Question 1

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) All of the above
F) C) and D)

Question 2

An example of a government policy to enhance technological progress 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) None of the above
F) All of the above

Question 3

Well-defined property rights:

Accepted Answer

A)  are clearly written in English.
B)  restrict the use of land and natural resources to productive uses.
C)  allow the government to confiscate property.
D)  clearly state who owns resources and how the resources can be used.E) B) and C)
F) All of the above

Question 4

To increase future living standards by pursuing higher current rates of investment spending, an economy must:

Accepted Answer

A)  allow higher rates of current consumption.
B)  reduce current rates of consumption spending.
C)  reduce the current capital stock.
D)  decrease the amount of future research and development spending.E) All of the above
F) A) and C)

Question 5

If average labor productivity in two countries is the same, average living standards will be higher in the country with:

Accepted Answer

A)  the smaller population.
B)  the larger population.
C)  the higher share of population employed.
D)  the lower share of population employed.E) A) and C)
F) B) and D)

Question 6

An example of a government policy to provide a framework within which the private sector can operate productively is:

Accepted Answer

A)  the taxation of savings.
B)  the suppression of political dissent.
C)  maintaining a well-functioning legal system.
D)  government ownership of capital.E) B) and D)
F) A) and B)

Question 7

Suppose when you are 21 years old, you deposit $1,000 into a bank account that pays annual compound interest, and you do not withdraw from the account until your retirement at the age of 65, 44 years later. How much more will be in your account if the interest rate is 6 percent rather than 5 percent?

Accepted Answer

A)  $440
B)  $1,549
C)  $4,428
D)  $8,557E) A) and D)
F) A) and C)

Question 8

The population of Omega totals one million people, 30 percent of whom are employed. Average output per worker in Alpha is $30,000. Real GDP per person in Alpha totals:

Accepted Answer

A)  $9,000.
B)  $21,000.
C)  $30,000.
D)  $100,000.E) None of the above
F) All of the above

Question 9

If you left $2,500 on deposit with a bank promising to pay you a 6 percent compound annual rate of interest, then after 50 years your deposit would be worth approximately:

Accepted Answer

A)  $2,800
B)  $18,420
C)  $46,050
D)  $250,750E) C) and D)
F) None of the above

Question 10

People who run businesses on a day-to-day basis are called:

Accepted Answer

A)  entrepreneurs.
B)  engineers.
C)  business managers.
D)  technology experts.E) All of the above
F) B) and C)

Question 11

In order to promote growth through increased quantities of physical capital, governments must promote:

Accepted Answer

A)  a better educational system.
B)  job training programs.
C)  high rates of saving and investing.
D)  funding for basic science.E) None of the above
F) B) and C)

Question 12

Compared to the level of real GDP per person in 1870, by 2010, real GDP in the U.S was ________ times larger, while real GDP per person in Japan was ________.

Accepted Answer

A)  12; smaller
B)  12; 12 times larger
C)  12; 30 times larger
D)  30; 12 times largerE) None of the above
F) A) and D)

Question 13

The quantity and quality of human capital, physical capital, technology, natural resources, entrepreneurship, and the legal and political environment determine the:

Accepted Answer

A)  unemployment rate.
B)  labor force participation rate.
C)  average labor productivity.
D)  real interest rate.E) A) and C)
F) All of the above

Question 14

A government policy to build bridges and dams 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)  improving the social and legal environmentE) B) and C)
F) C) and D)

Question 15

A government policy of providing free public education 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) B) and C)
F) All of the above

Question 16

The discovery and utilization of vast, previously unknown oil and mineral deposits in a country will increase:

Accepted Answer

A)  average labor productivity.
B)  the share of the population employed.
C)  the unemployment rate.
D)  the quantity of human capital.E) A) and B)
F) A) and C)

Question 17

Most economists agree that ________ are the single most important source of productivity improvements.

Accepted Answer

A)  increases in human capital
B)  increases in physical capital
C)  technological advances
D)  discoveries of natural resourcesE) A) and D)
F) None of the above

Question 18

An example of a government policy to provide a framework within which the private sector can operate productively is:

Accepted Answer

A)  the taxation of savings.
B)  the suppression of political dissent.
C)  establishing well-defined property rights.
D)  government ownership of capital.E) B) and D)
F) None of the above

Question 19

In Econland, 500,000 of the 2 million people in the country are employed. Average labor productivity in Econland is $15,000 per worker. Real GDP per person in Econland totals:

Accepted Answer

A)  $1,250.
B)  $3,750.
C)  $11,250.
D)  $60,000.E) A) and D)
F) A) and C)

Question 20

Sharing the results of applied research conducted under government sponsorship with the private sector, such as the development of the Global Positioning System (GPS) , 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) C) and D)

Exam 19: Economic Growth, Productivity, and Living Standards

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

Correct Answer
verified

Most economists agree that ________ are the single most important source of productivity improvements.

Correct Answer
verified

The discovery and utilization of vast, previously unknown oil and mineral deposits in a country will increase:

Correct Answer
verified

If average labor productivity in two countries is the same, average living standards will be higher in the country with:

Correct Answer
verified

The quantity and quality of human capital, physical capital, technology, natural resources, entrepreneurship, and the legal and political environment determine the:

Correct Answer
verified

Correct Answer
verified

Compared to the level of real GDP per person in 1870, by 2010, real GDP in the U.S was times larger, while real GDP per person in Japan was .

Correct Answer
verified

The population of Omega totals one million people, 30 percent of whom are employed. Average output per worker in Alpha is $30,000. Real GDP per person in Alpha totals:

Correct Answer
verified

An example of a government policy to enhance technological progress is:

Correct Answer
verified

In Econland, 500,000 of the 2 million people in the country are employed. Average labor productivity in Econland is $15,000 per worker. Real GDP per person in Econland totals:

Correct Answer
verified

If you left $2,500 on deposit with a bank promising to pay you a 6 percent compound annual rate of interest, then after 50 years your deposit would be worth approximately:

Correct Answer
verified

A government policy of providing free public education is an example of a policy to promote economic growth by:

Correct Answer
verified

To increase future living standards by pursuing higher current rates of investment spending, an economy must:

Correct Answer
verified

A government policy to build bridges and dams is an example of a policy to promote economic growth by:

Correct Answer
verified

Well-defined property rights:

Correct Answer
verified

An example of a government policy to provide a framework within which the private sector can operate productively is:

Correct Answer
verified

People who run businesses on a day-to-day basis are called:

Correct Answer
verified

An example of a government policy to provide a framework within which the private sector can operate productively is:

Correct Answer
verified

In order to promote growth through increased quantities of physical capital, governments must promote:

Correct Answer
verified

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

Correct Answer
verified

Exam 19: Economic Growth, Productivity, and Living Standards

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

Correct AnswerverifiedShow Answer

Most economists agree that ________ are the single most important source of productivity improvements.

Correct AnswerverifiedShow Answer

The discovery and utilization of vast, previously unknown oil and mineral deposits in a country will increase:

Correct AnswerverifiedShow Answer

If average labor productivity in two countries is the same, average living standards will be higher in the country with:

Correct AnswerverifiedShow Answer

The quantity and quality of human capital, physical capital, technology, natural resources, entrepreneurship, and the legal and political environment determine the:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Compared to the level of real GDP per person in 1870, by 2010, real GDP in the U.S was ________ times larger, while real GDP per person in Japan was ________.

Correct AnswerverifiedShow Answer

The population of Omega totals one million people, 30 percent of whom are employed. Average output per worker in Alpha is $30,000. Real GDP per person in Alpha totals:

Correct AnswerverifiedShow Answer

An example of a government policy to enhance technological progress is:

Correct AnswerverifiedShow Answer

In Econland, 500,000 of the 2 million people in the country are employed. Average labor productivity in Econland is $15,000 per worker. Real GDP per person in Econland totals:

Correct AnswerverifiedShow Answer

If you left $2,500 on deposit with a bank promising to pay you a 6 percent compound annual rate of interest, then after 50 years your deposit would be worth approximately:

Correct AnswerverifiedShow Answer

A government policy of providing free public education is an example of a policy to promote economic growth by:

Correct AnswerverifiedShow Answer

To increase future living standards by pursuing higher current rates of investment spending, an economy must:

Correct AnswerverifiedShow Answer

A government policy to build bridges and dams is an example of a policy to promote economic growth by:

Correct AnswerverifiedShow Answer

Well-defined property rights:

Correct AnswerverifiedShow Answer

An example of a government policy to provide a framework within which the private sector can operate productively is:

Correct AnswerverifiedShow Answer

People who run businesses on a day-to-day basis are called:

Correct AnswerverifiedShow Answer

An example of a government policy to provide a framework within which the private sector can operate productively is:

Correct AnswerverifiedShow Answer

In order to promote growth through increased quantities of physical capital, governments must promote:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Compared to the level of real GDP per person in 1870, by 2010, 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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