Economics 002 - Principles of Economics II » Fall 2020 » Week 4 Homework

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Question #1
Which of the following factors contribute to economic growth?
A.   a decline in the stock of physical capital
B.   a decrease in the quantity of labor due to emigration
C.   the discovery of new oil reserves
D.   a decrease in the productivity of labor
Question #2
A nation can achieve higher economic growth if:
A.   taxes are imposed on investment in capital.
B.   the productivity of labor declines
C.   more resources are allocated to consumption goods.
D.   it devotes more resources to research and development.
Question #3
Since the late 1950s, economists have performed “growth accounting” studies in the United States. These have determined that ________________ is typically the most important contributor to U.S. economic growth.
A.   technology
B.   human capital
C.   physical capital
D.   a market orientation
Question #4
To achieve a high standard of living, a nation should:
A.   increase the tax deduction for child dependents.
B.   use less capital and more labor in the production process.
C.   promote economic growth.
D.   increase welfare payments to the poor.
Question #5
A nation's prosperity is sometimes measured in terms of ___________.
A.   GDP
B.   GDP per capita
C.   GNP
D.   economic output
Question #6
Which of the following factors contribute to economic growth?
A.   a decrease in the productivity of labor
B.   an increase in the average wage rate paid to workers
C.   an increase in the standard of living
D.   an increase in the proportion of the population that is college educated
Question #7
In the long run, the most important source of increase in a nation's standard of living is a:
A.   high rate of economic growth.
B.   high rate of labor force growth.
C.   high rate of consumption.
D.   zero rate of population growth
Question #8
An economy’s rate of productivity growth is closely linked to the growth rate of its ______________, although the two aren’t identical.
A.   output
B.   technology
C.   GDP per capita
D.   GNP
Question #9
In macroeconomics, the connection from inputs to outputs for the entire economy is called _______________.
A.   a production function
B.   physical capital
C.   an aggregate production function
D.   human capital
Question #10
Some recent economic research has suggested that African countries' economic growth may have been limited by __________________ .
A.   population
B.   government interventionism
C.   geography and climate
D.   technological challenges
Question #11
Economists typically measure economic growth by tracking:
A.   averaged GDP growth
B.   the unemployment rate.
C.   the employment rate.
D.   real GDP per capita.
Question #12
The value of what is produced per worker, or per hour worked, is called ____________.
A.   human capital
B.   productivity
C.   economic growth
D.   GDP per capita
Question #13
Which of the following did not result in economic growth?
A.   Increased government funding of post-secondary education.
B.   Many citizens emigrating from Zimbabwe when a politically repressive regime took office.
C.   The invention of a threshing machine for harvesting grains.
D.   Installing a network of irrigation ditches and pumping stations in order to grow fruits and vegetables in parts of southern California.
Question #14
During the last two centuries, the average rate of growth of GDP per capita in the leading industrialized countries has averaged about _________ per year.
A.   12%
B.   22%
C.   2%
D.   32%
Question #15
Some prominent members of the slow-economic growth country club include a high-income country like _________.
A.   Somalia
B.   Germany
C.   Nigeria
D.   Bolivia
Question #16
Which of the following is most likely to contribute to economic growth as measured by GDP per capita?
A.   an increase in marginal tax rates
B.   rapid population growth
C.   increased capital formation
D.   the imposition of tariffs and quotas on imported goods
Question #17
Country Able and Country Baker initially have the same real GDP per capita. Country Able experiences no economic growth, while Country Baker grows at a sustained rate of 7 percent. In 12 years, Country Baker's GDP will be approximately ___________ that of Country Able.
A.   one-fourth
B.   triple
C.   one-half
D.   double
Question #18
Over the long run, ____________ per hour is the most important determinant of the average wage level in any economy.
A.   dollars
B.   supply
C.   demand
D.   productivity
Question #19
Which of the government policies below is most unlikely to encourage per capita economic growth?
A.   high taxes on companies that spend a lot on capital formation
B.   special subsidies for capital-intensive forms of production
C.   promotion of education and training programs for workers
D.   the use of tax revenues for investment and capital formation
Question #20
When society has a higher level of capital per person, it is called ______________.
A.   technological gains
B.   physical capital
C.   capital deepening
D.   human capital

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