Question 1

An example of a renewable resource would be:

Accepted Answer

A)   a river.
B)   coal.
C)   natural gas.
D)   All of these are examples of renewable resources.E) A) and D)
F) A) and B)

Question 2

In a given year the nominal growth rate is 5% with inflation and population growth rates of 1.2% and 3.8% respectively, then real growth rate of GDP per capita is:

Accepted Answer

A)   3.8%.
B)   5.0 %.
C)   1.2%.
D)   0.0 %.E) B) and C)
F) A) and B)

Question 3

One way the government can encourage economic growth is to:

Accepted Answer

A)   protect property rights.
B)   enforce contracts.
C)   ensure legal agreements will be upheld.
D)   All of these actions will encourage economic growth.E) A) and B)
F) A) and C)

Question 4

If you are told that in a given year the real growth rate is 7% with inflation and population growth rates of 2% and 1.2% respectively, then nominal growth rate of GDP per capita is:

Accepted Answer

A)   3.8%.
B)   5.0 %.
C)   5.8%.
D)   7.0 %.E) A) and D)
F) None of the above

Question 5

A variable that is essential to economic growth is:

Accepted Answer

A)   savings.
B)   capital.
C)   technology.
D)   All of these are important to economic growth.E) B) and C)
F) None of the above

Question 6

If a country grows at an average rate of 3.5 % per year over a ten year period, then its compounded growth rate over that period is roughly:

Accepted Answer

A)   41.0%.
B)   35.0%.
C)   32.7 %.
D)   45.0 %.E) A) and B)
F) A) and C)

Question 7

Which of the following is a renewable resource?

Accepted Answer

A)   Oil
B)   Coal
C)   Trees
D)   Natural gasE) C) and D)
F) A) and D)

Question 8

The convergence theory is also known as:

Accepted Answer

A)   the catch-up effect.
B)   Say's law.
C)   the income effect.
D)   Moore's law.E) All of the above
F) A) and B)

Question 9

Human capital refers to the:

Accepted Answer

A)   skills, experience, and natural talent that determine the productivity of workers.
B)   amount of people a firm has access to for production.
C)   production per capita.
D)   the machinery and tools that labor can use for production.E) None of the above
F) C) and D)

Question 10

Historically, real income per person:

Accepted Answer

A)   barely changed at all until the 1800s but began to increase after.
B)   barely changed at all until the 1500s but began to increase after.
C)   has steadily increased at an average rate of 2 percent
D)   has barely changed at all worldwide.E) B) and D)
F) All of the above

Question 11

An equation that captures how inputs of production are related to output is called a:

Accepted Answer

A)   consumption function.
B)   GDP deflator.
C)   production function.
D)   saving functionE) A) and D)
F) A) and B)

Question 12

Increasing productivity per person:

Accepted Answer

A)   is highly desirable, as it leads to economic growth.
B)   is unavoidable, and macroeconomists work to prevent it.
C)   can harm an economy if misallocated.
D)   is highly undesirable, as it leads to increases in GDP per capita.E) All of the above
F) B) and C)

Question 13

Household savings rates:

Accepted Answer

A)   were roughly 5% in the United States in 2016.
B)   were 10% in the United States in 2016.
C)   were fairly constant at about 5 %in the United States from 2000 to 2010.
D)   have been roughly 15 % in the United States for the last 30 years or so.E) All of the above
F) A) and C)

Question 14

We can estimate that if a country grows at 7 percent per year, it will double its real GDP per capita in:

Accepted Answer

A)   2 years.
B)   20 years.
C)   35 years.
D)   10 years.E) B) and D)
F) C) and D)

Question 15

If a country devotes its resources to acquiring more physical capital it will:

Accepted Answer

A)   increase its productivity.
B)   increase its current consumption.
C)   decrease its output per person.
D)   All of these are true.E) B) and D)
F) B) and C)

Question 16

Human capital is generally acquired through:

Accepted Answer

A)   education, training and experience of workers.
B)   training, but not academic education.
C)   job experience, but not training workshops because they are generally specific to certain job types.
D)   occupational workshops only,because this is where workers attain job focused skills.E) None of the above
F) All of the above

Question 17

An example of the opportunity to gain human capital would be:

Accepted Answer

A)   a firm expanding and creating 20 more jobs.
B)   a firm offering on-the-job training.
C)   a firm starting a community garden for its employees.
D)   All of these are examples of human capital.E) A) and D)
F) None of the above

Question 18

When a country adds more capital to its existing stock:

Accepted Answer

A)   the additional productivity is less than the previous increases to productivity.
B)   the additional productivity is more than the previous increases to productivity.
C)   it experiences rapidly increasing rates of growth.
D)   it experiences rapid declines in its level of income.E) C) and D)
F) B) and C)

Question 19

Our measurement of output per worker is called:

Accepted Answer

A)   productivity.
B)   production growth rate.
C)   nominal output.
D)   None of these is true.E) A) and B)
F) A) and C)

Question 20

A renewable resource:

Accepted Answer

A)   can be replenished naturally over time.
B)   is used to regenerate an old piece of capital.
C)   is used when adopting new technology, and replacing old capital.
D)   cannot be replenished naturally over time.E) A) and B)
F) A) and C)

Exam 10: Economic Growth

If a country devotes its resources to acquiring more physical capital it will:

Correct AnswerverifiedShow Answer

Human capital is generally acquired through:

Correct AnswerverifiedShow Answer

The convergence theory is also known as:

Correct AnswerverifiedShow Answer

If a country grows at an average rate of 3.5 % per year over a ten year period, then its compounded growth rate over that period is roughly:

Correct AnswerverifiedShow Answer

We can estimate that if a country grows at 7 percent per year, it will double its real GDP per capita in:

Correct AnswerverifiedShow Answer

An example of a renewable resource would be:

Correct AnswerverifiedShow Answer

A renewable resource:

Correct AnswerverifiedShow Answer

Our measurement of output per worker is called:

Correct AnswerverifiedShow Answer

In a given year the nominal growth rate is 5% with inflation and population growth rates of 1.2% and 3.8% respectively, then real growth rate of GDP per capita is:

Correct AnswerverifiedShow Answer

Increasing productivity per person:

Correct AnswerverifiedShow Answer

Which of the following is a renewable resource?

Correct AnswerverifiedShow Answer

An equation that captures how inputs of production are related to output is called a:

Correct AnswerverifiedShow Answer

An example of the opportunity to gain human capital would be:

Correct AnswerverifiedShow Answer

If you are told that in a given year the real growth rate is 7% with inflation and population growth rates of 2% and 1.2% respectively, then nominal growth rate of GDP per capita is:

Correct AnswerverifiedShow Answer

When a country adds more capital to its existing stock:

Correct AnswerverifiedShow Answer

Human capital refers to the:

Correct AnswerverifiedShow Answer

Household savings rates:

Correct AnswerverifiedShow Answer

One way the government can encourage economic growth is to:

Correct AnswerverifiedShow Answer

A variable that is essential to economic growth is:

Correct AnswerverifiedShow Answer

Historically, real income per person:

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

Correct Answer
verified

Correct Answer
verified