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| 1 | |
If a nation's real GDP is growing at 2% per year, its real output will double in approximately: |
| | A) | 50 years |
| | B) | 40 years |
| | C) | 35 years |
| | D) | 33 years |
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| 2 | |
If real GDP was $5,000 billion in year 1 and $5,200 billion in year 2, the approximate rate of economic growth from year 1 to year 2 is: |
| | A) | 0.2% |
| | B) | 0.4% |
| | C) | 4% |
| | D) | $200 billion |
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| 3 | |
If an economy's production possibilities curve has shifted out, we can unambiguously conclude that: |
| | A) | the supply of natural resources increased |
| | B) | the supply of labor increased |
| | C) | potential GDP increased |
| | D) | technology improved |
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| 4 | |
Which of the following sources of economic growth is a demand-side factor? |
| | A) | Higher spending on rising output |
| | B) | Improved technology |
| | C) | Utilizing resources in the least costly way |
| | D) | Increases in the quantity of human resources |
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| 5 | |
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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| 6 | |
The vast differences in worldwide living standards owes primarily to: |
| | A) | differences in patent law and enforcement |
| | B) | leader countries growing at a much faster rate than follower countries over the past 100 years |
| | C) | different starting dates for modern economic growth |
| | D) | cultural differences in labor force participation and hours of work |
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| 7 | |
Among the institutional structures that promote economic growth, most economists would include: |
| | A) | strong property rights, religious freedom, and restricted trade |
| | B) | wide-spread education, free trade, and strong property rights |
| | C) | religious freedom, patents and copyrights, and government economic planning |
| | D) | strong industrial regulation, government economic planning, and restricted trade |
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| 8 | |
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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| 9 | |
In the U.S. since 1960: |
| | A) | both the average educational level and the relative quality of education have increased |
| | B) | both the average educational level and the relative quality of education have declined |
| | C) | the average educational level has increased 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 | |
All of the following are reasons for the productivity acceleration of 1995-2007, 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 |
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