Macroeconomics Chapter 8
Which of these phenomena is responsible for the movement of women and minorities into high-productivity jobs? -An increase in human capital -A decline in discrimination -A decrease in wages for the jobs -A decline in worker output
A decline in discrimination
What is potentially the result of overcapacity and the stalling of technological progress? -A decline in productivity growth rates -The antigrowth movement -Sustainable economic growth -An increase in productivity growth rates
A decline in productivity growth rates
Which of the following is not an investment in human capital? -Older workers return to school to update their skills. -Local governments begin providing free flu shots to any resident who wants one. -A local company replaces its clerks' typewriters with PCs. -The ABC Manufacturing Company teaches all its workers how to repair the machines in the factory.
A local company replaces its clerks' typewriters with PCs.
Which of the following would limit the growth in poor countries because of reduced foreign direct investment and development? -A no-growth domestic policy in poor countries -An accommodating-growth policy among poor countries -A neutral-growth policy among industrial nations -A no-growth policy among industrial nations
A no-growth policy among industrial nations
Select all that apply Which of the following are used by economists to define and measure economic growth? -An increase in nominal GDP per capita occurring over some time period -An increase in real GDP per capita occurring over some time period -An increase in real GDP occurring over some time period -An increase in nominal GDP occurring over some time period
An increase in real GDP per capita occurring over some time period An increase in real GDP occurring over some time period
Select all that apply Which of the following are growth-promoting institutional structures? -Government control of resources and investment -Competitive market system. -Strong property rights -Patents and copyrights -Efficient financial institutions -Free trade -Political instability
Competitive market system. Strong property rights Patents and copyrights Efficient financial institutions Free trade
What are leader countries? -Countries that experience consistently high growth rates -Countries that adopt advanced technologies previously developed by other countries -Countries that experience extremely rapid catch-up growth -Countries that develop and use the most advanced technologies
Countries that develop and use the most advanced technologies
Select all that apply Economic growth is realized when the production possibilities curve shifts because of changes in which of the following factors? -Demand -Efficiency -Output -Real GDP
Demand Efficiency
Select all that apply Economic growth is realized when the production possibilities curve shifts because of changes in which of the following factors? -Output -Demand -Efficiency -Real GDP
Demand Efficiency
Select all that apply The determinants that directly affect economic growth can be grouped into which of the following categories? -Spending -Demand -Efficiency -Supply
Demand Efficiency Supply
Select all that apply Which of the following are the types of firms to which Apple and Dell belong? (Check all that apply.) -Monopsony -High-growth -Labor-intensive -Start-up
High-growth Start-up
Which of the following factors of productivity growth account for workers moving over time from low-productivity to high-productivity employment? -Improved resource allocation -Greater quantity of capital -Lower ratio of capital to labor -Economies of scale
Improved resource allocation
Select all that apply Other than a higher standard of living and more innovations, which of the following are true of the impacts of modern economic growth in industrialized nations? -Increase in communistic economies -Increase in unemployment -Increased leisure time and arts -Increase in democracies -Elimination of archaic social norms
Increased leisure time and arts Increase in democracies Elimination of archaic social norms
Select all that apply What are the two supply-side elements of real GDP? -Increases in hours worked -Increases in labor productivity -Increases in total spending -Increases in labor-force participation
Increases in hours worked Increases in labor productivity
Select all that apply Identify the supply factors that are "determinants" of economic growth. -Increases in the purchase of goods and services -Increases in the quantity and quality of natural resources -Improvements in technology -Increases in the supply of capital goods -Increases in the real wage rate -Increases in the quantity and quality of human resources
Increases in the quantity and quality of natural resources Improvements in technology Increases in the supply of capital goods Increases in the quantity and quality of human resources
Which of the following statements is true? -Neither investment in private nor public capital has any effect on economic growth and productivity. -Investment in private capital is a source of economic growth, but investment in public capital is not. -Investment in both private and public capital is conducive to economic growth and higher productivity. -Investment in public capital is a source of economic growth, but investment in private capital is not.
Investment in both private and public capital is conducive to economic growth and higher productivity.
Select all that apply Which of these explain why growth is an important economic goal? -It results in deflation or disinflation. -It increases real wages and incomes. -It increases standards of living. -It increases a society's ability to resolve socioeconomic problems.
It increases real wages and incomes. It increases standards of living. It increases a society's ability to resolve socioeconomic problems.
Select all that apply What do antigrowth economists cite as evidence in favor of their argument that growth is undesirable? -Materialism -Stagnation -Poverty -Pollution
Materialism Poverty Pollution
Select all that apply Identify the sources of increasing returns for firms. (Check all that apply.) -Network effects -Learning by doing -Individual consumption -Simultaneous consumption -More generalized inputs -More specialized inputs -Spreading of development costs
Network effects Learning by doing Simultaneous consumption More specialized inputs Spreading of development costs
Select all that apply Which of the following comprise technological advancement? -An increase in the supply of natural resources -New managerial methods -New forms of business organization -Innovative production techniques
New managerial methods New forms of business organization Innovative production techniques
Select all that apply Which of the following summarize how the social-cultural-political environment of the United States has encouraged economic growth? -No social or moral taboos on production -A competitive market system -A negative attitude toward risk taking -Wealth creation considered an antisocial goal
No social or moral taboos on production A competitive market system
Select all that apply Which of the following are arguments against rapid economic growth? -Rapid economic growth results in pollution, global warming and other environmental problems. -Rapid economic growth reduces both the marginal propensity to consume and the marginal propensity to save in an economy. -Rapid economic growth is unsustainable due to the earth's finite resources. -Rapid economic growth has not solved sociological problems like poverty and homelessness.
Rapid economic growth results in pollution, global warming and other environmental problems. Rapid economic growth is unsustainable due to the earth's finite resources. Rapid economic growth has not solved sociological problems like poverty and homelessness.
Select all that apply Which of the following are some possible reasons for the slowdown in productivity growth rates starting in 2010? -Recent products like Internet apps that are free and do not generate a measurable effect on GDP -Increases in technological innovation -Overcapacity -Accumulation of high debt levels
Recent products like Internet apps that are free and do not generate a measurable effect on GDP Overcapacity Accumulation of high debt levels
Select all that apply Select examples of infrastructure. -Government bonds -Roads and bridges -Corporate stock -Water supply system
Roads and bridges Water supply system
Select all that apply Which of the following are sources of increasing returns? -Simultaneous consumption which allows large numbers of customers to be served at the same time -Network effects which increase the value of the product to each user as the total number of users rises -Spreading of development costs over greater output -More specialized inputs such as specialized workers and inventory management systems -Learning by doing which reduces the time to perform tasks -Increasing prices at the same time as decreasing costs through improved efficiency
Simultaneous consumption which allows large numbers of customers to be served at the same time Network effects which increase the value of the product to each user as the total number of users rises Spreading of development costs over greater output More specialized inputs such as specialized workers and inventory management systems Learning by doing which reduces the time to perform tasks
Select all that apply Which of the following institutional structures promote and sustain modern economic growth? -Strong property rights that give citizens the right to own investments and property -Patents and copyrights giving inventors and authors the exclusive right to market and sell their creations for a period of time -Widespread education for the workforce that will promote new technology innovations and implementation -Financial institutions that channel the savings generated by households toward businesses, entrepreneurs and inventors -A system of tariffs and complete government autonomy promoting domestic production and positive net exports
Strong property rights that give citizens the right to own investments and property Patents and copyrights giving inventors and authors the exclusive right to market and sell their creations for a period of time Widespread education for the workforce that will promote new technology innovations and implementation Financial institutions that channel the savings generated by households toward businesses, entrepreneurs and inventors
Which of the following factors of productivity growth helps to promote the development of new forms of business organization? -Economies of scale -Improved resource allocation -Technological advance -Quantity of capital
Technological advance
Which of the following factors of productivity growth helps to promote the development of new forms of business organization? -Economies of scale -Quantity of capital -Improved resource allocation -Technological advance
Technological advance
Which of the following helps explain why the growth rate in the United States has been positive during the 1900s? -The reduction in oil prices -The reduction in nominal wages -The increase in labor productivity -The increase in the minimum wage
The increase in labor productivity
Why do economists pay so much attention to small changes in the rate of economic growth? -These changes reflect a larger failure of economic policy. -These changes have large effects on the volume of output. -These changes make it impossible to calculate real GDP. -These changes lessen the burden of scarcity.
These changes have large effects on the volume of output.
What is the primary reason why a firm would use specialized inputs? -To capitalize on network effects -To increase simultaneous consumption -To improve capital and worker productivity -To spread out development costs
To improve capital and worker productivity
Select all that apply What are the negative effects of economic growth on the individual? -Homelessness, poverty, and discrimination -Too much focus on materialism instead of community -High-stress environments due to the frantic pace -High anxiety with the introduction of new technologies
Too much focus on materialism instead of community High-stress environments due to the frantic pace High anxiety with the introduction of new technologies
Which of the following growth-promoting institutional structures creates a highly educated workforce? -Widespread education -Efficient financial institutions -Property rights -A competitive market system
Widespread education
The growth-promoting institutional structure that involves prices and profits serving as signals to guide production is called ______. -a competitive market system -property rights -an accounting system -free trade
a competitive market system
Economic growth is calculated as ______. -an average rate of growth per month or per 6 months -an average rate of growth over five to ten years -a percentage rate of growth per month -a percentage rate of growth per quarter or per year
a percentage rate of growth per quarter or per year
The two ways that society can increase its real output and income are by increasing its inputs of resources and ______. -by raising the productivity of those inputs -by increasing wages paid to labor -by lowering the productivity of those inputs -by decreasing wages paid to labor
by raising the productivity of those inputs
Labor productivity significantly rises as the firm sells more units of a product, consequently resulting in lower per-unit cost of production because workers ______. -can specialize and the firm can spread product costs over less output -can use network effects and serve more customers at one time -learn by doing and can take on more tasks -can specialize and the firm can spread product costs over greater output
can specialize and the firm can spread product costs over greater output
When productivity is improved through products and services that can satisfy large numbers of consumers at the same time, it is called simultaneous ____
consumption
Modern economic growth has significantly increased the standard of living as well as ____, social, and political arrangements.
cultural
Unlike economists who argue in favor of rapid economic growth, economists who argue against it see rapid economic growth as ______. -irrelevant -sustainable -political -damaging
damaging
The purchase of the economy's expanding goods and services by households, businesses, and the government is known as the ____ factor
demand
The purchase of the economy's expanding goods and services by households, businesses, and the government is known as the ______ factor. -efficiency -supply -productivity -demand
demand
Reductions in per-unit production costs that result from increases in output levels lead to ____ of ____
economies of scale
Literacy and widespread ____ (one word) is the growth-promoting institutional structure that contributes to a productive labor force.
education
The two types of investment in human capital are on-the-job training and formal ____
education
The four supply factors that constitute changes in physical and technical agents of production ______. -increase total spending, which expands GDP -enable an economy to expand its potential GDP -decrease total spending, which constrains GDP -constrain an economy to its current GDP
enable an economy to expand its potential GDP
Real economic growth can be misleading when annual population growth ______. -exceeds that of real GDP -is less than that of real GDP -exceeds that of nominal GDP -is less than that of nominal GDP
exceeds that of real GDP
The growth-promoting institutional structures that involve banks and the stock and bond markets are called efficient ____ (one word) institutions.
financial
The growth-promoting institutional structures that involve banks and the stock and bond markets are called ______. -foreign exchange market -financial institutions -the securities and exchange commission -competitive market system
financial institutions
Economic growth is made possible by the ______. -four supply factors that shift the production possibilities curve inward -four demand factors that shift the production possibilities curve inward -four demand factors that shift the production possibilities curve outward -four supply factors that shift the production possibilities curve outward
four supply factors that shift the production possibilities curve outward
The growth-promoting institutional structure that involves allowing countries to specialize in different types of output that can be produced most efficiently is called ______. -foreign exchange market -property rights -free trade -a quota system
free trade
Strong property rights, ______ trade, patents and ______ market systems are all growth-promoting institutional structures. -restricted; monopolistic -free; competitive -free; monopolistic -restricted; competitive
free; competitive
Select all that apply Economic growth provides society ______. -greater material abundance -higher living standards -fewer goods and services -more goods and services -a lower quality of goods
greater material abundance higher living standards more goods and services
An economy that is experiencing economic ______ is better able to meet people's wants and resolve socioeconomic problems. -growth -inflation -stagnation -decline
growth
Those countries which experienced modern economic growth earlier than other countries now have significantly ______. -higher availability of natural resources -lower health standards -higher standard of living -lower population
higher standard of living
Select all that apply The expansion of total output relative to population results in which of the following? -lower standards of living -higher standards of living -falling real wages -reduced consumption -rising real wages -rising incomes -falling incomes
higher standards of living rising real wages rising incomes
A nation's real GDP depends on labor ______ multiplied by labor ______. -hours; nominal GDP -force; productivity -hours; productivity -force; nominal GDP
hours; productivity
Over time, when workers move from low-productivity to high-productivity employment, it is called ______. -the marginal product of labor -returns to scale -improved resource allocation -economies of scale
improved resource allocation
A nation's economic growth from one year to the next depends on its ______. -decrease in labor inputs and decrease in labor productivity -decrease in labor inputs and increase in labor productivity -increase in labor inputs and decrease in labor productivity -increase in labor inputs and increase in labor productivity
increase in labor inputs and increase in labor productivity
A nation's economic growth from one year to the next depends on its ______. -decrease in labor inputs and decrease in labor productivity -increase in labor inputs and increase in labor productivity -increase in labor inputs and decrease in labor productivity -decrease in labor inputs and increase in labor productivity
increase in labor inputs and increase in labor productivity
If the amount of capital per worker ____, labor productivity will increase.
increases
Increased capital is important to productivity growth because the ______ in the quantity and quality of capital will make workers ______ productive. -increases; less -increases; more -decreases; less -decreases; more
increases; more
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 ______. -increase in per-unit production costs -decreasing returns -increasing returns -diseconomies of scale
increasing returns
Firms that produce new products or pioneer new ways of doing business through "learning by doing" experience ______. -diseconomies of scale -constant returns -increasing returns -decreasing returns
increasing returns
Computers, fiber-optic cable, wireless technology, and the Internet represent advances in a special type of technology known as ____ technology
information
An increase in productivity growth is important because real output, real income and real wages are linked to ______. -increased interest rates -labor productivity -decreased unemployment -deceased standards of living
labor productivity
In any year, a nation's real GDP depends on hours of work multiplied by ______. -number of workers -nominal GDP -labor productivity -hourly wage
labor productivity
Output per hour of work is the definition of: -increasing returns to labor -diminishing returns to labor -the marginal product of labor -labor productivity
labor productivity
The two main supply-side elements that contribute to changes in real GDP are increases in hours worked and increases in ______. -hourly wages -stock of capital -labor productivity -quantity of natural resources
labor productivity
The fraction of the working-age population that is in the labor force is called the ______ rate. -employment participation -labor-force participation -unemployment -employment
labor-force participation
Countries that develop and use the most advanced technologies, which then became available to follower countries, are known as ____ countries
leader
According to McConnell, economic growth has made working conditions ______. -a sum-zero game -more hazardous and less pleasant -less hazardous and more pleasant -more stressful
less hazardous and more pleasant
One of the consequences of a no-growth policy is that it ______. -limits growth in poor nations -keeps inflation stable -strengthens the currency of poor nations -expands growth in poor nations
limits growth in poor nations
Increases in capital are important to productivity growth because increases in the quantity and quality of capital ______. -give producers more power over workers -make workers more productive -decrease public investment -make entrepreneurs wealthier
make workers more productive
Increases in capital are important to productivity growth because increases in the quantity and quality of capital ______. -make entrepreneurs wealthier -make workers more productive -give producers more power over workers -decrease public investment
make workers more productive
A decline in the discrimination against women and minorities has resulted in -more women and minorities in lower-productivity jobs -less women and minorities in the workforce -more women and minorities in higher-productivity jobs -less women and minorities in higher-productivity jobs
more women and minorities in higher-productivity jobs
Pollution, global warming, and ozone depletion are ____ externalities that result from economic growth.
negative
A product that increases in value as more people use it is a product that benefits from ____ effects
network
Economic growth made possible by the four supply factors is illustrated by the ______ the production possibilities curve. -movement upward along -movement downward along -outward shifting of -inward shifting of
outward shifting of
____ and ____ give a strong financial incentive to inventors and authors to invent and create.
patents and copyright
The growth-promoting institutional structure that involves giving inventors and authors the exclusive right to market and sell their creations is ______. -free trade -patents and copyrights -equal rights -property rights
patents and copyrights
Real GDP per capita means GDP ______. -in real terms -divided by capital stock -per country -per person
per person
The growth of real GDP is a useful measure for the expansion of ______ preeminence, while the real GDP per capita is a useful measure for ______ standards. -political; investment -political; living -economic; debt -living; political
political; living
Economic growth can be illustrated when the demand factor and the efficiency factor shift the production ____ curve outward.
possibilities
Public investment in U.S. infrastructure like roads and bridges promotes ____ investment in new factories and retail stores.
private
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 ______. -excess capacity -productive efficiency -allocative efficiency -perfect competition
productive efficiency
Stronger ______ growth and heightened ______ competition allow the economy to achieve a greater rate of economic growth. -population; capital -productivity; global -demand; domestic -supply; domestic
productivity; global
The growth-promoting institutional structure that involves the ability of citizens to own land, houses and businesses is called private ____ rights
property
Increasing productivity leads to improved standards of living by increasing ______. -the real population -demand and supply -real hourly earnings -nominal wages
real hourly earnings
Labor productivity is: -total real output of population -real output per person -real output per hour of work -additional output per worker
real output per hour of work
If the capital stock ______ and the quantity of labor decreases, labor productivity will probably ______. -remains fixed; increase -remains fixed; decrease -decreases; increase -increases; decrease
remains fixed; increase
The expansion of total output relative to population results in ______ real wages and income and _______ standards of living -falling; lower -rising; higher -rising; lower -falling; higher
rising; higher
Ideally, a nation acquires funds for investment spending on plant and equipment by ______ income. -financing -saving -borrowing -generating
saving
Sources of funds for investment spending in plant and equipment are ______. -taxes and transfer payments -always equal to U.S. spending on imports -savings by households, governments, and foreigners -directed to their most productive uses by the U.S. government
savings by households, governments, and foreigners
Streaming movies to customers is an example of ______. -complementary effects -spreading of development costs -substitution effects -simultaneous consumption
simultaneous consumption
The ability of software programs, songs on CDs, and movies on DVDs to satisfy large numbers of customers at the same time is an example of ______. -network effects -large numbers -spreading of development costs -simultaneous consumption
simultaneous consumption
When a firm purchases a customized inventory management system, it is ______. -improving its absolute advantage -specializing its inputs -decreasing its labor productivity -increasing its marginal costs
specializing its inputs
When firms divide high product development costs over greater output, they are ______. -using network effects -using more specialized output -spreading development costs -learning by doing
spreading development costs
Economists pay attention to small changes in economic growth because small changes in economic growth can make a big difference in the living ____ of a country
standards
A new firm focused on creating and introducing a particular new product or employing a new production or distribution method is called a(n) ____ firm
start-up
A new firm focused on creating and introducing a particular new product or employing a new production or distribution method is called a ______. -start-up firm -monopoly -venture capital firm -sole proprietor
start-up firm
Because people will not invest if they believe that thieves, bandits, or a rapacious and tyrannical government will steal their investments or their expected returns, ______ are important. -free trade -patents and copyrights -strong property rights -efficient financial institutions
strong property rights
The six "determinants" of economic growth are grouped into three categories: one demand factor, four ____ factors, and one efficiency factor.
supply
Economic growth is made possible due to ______ that shift the production possibilities curve outward. -the factors of production -demand and supply -growth differences -inflationary pressures
the factors of production
Human capital refers to ______. -robots that can perform tasks that only humans could do in the past -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 -the machinery and tools that each individual workers owns
the improvement in labor created by education and knowledge that is embodied in the work force
The core element of the productivity speedup between 1995 and 2010 was an explosion of entrepreneurship and innovation based on ______. -the microchip -network effects -simultaneous consumption -government regulations
the microchip
The core element of the productivity speedup between 1995 and 2010 was an explosion of entrepreneurship and innovations based on ______. -the microprocessor -the level of human capital -population -the rate of growth in financial capital
the microprocessor
The efficiency factor involves both productive and allocative efficiency, which means in order to reach its full production potential an economy must ______. -use its resources in the most costly way to produce the specific mix of goods that maximizes people's well-being -use its resources to maximize profits at any cost -use the most resources to get the most goods and services for the most people -use its resources in the least costly way to produce the specific mix of goods that maximizes people's well-being
use its resources in the least costly way to produce the specific mix of goods that maximizes people's well-being
Workers today are more productive than workers in the past because ______. -workers get paid more today than in the past -there are more workers now working with the same number of machines than in the past -on average, workers now are physically stronger -workers now have more physical capital embodying better technology with which to work
workers now have more physical capital embodying better technology with which to work
Select all that apply Select the statements that summarize how firms can increase productivity using economies of scale. -As firms expand their size and output, they can use more productive equipment. -As firms expand their size and output, they can employ more productive methods of delivery. -As firms expand their size and output, the per-unit cost of production increases. -As firms expand their size and output, they are better able to recoup investments in new production methods and products.
As firms expand their size and output, they can use more productive equipment. As firms expand their size and output, they can employ more productive methods of delivery. As firms expand their size and output, they are better able to recoup investments in new production methods and products.
Select all that apply Which of the following began as start-up firms in technology? -Cisco Systems -Intel -Wal-Mart -PayPal
Cisco Systems Intel PayPal
Select all that apply Identify the negative externalities that result from industrialization and growth. -Climate change -Higher standard of living -Pollution -Inflation
Climate change Pollution
True or false: Countries that experienced economic growth earlier than other countries have lower average incomes today.
False
Select all that apply Select from the following those that contributed to the spectacular advancement in information technology. -Fiber-optic cable -Global literacy -The computer -Wireless technology -The Internet
Fiber-optic cable The computer Wireless technology The Internet
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? -Free trade -Property rights -Widespread education -Efficient financial institutions
Free trade
Which of the following cannot properly be called a part of infrastructure? -Roads and bridges -Human capital -Seaports -Power lines
Human capital
Which of the following is the primary feature of a competitive market system that makes it an important growth-promoting institution? -Price and profit market signals -Exchange rates -Patents and copyrights -Financial institutions
Price and profit market signals
Which of the following allow the economy to achieve a higher rate of economic growth? -Stronger demand growth and heightened global competition -Higher population growth and heightened global competition -Stronger productivity growth and heightened global competition -Higher capital growth and heightened domestic competition
Stronger productivity growth and heightened global competition
True or false: Growth enables society to improve nations' infrastructure.
True
True or false: Real growth of GDP can be misleading when annual population growth exceeds that of GDP.
True
True or false: The competitive market system tends to drive the economy toward productive and allocative efficiency.
True
Products that can be simultaneously consumed can be made available to thousands or even millions of buyers at what cost? -Very high cost -Very low cost -Somewhat higher cost -Average cost
Very low cost
Economists define and measure economic growth as ______. -an increase in nominal GDP per capita over some period of time -an increase in real GDP per capita over some period of time -an increase in capital stock per capita over some period of time -an increase in nominal GDP over some period of time
an increase in real GDP per capita over some period of time
An important source of increasing labor productivity is ______. -an increase in the ratio of capital to labor -a decrease in the ratio of capital to labor -an increase in the ratio of labor to capital -faster growth in the labor force than in the capital stock
an increase in the ratio of capital to labor
The two ways that society can increase its real output and income are by increasing its inputs of resources and ______.
by raising the productivity of those inputs
The two ways that society can increase its real output and income are by increasing its inputs of resources and ______. -by increasing wages paid to labor -by decreasing wages paid to labor -by lowering the productivity of those inputs -by raising the productivity of those inputs
by raising the productivity of those inputs
According to McConnell, better working conditions are best brought about by ______. -strikes and walkouts -economic growth -labor unions -government regulations
economic growth
Frantic paces on jobs, worker burnout, and alienated employees are all effects of ______. -high rates of growth in interest rates -economic growth -economic contraction -inflation
economic growth
Firms are able to use larger, more productive equipment and employ methods of manufacturing and delivery that increase productivity when they enjoy ____ of scale
economies
Reductions in per-unit production costs that result from increases in output levels are called ______. -economies of scale -diseconomies of scale -marginal benefits -marginal costs
economies of scale
Efficiency factor is when an economy must achieve economic efficiency as well as ______ to reach its full production potential. -higher wages -higher costs -full employment -lower costs
full employment
Human capital refers to ______. -any method of production developed by humans -the machines workers use in a factory -machines that require workers in order to operate most efficiently -knowledge and skills that make a worker productive
knowledge and skills that make a worker productive
The fraction of the working-age population that is in the labor force is called the ______ rate. -employment -unemployment -labor-force participation -employment participation
labor-force participation
Software and Internet services become more beneficial to a buyer the greater the number of households and businesses that also buy them. This is called ______. -simultaneous consumption -increasing returns -learning by doing -network effects
network effects
The demand factor involves households, businesses, and government purchasing the economy's expanding output of goods and services so that there will be ______. -no unplanned increase in inventories and resources will remain fully employed -unplanned increases in inventories and resources will be unemployed -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
When society increases its inputs of resources and raises the productivity of those resources, it can increase real ______ and ______. -output; inflation -supply; demand -output; interest rates -wages; inflation -output; wages
output; wages
Real GDP divided by the size of the population is called ______. -nominal economic growth -real economic growth -real GDP per capita -nominal GDP per capita
real GDP per capita
The best economic growth measurement to compare living standards is ______. -nominal GDP -real GDP per capita -real GDP -nominal GDP per capita
real GDP per capita
Learning by doing achieves greater productivity and lower average total cost through gains in knowledge and skill that accompany ______. -diseconomies of scale -repetition of a task -simultaneous consumption -network effects
repetition of a task
The fraction of the ______ population that is in the labor force is called the labor-force participation rate. -middle-age -working-age -local-force -labor-force
working-age
Economic growth is normally calculated as a percentage rate of growth per quarter or per ____
year
