chapter 8

Question Mode Multiple Choice Question Products that can be simultaneously consumed can be made available to thousands or even millions of buyers at what cost? Multiple choice question. Somewhat higher cost Very high cost Average cost Very low cost`

Very low cost`

Which of the following growth-promoting institutional structures creates a highly educated workforce? Multiple choice question. Widespread education Efficient financial institutions A competitive market system Property rights

Widespread education

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

consumption

Human capital refers to ______. Multiple choice question. any method of production developed by humans the machines workers use in a factory knowledge and skills that make a worker productive machines that require workers in order to operate most efficiently

knowledge and skills that make a worker productive

In any year, a nation's real GDP depends on hours of work multiplied by ______. Multiple choice question. labor productivity nominal GDP hourly wage number of workers

labor productivity

Output per hour of work is the definition of: Multiple choice question. the marginal product of labor diminishing returns to labor labor productivity increasing returns to labor

labor productivity

The two main supply-side elements that contribute to changes in real GDP are increases in hours worked and increases in ______. Multiple choice question. labor productivity quantity of natural resources stock of capital hourly wages

labor productivity

Which of the following allow the economy to achieve a higher rate of economic growth? Multiple choice question. Higher capital growth and heightened domestic competition Stronger productivity growth and heightened global competition Stronger demand growth and heightened global competition Higher population growth and heightened global competition

stronger productivity growth and heightened global competition

What are the two supply-side elements of real GDP? Multiple select question. Increases in labor productivity Increases in labor-force participation Increases in hours worked Increases in total spending

1. increases in hours worked 2. increases in labor productivity

Economic growth is realized when the production possibilities curve shifts because of changes in which of the following factors? Multiple select question. Demand Real GDP Output Efficiency

Demand Efficiency

Economic growth is realized when the production possibilities curve shifts because of changes in which of the following factors? Multiple select question. Real GDP Output Demand Efficiency

Demand Efficiency

Identify the supply factors that are "determinants" of economic growth. Multiple select question. Increases in the purchase of goods and services Increases in the real wage rate Increases in the quantity and quality of human resources Increases in the quantity and quality of natural resources Increases in the supply of capital goods Improvements in technology

Increases in the quantity and quality of human resources Increases in the quantity and quality of natural resources Increases in the supply of capital goods Improvements in technology

Multiple Choice Question Output per hour of work is the definition of: Multiple choice question. labor productivity increasing returns to labor diminishing returns to labor the marginal product of labor

Labor productivity

Which of the following helps explain why the growth rate in the United States has been positive during the 1900s? Multiple choice question. The increase in labor productivity The reduction in oil prices The reduction in nominal wages The increase in the minimum wage

The increase in labor productivity

The growth-promoting institutional structure that involves prices and profits serving as signals to guide production is called ______. Multiple choice question. free trade a competitive market system property rights an accounting system

a competitive market system

When an economy uses its resources to maximize people's well-being by producing a specific mix of goods and services, it is called ---- efficiency.

allocative

When an economy uses its resources to maximize people's well-being by producing a specific mix of goods and services, it is called efficiency.

allocative

Reductions in per-unit production costs that result from increases in output levels are called ______. Multiple choice question. marginal benefits economies of scale diseconomies of scale marginal costs

economies of scale

Which growth-promoting institutional structure allows countries to specialize so that different types of output can be produced in the countries where they can be made most efficiently? Multiple choice question. Widespread education Free trade Efficient financial institutions Property rights

free trade

Efficiency factor is when an economy must achieve economic efficiency as well as ______ to reach its full production potential. Multiple choice question. higher costs higher wages lower costs full employment

full employment

A nation's real GDP depends on labor ______ multiplied by labor ______. Multiple choice question. force; productivity hours; productivity hours; nominal GDP force; nominal GDP

hours; productivity

Multiple Choice Question Over time, when workers move from low-productivity to high-productivity employment, it is called ______. Multiple choice question. the marginal product of labor economies of scale returns to scale improved resource allocation

improved resource allocation

Which of the following factors of productivity growth account for workers moving over time from low-productivity to high-productivity employment? Multiple choice question. Lower ratio of capital to labor Greater quantity of capital Improved resource allocation Economies of scale

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 increase in the amount of output the firm produces is called ______. Multiple choice question. decreasing returns increase in per-unit production costs Reason: It is a decrease in per-unit production costs. diseconomies of scale

increasing returns

The demand factor involves households, businesses, and government purchasing the economy's expanding output of goods and services so that there will be ______. Multiple choice question. unplanned increases in inventories and resources will be unemployed no unplanned increase in inventories and resources will remain fully employed zero increase in inventories and resources will remain constant unplanned decreases in inventories and resources will be overemployed

no unplanned increase in inventories and resources will remain fully employed

Economic growth made possible by the four supply factors is illustrated by the ______ the production possibilities curve. Multiple choice question. movement upward along outward shifting of movement downward along inward shifting of Correct Answer

outward shifting of

Fill in the blank question. Economic growth can be illustrated when the demand factor and the efficiency factor shift the production curve outward. (Enter one word in the blank.)

possibility

Question Mode Fill in the Blank Question Fill in the blank question. When an economy uses its resources in the least costly way to produce goods and services, it is called efficiency.

productive

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

productive allocative

When an economy uses its resources in the least costly way to produce goods and services, it is called ______. Multiple choice question. allocative efficiency perfect competition excess capacity productive efficiency

productive efficiency

Stronger ______ growth and heightened ______ competition allow the economy to achieve a greater rate of economic growth. Multiple choice question. supply; domestic productivity; global population; capital demand; domestic

productivity; global

Labor productivity is: Multiple choice question. real output per person real output per hour of work total real output of population additional output per worker

real output per hour of work

Economic growth is made possible due to ______ that shift the production possibilities curve outward. Multiple choice question. growth differences the factors of production inflationary pressures demand and supply

the factors of production

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

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