Economics 202 Ch 7

Infrastructure is:

a country's public capital.

Total factor productivity would not change if:

a major new source of oil was discovered.

The natural gas deposits found in the United States over the past decade are an example of an increase in:

land and natural resources.

Which is NOT a source of productivity growth?

moving resources from production to pension benefits

Improvements in production capacity will:

shift the PPF outward.

The World Bank defines extreme poverty as a person living on less than:

$1.25 per day

Which of the following is NOT a factor in the production function?

Money

An example of intangible infrastructure is:

Patent Laws

The relationship between economic freedom and per capita GDP is:

Positive

Whispering Valley Furniture employs five workers working eight hours each to produce 80 rocking chairs. Rocky Gap Furniture employs 10 workers working eight hours each to produce 160 rocking chairs. Which company's workers are more productive?

The two companies' workers are equally productive.

Rocky Gap Furniture employs 10 workers working eight hours each to produce 100 rocking chairs. What is the productivity of these workers?

1.25 chairs per hour

If the actual growth rate of U.S. GDP was 1.25% from the first quarter to the second quarter, the Bureau of Economic Analysis would report the annualized rate as:

5%

One reasonably objective measure of intangible infrastructure is the:

Index of Economic Freedom.

Which of the following is NOT one of the BRIC countries (four countries that overcame significant obstacles to have the highest growth rates among industrialized countries in 2012)?

Bolivia

The classical form of the production function states that output is determined by:

some function of available labor or capital.

Government funding of Los Alamos National Labs is an example of government acting in its role to promote economic growth by:

enhancing physical and human capital.

When the government funds Head Start, it is acting in its role to promote economic growth by:

enhancing physical and human capital.

Infrastructure is defined as a country's:

public capital.

Economic growth is most commonly measured by:

real GDP per capita.

Which of the following strategies is an example of increasing the capital-to-labor ratio?

giving a construction crew more backhoes

As a rule, the more capital employed with workers, the ________ their productivity and the ________ their earnings.

higher; higher

Which statement about the Rule of 70 is TRUE?

It is fairly accurate for small growth rates.

Decreasing the accessibility to college in order to funnel workers into the workforce faster will:

decrease productivity of the economy.

An increase in physical capital per worker will:

lead to more output per worker.

If the growth rate in an economy is 3.5%, then its GDP will double in about:

20 years

Which of the following statements is FALSE?

Economic growth always leads to a more equitable distribution of income.

If an economy's GDP will double in 15 years, then its growth rate must be about:

4.7%

If a country's population increases at a slower rate than the growth in its real GDP:

GDP per capita has increased.

Which statement about the Rule of 70 is NOT true?

It becomes more accurate over time.

Whispering Valley Furniture employs five workers working eight hours each to produce 80 rocking chairs. Rocky Gap Furniture employs 10 workers working eight hours each to produce 100 rocking chairs. Which company's workers are more productive?

Whispering Valley Furniture's workers are more productive.

Which of the following institutions is NOT an example of our nation's infrastructure?

buildings of General Electric

The government decides to give tax-exempt status to a new organization whose mission is to award college scholarships to members of the armed forces. In doing so, the government is acting in its role to promote economic growth by:

enhancing physical and human capital.

When the government records a deed showing that ownership of a piece of property has passed from one party to another, it is acting in its role to promote economic growth by:

ensuring a stable legal system.

Malthus believed that population increased ______ and food resources increased ______.

geometrically; arithmetically

All of the following are considered sources of long-run growth EXCEPT:

increases in demand.

To have long-term economic growth, the production function suggests:

increasing the availability of technology, capital, and labor.

Unanticipated _____ is detrimental to economic growth.

inflation or deflation

A legal system that enforces property rights is important to economic growth because:

legal protection of ideas and technologies gives people who innovate the ability to protect their work.

Physical capital includes:

manufactured products that are used to produce other goods and services.

When Main Street Bank buys new automatic teller machines, the quantity of _____ in the economy increases.

physical capital

The catch-up effect tends to:

slow down over time.

Which of the following occurrences is the key explanation for the high economic growth in the United States in the past century?

technology improvements

Human capital includes:

the improvements to labor capabilities from training, education, and apprenticeship programs.

On-the-job training can lead to an increase in:

the quality of the labor force.