Macroeconomics Assignment 8 Multiple Choice

During the last two centuries, the average rate of growth of GDP per capita in the leading industrialized countries has averaged about _________ per year. A. 2% B. 12% C. 22% D. 32%

2%

A country will roughly double its GDP in twenty years if its annual growth rate is: A. 12 percent. B. 7.5 percent. C. 3.5 percent. D. 2.5 percent.

3.5 percent.

A nation's prosperity is sometimes measured in terms of ___________. A. GNP B. GDP C. GDP per capita D. economic output

GDP per capita

An economy's rate of productivity growth is closely linked to the growth rate of its ______________, although the two aren't identical. A. GNP B. output C. GDP per capita D. technology

GDP per capita

When discussing economic growth, it is often useful to focus on ____________, to avoid studying changes in the size of GDP that represent only having more people in the economy, and focus on those increases in GDP which represent an actual rise in the standard of living on a per person basis. A. economic growth B. GDP per capita C. living standards D. consumption and expenditures

GDP per capita

Which of the following is correct? A. An increase in the quantity of labor always leads to economic growth. B. Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital. C. A decrease in the productivity of labor leads to economic growth. D. Third World countries are rich in human capital.

Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital.

Which of the following best describes the relationship between economic growth and literacy? A. As the economy grows, literacy declines because it becomes less and less useful in a developed economy. B. Increased literacy initially stimulates economic growth by raising labor productivity, but as the economy grows and the opportunity cost of education rises, literacy declines. C. Increased literacy stimulates economic growth by raising labor productivity, and as the economy grows, people consume more education. D. There is no correlation between economic growth and literacy.

Increased literacy stimulates economic growth by raising labor productivity, and as the economy grows, people consume more education.

Which of the following did not result in economic growth? A. Installing a network of irrigation ditches and pumping stations in order to grow fruits and vegetables in parts of southern California. B. The invention of a threshing machine for harvesting grains. C. Increased government funding of post-secondary education. D. Many citizens emigrating from Zimbabwe when a politically repressive regime took office.

Many citizens emigrating from Zimbabwe when a politically repressive regime took office.

Increased investment alone will guarantee economic growth. A. This is a true statement, because growth occurs only with savings. B. This is a true statement, because money is the only resource needed for growth. C. This is a false statement, because an economy must rely on capital injections from abroad. D. This is a false statement, because economic growth hinges on the quality and type of investment as well as the human capital and improvements in technology.

This is a false statement, because economic growth hinges on the quality and type of investment as well as the human capital and improvements in technology.

Which of the following factors contribute to economic growth? A. an increase in the average wage rate paid to workers B. an increase in the standard of living C. a decrease in the productivity of labor D. an increase in the proportion of the population that is college educated

an increase in the proportion of the population that is college educated

Country Able and Country Baker initially have the same real GDP per capita. Country Able experiences no economic growth, while Country Baker grows at a sustained rate of 7 percent. In 12 years, Country Baker's GDP will be approximately ___________ that of Country Able. A. triple B. double C. one-half D. one-fourth

double

Some recent economic research has suggested that African countries' economic growth may have been limited by __________________ . A. population B. geography and climate C. government interventionism D. technological challenges

geography and climate

In the long run, the most important source of increase in a nation's standard of living is a: A. zero rate of population growth B. high rate of economic growth. C. high rate of consumption. D. high rate of labor force growth.

high rate of economic growth

Which of the government policies below is most unlikely to encourage per capita economic growth? A. high taxes on companies that spend a lot on capital formation B. the use of tax revenues for investment and capital formation C. special subsidies for capital-intensive forms of production D. promotion of education and training programs for workers

high taxes on companies that spend a lot on capital formation

Investment in human capital: A. is of minor importance to economic growth. B. can be acquired through on-the-job training. C. is an important source of economic growth. D. is characterized by both B) and C).

is characterized by both B) and C)

A nation can achieve higher economic growth if: A. it devotes more resources to research and development. B. the productivity of labor declines C. taxes are imposed on investment in capital. D. more resources are allocated to consumption goods.

it devotes more resources to research and development

Country Alpha and Country Beta initially have the same real GDP per capita. Country Alpha experiences no economic growth, while Country Beta grows at a sustained rate of 5 percent. In 14 years, Country Alpha's GDP will be approximately _________ that of Country Beta. A. one-fourth B. one-half C. double D. triple

one-half

Over the long run, ____________ per hour is the most important determinant of the average wage level in any economy. A. demand B. dollars C. productivity D. supply

productivity

The value of what is produced per worker, or per hour worked, is called ____________. A. economic growth B. human capital C. productivity D. GDP per capita

productivity

Which of the following is unlikely to affect the rate of economic growth? A. the quality of available resources B. the quantity of available resources C. the level of government spending D. technological change

the level of government spending