and D)
F) A) and B)

Question 6

Assume that an economy has 1500 workers, each working 2000 hours per year. If the average real output per worker-hour is $20, then total output or real GDP will be:

Accepted Answer

A)   $3 million.
B)   $30 million.
C)   $45 million.
D)   $60 million.E) A) and B)
F) A) and C)

Question 7

Which of the following has made the largest contribution to the growth of labour productivity in Canada?

Accepted Answer

A)   technological advance
B)   education and training of labour
C)   economies of scale
D)   improved resource allocationE) All of the above
F) None of the above

Question 8

-Refer to the above graph. If the production possibilities curve for an economy is at CD but the economy is operating at point X, the reasons are most likely to be:

Accepted Answer

A)   technological progress and industrial change.
B)   increases in the quantity and the quality of resources.
C)   improvement in labour productivity and the number of worker-hours.
D)   lack of full employment and inefficient allocation of resources.E) A) and B)
F) B) and C)

Question 9

Which would be the best economic measure to compare standards of living among nations over time?

Accepted Answer

A)   changes in labour productivity
B)   changes in real domestic output
C)   changes in real GDP per capita
D)   changes in nominal income per capitaE) A) and D)
F) All of the above

Question 10

Increases in the value of the product to each user, including existing users, as the total number of users rises is called:

Accepted Answer

A)   network effects.
B)   simultaneous consumption.
C)   learning by doing.
D)   the spreading of development costs.E) A) and C)
F) All of the above

Question 11

During the last decade, the innovations in computers and telecommunications, together with global competition, have resulted in:

Accepted Answer

A)   rational expectations theory.
B)   lower growth in capital stock.
C)   higher growth in labour force.
D)   higher productivity growth.E) A) and B)
F) A) and C)

Question 12

Real GDP in any year is equal to:

Accepted Answer

A)   the quantity of labour divided by resource outputs.
B)   labour productivity multiplied by the quality of labour.
C)   worker-hours divided by labour productivity.
D)   worker-hours multiplied by labour productivity.E) B) and C)
F) C) and D)

Question 13

Which of the following is not a supply factor in economic growth?

Accepted Answer

A)   the stock of capital
B)   technological advance
C)   the size and quality of the labour force
D)   full employmentE) A) and C)
F) None of the above

Question 14

Economic growth can be shown as a movement from a point on one production possibility curve to a point on a curve located farther from the origin.

Accepted Answer

A) True 
 B)False

Question 15

One of the basic economic defences of economic growth rests on the conclusion that:

Accepted Answer

A)   growth makes workers less obsolete and more secure in employment.
B)   growth reduces the cost to society of "common property" resources.
C)   growth makes the gap between unlimited wants and scarce resources less acute.
D)   a growth-oriented society confers a "work and look to the future" attitude on the members of society.E) All of the above
F) None of the above

Question 16

Other: Pick-up
-Refer to the above table. Between years 1 and 2, real GDP grew by _______ percent in Italy:

Accepted Answer

A)   3
B)   4
C)   5
D)   10E) A) and B)
F) A) and C)

Question 17

Compared to the leader countries, the follower countries can grow at a faster rate because:

Accepted Answer

A)   follower countries have a hard time adopting a technology.
B)   leader countries cannot grow anymore.
C)   follower countries can skip past many stages of technology that the leader countries had to pass through.
D)   leader countries can skip past many stages of technology that the follower countries had to pass through.E) A) and B)
F) A) and C)

Question 18

Defenders of growth say that it is the primary path to raising living standards.

Accepted Answer

A) True 
 B)False

Question 19

A skeptic of the recent rapid advances in new technology would argue that the phenomenon is:

Accepted Answer

A)   a short-run trend.
B)   a network effect.
C)   the result of learning by doing.
D)   designed to lower the natural rate of unemployment.E) All of the above
F) B) and D)

Question 20

If the economy's real GDP doubles in 18 years, we can:

Accepted Answer

A)   not say anything about the average annual rate of growth.
B)   conclude that its average annual rate of growth is about 5.5 percent.
C)   conclude that its average annual rate of growth is about 2 percent.
D)   conclude that its average annual rate of growth is about 4 percent.E) A) and B)
F) B) and D)

Exam 6: Economic Growth

Economies of scale indicates:

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Which of the following has made the largest contribution to the growth of labour productivity in Canada?

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A skeptic of the recent rapid advances in new technology would argue that the phenomenon is:

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Which would be the best economic measure to compare standards of living among nations over time?

Correct AnswerverifiedShow Answer

Economic growth can be shown as a movement from a point on one production possibility curve to a point on a curve located farther from the origin.

Correct AnswerverifiedShow Answer

During the last decade, the innovations in computers and telecommunications, together with global competition, have resulted in:

Correct AnswerverifiedShow Answer

Other: Pick-up -Refer to the above table. Between years 1 and 2, real GDP grew by _______ percent in Italy:

Correct AnswerverifiedShow Answer

The most important contributor to increases in the productivity of Canadian labour is:

Correct AnswerverifiedShow Answer

Which of the following is not a supply factor in economic growth?

Correct AnswerverifiedShow Answer

Other things equal, in which of the following instances would the increase in labour productivity be the greatest?

Correct AnswerverifiedShow Answer

Assume that an economy has 1500 workers, each working 2000 hours per year. If the average real output per worker-hour is $20, then total output or real GDP will be:

Correct AnswerverifiedShow Answer

-Refer to the above graph. If the production possibilities curve for an economy is at CD but the economy is operating at point X, the reasons are most likely to be:

Correct AnswerverifiedShow Answer

Compared to the leader countries, the follower countries can grow at a faster rate because:

Correct AnswerverifiedShow Answer

If the economy's real GDP doubles in 18 years, we can:

Correct AnswerverifiedShow Answer

Increases in the value of the product to each user, including existing users, as the total number of users rises is called:

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Real GDP in any year is equal to:

Correct AnswerverifiedShow Answer

In Canada, real GDP per capita has increased more rapidly than real GDP.

Correct AnswerverifiedShow Answer

One of the basic economic defences of economic growth rests on the conclusion that:

Correct AnswerverifiedShow Answer

Defenders of growth say that it is the primary path to raising living standards.

Correct AnswerverifiedShow Answer

Other: Pick-up -Refer to the above table. Between years 1 and 2, real GDP per capita grew by _____ percent in Italy:

Correct AnswerverifiedShow Answer

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