Question 1

Which is best considered an efficiency factor in economic growth?

Accepted Answer

A)   the quantity of human resources
B)   the quality of human resources
C)   the quantity of natural resources
D)   the full employment of resourcesE) B) and C)
F) A) and D)

Question 2

A rightward shift of a nation's production possibilities curve is a necessary but not sufficient condition for economic growth.

Accepted Answer

A) True 
 B)False  True

Question 3

-Refer to the above table.Between years 1 and 2,real GDP grew by _______ percent in Italy:

Accepted Answer

A)   3
B)   4
C)   5
D)   10E) C) and D)
F) A) and D)

Question 4

Economic growth can be shown as a movement from a point on one production possibility curve to a point on a curve located farther from the origin.

Accepted Answer

A) True 
 B)False

Question 5

Economies of scale indicates:

Accepted Answer

A)   the idea that proprietorships are less bureaucratic and therefore more efficient than corporations.
B)   public investments in highways,schools,utilities,and such.
C)   the fact that large producers may be able to use more efficient technologies than smaller producers.
D)   the reallocation of labour from less-productive to more-productive uses.E) B) and D)
F) A) and D)

Question 6

Real GDP in any year is equal to:

Accepted Answer

A)   the quantity of labour divided by resource outputs.
B)   labour productivity multiplied by the quality of labour.
C)   worker-hours divided by labour productivity.
D)   worker-hours multiplied by labour productivity.E) A) and B)
F) A) and C)

Question 7

Show me a pastoral society with an untouched environment,an abundance of leisure,and nonsecular values,and I will show you an underdeveloped,poverty-ridden country.This statement is most likely to be made by a(n) :

Accepted Answer

A)   advocate of learning by doing.
B)   advocate of network effects.
C)   proponent of economic growth.
D)   critic of economic growth.E) A) and D)
F) C) and D)

Question 8

Suppose total output (real GDP) is $4000 and labour productivity is 8.We can conclude that:

Accepted Answer

A)   real GDP per capita must be $500.
B)   the price-level index must be greater than 100.
C)   nominal GDP must be $500.
D)   the number of worker-hours must be 500.E) All of the above
F) B) and C)

Question 9

If a nation's real GDP is growing by 3 percent per year,its real domestic output will double in approximately:

Accepted Answer

A)   21 years.
B)   23 years.
C)   29 years.
D)   42 years.E) All of the above
F) C) and D)

Question 10

About two-thirds of Canada's growth rate in the last half century has been due to rising productivity and about one-third has been due to the use of more inputs.

Accepted Answer

A) True 
 B)False

Question 11

The countries which have begun modern economic growth later than the others can catch up because:

Accepted Answer

A)   for them,it is quicker to adopt technology rather than inventing one.
B)   for them,it is harder to adopt technology rather than inventing one.
C)   for them,it is as hard to adopt technology as it is to invent one.
D)   for them,it is very easy to invent a new technology with lower cost.E) None of the above
F) C) and D)

Question 12

Economies of scale are increases in per-unit cost that result in a decrease in the size of markets and firms.

Accepted Answer

A) True 
 B)False

Question 13

Other things equal,in which of the following instances would the increase in labour productivity be the greatest?

Accepted Answer

A)   the stock of real capital and inputs of labour increase proportionately
B)   the increase in the stock of real capital exceeds the increase in inputs of labour
C)   the increase in inputs of labour exceeds the increase in the stock of real capital
D)   inputs of labour increase and the stock of real capital remains constantE) A) and B)
F) A) and C) B

Question 14

According to some studies in Canada,the productivity advance related to the information technology:

Accepted Answer

A)   has spread to only a few industries.
B)   has not spread to other industries.
C)   has spread to a wide range of industries,but not to services.
D)   has spread to a wide range of industries,including services.E) B) and C)
F) C) and D)

Question 15

Increasing returns would be a situation where a firm increases its workforce and other inputs by:

Accepted Answer

A)   10 percent and its output increases by 5 percent.
B)   5 percent and its output increase by 10 percent.
C)   8 percent and its output increases by 8 percent.
D)   12 percent and its output increases by 10 percent.E) B) and D)
F) A) and D)

Question 16

-Refer to the above graph.If the production possibilities curve of an economy shifts from AB to CD,it is most likely caused by:

Accepted Answer

A)   a decrease in the price level.
B)   allocative efficiency.
C)   technological progress.
D)   full employment of resources.E) A) and C)
F) A) and D)

Question 17

A supply factor in economic growth would be:

Accepted Answer

A)   a fall in the efficient use of resources.
B)   a rise in the rate of resource depletion.
C)   an increase in the quantity of labour.
D)   an increase in consumption spending.E) C) and D)
F) All of the above

Question 18

Real GDP was $4,719 billion in Year 1 and $4,848 billion in Year 2.In contrast,real GDP per capita in Year 1 was $19,261,but in Year 2 it was only $19,162.Why did one measure increase while the other measure decreased?

Accepted Answer

A)   Real GDP indicates the level of industrial production and provides a measure of the economic strength of the nation;it is the only valid measure of economic growth.
B)   Inflation occurred during this period;therefore the two measures are not comparable.
C)   Population increased during this time period so real GDP per capita data reflect this change.
D)   Real GDP per capita measures changes in labour productivity that are not captured by a simple measure like real GDP.E) A) and C)
F) B) and D)

Question 19

Which of the following has made the largest contribution to the growth of labour productivity in Canada?

Accepted Answer

A)   technological advance
B)   education and training of labour
C)   economies of scale
D)   improved resource allocationE) B) and C)
F) All of the above A

Question 20

Suppose total output (real GDP) is $10,000 and worker-hours are 20,000.We can conclude that:

Accepted Answer

A)   real GDP per capita must be $200,000.
B)   the price-level index must be less than 100.
C)   labour productivity must be 0.5.
D)   nominal GDP must be between $10,000 and $20,000.E) None of the above
F) B) and C)

Exam 8: Economic Growth

Which is best considered an efficiency factor in economic growth?

Correct AnswerverifiedShow Answer

A rightward shift of a nation's production possibilities curve is a necessary but not sufficient condition for economic growth.

Correct AnswerverifiedTrue

-Refer to the above table.Between years 1 and 2,real GDP grew by _______ percent in Italy:

Correct AnswerverifiedShow Answer

Economic growth can be shown as a movement from a point on one production possibility curve to a point on a curve located farther from the origin.

Correct AnswerverifiedShow Answer

Economies of scale indicates:

Correct AnswerverifiedShow Answer

Real GDP in any year is equal to:

Correct AnswerverifiedShow Answer

Show me a pastoral society with an untouched environment,an abundance of leisure,and nonsecular values,and I will show you an underdeveloped,poverty-ridden country.This statement is most likely to be made by a(n) :

Correct AnswerverifiedShow Answer

Suppose total output (real GDP) is $4000 and labour productivity is 8.We can conclude that:

Correct AnswerverifiedShow Answer

If a nation's real GDP is growing by 3 percent per year,its real domestic output will double in approximately:

Correct AnswerverifiedShow Answer

About two-thirds of Canada's growth rate in the last half century has been due to rising productivity and about one-third has been due to the use of more inputs.

Correct AnswerverifiedShow Answer

The countries which have begun modern economic growth later than the others can catch up because:

Correct AnswerverifiedShow Answer

Economies of scale are increases in per-unit cost that result in a decrease in the size of markets and firms.

Correct AnswerverifiedShow Answer

Other things equal,in which of the following instances would the increase in labour productivity be the greatest?

Correct AnswerverifiedB

According to some studies in Canada,the productivity advance related to the information technology:

Correct AnswerverifiedShow Answer

Increasing returns would be a situation where a firm increases its workforce and other inputs by:

Correct AnswerverifiedShow Answer

-Refer to the above graph.If the production possibilities curve of an economy shifts from AB to CD,it is most likely caused by:

Correct AnswerverifiedShow Answer

A supply factor in economic growth would be:

Correct AnswerverifiedShow Answer

Real GDP was $4,719 billion in Year 1 and $4,848 billion in Year 2.In contrast,real GDP per capita in Year 1 was $19,261,but in Year 2 it was only $19,162.Why did one measure increase while the other measure decreased?

Correct AnswerverifiedShow Answer

Which of the following has made the largest contribution to the growth of labour productivity in Canada?

Correct AnswerverifiedA

Suppose total output (real GDP) is $10,000 and worker-hours are 20,000.We can conclude that:

Correct AnswerverifiedShow Answer

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