Chapter #9 HW and Quiz

An increase in capital stock would a. shift the production function upward b. cause a movement to the right along a stationary production function c. cause a movement to the left along a stationary production function d. shift the production function downward

b

When a country utilizes more physical capital per worker over time, there will be a. higher growth rates of productivity b. no change in the growth rate of productivity c. lower and eventually zero growth rate of productivity d. lower but always positive growth rates of productivity

d

Which of the following scenarios would result in economic growth in the country of Everlan? a. GDP and prices double b. GDP and population doubles, while prices remain the same c. population doubles while GDP and prices remain the same d. GDP doubles while prices remain the same

d

Productivity is declining when a. population growth exceeds real GDP growth b. the number of hours worked exceeds the number of workers c. the ratio of adult people employed outside the home rises d. real GDP growth exceeds the population growth

a

The rule of 70 is MOST useful in a. estimating the doubling time of real GDP for a given growth rate b. estimating the productivity of labor c. identifying the causes of economic growth d. identifying the sources of economic growth

a

GDP per capita in the countries Neverland and Everland are 2,000 and 500, respectively. This suggests that, other things being equal, the returns from capital investment would be: a. greater in neverland b. greater in everland c. the same in both countries

b

The key measure used to track economic growth is a. real GDP b. real GDP per capita c. nominal GDP d. nominal GDP per capita

b

This skills, training, and education possessed by workers that contribute to economic growth are known as a. output labor b. human capital c. natural resources d. saving

b

Long-run economic growth is a. lower in countries with a strong government and independent judiciary b. high in countries with a weak rule of law and excessive government intervention c. higher in countries with a strong rule of law and political stability d. lower in countries whose courts enforce property rights and who government protects its citizens

c

Which factor contributes to economic development? a. a command socialist economic system d. complete absence of government involvement c. investment in infrastructure d. low saving and investment rates

c

All else equal, a nation that has a high rate of _________ will have a high rate of ________ and therefore a high growth rate of ________ capital a. savings, investment, natural b. savings, consumption, physical c. investment, savings, human d. savings, investment, physical

d

From the standpoint of economic growth, banks are important to a. channel investment into savings b. fight inflation c. keep interest rates low d. channel savings into investment

d

To acquire human capital a person would a. save to buy printing press b. sell the books that the printing press produces c. purchase a printing press rather than a very large television d. learn to use a printing press

d

U.S. real GDP per capita in 2015 was _____% as much per person as it was in 1900 a. 16 b. 189 c. 46 d. 804

d

True of False? since the Second World War, aggregate out put has grown more slowly than the population

false

True or False? long-run growth per capita is the key to higher wages and a rising standard of living

true

True or False? since the Second World War, aggregate out has grown more rapidly than the population

true

True or False? since the Second World War, macroeconomics policy has helped make the economy more stable

true