ECO2013 Ch. 25

Which of the following factors is projected to be the dominant source of economic growth in the U.S. from now until 2020?

Increase in labor productivity

Efficient financial institutions foster the flow of:

Saving and investment

If 40,000 worker-hours produced a total output of $600,000 in an economy, the labor productivity is:

$15/worker-hour

Trends in educational attainment in the U.S. since 1960 indicate that the percentage of adults:

Completing college has been rising, and so has the percentage completing high school

The movement of workers from lower productivity jobs to higher productivity jobs would be an example of a(n):

Improved resource allocation

Which of the following factors has been the dominant source of economic growth in the U.S. (except in 1973-1995)?

Increase in labor productivity

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

5 percent and its output increase by 8 percent

Increases in the value of the product to each user, including existing users, as the total number of users rises is called:

Network effects

In the U.S. economic-growth experience:

Most capital is complementary to labor

"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):

Proponent of economic growth

Factors that contributed to the higher U.S. labor productivity growth in 1995-2009 relative to the earlier period include the following, except:

Population growth

Supply factors in economic growth include the following, except:

Increases in purchases of output

Rising real wages for women in the U.S. workforce since the 1960s have:

Increased the opportunity cost of staying at home

One of the main arguments against further growth for industrialized nations focuses on the problem of:

Environmental quality

Real GDP or total output in any year is equal to:

Number of worker-hours multiplied by labor productivity

About what percentage of the growth in real output in the United States from 2001 to 2007 was due to increases in labor productivity?

100%

A nation’s real GDP was $250 billion in 2009 and $265 billion in 2010. Its population was 122 million in 2009 and 125 million in 2010. What is the growth rate of real GDP per capita in 2010?

3.4%

Refer to the above graph. If the production possibilities curve for an economy is at CD but the economy is operating at point X, the reasons are most likely to be because of:

Unemployment and inefficient allocation of resources

Nation A’s real GDP was $520 billion in 2009 and $550 billion in 2010. Its population was 150 million in 2009 and 155 million in 2010. On the other hand, Nation B’s real GDP was $200 billion in 2009 and $210 billion in 2010; and its population was 53 million in 2009 and 55 million in 2010. Which of the following statements is true?

Nation A’s real GDP growth in 2010 is higher than Nation B’s

One major aspect of the socio-cultural-political environment of the United States which has generally been conducive to economic growth is the:

Favorable attitude toward work and risk-taking

Which of the following is a main source of increasing returns in recent years?

More learning by doing

The entry of women into the workforce since the 1960s resulted in:

A shift outward in the production possibilities curve of the United States

Which of the following is best considered a demand factor in economic growth?

The full employment of resources

Economic growth can best be portrayed as a:

Rightward shift of the production possibilities curve

Labor productivity can only increase if:

Capital increases faster than Labor

A piece of software that benefits many users at the same time would be an example of:

Simultaneous consumption

Which of the following does not correctly characterize modern economic growth?

It has not affected the average lifespan of human beings

The shift of labor out of agriculture to industry in the United States has tended to:

Increase labor productivity

Refer to the above diagram. If the production possibilities curve of an economy shifts from AB to CD, it is most likely the result of what factor affecting economic growth?

A supply factor

Sources of increasing returns that help raise productivity growth include he following, except:

Low unemployment

Human capital refers to the:

Education, training, and skills of workers

The number of worker-hours available in an economy is determined by the following, except:

Unemployment rate of the workforce

Assume a nation’s current production possibilities are represented by the curve AB in the above diagram. Economic growth would best be indicated by a:

Shift in the curve from AB to CD

One of the basic economic defenses of economic growth rests on the conclusion that:

Growth makes the gap between unlimited wants and scarce resources less acute

An antigrowth view would be that there may be a significant tradeoff between productivity and:

The quality of life

A nation’s real GDP was $250 billion in 2009 and $265 billion in 2010. Its population was 120 million in 2009 and 125 million in 2010. What is its real GDP per capita in 2010?

$2,120 per person

Which is the single most important source of U.S. economic growth?

Increases in labor productivity

The size of the labor force depends on the size of the working-age population and the:

Participation rate

Consider two scenarios for a nation’s economic growth. Scenario A has real GDP growing at an average annual rate of 3.5%; scenario B has an average annual growth of 4.5%. The nation’s real GDP would double in about:

20 years under scenario A, versus 16 years under scenario B

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

Technological progress

Historically, the total amount of real capital per worker in the United States has:

Increased significantly and made labor more productive

Sources of increasing returns that help raise productivity growth include the following, except:

A) Increase in the competitiveness of U.S. goods in foreign markets WRONG B) Rise in the growth of living standards C) Rise in the rate of inflation D) Increase in the relative prices of U.S. goods in foreign markets

Patents and copyrights foster the flow of:

Inventions and ideas

The table below shows the quantity of labor (measured in hours) and the productivity of labor (measured in real GDP per hour) in a hypothetical economy in three different years.

Refer to the above table. Between Year 2 and Year 3, real GDP increased by:

10 percent

The following factors tend to make the real GDP growth rate understate the growth of economic well-being, except:

Debasement of the environment

One concern regarding educational attainment in the U.S. is that:

There are fewer college graduates in science and engineering

A major effect of the rise in the rate of productivity growth in the United States is a(n):

Rise in the growth of living standards

Sources of increasing returns that help raise productivity growth include the following, except:

Low unemployment

A nation’s real GDP was $250 billion in 2009 and $265 billion in 2010. Its population was 120 million in 2009 and 125 million in 2010. What is its real GDP growth rate in 2010?

6.0%

A nation’s average annual real GDP growth rate is 2.5%. Based on the "rule of 70", the approximate number of years that it would take for this nation’s real GDP to double is:

28 years