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.   the discovery of new oil reserves
C.   a decrease in the quantity of labor due to emigration
D.   a decrease in the productivity of labor
Question #2
A nation can achieve higher economic growth if:
A.   more resources are allocated to consumption goods.
B.   it devotes more resources to research and development.
C.   taxes are imposed on investment in capital.
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.   human capital
B.   technology
C.   a market orientation
D.   physical capital
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
B.   economic output
C.   GDP per capita
D.   GNP
Question #6
Which of the following factors contribute to economic growth?
A.   an increase in the average wage rate paid to workers
B.   a decrease in the productivity of labor
C.   an increase in the proportion of the population that is college educated
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.   high rate of economic growth.
B.   zero rate of population 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.   GNP
C.   output
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.   population
B.   technological challenges
C.   government interventionism
D.   geography and climate
Question #11
Economists typically measure economic growth by tracking:
A.   the unemployment rate.
B.   averaged GDP growth
C.   real GDP per capita.
D.   the employment rate.
Question #12
The value of what is produced per worker, or per hour worked, is called ____________.
A.   human capital
B.   GDP per capita
C.   economic growth
D.   productivity
Question #13
Which of the following did not result in economic growth?
A.   The invention of a threshing machine for harvesting grains.
B.   Installing a network of irrigation ditches and pumping stations in order to grow fruits and vegetables in parts of southern California.
C.   Increased government funding of post-secondary education.
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.   12%
B.   32%
C.   2%
D.   22%
Question #15
Some prominent members of the slow-economic growth country club include a high-income country like _________.
A.   Bolivia
B.   Germany
C.   Somalia
D.   Nigeria
Question #16
Which of the following is most likely to contribute to economic growth as measured by GDP per capita?
A.   increased capital formation
B.   the imposition of tariffs and quotas on imported goods
C.   an increase in marginal tax rates
D.   rapid population growth
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.   supply
B.   productivity
C.   demand
D.   dollars
Question #19
Which of the government policies below is most unlikely to encourage per capita economic growth?
A.   the use of tax revenues for investment and capital formation
B.   promotion of education and training programs for workers
C.   high taxes on companies that spend a lot on capital formation
D.   special subsidies for capital-intensive forms of production
Question #20
When society has a higher level of capital per person, it is called ______________.
A.   physical capital
B.   technological gains
C.   capital deepening
D.   human capital

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