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.   a decrease in the productivity of labor
D.   the discovery of new oil reserves
Question #2
A nation can achieve higher economic growth if:
A.   the productivity of labor declines
B.   more resources are allocated to consumption goods.
C.   taxes are imposed on investment in capital.
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.   human capital
B.   a market orientation
C.   technology
D.   physical capital
Question #4
To achieve a high standard of living, a nation should:
A.   promote economic growth.
B.   use less capital and more labor in the production process.
C.   increase welfare payments to the poor.
D.   increase the tax deduction for child dependents.
Question #5
A nation's prosperity is sometimes measured in terms of ___________.
A.   GDP
B.   GDP per capita
C.   economic output
D.   GNP
Question #6
Which of the following factors contribute to economic growth?
A.   an increase in the standard of living
B.   an increase in the average wage rate paid to workers
C.   an increase in the proportion of the population that is college educated
D.   a decrease in the productivity of labor
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 labor force growth.
B.   zero rate of population growth
C.   high rate of consumption.
D.   high rate of economic 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.   GDP per capita
B.   technology
C.   GNP
D.   output
Question #9
In macroeconomics, the connection from inputs to outputs for the entire economy is called _______________.
A.   an aggregate production function
B.   a production function
C.   physical capital
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 employment rate.
C.   the unemployment rate.
D.   real GDP per capita.
Question #12
The value of what is produced per worker, or per hour worked, is called ____________.
A.   GDP per capita
B.   human capital
C.   economic growth
D.   productivity
Question #13
Which of the following did not result in economic growth?
A.   Many citizens emigrating from Zimbabwe when a politically repressive regime took office.
B.   The invention of a threshing machine for harvesting grains.
C.   Increased government funding of post-secondary education.
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.   32%
B.   22%
C.   2%
D.   12%
Question #15
Some prominent members of the slow-economic growth country club include a high-income country like _________.
A.   Somalia
B.   Nigeria
C.   Bolivia
D.   Germany
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.   rapid population growth
C.   an increase in marginal tax rates
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.   double
D.   one-half
Question #18
Over the long run, ____________ per hour is the most important determinant of the average wage level in any economy.
A.   demand
B.   supply
C.   dollars
D.   productivity
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.   high taxes on companies that spend a lot on capital formation
C.   promotion of education and training programs for workers
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.   capital deepening
B.   technological gains
C.   human capital
D.   physical capital

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