ECON 102 - Sample Test 2 (Chapter 6)

A decrease in population shifts the A) labor supply curve leftward. B) labor demand curve leftward. C) labor supply curve rightward. D) labor demand curve rightward.

A

A higher saving rate leads to faster growth because A) more saving produces greater additions to capital per hour of labor, raising real GDP per person. B) people could consume more of an economy's output. C) capital would wear out faster. D) population growth would accelerate.

A

During 2013, the country of Economia had a real GDP of $115 billion and the population was 0.9 billion. In 2012, real GDP was 105 billion and the population was 0.85 billion. Economia's growth rate of real GDP per person is A) 3.4 percent. B) 9.5 percent. C) 5.9 percent. D) 5 percent.

A

During 2014, the country of Economia had a real GDP of $115 billion and the population was 0.9 billion. In 2013, real GDP was 105 billion and the population was 0.85 billion. In 2014, real GDP per person was A) $128. B) $124. C) $135. D) $117.

A

Factors that influence labor productivity include ________. A) physical capital, human capital, and technology B) the labor demand curve C) the inflation rate, the real wage rate, and the exchange rate D) physical capital, the real wage rate, and technology

A

If workers' money wage rates increase by 5 percent and the price level remains constant, workers' A) quantity of labor supplied will increase. B) quantity of labor supplied will not change. C) demand for jobs will decrease. D) quantity of labor supplied will decrease.

A

Suppose that in 2015 a country has a population of 1 million and real GDP of $1 billion. In 2016, the population is 1.1 million and the real GDP is $1.1 billion. The real GDP per person growth rate is A) zero. B) positive. C) negative. D) $1000.

A

Technological change A) increases potential GDP. B) lowers the real wage rate. C) decreases labor productivity. D) has no effect on employment.

A

The gaps between the United States and the Asian countries of Honk Kong, Singapore, Korea and China have been A) decreasing B) remaining fairly constant C) there are no gaps between these Asian countries and the United States D) increasing

A

According to the Economic Times (09/2012), Standard & Poor's forecast for India's GDP growth rate was cut by 1 percentage point to 5.5 percent as the entire Asia Pacific region feels the pressure of ongoing economic uncertainty. India has averaged 7 percent growth in GDP since 1997. Based on this story, it is most likely that the slowdown reflects a A) change to India's long-term economic growth rate. B) temporary business cycle slowdown. C) temporary business cycle expansion. D) shrinkage of India's economy.

B

According to the law of diminishing returns, an additional unit of A) labor produces more output than the previous unit. B) labor produces less output than the previous unit. C) labor decreases output. D) capital produces more output than an additional unit of labor.

B

If a nation's population grows, then A) there can be no economic growth. B) growth in real GDP per person will be less than the growth of real GDP. C) growth in real GDP per person will be greater than the growth of real GDP. D) there must be an increase in real GDP per person.

B

The quantity of labor demanded depends on the A) money wage rate AND the real wage rate. B) real wage rate not the money wage rate. C) price of output not the money wage rate nor the real wage rate. D) money wage rate not the real wage rate.

B

A movement along the aggregate production function is the result of a change in A) technology. B) capital. C) the quantity of labor. D) interest rates

C

Classical growth theory proposes that real GDP growth is ____ and that real GDP per person will _____ the subsistence level. A) temporary; be above and below B) permanent; temporarily be above C) temporary; temporarily be above D) permanent; always be above

C

If real GDP per person is growing at 4 percent per year, approximately how many years will it take to double? A) 4 B) 25 C) 17.5 D) 8

C

The view that population growth occurs when real GDP per person exceeds the amount necessary to sustain life is part of the ____.

C

Which of the following statements regarding U.S. economic growth is NOT correct? A) The average annual growth rate of real GDP per person in the United States was rapid during World War II. B) In the 1930s, real GDP fell well below its trend. C) The growth rate of real GDP per person accelerated between 1973 to 1984. D) Over the past 100 years, on the average real GDP per person grew 2 percent a year.

C

Which of the following statements regarding human capital is INCORRECT? A) Writing and mathematics, the most basic of human skills, are crucial elements in economic progress. B) The accumulation of human capital is the source of both increased productivity and technological advance. C) Education is the only vehicle for the creation of human capital because training simply reinforces what has already been learned. D) Human capital is the accumulated skill and knowledge of human beings.

C

If capital per worker rises A) firms respond by raising their prices. B) labor productivity decreases. C) no technological progress occurs. D) labor productivity increases.

D

In 2011, Armenia had a real GDP of $4.21 billion and a population of 2.98 million. In 2012, real GDP was $4.59 billion and population was 2.97 million. What was Armenia's economic growth rate from 2011 to 2012? A) 0.38 percent B) 3.8 percent C) 8.3 percent D) 9.0 percent

D

Saving and investment that increase a nation's capital lead to A) a decrease in labor productivity as capital is used to replace labor. B) slower growth because there is a lack of consumption C)a decrease in the amount of capital per worker D) an increase in labor productivity

D

Slowdonia's current growth rate of real GDP per person is 1 percent a year. Approximately how long will it take to double real GDP per person? A) 10 years B) 35 years C) 100 years D) 70 years

D

Slowdonia's current growth rate of real GDP per person is 2 percent a year. How long will it take to double real GDP per person? A) 28.6 years B) half a year C) approximately 10 years D) 35 years

D