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 decrease in the productivity of labor
B.   the discovery of new oil reserves
C.   a decline in the stock of physical capital
D.   a decrease in the quantity of labor due to emigration
Question #2
A nation can achieve higher economic growth if:
A.   taxes are imposed on investment in capital.
B.   it devotes more resources to research and development.
C.   more resources are allocated to consumption goods.
D.   the productivity of labor declines
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.   physical capital
C.   human capital
D.   a market orientation
Question #4
To achieve a high standard of living, a nation should:
A.   use less capital and more labor in the production process.
B.   increase the tax deduction for child dependents.
C.   increase welfare payments to the poor.
D.   promote economic growth.
Question #5
A nation's prosperity is sometimes measured in terms of ___________.
A.   GDP per capita
B.   GNP
C.   economic output
D.   GDP
Question #6
Which of the following factors contribute to economic growth?
A.   an increase in the proportion of the population that is college educated
B.   an increase in the average wage rate paid to workers
C.   a decrease in the productivity of labor
D.   an increase in the standard of living
Question #7
In the long run, the most important source of increase in a nation's standard of living is a:
A.   zero rate of population growth
B.   high rate of economic growth.
C.   high rate of consumption.
D.   high rate of labor force 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.   technology
B.   output
C.   GNP
D.   GDP per capita
Question #9
In macroeconomics, the connection from inputs to outputs for the entire economy is called _______________.
A.   human capital
B.   a production function
C.   physical capital
D.   an aggregate production function
Question #10
Some recent economic research has suggested that African countries' economic growth may have been limited by __________________ .
A.   technological challenges
B.   geography and climate
C.   population
D.   government interventionism
Question #11
Economists typically measure economic growth by tracking:
A.   averaged GDP growth
B.   real GDP per capita.
C.   the employment rate.
D.   the unemployment rate.
Question #12
The value of what is produced per worker, or per hour worked, is called ____________.
A.   productivity
B.   human capital
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.   Installing a network of irrigation ditches and pumping stations in order to grow fruits and vegetables in parts of southern California.
C.   The invention of a threshing machine for harvesting grains.
D.   Many citizens emigrating from Zimbabwe when a politically repressive regime took office.
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.   22%
B.   12%
C.   2%
D.   32%
Question #15
Some prominent members of the slow-economic growth country club include a high-income country like _________.
A.   Nigeria
B.   Germany
C.   Somalia
D.   Bolivia
Question #16
Which of the following is most likely to contribute to economic growth as measured by GDP per capita?
A.   rapid population growth
B.   the imposition of tariffs and quotas on imported goods
C.   increased capital formation
D.   an increase in marginal tax rates
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-half
B.   double
C.   one-fourth
D.   triple
Question #18
Over the long run, ____________ per hour is the most important determinant of the average wage level in any economy.
A.   supply
B.   demand
C.   productivity
D.   dollars
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.   the use of tax revenues for investment and capital formation
C.   special subsidies for capital-intensive forms of production
D.   promotion of education and training programs for workers
Question #20
When society has a higher level of capital per person, it is called ______________.
A.   human capital
B.   physical capital
C.   technological gains
D.   capital deepening

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