 |
| 1 | |
If real GDP per person equaled $1,000 in 1900 and grew at a 4 percent annual rate, what would real GDP equal 100 years later? |
| | A) | $4,040 |
| | B) | $5,100 |
| | C) | $8,705 |
| | D) | $50,505 |
| | E) | $4,780,612 |
|
|
|
| 2 | |
Growth of real GDP per person is totally determined by the growth of average: |
| | A) | labor productivity and the proportion of the population employed. |
| | B) | labor productivity and the proportion of the population in the labor force. |
| | C) | labor force participation and the share of income going to capital. |
| | D) | labor force participation and the share of the population employed. |
| | E) | number of employed workers and population. |
|
|
|
| 3 | |
Average labor productivity is determined by: |
| | A) | consumption, investment, government spending, and net exports. |
| | B) | the number employed, unemployed, and the labor force participation rate. |
| | C) | the quantity and quality of human capital, physical capital, technology, natural resources, entrpreneurship, and the legal and political environment. |
| | D) | the real interest rate, the nominal interest rate, and the rate of inflation. |
| | E) | the difference between government spending and revenues. |
|
|
|
| 4 | |
Countries with large amounts of capital per worker tend to have ______ levels of real GDP per person and ___ levels of average labor productivity. |
| | A) | high; high |
| | B) | high; low |
| | C) | low; low |
| | D) | low; average |
| | E) | low; high |
|
|
|
| 5 | |
Average labor productivity equals: |
| | A) | output per person |
| | B) | output per worker |
| | C) | human capital per worker |
| | D) | physical capital per worker |
| | E) | technology per worker |
|
|
|
| 6 | |
Increased economic growth is: |
| | A) | always desirable. |
| | B) | never desirable. |
| | C) | desirable if the benefits of growth exceed the costs. |
| | D) | desirable if the benefits of growth are less than the costs. |
| | E) | desirable if the benefits of growth equal the costs. |
|
|
|
| 7 | |
The provision of free public education is an example of a government policy designed to promote economic growth by: |
| | A) | increasing human capital. |
| | B) | increasing physical capital. |
| | C) | improving technology. |
| | D) | increasing the availability of natural resources. |
| | E) | improving the legal environment. |
|
|
|
| 8 | |
Building roads, bridges, airports, and other infrastructure is an example of government policies designed to promote economic growth by: |
| | A) | increasing human capital. |
| | B) | increasing physical capital. |
| | C) | improving technology. |
| | D) | increasing the availability of natural resources. |
| | E) | improving the legal environment. |
|
|
|
| 9 | |
Empirical studies show that as real GDP per person increases air pollution: |
| | A) | first increases, then decreases. |
| | B) | first decreases, then increases. |
| | C) | increases continuously. |
| | D) | decreases continuously. |
| | E) | does not change. |
|
|
|
| 10 | |
If the productivity slowdown experienced by industrial countries since the 1970s is a result of the poor measurement of productivity growth, then it: |
| | A) | can be reversed by monetary policy stimulus. |
| | B) | can be reversed by appropriate fiscal policy. |
| | C) | is not a concern for economists. |
| | D) | marks a return to normal rates of productivity growth. |
| | E) | must be corrected with appropriate changes in structural policy. |
|
|
.