Econ 12-22
Recently economists have added what factor as a major explanation of economic growth? A. Technology B. The growth rate in labor and capital productivity C. The growth rate of labor D. The growth rate of capital
A
Which of the following will cause an increase in economic growth? A. an increase in human capital B. a reduction in the stock of physical capital C. a reduction in the unemployment rate D. a reduction in labor force participation
A
A system of private property rights A. retards economic growth by serving the interests of the wealthy only. B. enhances economic growth by creating incentives for the government to sell its assets. C. enhances economic growth by inducing people to make capital investments today. D. retards economic growth by limiting the options of people who own nothing.
C
An important foundation of the new growth theory is that A. the growth rate of the capital stock is more important than the growth rate of new knowledge in generating economic growth. B. improvements in labor productivity are poor measures of technological growth. C. we will get more technological advances when the rewards for producing them are greater. D. we will get more technological advances the more the government is involved.
C
Argentina doubled its GDP per capita only once from 1950-2015. Using the Rule of 70, calculate Argentina's approximate annual growth rate during that time period. A. 0.5% per year B. 2.1% per year C. 1.1% per year D. 1.7% per year
C
If real GDP per capita in Year 1 is $30,000 and real GDP per capita in Year 2 is $33,000 then the growth rate is: A. 1.1% B. 110% C. 10%. D. 0.1%
C
If the growth rate is 7% per year, it will take about ___ years for living standards to double. A. 35 B. 7 C. 10 D. 17
C
New growth theory emphasizes all of the following EXCEPT A. research and development. B. technology. C. import restrictions. D. innovation.
C
The development of new products through research and development in new growth theory is important because A. society's scarce resources are being used when they could be used for current consumption. B. new patents are created. C. there can be a positive impact on future growth. D. it will lead to a reduction in the savings rate.
C
Which of the following will NOT lead to increased capital investment within a country? A. increased certainty about private property rights B. increased certainty about being able to reap the gains from investing C. government ownership of all properties within the country D. the decreased possibility of nationalization of private property
C
Entrepreneurship functions better when A. the government performs the entrepreneurial function. B. saving is relatively low. C. most of the population has low levels of education. D. there is a well-defined property rights system.
D
Hoarding means that we save some of our income instead of spending all of it. True False
False
Hoarding is a problem because it reduces economic growth. True False
True
Long-run growth occurs when we expand our capacity to produce. True False
True
The countries that are growth disasters have citizens in poverty, with shorter and less happy lives. True False
True
Short-run growth is shown as a movement from under the production possibilities curve up to the frontier. True False
True
