Macroeconomics Chapter 8

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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


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