ECON HW QUIZ ECONOMIC GROWTH
Which of the following is an example of an investment in physical capital?
A firm purchases new equipment for a manufacturing process.
Governments contribute to increased average labor productivity in each of the following ways except by:
Pay rates determined by a governmental planning agency provide workers with incentives to work hard.
Which of the following is the best definition of economic growth?
The sustained expansion of production possibilities.
What role do social institutions play in determining a nation's standard of living?
They affect incentives to produce.
U.S. productivity growth rebounded in 1995-2000 largely as a result of:
advances in information and communication technology.
Entrepreneurs contribute to increased average labor productivity in each of the following ways except by:
assigning workers to jobs.
The average person's command over goods and services produced in an economy measured by real GDP or income per person is called:
economic standard of living.
Economic growth depends upon which of the following?
i. Increasing the productivity of labor. iii. Advancing technology.
Government support of basic research by funding scientists through the National Science Foundation is an example of a government policy to promote economic growth by:
improving technology.
An increase in worker productivity means that ________ goods are being produced by ________ resources.
more; the same or less
The key indicator of a country's living standard and economic well-being is:
real GDP per person.
Most economists agree that ________ are the single most important source of productivity improvements.
technological advances
An example of a government policy to increase physical capital formation is:
the construction of an interstate highway system.
The rules of the game refer to:
the formal and informal institutions that promote economic activity.
An example of a government policy to increase human capital formation is:
the provision of publicly-funded education.
