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| 1 | |
Economic growth is measured by: |
| | A) | reductions in the rate of unemployment |
| | B) | increases in the overall price level |
| | C) | decreases in the rate of inflation |
| | D) | increases in real GDP |
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| 2 | |
Suppose an economy moves from a point inside of its production possibilities curve to a point on the curve. The most likely source of this economic growth is: |
| | A) | supply factors |
| | B) | demand and efficiency factors |
| | C) | increases in the quality of inputs |
| | D) | technological change |
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| 3 | |
Economic growth can be represented by a: |
| | A) | movement along a fixed production possibilities curve |
| | B) | leftward shift of the short-run aggregate supply curve |
| | C) | leftward shift of the aggregate demand curve |
| | D) | rightward shift of the production possibilities curve |
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| 4 | |
Total real output can be determined by: |
| | A) | multiplying total hours of work times labor productivity |
| | B) | multiplying total wages paid times output per hour of work |
| | C) | dividing total wages paid by labor productivity |
| | D) | dividing total hours of work by labor productivity |
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| 5 | |
Assume that an economy has 1000 workers, each of whom works 2000 hours per year. If real GDP is $40 million, labor productivity in this economy is: |
| | A) | 2,000,000 |
| | B) | 20 |
| | C) | ½ |
| | D) | 40 |
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| 6 | |
Use the table below to answer the next question. Labor is measured as hours of work.
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Refer to the table. In year 1, the economy's real GDP was: |
| | A) | 40 |
| | B) | 4,000 |
| | C) | 400,000 |
| | D) | insufficient data |
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| 7 | |
Use the table below to answer the next question. Labor is measured as hours of work.
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Refer to the table. From year 1 to year 2, real GDP increased by approximately: |
| | A) | 2% |
| | B) | 4% |
| | C) | 6% |
| | D) | 7% |
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| 8 | |
Suppose that over the next decade, aggregate demand grows at a rate of 3% per year while aggregate supply grows by 2.8% per year. The result will be: |
| | A) | real growth of about 2.8% with mild inflation |
| | B) | real growth of about 5.8% with no inflation |
| | C) | real growth of about 0.2% with mild inflation |
| | D) | real growth of about 0.2% with substantial inflation |
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| 9 | |
Which of the following is a correct statement? In the U.S. since 1960: |
| | A) | both the average educational level and the relative quality of education have improved |
| | B) | both the average educational level and the relative quality of education have declined |
| | C) | the average educational level has improved but the relative quality of education has declined |
| | D) | the average educational level has declined but the relative quality of education has improved |
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| 10 | |
Over long periods, the economy's labor productivity: |
| | A) | determines the average real hourly wage |
| | B) | will return to its "natural rate" |
| | C) | is unrelated to changes in the capital stock |
| | D) | will increase at the same rate as the increase in the size of the labor force |
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