eccon chapter 8

The entry of women into the workforce since the 1960s resulted in: A. A shift outward in the production possibilities curve of the United States B. A shift inward in the production possibilities curve in the United States C. A movement along the existing production possibilities curve in the United States D. A falling real wage for women workers of the United States

A. A shift outward in the production possibilities curve of the United States

Technological advance is very tightly intertwined with: A. Capital formation B. Household consumption C. Government spending D. Population growth

A. Capital formation

Modern economic growth often results in the following, except: A. Less time for ordinary people to enjoy leisure activities because the primary focus is on production and work B. Vast increases in wealth and living standards for many groups in the economy C. Spread of universal education and elimination of ancient social norms D. Movement towards democracy and the abolishment of feudalism

A. Less time for ordinary people to enjoy leisure activities because the primary focus is on production and work

Increases in the value of the product to each user, including existing users, as the total number of users rises is called: A. Network effects B. Simultaneous consumption C. Learning by doing D. The spreading of development costs

A. Network effects

The size of the labor force depends on the size of the working-age population and the: A. Participation rate B. Employment rate C. Unemployment rate D. Inflation rate

A. Participation rate

Efficient financial institutions foster the flow of: A. Saving and investment B. Spending and income C. Resources and products D. Inventions and ideas

A. Saving and investment

Labor productivity can only increase if: A. Labor increases faster than capital B. Capital increases faster than labor C. Labor increases while capital decreases D. Labor and capital increase at the same rate

B. Capital increases faster than labor

One of the main arguments against further growth for industrialized nations focuses on the problem of: A. Technological knowledge B. Environmental quality C. Feedback mechanisms D. Infrastructure

B. Environmental quality

In the modern economic growth process, it is typical to find that: A. Leader countries continue to grow faster than follower countries B. Follower countries can grow faster than leader countries C. Large countries cannot grow faster than leader countries D. The gap between the leader countries and the follower countries stays constant

B. Follower countries can grow faster than leader countries

From 1960 to today, women's labor-force participation rate in the U.S.: A. Stayed relatively stable at 50% B. Increased from about 40% to 60% C. Fell from 50% to 40% D. Increased slightly from 60% to 65%

B. Increased from about 40% to 60%

Historically, the total amount of real capital per worker in the United States has: A. Provided financing for the industrial expansion of business B. Increased significantly and made labor more productive C. Been the single most important determinant of economic growth D. Remained relatively constant, although the quality of capital has improved dramatically

B. Increased significantly and made labor more productive

Rising real wages for women in the U.S. workforce since the 1960s have: A. Reduced access to job opportunities for women B. Increased the opportunity cost of staying at home C. Led to a rise in the number of lifetime births per woman D. Reallocated labor resources from urban to rural areas of the nation

B. Increased the opportunity cost of staying at home

The main cause for the vast differences in per capita GDP levels seen across the globe today is the: A. Huge differences in the natural-resource endowments of different countries B. Major differences in the population sizes of various societies C. Different starting dates of modern economic growth in different parts of the world D. Differences in religions that different societies around the world believe in

B. Major differences in the population sizes of various societies

Which of the following is the so-called efficiency factor of economic growth? A. Having an efficient financial system B. Reaching full production potential C. Having free trade D. Enhanced quantity and quality of human resources

B. Reaching full production potential

A major effect of the rise in the rate of productivity growth in the United States is a(n): A. Rise in the rate of inflation B. Rise in the growth of living standards C. Increase in the relative prices of U.S. goods in foreign markets D. Increase in the competitiveness of U.S. goods in foreign markets

B. Rise in the growth of living standards

One concern regarding educational attainment in the U.S. is that: A. The percentage of adults finishing college is falling B. There are fewer college graduates in science and engineering C. Students are graduating later and later D. Fewer high school graduates are going on to college

B. There are fewer college graduates in science and engineering

The "rule of 70" is a formula for determining the approximate number of: A. Years that it would take for a value (like real GDP) to expand 70 times B. Years that it would take for a value (like real GDP) to double C. Times a value (like real GDP) is a multiple of 70 D. Times one could double a certain value (like real GDP) over 70 years

B. Years that it would take for a value (like real GDP) to double

The following factors tend to make the real GDP growth rate understate the growth of economic well-being, except: A. Improved product quality B. Added leisure C. Debasement of the environment D. More stress-free lifestyle

C. Debasement of the environment

One major aspect of the socio-cultural-political environment of the United States which has generally been conducive to economic growth is the: A. Enforcement of contracts by the market B. Denial of the rights of property ownership C. Favorable attitude toward work and risk-taking D. Strict social regulation of production and progress

C. Favorable attitude toward work and risk-taking

Critics of growth policies focus on the following arguments, except: A. Growth has resulted in resource degradation and pollution B. Sociological problems like poverty have not been solved by growth C. Growth may have given us the good life, but we cannot better it anymore D. Rapid growth is not sustainable in the long term due to resource limitations

C. Growth may have given us the good life, but we cannot better it anymore

Supply factors in economic growth include the following, except: A. Improvements in technology B. Expansion of capital stock C. Increases in purchases of output D. Better education and training

C. Increases in purchases of output

Which of the following is a measure of economic growth that is most useful for comparing living standards? A. Growth in nominal GDP B. Decreases in the rate of unemployment C. Increases in real GDP per capita D. Increases in real GDP

C. Increases in real GDP per capita

Technological advances that contribute to economic growth include the following, except: A. Innovative production techniques B. New managerial methods C. Innovative digital gadgets for consumers D. New forms of business organization

C. Innovative digital gadgets for consumers

Society can increase its output and income by increasing basically one or both of two factors: A. Its spending and investment B. Its private and public sectors of the economy C. Its resources and the productivity of the resources D. Its markets and prices

C. Its resources and the productivity of the resources

One major economic benefit of global competition is: A. Lower unemployment B. Increased protection of domestic firms C. Pressure to innovate D. More leisure opportunities

C. Pressure to innovate

The "inverse dependency ratio" is defined as the ratio of: A. The average number of dependents per head of household B. The working-age population to the number of dependents C. The number of dependents to the number of the total population D. The number of parents and grandparents to the number of children

C. The number of dependents to the number of the total population

One of the basic economic defenses of economic growth rests on the conclusion that: A. Growth makes workers less obsolete and more secure in employment B. Growth reduces the cost to society of "common property" resources C. Growth makes the gap between unlimited wants and scarce resources less acute D. A growth-oriented society confers a "work and look to the future" attitude on the members of society

D. A growth-oriented society confers a "work and look to the future" attitude on the members of society

Which of the following is a demand factor in economic growth? A. More human and natural resources B. Technological progress and innovation C. An increase in the economy's stock of capital goods D. An increase in total spending in the economy

D. An increase in total spending in the economy

A nation's real GDP will increase by increasing the following, except: A. Number of workers B. Labor productivity C. Technological progress D. Average price level

D. Average price level

What economic concept would be most closely associated with a situation where an aluminum plant expands its operations and uses extensive computerization in the production line to reduce per-unit costs of production? A. Infrastructure B. Human capital C. Network effects D. Economies of scale

D. Economies of scale

Human capital refers to the: A. Tools and equipment available to workers B. Amount of financing available to start-up firms C. Number of workers available in the economy D. Education, training, and skills of workers

D. Education, training, and skills of workers

The movement of workers from lower productivity jobs to higher productivity jobs would be an example of a(n): A. Technological advance B. Network effects C. Simultaneous consumption D. Improved resource allocation

D. Improved resource allocation

Factors that have contributed to the increase in women's labor-force participation rate in the U.S. include the following, except: A. Rising wage earnings brought about by rising productivity B. Better education and more professional training C. Access to a wider range of job opportunities D. Increase in the number of children, requiring mothers to find work along with fathers

D. Increase in the number of children, requiring mothers to find work along with fathers

The shift of labor out of agriculture to industry in the United States has tended to: A. Reduce the rate of productivity growth B. Increase unemployment in the agriculture sector C. Reduce unemployment in the industrial sector D. Increase labor productivity

D. Increase labor productivity

Which of the following is the single most important source of U.S. economic growth? A. Stability of the socio-cultural-political environment B. Improvement in the legal and human environment C. Increases in the quantity of labor D. Increases in labor productivity

D. Increases in labor productivity

Which of the following is a measure of economic growth that is most useful for measuring geopolitical preeminence or military potential? A. Growth in nominal GDP B. Decreases in the rate of unemployment C. Increases in real GDP per capita D. Increases in real GDP

D. Increases in real GDP

Patents and copyrights foster the flow of: A. Saving and investment B. Spending and income C. Resources and products D. Inventions and ideas

D. Inventions and ideas

Economic growth can best be portrayed as a: A. Leftward shift of the production possibilities curve B. Movement from a point inside to a point outside of the production possibilities curve C. Movement from a point near the vertical axis to a point near the horizontal axis on the production possibilities curve D. Rightward shift of the production possibilities curve

D. Rightward shift of the production possibilities curve

A piece of software that benefits many users at the same time would be an example of: A. Network effects B. Learning by doing C. Multiple production D. Simultaneous consumption

D. Simultaneous consumption

Growth-promoting institutional structures include the following, except: A. Patents and copyrights B. Efficient financial institutions C. Protection of domestic firms from foreign rivals D. Stable political system

D. Stable political system

The factor accounting for the largest increase in the productivity of labor in the United States has been: A. The education and training of workers B. Improved resource allocation C. The quantity of capital D. Technological advance

D. Technological advance

Which of the following is best considered a demand factor in economic growth? A. The quantity of human resources B. The quality of natural resources C. The stock of capital goods D. The full employment of resources

D. The full employment of resources

An antigrowth view would be that there may be a significant tradeoff between productivity and: A. Education B. Employment C. Economies of scale D. The quality of life

D. The quality of life