 |
| 1 | |
Studies by economists have shown that, over the past 30 years: |
| | A) | labor productivity growth has accounted for more than half the increase in real GDP |
| | B) | labor productivity grew very rapidly, except during the 1990s when it slowed considerably |
| | C) | increases in the labor force, particularly by women, accounted for almost all the increase in real GDP |
| | D) | technological advance has accounted for less than one tenth of the increase in real GDP |
|
|
|
| 2 | |
Suppose that an economy's labor productivity rose by 2% and its total hours of work increased by 1% over the past year. We could conclude that: |
| | A) | this economy's production possibilities curve became steeper |
| | B) | this economy's short-run aggregate supply curve became steeper |
| | C) | this economy's growth rate of real GDP declined |
| | D) | real GDP increased |
|
|
|
| 3 | |
The amount of real capital per worker: |
| | A) | increased during the 1990s but has decreased since then |
| | B) | includes both public and private investments |
| | C) | typically accounts for about 75% of productivity growth |
| | D) | has more than offset decreases in labor productivity caused by the reallocation of labor away from agriculture |
|
|
|
| 4 | |
If an economy's production possibilities curve has shifted out, we can conclude that: |
| | A) | the supply of natural resources increased |
| | B) | the supply of labor increased |
| | C) | potential GDP increased |
| | D) | technology improved |
|
|
|
| 5 | |
All of the following are reasons for the productivity acceleration of 1995-2005, except: |
| | A) | invention and innovation associated with the microchip |
| | B) | economies of scale for newly emerging enterprises |
| | C) | increasing global competition |
| | D) | a higher rate of personal saving |
|
|
|
| 6 | |
Other things equal, which of the following will lead to the greatest increase in labor productivity? |
| | A) | Both capital and labor increase by 5% |
| | B) | Both capital and labor increase by 2% |
| | C) | Capital increases by 5% and labor increases by 2% |
| | D) | Capital increases by 2% and labor increases by 5% |
|
|
|
| 7 | |
Elimination of the business cycle is a key characteristic of the New Economy. |
| | A) | True |
| | B) | False |
|
|
|
| 8 | |
If total output is 1000 and labor productivity is 50 units of output per hour of work, then: |
| | A) | productivity is growing by 20% |
| | B) | total worker hours = 20 |
| | C) | total worker hours = 20,000 |
| | D) | total output is growing by 20% |
|
|
|
| 9 | |
Use the following graphs to answer the next question.
 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073273082/384258/quiz16a_9.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (6.0K)</a>]]>
Refer to the diagrams. Assume the economy is initially on production possibilities curve AB and on long-run aggregate supply curve X. An increase in the economy's stock of real capital would: |
| | A) | move the economy along the curve AB and shift the aggregate supply curve to Y |
| | B) | move the economy along curve X and shift the production possibilities curve to CD |
| | C) | move the economy along curve AB and along curve X |
| | D) | shift the production possibilities curve to CD and the aggregate supply curve to Y |
|
|
|
| 10 | |
Use the following graphs to answer the next question.
 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073273082/384258/quiz16a_10.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (6.0K)</a>]]>
Refer to the diagrams. The most likely cause of a shift from long-run aggregate supply curve X to curve Y is: |
| | A) | a decrease in the ratio of capital to labor |
| | B) | a decrease in the price level |
| | C) | an increase in labor productivity |
| | D) | a movement downward and to the right along curve AB |
|
|
.