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.   the discovery of new oil reserves
C.   a decline in the stock of physical capital
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.   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.   human capital
B.   physical capital
C.   a market orientation
D.   technology
Question #4
To achieve a high standard of living, a nation should:
A.   increase welfare payments to the poor.
B.   increase the tax deduction for child dependents.
C.   promote economic growth.
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
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.   a decrease in the productivity of labor
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.   zero rate of population growth
B.   high rate of labor force growth.
C.   high rate of economic growth.
D.   high rate of consumption.
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.   GDP per capita
C.   technology
D.   GNP
Question #9
In macroeconomics, the connection from inputs to outputs for the entire economy is called _______________.
A.   human capital
B.   a production function
C.   an aggregate production function
D.   physical capital
Question #10
Some recent economic research has suggested that African countries' economic growth may have been limited by __________________ .
A.   population
B.   geography and climate
C.   technological challenges
D.   government interventionism
Question #11
Economists typically measure economic growth by tracking:
A.   averaged GDP growth
B.   real GDP per capita.
C.   the unemployment rate.
D.   the employment rate.
Question #12
The value of what is produced per worker, or per hour worked, is called ____________.
A.   GDP per capita
B.   human capital
C.   productivity
D.   economic growth
Question #13
Which of the following did not result in economic growth?
A.   The invention of a threshing machine for harvesting grains.
B.   Many citizens emigrating from Zimbabwe when a politically repressive regime took office.
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.   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.   Germany
B.   Nigeria
C.   Bolivia
D.   Somalia
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.   increased capital formation
C.   rapid population growth
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.   triple
B.   one-fourth
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.   dollars
D.   demand
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.   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.   technological gains
C.   capital deepening
D.   human capital

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