Chapter 8 Quiz

Identify the following arguments about economic growth as being either anti-growth or pro-growth. Rising incomes allow people to buy more education, medical care, and recreation

Pro-growth

Since at least 1995 the majority of increases in U.S. real GDP are from

Productivity growth

Identify each of the following situations as something that either promotes growth or retards growth. A formerly communist country adopts free markets

Promotes growth

Identify each of the following situations as something that either promotes growth or retards growth. A nation adopts a free-trade policy

Promotes growth

Identify each of the following situations as something that either promotes growth or retards growth. A nation introduces patent laws for the first time

Promotes growth

Identify each of the following situations as something that either promotes growth or retards growth. A poor country extends free public schooling from 8 years to 12 years

Promotes growth

Which of the following are among the major institutional structures that form the foundation for modern economic growth? Strong ____ rights Patents and copyrights Efficient ____ institutions Literacy and widespread education Free trade Competitive ____ system

Property Financial Market

Identify each of the following situations as something that either promotes growth or retards growth. A court order shuts down all banks permanently

Retards growth

Identify each of the following situations as something that either promotes growth or retards growth. Increasing corruption allows government officials to steal people's homes

Retards growth

Identify the following arguments about economic growth as being either anti-growth or pro-growth. Natural resource prices have fallen rather than increased over time

Pro-growth

If real GDP grows at 7 percent per year, then real GDP will double in approximately ____ years.

10

According to economic historians, modern economic growth first happened in ____ when Scottish inventor ____ ____ perfected a powerful and efficient steam engine.

1776 James Watt

The difference between a 2.5 percent and a 3 percent annual growth rate over several decades could be the difference between output doubling in ____ years (2.5 percent growth) and ____ years (3 percent growth).

28 23

Identify the following arguments about economic growth as being either anti-growth or pro-growth. Growth means worker burnout and frantic schedules

Anti-growth

Identify the following arguments about economic growth as being either anti-growth or pro-growth. The Earth has only finite amounts of natural resources

Anti-growth

Identify the following arguments about economic growth as being either anti-growth or pro-growth. We still have poverty, homelessness, and discrimination even in the richest countries

Anti-growth

Identify the following arguments about economic growth as being either anti-growth or pro-growth. Richer countries spend more money protecting the environment

Pro-growth

Some countries are much poorer today than other countries because some

Began the modern economic growth process sooner

____ ____ means a higher standard of living provided that the population does not grow even ____.

Economic growth Faster

Which of the following best describes the costs of economic growth, particularly those measured by real GDP per capita?

Economic growth has not solved sociological problems such as poverty, homelessness, and discrimination

Suppose that just by doubling the amount of output that it produces each year, a firm's per-unit production costs fall by 30 percent. This is an example of:

Economies of scale

Computers and increased global competition have retarded economic growth in recent decades. True or False?

False

Countries that currently have low real GDPs per capita are destined to always have lower living standards than countries that currently have high real GDPs per capita. True or False?

False

Immigration has slowed economic growth in the United States. True or False?

False

Technological advance, which to date has played a relatively small role in U.S. economic growth, is destined to play a more important role in the future. True or False?

False

The benefits of economic growth, particularly as measured by real GDP per capita, include ____ living standards for the vast majority of people.

Higher

What are the characteristics of the major institutional structures that form the foundation for modern economic growth? They ____ saving and investment, promote the development of new technologies, and ensure that ____ flow efficiently to the most productive uses.

Increase Resources

Real GDP equals ____ times ____.

Labor input Labor productivity

In 1820 living standards in various places around the globe were ____ they are today.

Less widely varying than

There is a close relationship between changes in a nation's rate of productivity growth and changes in its average real hourly wage because if average real hourly wage and output per worker is ____, then the amount of output available per capita for workers to buy will be growing so more can be purchased.

Increasing

Today's poor countries are

Not always destined to be poor as they can develop the appropriate institutions to catch up with wealthier countries

Suppose that Alpha and Omega have identically sized working-age populations but that annual hours of work are much greater in Alpha than in Omega. This could happen because

Omega's labor force is underemployed or Omega workers place a higher value on leisure than those in Alpha

Recent productivity acceleration has been ____ influenced by global competition, which has expanded market possibilities for both consumers and producers.

Positively

Recent productivity acceleration has been ____ influenced by information technology because it connects information in all parts of the world with information seekers.

Positively

Recent productivity acceleration has been ____ influenced by information economies of scale because expanding production has a very ____ marginal cost.

Positively Low

Recent productivity acceleration has been ____ influenced by network effects, which is a type of ____ economy.

Positively Scale

More labor inputs can explain

Some of the increases in U.S. real GDP during the last 50 years or so

Rearrange the following contributors to the growth of productivity in descending order of their quantitative importance: economies of scale, quantity of capital, improved resource allocation, education and training, and technological advance.

Technological advance, quantity of capital, education and training, economies of scale, and improved resource allocation

The level of purchases needed to maintain full employment

The demand factor

The level of economic efficiency and full employment needed to reach full production potential

The efficiency factor

What are the four supply factors of economic growth?

The quality and quantity of human resources The level of technology The stock of capital goods The quality and quantity of natural resources

Many public capital goods are complementary to private capital goods. True or False?

True