Economics 202 Ch 7

The U.S. economy shrank about 0.025% from the third quarter of 2012 to the fourth quarter of 2012. What is the annualized percent change in real GDP?

0.1%

Assume the initial value of an investment is $1,000 and the growth rate is 5%. Using the Rule of 70, how many years will it take for the initial value to double?

14 years

Gerald can produce 128 toothpicks in an eight-hour workday. What is Gerald's labor productivity?

16 toothpicks per hour

Using the Rule of 70, the number of years to double in value is equal to:

70/ growth rate

Using the Rule of 70, assume it takes eight years for the initial value to double. What is the growth rate?

8.75%

Government spending on _____ is considered a contribution to physical capital.

Airline systems

Which of the following is LESS likely when a country has a stable financial environment?

Bank runs

Production workers in country A have $1,000 of capital invested per worker. Production workers in country B have $1,200 of capital invested per worker. Production workers in country C have $2,800 of capital invested per worker. Production workers in country D have $3,500 of capital invested per worker. Which country has the highest wages?

Country D

An increase in a country's real GDP per capita generally translates into a _____ standard of living for most of its residents.

Higher

Mental talents and physical talents of people are:

Labor

Hiring unemployed workers to increase production is likely to produce _____ growth.

Short-run

The primary explanation for the extraordinary economic growth the United States has enjoyed over the past century is:

Technological Process

Which of the following is a key way in which the government contributes to productivity?

The government acts as a promoter of free and competitive markets.

In April 2010, the New York Times reported on an analysis of census data showing that more immigrants to the United States were high-skilled workers working in white-collar jobs than were low-skilled workers working in low-wage jobs. Which of the following statements best describes the likely impact of this on U.S. economic growth?

This is good for economic growth because not only are there more workers, but these workers will also be more productive.

Government spending on _____is considered a government contribution to physical capital.

telecommunication networks

What is the capital-to-labor ratio?

the capital employed per worker

Which of the following is an example of the primary explanation for the extraordinary economic growth the United States has enjoyed over the past century?

the development of the internet

Real measures of GDP are useful because:

they allow for relatively accurate comparisons in output from year to year.