Question 1

A government policy that allows retirement savings to accumulate tax-free is an example of a policy to promote economic growth by:

Accepted Answer

A)   increasing human capital.
B)   increasing physical capital.
C)   improving technology.
D)   increasing the availability of natural resources.E) All of the above
F) A) and D)

Question 2

Compared to the level of real GDP per person in 1870, by 2008, real GDP in the U.S was ______ times larger, while real GDP per person in Japan was _______.

Accepted Answer

A)   13; smaller
B)   13; 13 times larger
C)   13; 31 times larger
D)   31; 13 times largerE) A) and B)
F) All of the above

Question 3

Growth of real GDP per person is totally determined by the growth of average:

Accepted Answer

A)   labor productivity and the proportion of the population employed.
B)   labor productivity and the proportion of the population in the labor force.
C)   labor force participation and the share of income going to capital.
D)   labor force participation and the share of the population employed.E) B) and D)
F) A) and B)

Question 4

Which of the following is an example of an investment in human capital?

Accepted Answer

A)   A firm replaces manually controlled production with a computer controlled procedure.
B)   A firm pays for workers to take college classes.
C)   A chemical firm supports research to develop new chemicals.
D)   A firm purchases new equipment for a manufacturing process.E) A) and B)
F) B) and C)

Question 5

Sharing the results of applied research conducted under government sponsorship with the private sector, such as the development of the Global Positioning System, is an example of a government policy to promote economic growth by:

Accepted Answer

A)   increasing human capital.
B)   increasing physical capital.
C)   improving technology.
D)   increasing the availability of natural resources.E) None of the above
F) B) and C)

Question 6

An example of a government policy to increase physical capital formation is:

Accepted Answer

A)   the construction of an interstate highway system.
B)   government support for basic research.
C)   maintaining a well-functioning legal system.
D)   the provision of publicly-funded education.E) A) and C)
F) A) and D)

Question 7

Organizing production, obtaining financing, assigning workers to jobs, and dealing with suppliers are among the ways that ______ increases average labor productivity.

Accepted Answer

A)   human capital
B)   physical capital
C)   an entrepreneur
D)   a managerE) B) and C)
F) A) and B)

Question 8

Providing workers with on-the-job training will increase:

Accepted Answer

A)   average labor productivity.
B)   the share of the population employed.
C)   the unemployment rate.
D)   the labor force participation rate.E) B) and C)
F) A) and D)

Question 9

Three workers run a house painting business and always work the same number of hours together. The paint they use requires applying two coats. Each worker paints 200 square feet per hour using a roller or 80 square feet per hour using a brush. If a technological advance provides a paint that only requires one coat, their average labor productivity per hour as a team:

Accepted Answer

A)   increases.
B)   decreases.
C)   remains the same.
D)   may either increase or decrease.E) B) and D)
F) B) and C)

Question 10

A nation's standard of living, as measured by real GDP per person, increases:

Accepted Answer

A)   only if average labor productivity increases.
B)   only if the share of population employed increases.
C)   only if both average labor productivity and the share of population employed increase.
D)   if either average labor productivity and/or the share of population employed increase.E) B) and C)
F) All of the above

Question 11

The principle economic cost of growth is:

Accepted Answer

A)   higher interest rates.
B)   consumption sacrificed for capital formation.
C)   higher inflation rates.
D)   investment in stocks and bonds.E) B) and C)
F) A) and D)

Question 12

If real GDP per person in a country equals $20,000 and 40 percent of the population is employed, then average labor productivity equals:

Accepted Answer

A)   $8,000.
B)   $20,000.
C)   $40,000.
D)   $50,000.E) A) and B)
F) A) and C)

Question 13

The introduction of an overnight delivery service that guarantees the delivery of packages anywhere in the world overnight would increase:

Accepted Answer

A)   average labor productivity.
B)   the share of population employed.
C)   the labor force participation rate.
D)   the unemployment rate.E) B) and D)
F) C) and D)

Question 14

Research confirms that government provision of infrastructure:

Accepted Answer

A)   hinders economic growth.
B)   promotes economic growth.
C)   increases human capital.
D)   leads to reduced spending on research and development.E) B) and C)
F) A) and B)

Question 15

Countries with small amounts of capital per worker tend to have ______ levels of real GDP per person and ______ levels of average labor productivity.

Accepted Answer

A)   high; high
B)   high; low
C)   low; low
D)   low; averageE) B) and C)
F) A) and D)

Question 16

Economic growth may face environmental limits because:

Accepted Answer

A)   economic growth can take the form of new, different, and "cleaner" goods and services.
B)   economic growth may lead to less, not more, pollution.
C)   the market mechanism mobilizes resources to deal with shortages.
D)   global environmental problems are not handled by markets or national governments.E) All of the above
F) None of the above

Question 17

Government support of basic research by funding scientists through the National Science Foundation is an example of a government policy to promote economic growth by:

Accepted Answer

A)   increasing human capital.
B)   increasing physical capital.
C)   improving technology.
D)   increasing the availability of natural resources.E) A) and B)
F) A) and C)

Question 18

When a firm builds a new factory, this is an example of an investment in:

Accepted Answer

A)   human capital.
B)   physical capital.
C)   the market.
D)   research and development.E) A) and D)
F) All of the above

Question 19

An example of a government policy to increase human capital formation is:

Accepted Answer

A)   the construction of an interstate highway system.
B)   the provision of publicly-funded education.
C)   government support for basic research.
D)   maintaining a well-functioning legal system.E) A) and B)
F) A) and C)

Question 20

Human capital is:

Accepted Answer

A)   the factories and machinery used by humans in the production process.
B)   the talents, training, and education of workers.
C)   the financial resources available to humans for investment.
D)   the factories and machinery made by workers.E) B) and C)
F) None of the above

Exam 7: Economic Growth, Productivity, and Living Standards

Providing workers with on-the-job training will increase:

Correct Answer
verified

An example of a government policy to increase human capital formation is:

Correct Answer
verified

Human capital is:

Correct Answer
verified

Countries with small amounts of capital per worker tend to have levels of real GDP per person and levels of average labor productivity.

Correct Answer
verified

A nation's standard of living, as measured by real GDP per person, increases:

Correct Answer
verified

Research confirms that government provision of infrastructure:

Correct Answer
verified

The principle economic cost of growth is:

Correct Answer
verified

Compared to the level of real GDP per person in 1870, by 2008, real GDP in the U.S was times larger, while real GDP per person in Japan was _.

Correct Answer
verified

Organizing production, obtaining financing, assigning workers to jobs, and dealing with suppliers are among the ways that ______ increases average labor productivity.

Correct Answer
verified

If real GDP per person in a country equals $20,000 and 40 percent of the population is employed, then average labor productivity equals:

Correct Answer
verified

When a firm builds a new factory, this is an example of an investment in:

Correct Answer
verified

A government policy that allows retirement savings to accumulate tax-free is an example of a policy to promote economic growth by:

Correct Answer
verified

Which of the following is an example of an investment in human capital?

Correct Answer
verified

An example of a government policy to increase physical capital formation is:

Correct Answer
verified

Government support of basic research by funding scientists through the National Science Foundation is an example of a government policy to promote economic growth by:

Correct Answer
verified

Correct Answer
verified

Economic growth may face environmental limits because:

Correct Answer
verified

Growth of real GDP per person is totally determined by the growth of average:

Correct Answer
verified

Sharing the results of applied research conducted under government sponsorship with the private sector, such as the development of the Global Positioning System, is an example of a government policy to promote economic growth by:

Correct Answer
verified

The introduction of an overnight delivery service that guarantees the delivery of packages anywhere in the world overnight would increase:

Correct Answer
verified

Exam 7: Economic Growth, Productivity, and Living Standards

Providing workers with on-the-job training will increase:

Correct AnswerverifiedShow Answer

An example of a government policy to increase human capital formation is:

Correct AnswerverifiedShow Answer

Human capital is:

Correct AnswerverifiedShow Answer

Countries with small amounts of capital per worker tend to have ______ levels of real GDP per person and ______ levels of average labor productivity.

Correct AnswerverifiedShow Answer

A nation's standard of living, as measured by real GDP per person, increases:

Correct AnswerverifiedShow Answer

Research confirms that government provision of infrastructure:

Correct AnswerverifiedShow Answer

The principle economic cost of growth is:

Correct AnswerverifiedShow Answer

Compared to the level of real GDP per person in 1870, by 2008, real GDP in the U.S was ______ times larger, while real GDP per person in Japan was _______.

Correct AnswerverifiedShow Answer

Organizing production, obtaining financing, assigning workers to jobs, and dealing with suppliers are among the ways that ______ increases average labor productivity.

Correct AnswerverifiedShow Answer

If real GDP per person in a country equals $20,000 and 40 percent of the population is employed, then average labor productivity equals:

Correct AnswerverifiedShow Answer

When a firm builds a new factory, this is an example of an investment in:

Correct AnswerverifiedShow Answer

A government policy that allows retirement savings to accumulate tax-free is an example of a policy to promote economic growth by:

Correct AnswerverifiedShow Answer

Which of the following is an example of an investment in human capital?

Correct AnswerverifiedShow Answer

An example of a government policy to increase physical capital formation is:

Correct AnswerverifiedShow Answer

Government support of basic research by funding scientists through the National Science Foundation is an example of a government policy to promote economic growth by:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Economic growth may face environmental limits because:

Correct AnswerverifiedShow Answer

Growth of real GDP per person is totally determined by the growth of average:

Correct AnswerverifiedShow Answer

Sharing the results of applied research conducted under government sponsorship with the private sector, such as the development of the Global Positioning System, is an example of a government policy to promote economic growth by:

Correct AnswerverifiedShow Answer

The introduction of an overnight delivery service that guarantees the delivery of packages anywhere in the world overnight would increase:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Countries with small amounts of capital per worker tend to have levels of real GDP per person and levels of average labor productivity.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Compared to the level of real GDP per person in 1870, by 2008, real GDP in the U.S was times larger, while real GDP per person in Japan was _.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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