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 quantity of labor due to emigration
B.   a decrease in the productivity of labor
C.   the discovery of new oil reserves
D.   a decline in the stock of physical capital
Question #2
A nation can achieve higher economic growth if:
A.   the productivity of labor declines
B.   taxes are imposed on investment in capital.
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.   a market orientation
B.   technology
C.   human capital
D.   physical capital
Question #4
To achieve a high standard of living, a nation should:
A.   increase welfare payments to the poor.
B.   promote economic growth.
C.   increase the tax deduction for child dependents.
D.   use less capital and more labor in the production process.
Question #5
A nation's prosperity is sometimes measured in terms of ___________.
A.   GDP per capita
B.   GDP
C.   GNP
D.   economic output
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.   a decrease in the productivity of labor
C.   an increase in the average wage rate paid to workers
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 labor force growth.
B.   high rate of consumption.
C.   high rate of economic growth.
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.   technology
B.   GNP
C.   GDP per capita
D.   output
Question #9
In macroeconomics, the connection from inputs to outputs for the entire economy is called _______________.
A.   an aggregate production function
B.   physical capital
C.   human capital
D.   a production function
Question #10
Some recent economic research has suggested that African countries' economic growth may have been limited by __________________ .
A.   geography and climate
B.   population
C.   technological challenges
D.   government interventionism
Question #11
Economists typically measure economic growth by tracking:
A.   the employment rate.
B.   the unemployment rate.
C.   real GDP per capita.
D.   averaged GDP growth
Question #12
The value of what is produced per worker, or per hour worked, is called ____________.
A.   productivity
B.   GDP per capita
C.   economic growth
D.   human capital
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.   Installing a network of irrigation ditches and pumping stations in order to grow fruits and vegetables in parts of southern California.
D.   Increased government funding of post-secondary education.
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.   2%
C.   22%
D.   12%
Question #15
Some prominent members of the slow-economic growth country club include a high-income country like _________.
A.   Germany
B.   Somalia
C.   Bolivia
D.   Nigeria
Question #16
Which of the following is most likely to contribute to economic growth as measured by GDP per capita?
A.   the imposition of tariffs and quotas on imported goods
B.   increased capital formation
C.   rapid population growth
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-fourth
B.   double
C.   one-half
D.   triple
Question #18
Over the long run, ____________ per hour is the most important determinant of the average wage level in any economy.
A.   demand
B.   dollars
C.   productivity
D.   supply
Question #19
Which of the government policies below is most unlikely to encourage per capita economic growth?
A.   promotion of education and training programs for workers
B.   the use of tax revenues for investment and capital formation
C.   special subsidies for capital-intensive forms of production
D.   high taxes on companies that spend a lot on capital formation
Question #20
When society has a higher level of capital per person, it is called ______________.
A.   physical capital
B.   human capital
C.   technological gains
D.   capital deepening

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