 |
| 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. |
|
|
|
| 2 | |
If real GDP was $5,000 billion last year and is $5,200 billion this year, the approximate rate of economic growth over the past year is: |
| | A) | 0.2%. |
| | B) | 0.4%. |
| | C) | 4%. |
| | D) | $200 billion. |
|
|
|
| 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. |
|
|
|
| 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 |
|
|
|
| 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. |
|
|
|
| 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. |
|
|
|
| 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. |
|
|
|
| 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. |
|
|
|
| 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. |
|
|
|
| 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. |
|
|
.