LC Chapter 7
The U.S. economy shrank about 0.025% from the third quarter of 2015 to the fourth quarter of 2015. What is the annualized percent change in real GDP?
-.11%
Using the Rule of 70, assume it takes 5.8 years for the initial value to double. What is the growth rate?
12%
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 8-hour workday. What is Gerald's labor productivity?
16 toothpicks per hour
The annualized percent change in real GDP is 0.1%. What is the quarter-to-quarter percent change in real GDP upon which this annualized rate was calculated?
Correct: 0.025% 0.025%
How would an innovation that speeds processing time and makes workers more productive be illustrated on the production possibilities frontier?
The PPF would shift to the right.
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.
Which of the following is NOT a key way in which the government contributes to productivity?
The government implements monetary policy.
Assume the initial value of an investment is $1,000 and the growth rate is 15%. Using the Rule of 70, how many years will it take for the initial value to double?
`4.7 years
Mental talents and physical talents of people are:
labor.
How is real GDP per capita calculated?
real GDP divided by population
The annualized percent change in real GDP is 1%. What is the quarter-to-quarter percent change in real GDP upon which this annualized rate was calculated?
0.25%
Jill can produce 14 toothpicks in 2 hours. Georgina can produce six toothpicks in 2 hours. Wanda can produce 20 toothpicks in 4 hours. Sammy can produce 30 toothpicks in 5 hours. Who has the highest labor productivity?
Jill
Real GDP is the total value of final goods and services produced in a country in one year:
measured using prices in a base year.
Assume the initial value of an investment is $1,000 and the growth rate is 4%. Using the Rule of 70, how many years will it take for the initial value to double?
17.5 years
Assume the U.S. economy increased about 0.6% quarter to quarter. What is the annualized percent change in real GDP?
2.4%
Assume the U.S. economy increased about 0.8% quarter to quarter. What is the annualized percent change in real GDP?
3.2%
Assume the U.S. economy increased about 1.1% quarter to quarter. What is the annualized percent change in real GDP?
4.4%
In June 2011, President Obama noted that foreign investment in the United States in 2010 was 49% higher than in 2009. He cited this as a key driver of an economic recovery. How might this also affect economic growth?
It means more capital for U.S. workers to use.
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.
Which of the following countries would have the LOWEST GDP per capita and the LOWEST growth rates?
a country categorized as mostly unfree by the Index of Economic Freedom
Assume the initial value of an investment is $1,000 and the growth rate is 12%. Using the Rule of 70, how many years will it take for the initial value to double?
about 5.8 years
In September 2010, President Obama talked about a plan to spend more on U.S. infrastructure. Which of the following would NOT be included in such a plan?
increasing the number of U.S. Border Patrol agents
Labor, a factor of production, includes:
mental and physical talents of people.
What is real GDP per capita?
real GDP divided by population
What is the capital-to-labor ratio?
the capital employed per worker
Which of the following would be protected by a copyright?
the content of a book
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 of output from year to year.
An increase in a country's real GDP per capita generally translates into:
a higher standard of living for most of its residents.
Assume the initial value of an investment is $1,000 and the growth rate is 8%. Using the Rule of 70, how many years will it take for the initial value to double?
about 8.75 years
Using the Rule of 70, how long does it take for a value to double if the growth rate is 8%?
about 8.75 years
Which of the following would NOT increase the quality of the labor force?
adding capital equipment
An increase in a country's real GDP per capita generally translates into a _____ standard of living for most of its residents.
higher
Assume the initial value of an investment is $1,000 and the growth rate is 10%. Using the Rule of 70, how many years will it take for the initial value to double?
seven years
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 progress.
According to the aggregate production function, output is determined by _____, capital, natural resources and land, and labor.
technology
Which of the following is(are) classified as entrepreneurial ability?
the ability to use resources in a creative way
Which of the following is(are) classified as entrepreneurial ability?
the development of the Internet
What is real GDP?
the total value of final goods and services produced in a country in a year, measured using prices in a base year
Assume the U.S. economy shrank about 0.25% quarter to quarter. What is the annualized percent change in real GDP?
−1.0%
