Question 1

According to estimates of the aggregate production function,each 1% increase in physical capital,holding human capital and technology constant,raises labour productivity by 0.33%.

Accepted Answer

A) True 
 B)False

Question 2

Which reason is one that can explain Latin America's lack of economic growth since 1920?

Accepted Answer

A)   overspending on education
B)   inability to compete with imported products
C)   low savings and investment spending because government policies led to inflation,bank failures,and other disruptions
D)   very poor natural resources

Question 3

Over the course of the twentieth century,real GDP per capita in Canada rose MOSTLY as a result of:

Accepted Answer

A)   rising population.
B)   rising employment.
C)   rising productivity.
D)   reduced vacation time.

Question 4

Many economists view resource scarcity as a:

Accepted Answer

A)   major obstacle to long-run economic growth.
B)   problem resolved fairly well by the market mechanism.
C)   primary reason for poor countries' lack of economic growth.
D)   problem for wealthy countries but not for poorer countries.

Question 5

The aggregate production function exhibits _____ returns to _____ capital.

Accepted Answer

A)   increasing;physical
B)   decreasing;physical
C)   constant;physical
D)   increasing;financial

Question 6

In 2015,the median Canadian household income was approximately:

Accepted Answer

A)   $88 300.
B)   $98 000.
C)   $76 000.
D)   $45 000.

Question 7

The economy has grown by 4% per year over the past 30 years.During the same period,the labour force has grown by 1% per year and the quantity of physical capital has grown by 5% per year.Each 1% increase in physical capital per worker is estimated to increase productivity by 0.4%.Assume that human capital has not changed during the past 30 years.How much has technological progress contributed to productivity growth?

Accepted Answer

A)   1.4%
B)   1.6%
C)   2%
D)   3%

Question 8

According to the rule of 70,if real GDP per capita is growing at 2% a year,in 100 years it will have increased by:

Accepted Answer

A)   about 4 times.
B)   about 7 times.
C)   almost 30 times.
D)   almost 60 times.

Question 9

In 1798,the English economist Thomas Malthus predicted that:

Accepted Answer

A)   countries with a large supply of natural resources would always enjoy economic growth.
B)   the recently independent United States would rejoin the British empire out of economic necessity.
C)   the French Revolution would improve the economies of most European countries.
D)   rising population growth would cause productivity per capita to fall.

Question 10

The value of real GDP divided by population for a given country:

Accepted Answer

A)   is the real GDP per capita.
B)   is always increasing in value for any country.
C)   remains constant for developing countries.
D)   is per capita GDP.

Question 11

Most of the rapidly growing Asian nations,though poor,have increased their productivity by providing a very good basic education for their citizens.

Accepted Answer

A) True 
 B)False

Question 12

An increase in the amount of physical capital per worker _____,while technological progress _____.

Accepted Answer

A)   makes the aggregate production function steeper;changes the slope of the aggregate production function
B)   makes the aggregate production function steeper;makes the aggregate production function flatter
C)   moves the economy along the aggregate production function;shifts up the aggregate production function
D)   shifts up the aggregate production function;moves the economy along the aggregate production function

Question 13

Which item can properly be called a part of infrastructure?

Accepted Answer

A)   robots on an assembly line
B)   professors
C)   the Confederation Bridge
D)   a Toronto Maple Leafs hockey game

Question 14

In 2015,Canada spent 38% of its GDP on investment,while China spent only 16% of its GDP on investment.

Accepted Answer

A) True 
 B)False

Question 15

In an economy whose aggregate real output is growing faster than the total population:

Accepted Answer

A)   real GDP per capita is rising.
B)   standard of living is declining.
C)   national income is falling.
D)   nominal GDP per capita is decreasing.

Question 16

In Techland,from 1980 to 2010,holding technology and human capital fixed,increasing physical capital per worker from $25 000 to $100 000 would have led to a doubling of real GDP per worker,from $40 000 to $80 000.However,not only did physical capital per worker increase from $25 000 to $100 000,but also technological progress shifted the productivity curve upward so that real GDP per worker actually increased from $40 000 to $320 000.What share of the annual growth rate of real GDP per capita was attributable to higher total factor productivity?

Accepted Answer

A)   2.0%
B)   5%
C)   8.75%
D)   6.5%

Question 17

Total factor productivity:

Accepted Answer

A)   is the amount of output produced from a given amount of factor inputs.
B)   is not an essential element in long-run growth.
C)   is less important than technological progress.
D)   cannot be used to explain how contributions of factors of production affect a country's growth.

Question 18

An example of a public good that encourages economic growth is public health services,such as vaccinations.

Accepted Answer

A) True 
 B)False

Question 19

Technological progress is advanced through:

Accepted Answer

A)   research and development.
B)   government regulation.
C)   consumption.
D)   infrastructure.

Question 20

Factors that influence productivity and therefore growth are:

Accepted Answer

A)   physical and human capital per worker and technological advances.
B)   government independence.
C)   more government intervention in the marketplace.
D)   increased consumption and less investment spending.

Exam 9: Long-Run Economic Growth

Which reason is one that can explain Latin America's lack of economic growth since 1920?

Correct Answer
verified

Total factor productivity:

Correct Answer
verified

The value of real GDP divided by population for a given country:

Correct Answer
verified

The aggregate production function exhibits _ returns to _ capital.

Correct Answer
verified

According to estimates of the aggregate production function,each 1% increase in physical capital,holding human capital and technology constant,raises labour productivity by 0.33%.

Correct Answer
verified

Most of the rapidly growing Asian nations,though poor,have increased their productivity by providing a very good basic education for their citizens.

Correct Answer
verified

In 2015,the median Canadian household income was approximately:

Correct Answer
verified

In an economy whose aggregate real output is growing faster than the total population:

Correct Answer
verified

Many economists view resource scarcity as a:

Correct Answer
verified

Over the course of the twentieth century,real GDP per capita in Canada rose MOSTLY as a result of:

Correct Answer
verified

According to the rule of 70,if real GDP per capita is growing at 2% a year,in 100 years it will have increased by:

Correct Answer
verified

An example of a public good that encourages economic growth is public health services,such as vaccinations.

Correct Answer
verified

An increase in the amount of physical capital per worker _,while technological progress _.

Correct Answer
verified

Which item can properly be called a part of infrastructure?

Correct Answer
verified

Correct Answer
verified

In 2015,Canada spent 38% of its GDP on investment,while China spent only 16% of its GDP on investment.

Correct Answer
verified

In 1798,the English economist Thomas Malthus predicted that:

Correct Answer
verified

Factors that influence productivity and therefore growth are:

Correct Answer
verified

Technological progress is advanced through:

Correct Answer
verified

Correct Answer
verified

Exam 9: Long-Run Economic Growth

Which reason is one that can explain Latin America's lack of economic growth since 1920?

Correct AnswerverifiedShow Answer

Total factor productivity:

Correct AnswerverifiedShow Answer

The value of real GDP divided by population for a given country:

Correct AnswerverifiedShow Answer

The aggregate production function exhibits _____ returns to _____ capital.

Correct AnswerverifiedShow Answer

According to estimates of the aggregate production function,each 1% increase in physical capital,holding human capital and technology constant,raises labour productivity by 0.33%.

Correct AnswerverifiedShow Answer

Most of the rapidly growing Asian nations,though poor,have increased their productivity by providing a very good basic education for their citizens.

Correct AnswerverifiedShow Answer

In 2015,the median Canadian household income was approximately:

Correct AnswerverifiedShow Answer

In an economy whose aggregate real output is growing faster than the total population:

Correct AnswerverifiedShow Answer

Many economists view resource scarcity as a:

Correct AnswerverifiedShow Answer

Over the course of the twentieth century,real GDP per capita in Canada rose MOSTLY as a result of:

Correct AnswerverifiedShow Answer

According to the rule of 70,if real GDP per capita is growing at 2% a year,in 100 years it will have increased by:

Correct AnswerverifiedShow Answer

An example of a public good that encourages economic growth is public health services,such as vaccinations.

Correct AnswerverifiedShow Answer

An increase in the amount of physical capital per worker _____,while technological progress _____.

Correct AnswerverifiedShow Answer

Which item can properly be called a part of infrastructure?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In 2015,Canada spent 38% of its GDP on investment,while China spent only 16% of its GDP on investment.

Correct AnswerverifiedShow Answer

In 1798,the English economist Thomas Malthus predicted that:

Correct AnswerverifiedShow Answer

Factors that influence productivity and therefore growth are:

Correct AnswerverifiedShow Answer

Technological progress is advanced through:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The aggregate production function exhibits _ returns to _ capital.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

An increase in the amount of physical capital per worker _,while technological progress _.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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