Econ

The value of GDP will be. ___________. for the base year.

100

The real-world, more complex GDP price index used in the United States is called the chain-type annual _________ price index.

weighted

The fraction of the working-age population that is in the labor force is called the ___________ rate. a. unemployment b. labor-force participation c. employment participation d. employment

labor-force participation

Countries that develop and use the most advanced technologies, which then became available to follower countries, are known as ________ countries.

leader, leading, lead

Decide whether each of the following descriptions most closely corresponds to being part of a command system, a market system, or a laissez-faire system Shops stock and sell the goods their customers want, but the government levies a sales tax on each transaction in order to fund elementary schools, public libraries, and welfare programs for the poor.

market system

A product that increases in value as more people use it is a product that benefits from ___________ effects.

network

The _____________ (social/opportunity) costs of negative gross domestic by-products reduce a nation's. economic well-being.

social

Economists pay attention to small changes in economic growth because small changes in economic growth can make a big difference in the living _________ of a country.

standards

A new firm focused on creating and introducing a particular new product or employing a new production or distribution method is called a(n) ____________ firm.

start-up, startup, start up

The six determinants of economic growth are grouped into three categories; one demand factor, four __________ factors, and one efficiency factor.

supply

Economic growth is made possible due to ______ that shift the production possibilities curve outward. a. the factors of production b. growth differences c. demand and supply d. inflationary pressures

the factors of production

Human capital refers to _________________ a. any method of production developed by humans b. machines that require workers in order to operate most efficiency c. the machines workers use in a factory d. knowledge and skills that make a worker productive

the improvement in labor created by education and knowledge that is embodied in the workforce or knowledge and skills that make a worker productive

True or false: growth enables society to improve nations' infrastructure.

true

Economic growth is normally calculated as a percentage rate of growth per quarter or per

year

Which of these explain why growth is an important. economic goal? a. it increases real wages and incomes b. it increases standards of living c. it results in deflation or disinflation d. it increases a society's ability to resolve socioeconomic problems

a. it increases real wages and incomes b. it increases standards of living d. it increases a society's ability to resolve socioeconomic problems

Which of these explain why growth is an important economic goal? a. it increases standards of living b. it increases real wages and incomes c. It results in deflation or disinflation d. It increases a society's ability to resolve socioeconomic problems

a. it increases standards of living b. it increases real wages and incomes d. It increases a society's ability to resolve socioeconomic problems

By ignoring the value of leisure time, how does national income accounting affect our well-being? a. it understates our well-being b. it accurately states our well-being c. it overstates our well-being d. it has no effect on our well-being

a. it understates our well-being

Economic growth provides society _________________ . a. more goods and services b. a lower quality of goods c. higher living standards d. greater material abundance e. fewer goods and services

a. more goods and services c. higher living standards d. greater material abundance

Software and internet services become more beneficial to a buyer the greater the number of households and businesses that also buy them. This is called __________________ . a. network effects b. increasing returns c. simultaneous consumption d. increasing by doing

a. network effects

Which of the following compromise technological advancement? a. new managerial methods b. innovative production techniques c. new forms of business organization d. an increase in the supply of natural resources

a. new managerial methods b. innovative production techniques c. new forms of business organization

The demand factor involves households, businesses, and government purchases the economy's expanding output of goods and services so that there will be ______________ . a. no unplanned increase in inventories and resources will remain fully employed b. unplanned decreases in inventories and resources will be overemployed c. unplanned increases in inventories and resources will be unemployed d. zero increase in inventories and resources will remain constant

a. no unplanned increase in inventories and resources will remain fully employed

Real GDP is equal to _____________. a. nominal GDP divided by a price index (in hundredths) b. nominal GDP divided by price c. price index (in hundredths) divided by nominal GDP d. nominal GDP times price index (in hundredths)

a. nominal GDP divided by a price index (in hundredths)

Economic growth made possible by the four supply factors is illustrated by the _______ the production possibilities curve. a. outward shifting of b. movement downward along c. movement upward along d. inward shifting of

a. outward shifting of

What noneconomic sources of well-being that are not considered in a country's GDP? a. Peaceful international relations b. reduction of drug and alcohol abuse c. reduction of crime d. government spending on infrastructure

a. peaceful international relations b. reduction of drug and alcohol abuse c. reduction of crime

What do antigrowth economists cite as evidence in favor of their argument that growth is undesirable? a. pollution b. poverty c. stagnation d. materialism

a. pollution b. poverty d. materialism

The market system depends on. private property and the protection of property rights to a. provide an incentive to maintain the property and allow for the orderly transfer of property ownership. b. ensure that those people who own property use it wisely. c. establish the cost for the administration and orderly transfer of property. d. make sure that there are adequate safeguards against theft.

a. provide an incentive to maintain the property and allow for the orderly transfer of property ownership.

Which of the following are arguments against rapid economic growth? a. rapid economic growth has not solved sociological problems like poverty and homelessness. b. rapid economic growth results in pollution, global warming and other environmental problems. c. rapid economic growth reduces both the marginal propensity to consume and the marginal propensity to save in an economy. d. rapid economic growth is unsustainable due to the earth's finite resources.

a. rapid economic growth has not solved sociological problems like poverty and homelessness. b. rapid economic growth results in pollution, global warming and other environmental problems. d. rapid economic growth is unsustainable due to the earth's finite resources.

Select examples of infrastructure. a. roads and bridges b. water supply system c. government bonds d. corporate stock

a. roads and bridges b. water supply system

Streaming movies to customers is an example of ______________ . a. simultaneous consumption b. spreading of development costs c. complementary effects d. substitution effects

a. simultaneous consumption

Identify the sources of increasing returns for firms a. simultaneous consumption b. more specialized inputs c. spreading of development costs d. learning by doing e. network effects f. individual consumption g. more generalized inputs

a. simultaneous consumption b. more specialized inputs c. spreading of development. costs d. learning by doing e. network effects

The term "division of labor" means that workers: a. specialize in tasks that take advantage of their individual abilities and skills b. identify the products that can be produced so that they can take advantage of their individual abilities and skills c. develop the skills needed to complete a job d. share the labor needed to complete the job

a. specialize in tasks that take advantage of their individual abilities and skills

A new firm focused on creating and introducing a particular new product or employing a new production or distribution method is called a ____________ . a. start-up firm b. sole proprietor c. monopoly d. venture capital firm

a. start-up firm

The determinants that directly affect economic growth can be grouped into which of the following categories? a. supply b. spending c. efficiency d. demand

a. supply c. efficiency d. demand

Which of the following factors of productivity growth helps to promote the development of new forms of business organizations? a. technological advance b. improved resource allocation c. quantity of capital d. economies of scale

a. technological advance

Human capital refers to _________________ a. the improvement in labor created by education and knowledge that is embodied in the work force b. the amount of money earned by humans from wages, interest, and profits c. the machinery and tools that each individual workers owns d. robots that can perform tasks that only humans could do in the past

a. the improvement in labor created by education and knowledge that is embodied in the work force

True of false: The competitive market system tends to drive the economy toward productive and allocative efficiency. a. true b. false

a. true

The four supply factors that constitute changes in physical and technical agents of production _________. a. constrain an economy to its current GDP b. enable economy to expand its potential GDP c. increase total spending, which expands GDP d. decrease total spending, which constrains GDP

b. enable economy to expand its potential GDP

Which of the following are the types of firms to which Apple and Dell belong? a. monopsony b. high-growth c. labor-intensive d. start-up

b. high-growth d. start-up

Those countries which experience modern economic growth earlier than other countries now have significantly. a. higher availability of natural resources b. higher standard of living c. lower population d. lower health standards

b. higher standard of living

Over time, when workers move from low-productivity to high-productivity employment, it is called _______________ . a. economies of scale b. improved resource allocation c. return to scale d. the marginal product of labor

b. improved resource allocation

An advantage of using capital in the production process is that it: a. replaces labor b. improves efficiency, increases output, and provides growth c. is more expensive than labor d. improves efficiency, reduces output, and provides growth

b. improves efficiency, increases output, and provides growth.

A nation's economic growth from one year to the next depends on its ____________ . a. increase in labor inputs and decrease in labor productivity. b. increase in labor inputs and increase in labor productivity. c. decrease in labor inputs and decrease in labor productivity. d. decrease in labor inputs and increase in labor productivity.

b. increase in labor inputs and increase in labor productivity.

Increased capital is important to productivity growth because the ___________ in the quantity and quality of capital will make workers _____________ productive. a. decreases; less b. increases; more c. increases; less d. decreases; more

b. increases; more

Which of the following is true of GDP as a measure? a. it does not take into account the amount of services produced in an economy. b. it. fails to capture the full value of improvements in product quality. c. it fails to capture any changes in the prices of goods and services produced in an economy. d. It is qualitative rather than quantitative.

b. it. fails to capture the full value of improvements in product quality.

Which are examples of negative gross domestic by-products? a. Bribery b. Noise c. congestion d. polluted water e. the underground economy

b. noise c. congestion d. polluted water

GDP may be understated because ________________ . a. the environment is not accounted in GDP. b. nonmarket activities are not included in GDP. c. GDP does not include the value of secondhand sales. d. leisure time is decreasing.

b. nonmarket activities are not included in GDP.

Which of the following are components of the expenditure approach to measuring GDP? a. personal and business savings b. personal consumption expenditures c. gross private domestic investment d. government purchases

b. personal consumption expenditures c. gross private domestic investment d. government purchases

The emergence of self driving cars is an example. of. "creative destruction" because a. the firms that produce cars today will likely be the main producers of self-driving cars. b. self-driving cars will likely replace most cars that require drivers. c. It shows that the automobile industry is becoming more efficient. d. self-driving cars will be less expensive to build than current cars.

b. self-driving cars will likely replace most cars that require drivers.

More abundant leisure increases ___________ but it __________ real GDP. a. nominal GDP; leaves unchanged b. social welfare; decreases c. nominal GDP; decreases d. economic welfare; decreases

b. social welfare; decreases

Select from the following those that contributed to the spectacular advancement in information technology. a. global literacy b. the internet c. wireless technology d. the computer e. Fiber-optic cable

b. the internet c. wireless technology d. the computer e. fiber-optic scale

The core element of productivity speedup between 1995 and 2010 was an explosion of entrepreneurship and innovation based on a. network effects b. the microchip c. simultaneous consumption d. government regulations

b. the microchip

The core element of the productivity speedup between 1995 and 2010 was an explosion of entrepreneurs and innovations based on __________. a. population b. the microprocessor c. the rate of growth in financial capital d. the level of human capital

b. the microprocessor

The formula for calculating a price index is _____________ . a. the price of the market basket in the base year divided by the price of the same market based in a specific year multiplied by 100 b. the price of a market basket in a specific year divided by the price of the same market basket in the base year multiplied by 100 c. real GDP minus nominal GDP d. real GDP divided by nominal GDP

b. the price of a market basket in a specific year divided by the price of the same market basket in the base year multiplied by 100

When an economy relies on specialization, a. there will be more efficiency in production, but there will be disruptions in the distribution of goods. b. trade enables individuals to obtain the goods in which they do not have a specialization c. centralized coordination is needed to ensure that everyone obtains the goods they need d. trade is established according to the value of the specialized product

b. trade enables individuals to obtain the goods in which they do not have a specialization

The _______ sector of the economy is hard to track and therefore not included in ____________. a. foreign; GDP b. underground; GDP c. foreign; net exports d. domestic; net exports

b. underground; GDP

Select examples of infrastructure: a. government bonds b. water supply system c. corporate stock d. roads and bridges

b. water supply system d. roads and bridges

Workers today are more productive than workers in the past because ____________ . a. there are more workers now working with the same number of machines than in the past. b. workers now have more physical capital embodying better technology with which to work. c. workers get paid more today than in the past d. on average, workers now are physically stronger

b. workers now have more physical capital embodying better technology with which to work.

The GDP price index is always 100 for the _______ year

base

What is potentially the result. of overcapacity and the stalling of technological progress? a. the antigrowth movement b. sustainable economic growth c. a decline in productivity growth rates d. an increase in productivity growth rates

c. a decline in productivity growth rates

In a command economy, scarce goods are allocated by a. an elected planning board based on the board's preferences. b. a government-appointed planning board based on the board's preferences. c. a government-appointed planning board based on the board's long-term priorities. d. an elected planning board based on the board's long-term priorities.

c. a government-appointed planning board based on the board's long-term priorities.

The growth-promoting institutional structures that involve banks and the stock and bond markets are called _____________. a. competitive market system b. the securities and exchange commission c. financial institutions d. foreign exchange market

c. financial institutions

Strong property rights, _________ trade, patents and __________ market systems are all growth-promoting institution structures. a. restricted; competitive b. restricted; monopolistic c. free; competitive d. free; monopolistic

c. free; competitive

One of the flaws of GDP is that it _________ . a. accounts for changes in the leisure and product quality b. accounts for environmental effects of pollution c. ignores transactions that takes place in illegal markets or nonmarkets d. includes transactions of the underground economy

c. ignores transactions that takes place in illegal markets or nonmarkets

Over time, when workers move from low-productivity to high-productivity, it is called ____________ . a. returns to scale b. the marginal product of labor c. improved resource allocation d. economies of scale

c. improved resource allocation

Which of the following factors of productivity growth account for workers moving over time from low-productivity to high-productivity employment? a. lower ration of capital to labor b. economies of scale c. improved resource allocation d. greater quantity of capital

c. improved resource allocation

A situation in which a given percentage increase in the amount of inputs a firm uses leads to an even larger percentage increases in the amount of output the firm produces is called ______________ . a. decreasing returns b. increase in per-unit production costs c. increasing returns d. diseconomies of scale

c. increasing returns

The two main supply-side elements that contribute to changes in real GDP are increases in hours worked and increases in ______________ . a. stock of capital b. hourly wages c. labor productivity d. quantity of natural resources

c. labor productivity

In a market system, scarce goods are allocated by a. estimated prices that are determined by consumers and producers acting in their own self-interest. b. market prices that are determined by consumers and producers acting in the public interest. c. market prices that are determined by consumers and producers acting in their own self interest. d. fixed prices that are determined by consumers and producers acting in the public interest.

c. market prices that are determined by consumers and producers acting in their own self interest.

What are the reasons that the underground economy exists? a. people hope to distort GDP. b. people do not like to use a price index. c. people are engaged in illegal activities. d. people want to avoid taxes.

c. people are engaged in illegal activities. d. people want to avoid taxes.

Stronger _________ growth and heightened __________ competition allow the economy to achieve a greater rate of economic growth. a. population; capital b. demand; domestic c. productivity; global d. supply; domestic

c. productivity; global

Real GDP divided by the size of the population is called __________ a. real economic growth b. nominal economic growth c. real GDP per capita d. nominal GDP per capita

c. real GDP per capita

Labor productivity is: a. additional output per worker b. total real output of population c. real output per hour of work d. real output per person

c. real output per hour of work

Sources of funds for investment spending in plant and equipment are _____________ . a. directed to their most productive uses by the U.S. government b. always equal to U.S. spending on imports c. savings by households, governments and foreigners d. taxes and transfer payments

c. savings by households, governments and foreigners

The ability of software programs, songs on CDs, and movies on DVDs to satisfy large numbers of customers at the same time is an example of _______________ . a. large numbers b. network effects c. simultaneous consumption d. spreading of development costs

c. simultaneous consumption

For the purposes of GDP accounting, what do government purchases include? a. social security payments b. unemployment insurance payments c. spending on highway construction d. the purchase of new military equipment

c. spending on highway construction d. the purchase of new military equipment

Because people will not invest if they believe that thieves, bandits, or a rapacious and tyrannical government will steal their investments or their expected returns, _______________ are important. a. efficient financial institutions b. free trade c. strong property rights d. patents and copyrights

c. strong property rights

Which of the following allow the economy to achieve a higher rate of economic growth? a. higher capital growth and heightened domestic competition b. stronger demand growth and heightened global competition c. stronger productivity growth and heightened global competition d. higher population growth and heightened global competition

c. stronger productivity growth and heightened global competition

Which of the following factors of productivity growth helps to promote the development of new forms of business organization? a. improved resource allocation b. economies of scale c. technological advance d. quantity of capital

c. technological advance

Economic growth is made possible due to ____________ that shift the production possibilities curve outward. a. demand and supply b. inflationary pressures c. the factors of production d. growth differences

c. the factors of production

Why do economist pay so so much attention to small changes in the rate of economic growth? a. these changes reflect a larger failure of economic policy. b. these changes make it impossible to calculate real GDP. c. these changes have large effects on the volume of output. d. these changes lessen the burden of scarcity.

c. these changes have large effects on the volume of the output.

The efficiency factor involves both productive and allocative efficiency, which means in order to reach its full productive potential an economy must ____________. . a. use its resources to maximize profits at any cost b. use the most resources to get the most goods and services for the most people c. use its resources in the least costly way to produce the specific mix of goods that maximizes people's well-being d. use its resources in the most costly way to produce the specific mix of goods that maximizes people's well-being

c. use its resources in the least costly way to produce the specific mix of goods that maximizes people's well-being

In order to construct a reliable price index, government accountants must assign a __________ to each of several categories of goods and services. a. monetary value b. sector c. weight d. price index

c. weight

Which of the following growth-promoting institutional structures creates a highly educated workforce? a. A competitive market system b. efficient final institutions c. widespread education d. property rights

c. widespread education

The fraction of the _______ population that is the labor force is called the labor-force participation rate. a. labor-force b. local-fee c. working-age d. middle-age

c. working-age

Increases in capital are important to productivity growth because increases in the quantity and quality of capital ___________ . a. make entrepreneurs wealthier b. decrease public investment c. give producers more power over workers d. make workers more productive

d. make wonders more productive

The growth-promoting institutional structure that involves giving inventors and authors the exclusive right to market and sell their creations is ______________ . a. equal rights b. free trade c. property rights d. patents and copyrights

d. patents and copyrights

Real GDP per capita means GDP ____________ a. per country b. in real terms c. divided by capital stock d. per person

d. per person

Increasing productivity leads to improved standards of living by increasing _________ . a. nominal wages b. the real population c. demand and supply d. real hourly earnings

d. real hourly earnings

From society's point of view, the economic function of profits and losses is to a. promote the equal distribution of real assets and wealth b. achieve full employment and price level stability c. contribute to a more equal distribution of income d. reallocate resources from less-desired to more-desired uses.

d. reallocate resources from less-desired to more-desired uses.

The main reason to participate in the underground economy is to avoid _____________ . a. reporting actual savings and paying interest. b. engaging in illegal activities and paying fines. c. reporting actual revenue and paying interest. d. reporting actual income and paying income taxes.

d. reporting actual income and paying income taxes.

Ideally, a nation acquires funds for investment spending on plant and equipment by ___________ income. a. financing b. generating c. borrowing d. saving

d. saving

When firms divide high product development costs over greater output, they are _____________ . a. learning by doing b. using more specialized output c. using network effects d. spreading development costs

d. spreading development costs

Which of the following helps explain why the growth rate in the united states has been positive during the 1900s? a. the reduction in oil prices b. the reduction in nominal wages c. the increase in the minimum wage d. the increase in labor productivity

d. the increase in labor productivity

Products that can be simultaneously consumed can be made available to thousands or even millions of buyers at what cost? a. somewhat higher cost b. average cost c. very high cost d. very low cost

d. very low cost

Reductions in per-unit production costs that result from increases in output levels lead to __________ of ____________ .

economies/economy scale

Literacy and widespread __________ education is the growth - promoting institutional structure that contributes to a productive labor force.

education or knowledge

True or false: Countries that experienced economic growth earlier than other countries have lower average incomes today.

false

True or false: GDP is a perfect and complete measure of the well-being of a country.

false

Efficiency factor is when an economy must achieve economic efficiency as well as __________ ____________ to reach its full production.

full employment

If the amount of capital per worker __________ labor productivity will increase.

increases, rises, expands, or grows

A situation in which a government percentage increase in the amount of inputs a firm uses leads to an even larger percentage increase in the amount of output the firm produces is called ____________ returns.

increasing, rising, greater, or larger

Identify each of the following quotes as being an example of either the invisible hand or creative destruction. "It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest".

invisible hand

Identify each of the following quotes as being an example of either the invisible hand or creative destruction. "Managers in the old Soviet Union often sacrificed product quality and variety because they were being awarded bonuses for quantitative, not qualitative, targets."

invisible hand

True or false: in general, GDP includes unpaid work.

False

GDP is equal to C + Ig + _________ + Xn.

G or government

Identify each of the following quotes as being an example of either the invisible hand or creative destruction. "If you compare a list of today's most powerful and profitable companies with a similar list from 30 years ago, you will see lots of new entries."

Creative destruction

Because members of the underground economy do not report their full income to the Internal Revenue Service, their economic activities are not included in the calculation of _____________.

GDP or real GDP

Identify each of the following quotes as being an example of either the invisible hand or creative destruction. "Each day, central planners in the old soviet union were tasked with setting 27 million prices-correctly".

Invisible hand

Nominal GDP divided by price index (in hundredths) equals ____________. a. real GDP b. inflation c. national income d. net exports

a. real GDP

Economic growth

an increase in real GDP per capita over some period of time

What are the two ways to adjust nominal GDP to reflect price changes? a. divide the price index by nominal GDP b. Multiply the current year's output by the price of the output in the base year. c. Multiply the base year's output by the current year's price of the output. d. divide nominal GDP by the price index

b. Multiply the current year's output by the price of the output in the base year. d. divide nominal GDP by the price index

Decide whether each of the following descriptions most closely corresponds to being part of a command system, a market system, or a laissez-faire system. A woman who wants to start a flower shop finds she cannot do so unless the central government has already decided to allow a flower shop in her area.

command system

Modern economic growth has significantly increased the standard of living as well as ____________ cultural, social, and political.

cultural

An economy that is experiencing economic growth ________ is better able to meet people's wants and resolve socioeconomic problems. a. stagnation b. decline c. inflation d. growth

d. growth

True or false: GDP reveals nothing about the way output is. distributed.

true

If the market price of a market basket of goods in year 1 is $10 and $25 in year 3 and the base year is year 1, the price index for year 3 is ____________

250

Reductions in per-unit production costs that result from increases in output levels are called __________ . a. marginal benefits b. economies of scale c. marginal costs d. diseconomies of scale

b. economies of scale

Computers, fiber-optic cable, wireless technology, and the internet represent advances in a special type of technology known as ___________ technology.

Information or IT

Decide whether each of the following descriptions most closely corresponds to being part of a command system, a market system, or a laissez-faire system The only taxes levied by the government are to pay for national defense, law enforcement and a legal system designed to enforce contracts between private citizens.

Laissez-faire system

_____________ and ____________ give a strong financial incentive to investors and authors to invent and create.

Patents Copyrights/Trademarks

Which of the following statements best summarizes the growth in real GDP in the United States between 1950 and 2018?

Real GDP grew at an annual rate of about 3.1 percent. Real GDP rose more than eightfold.

Which of the following statements best summarizes the real economic growth per capita in the United States between 1950 and 2018?

Real GDP per capita rose nearly four fold.

Which of the following statements best summarizes the real economic growth per capita in the United States between 1950 and 2018?

Real GDP per capita rose nearly fourfold.

Efficiency factor is when an economy must achieve economic efficiency as well as ______________ to reach its full production potential. a. full employment b. lower costs c. higher costs d. higher wages

a. full employment

What are the two supply-side elements of the real GDP? a. increases in labor productivity b. increases in labor-force participation c. Increase in total spending d. Increases in hours worked

a. increases in labor productivity d. increases in hours worked

Identify the supply factors that are "determinants" of economic growth. a. increases in the supply of capital goods b. improvements in technology c. increases in the quantity and quality of human resources d. Increases in the purchases of goods and services e. Increases in the real wage rate f. Increases in the quantity and quality natural resources

a. increases in the supply of capital goods b. improvements in technology c. increases in the quantity and quality of human resources f. Increases in the quantity and quality natural resources

What are leader countries? a. Countries that develop and use the most advanced technologies b. Countries that adopt advanced technologies c. countries that experience extremely rapid catch-up growth d. countries that experience consistently high growth rates

a. Countries that develop and use the most advanced technologies

Which of the following comprise technological advancement? a. Innovative production techniques. b. New managerial methods c. An increases in the supply of natural resources d. New forms of business organization

a. Innovative production techniques. b. New managerial methods d. New forms of business organization

Which of the following began as start-up firms in technology? a. PayPal b. Cisco Systems c. Intel d. Wal-Mart

a. PayPal b. Cisco Systems c. Intel

The price of a market basket of goods in a specific year. divided by the price of. the same market basket. of goods in the basket year multiplied by. 100 is called ______________ . a. a price index b. real GDP c. nominal GDP d. net domestic product

a. a price index

Which of the following are some possible reasons for the slowdown in productivity growth rates starting in 2010? a. accumulation of high debt levels b. overcapacity c. increases in technological innovation d. recent products like internet apps that are free and do not generate a measurable effect on GDP

a. accumulation of high debt levels b. overcapacity d. recent products like internet apps that are free and do not generate a measurable effect on GDP

Which of the following are used by economists to define and measure economic growth? a. an increase in real GDP per capita occurring over some time period b. an increase in nominal GDP per capita occurring over some time period c. an increase in real GDP occurring over some time period d. an increase in nominal GDP occurring over some time period

a. an increase in real GDP per capita occurring over some time period c. an increase in real GDP occurring over some time period

Other than a higher standard of living and more innovations, which of the following are true of the impacts of modern economic growth in industrialized nations? a. elimination of archaic social norms b. Increase in communistic economies c. Increased leisure time and arts d. Increase in unemployment e. Increase in democracies

a. elimination of archaic social norms c. Increased leisure time and arts e. Increase in democracies

Which of these are components of government purchases in GDP? a. expenditures for goods and services that the government consumes in providing public services b. expenditures for publicly owned capital c. expenditures for intermediate goods d. expenditures and government receipts that consist of transfer payments to households

a. expenditures for goods and services that the government consumes in providing public services b. expenditures for publicly owned capital

Which of the following summarize how the social-cultural-political environment of the United States has encouraged economic growth? a. A negative attitude toward risk taking b. No social or moral taboos on production c. A competitive market system d. Wealth creation an antisocial goal

b. No social or moral taboos on production c. A competitive market system

Which of the following institutional structures promote and sustain modern economic growth? a. a system of tariffs and complete government autonomy promoting domestic product and positive net exports. b. Strong property rights that gave citizens the right to own investments and property. c. Widespread education for the workforce will promote new technology innovations and implementation. d. Financial institutions that channel the savings generated by households toward businesses, entrepreneurs and inventors. e. Patents and copyrights giving inventors and authors the exclusive rights to market and sell their creations for a period of time.

b. Strong property rights that gave citizens the right to own investments and property. e. Patents and copyrights giving inventors and authors the exclusive rights to market and sell their creations for a period of time. d. Financial institutions that channel the savings generated households toward businesses, entrepreneurs and inventors. c. Widespread education for the workforce. will promote new technology innovations and implementation.

What is potentially the result of overcapacity and the stalling of technological progress? a. the antigrowth movement b. a decline in productivity growth rates c. an increase in productivity growth rates d. sustainable economic growth

b. a decline in productivity growth rates

Which of the following are growth-promoting institutional structures? a. Government control b. Competitive market system c. free trade d. strong property rights e. patents and copyrights f. political instability g. efficient financial situations

b. competitive. market system c. free trade d. strong property rights e. patents and copyrights g. efficient financial situations

The purchase of the economy's expanding goods and services by households, businesses, and the government is know as the ____________ factor. a. productivity b. demand c. efficiency d. supply

b. demand

Economic growth is realized when the production possibilities curve shifts because of changes in which of the following factors? a. real GDP b. demad c. efficiency d. output

b. demand c. efficiency

Government consumption expenditures and gross investment include which of the following? a. government transfer payments b. direct purchases of resources c. expenditures on final goods

b. direct purchases of resources c. expenditures on final goods

When productivity is improved through product and services that can. satisfy large numbers of consumers at the same time, it is called simultaneous ________________________ .

consumption

One of the shortcomings of GDP is that it doesn't reveal anything about which of the following? a. Government Purchases b. Net exports c. Investment spending d. The distribution of output e. Household consumption

d. The distribution of output

Which of the following is one of the five fundamental questions? a. Which products will be in scarce supply and which in excess supply? b. Who should appoint the head of the central bank? c. How much should society save? d. What goods and services will be produced?

d. What goods and services will be produced?

Economic growth is calculated ____________ a. an average rate of growth over five to ten years b. a percentage rate of growth per month c. an average rate of growth per month or per 6 months d. a percentage rate of growth per quarter or per year

d. a percentage rate of growth per quarter or per year

Labor productivity significantly rises as the firm. sells more units of a product, consequently resulting in lower per-unit cost of production because workers ___________________ . a. can use network effects and serve more customers at one time. b. can specialize and the firm can spread product costs over less output. c. learn by doing and can take. on more tasks. d. can specialize and the firm can spread product costs over greater input.

d. can specialize and the firm can spread product costs over greater input.

Gross domestic product (GDP) may be calculated as the sum of ___________. a. consumer spending, investment spending, government purchases of goods and services, and exports b. consumer spending, investment spending, government transfer payments, and exports minus imports c. exports and imports only d. consumer spending, investment spending, government purchases of goods and services, and net exports

d. consumer spending, investment spending, government purchases of goods and services, and net exports

Which of the following is NOT a characteristic of a laissez-faire system? a. public ownership of all capital b. protecting private property rights c. minimal government intervention d. Enforcement of contracts

d. enforcement of contracts

Economic growth is made possible by the _________________ a. four demand factors that shift the production possibilities curve outward b. four demand factors that shifts the production possibilities curve inward. c. four supply factors that shift the production possibilities curve inward. d. four supply factors that shift the production that shift the production possibilities curve outward.

d. four supply factors that shift the production that shift the production possibilities curve outward.

Which of the following cannot properly be called a part of infrastructure? a. seaports b. roads and bridges c. power lines d. human capital

d. human capital

Which of the following cannot properly be called a part of infrastructures? a. roads and bridges b. power lines c. seaports d. human capitals

d. human capitals

By ignoring the value of leisure time, how does national income account affect our well-being? a. it overstates our well being b. it has no effect on well-being c. it accurately states our well being d. it understates our well being

d. it understates our well being

An increase in productivity growth is important because real output, real income and real wages are linked to _____________ . a. decreased standards of living b. decreased unemployment c. increased interest rates d. labor productivity

d. labor productivity

Output per hour work is the definition of: a. diminishing b. increasing returns to labor c. the marginal product of labor d. labor productivity

d. labor productivity

The two main supply-side elements that contribute to changes in real GDP are increase in hours worked and increases in __________. a. quantity of natural resources b. hourly wages c. stock of capital d. labor productivity

d. labor productivity

Economies growth can be illustrated when the demand factors and the efficiency factor shift the production _______ curve outward.

possibilities

A(n) _______ __________ is a measure of a specified collection of goods and services in a given year as compared to the value of a highly similar collection of goods and services in a reference year.

price index

The competitive market system tends to drive the economy toward __________ efficiency and ___________ .

productive allocative

The growth-promoting institution structure that involves the ability of citizens to own land, houses and businesses is called private ____________ rights.

property

GDP does not capture the full value of improvements in product quality because GDP is a(n) ___________ instead of a qualitative measure.

quantitative