ECON hw 7 8 9

Refer to Scenario above. Based on the information above, what is the level of private saving in the economy? a. $3 trillion

a. $3 trillion

If real GDP per capita doubles between 2005 and 2020, what is the average annual growth rate of real GDP per capita? a. 4.7%

a. 4.7%

The Industrial Revolution began in a. England around 1750

a. England around 1750

Refer to Figure above. Which of the following is consistent with the graph depicted above? a. Taxes are changed so that real interest income is taxed rather than nominal interest income.

a. Taxes are changed so that real interest income is taxed rather than nominal interest income.

If a country's real GDP is rising by 3% per year while its population is rising at 5% per year, which of the following is true? a. The country's standard of living is falling

a. The country's standard of living is falling

If consumers decide to be more thrifty and save more out of their income, then this will cause a. a shift in the supply curve for loanable funds to the right

a. a shift in the supply curve for loanable funds to the right

Which of the following is not one of the three sources of technological change? a. additional amounts of existing capital

a. additional amounts of existing capital

Which of the following is not one of the key services provided by the financial system? a. decreasing taxes

a. decreasing taxes

Creative destruction means that a. firms develop new products that replace old products in the economy, thereby encouraging economic growth

a. firms develop new products that replace old products in the economy, thereby encouraging economic growth

A student who just graduated from college but has not found a job would most likely be a. frictionally unemployed

a. frictionally unemployed

An advantage of the establishment survey over the household survey of the labor market is that the establishment survey a. is based on actual payrolls, rather than on unverified answers

a. is based on actual payrolls, rather than on unverified answers

A firm can fund an expansion of its operations by a. issuing bonds

a. issuing bonds

The industrialized group of countries has growth rates that are consistent with the findings of the economic growth model. That is, Taiwan, Korea, and Singapore had ________ incomes in 1960 than the United States and Switzerland, and Taiwan, Korea, and Singapore grew ________ than the United States and Switzerland between 1960 and 2010. a. lower; more rapidly

a. lower; more rapidly

If firms pay what are called "efficiency wages," they pay wages that a. motivate workers to increase their productivity

a. motivate workers to increase their productivity

The only way the standard of living of the average person in a country can increase is if ________ increases faster than ________. a. production; population

a. production; population

A good measure of the standard of living is a. real GDP per capita

a. real GDP per capita

According to new growth theory, a. technological change is influenced by economic incentives

a. technological change is influenced by economic incentives

According to Douglass North, the Industrial Revolution occurred in England because a. the British Parliament took control of the government and could credibly commit to upholding property rights

a. the British Parliament took control of the government and could credibly commit to upholding property rights

If cyclical unemployment is eliminated in the economy, then a. the economy is considered to be at full employment

a. the economy is considered to be at full employment

If real GDP grows by 3% in 2014, 3.2% in 2015, and 2.5% in 2016, what is the average annual growth rate of real GDP? b. 2.9%

b. 2.9%

If real GDP per capita in the United States is $8,000 in 2016, and if real GDP per capita is $12,000 in 2026, what is the average annual percent change in the growth rate of GDP per capita between 2016 and 2026? b. 5%

b. 5%

Refer to Figure below. Technological change is illustrated in the per-worker production function in the figure above by a movement from b. B to C

b. B to C

Refer to Figure above. Which of the following is consistent with the graph depicted above? b. Technological change increases the profitability of new investment

b. Technological change increases the profitability of new investment

Over the past 50 years, deaths among children have b. declined in nearly all countries, including most low-income countries

b. declined in nearly all countries, including most low-income countries

The quantity of goods and services that can be produced by one worker or by one hour of work is referred to as b. labor productivity

b. labor productivity

Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called b. structural unemployment

b. structural unemployment

The key factors in raising standards of living in low-income countries have been increases in b. technology and knowledge

b. technology and knowledge

The unemployment rate is an important economic statistic that can tell us about the health of the economy. If the unemployment rate turns out to be high or higher than anticipated, we would expect b. that stock prices are more likely to fall

b. that stock prices are more likely to fall

When an economy faces diminishing returns, b. the slope of the per-worker production function becomes flatter as capital per hour worked increases

b. the slope of the per-worker production function becomes flatter as capital per hour worked increases

A patent grants an inventor exclusive rights to a product for how long? c. 20 years

c. 20 years

If the number of unemployed workers is 19 million, the number in the working-age population is 500 million, and the unemployment rate is 4%, how many workers are in the labor force? c. 475 million

c. 475 million

Which of the following causes the unemployment rate to understate the true extent of joblessness? c. Discouraged workers are not counted as unemployed

c. Discouraged workers are not counted as unemployed

Which of the following accurately describes growth rates in the United States from 1900 to the present? c. Growth rates rose until the 1970s, slowed until the 1990s, rose again until 2005, and then slowed again to the present

c. Growth rates rose until the 1970s, slowed until the 1990s, rose again until 2005, and then slowed again to the present

________ is the ease with which a financial security can be exchanged for money. c. Liquidity

c. Liquidity

If government saving is negative, then c. T - TR < G

c. T - TR < G

Which of the following would increase the unemployment rate? c. an increase in unemployment insurance payments

c. an increase in unemployment insurance payments

Which of the following labor market statistics best indicates the amount of labor that is available to the economy from a given working-age population? c. labor force participation rate

c. labor force participation rate

An increase in the real interest rate does which of the following? c. reduces consumption spending

c. reduces consumption spending

Suppose the labor force stays constant, and the working-age population stays constant, but a greater number of persons who were unemployed become employed. The labor force participation rate will c. remain constant

c. remain constant

In the long run, ________ differences in economic growth rates result in ________ differences in GDP per capita. c. small; large

c. small; large

What is the name of the organization that defines business cycle peaks and troughs in the United States? c. the National Bureau of Economic Research

c. the National Bureau of Economic Research

Potential GDP is defined as c. the level of GDP attained when all firms are producing at capacity

c. the level of GDP attained when all firms are producing at capacity

Globalization refers to c. the process of countries becoming more open to foreign trade and investment

c. the process of countries becoming more open to foreign trade and investment

Equilibrium in the loanable funds market determines c. the real interest rate

c. the real interest rate

Suppose that the labor movement has a revival in the United States and the majority of workers join labor unions. As a result we would expect c. the unemployment rate to rise

c. the unemployment rate to rise

If the number employed is 190 million, the number unemployed is 10 million, and the working-age population is 250 million, then the labor force participation rate is d. 80%

d. 80%

Which of the following explains the changes in the U.S. adult male labor force participation rate since 1948? d. Younger men are remaining in school longer as compared to the past

d. Younger men are remaining in school longer as compared to the past

Which of the following would encourage economic growth through increases in the capital stock? d. all of the above

d. all of the above

The demand for loanable funds is determined by the willingness of ________ to borrow money to engage in new investment projects. d. firms

d. firms

Because knowledge capital is nonexcludable and nonrival, firms have an incentive to ________ the research and development of other firms. d. free ride on

d. free ride on

The Bureau of Labor Statistics would categorize a retiree who is not working as d. out of the labor force

d. out of the labor force

Long-run economic growth requires all of the following except d. political instability

d. political instability

The unemployment rate is d. the percentage of the labor force that is unemployed

d. the percentage of the labor force that is unemployed

When the labor market is at full employment d. there is no cyclical unemployment in the economy

d. there is no cyclical unemployment in the economy

According to new growth theory, firms accumulate the efficient level of both physical and knowledge capital true false

false

Efficiency wage is another name for the minimum wage true false

false

Eliminating frictional unemployment would be good for the economy. true false

false

Most of the countries of Africa are considered newly industrializing countries. true false

false

The household survey asks adults about their employment status and is used to compile the monthly unemployment rate. true false

true

The productivity slowdown experience in the United States from the mid-1970s to the mid-1990s occurred in all high-income countries true false

true