Question 1

The level of savings in an economy can be an important:

Accepted Answer

A)   determinant of future productivity.
B)   determinant of unemployment in an economy.
C)   source of funding for government projects.
D)   source of instability in an economy.E) B) and C)
F) A) and D) A

Question 2

Which of the following is generally not a result of increases in productivity per person?

Accepted Answer

A)   Increases in per capita income
B)   Economic growth
C)   Increases in overall GDP
D)   Increases in unemploymentE) B) and C)
F) B) and D)

Question 3

If a country has a high level of economic growth, it must have:

Accepted Answer

A)   a rapidly increasing GDP per capita.
B)   a high level of income.
C)   an equitable distribution of wealth.
D)   All of these are true.E) All of the above
F) A) and B) A

Question 4

Often, improvements in technology can:

Accepted Answer

A)   lead to further improvements in technology.
B)   lead to sustainable rates of growth in income for a country.
C)   continuously increase the productivity of workers.
D)   All of these are true.E) All of the above
F) B) and C) D

Question 5

We can calculate how long it will take a country to double its real GDP per capita using:

Accepted Answer

A)   its average growth rate.
B)   the GDP deflator.
C)   the CPI indexation factor.
D)   the GDP growth estimator.E) B) and C)
F) C) and D)

Question 6

Providing high-quality public education will:

Accepted Answer

A)   increase a country's stock of human capital.
B)   decrease a country's stock of human capital.
C)   decrease a country's productivity.
D)   increase a country's foreign direct investment.E) A) and D)
F) A) and C)

Question 7

If a country has a high level of income, it likely has:

Accepted Answer

A)   a highly-productive work force.
B)   widespread access to technology.
C)   high levels of physical capital.
D)   All of these are true.E) A) and B)
F) A) and C)

Question 8

The poverty trap is often a justification for:

Accepted Answer

A)   large public deficits.
B)   changes in government.
C)   investment in the military.
D)   foreign aid.E) B) and D)
F) A) and B)

Question 9

Which of the following is an example of technology captured in growth accounting?

Accepted Answer

A)   Reduced government distortions
B)   Increased rates of education
C)   Replacement of outdated machines in a factory
D)   None of these are examples of technology captured in growth accounting.E) None of the above
F) C) and D)

Question 10

The table shown displays GDP growth rates and GDP per capita values for different countries.  Which country has the lowest level of income?

Accepted Answer

A)   China
B)   Ghana
C)   Italy
D)   United StatesE) B) and C)
F) A) and D)

Question 11

Human capital refers to the:

Accepted Answer

A)   skills, experience, and natural talent that determine the productivity of workers.
B)   number of people a firm has access to for production.
C)   production per capita in an economy.
D)   machinery and tools that labor can use for production.E) None of the above
F) A) and B)

Question 12

If a country grows at an average rate of 3.5 percent per year over a ten year period, what is its compounded growth rate over that time period?

Accepted Answer

A)   41 percent
B)   35 percent
C)   32.7 percent
D)   45 percentE) A) and B)
F) C) and D)

Question 13

Government investments in education and health often provide:

Accepted Answer

A)   lower interest rates.
B)   more physical capital.
C)   positive externalities.
D)   decreases in technology.E) None of the above
F) A) and B)

Question 14

Using the growth accounting equation, if the growth rate of output is 9 percent, the growth rate of labor is 5 percent, the growth rate of technology is 2 percent, and α = 0.8, then the growth rate of capital can be estimated to be:

Accepted Answer

A)   7 percent.
B)   7.5 percent.
C)   8 percent.
D)   8.5 percent.E) A) and B)
F) A) and C)

Question 15

The poorer a country is the:

Accepted Answer

A)   more difficult it is to pay for things that will bring it out of poverty.
B)   less it must give up to bring it out of poverty.
C)   easier it is to pay for things that will bring it out of poverty.
D)   more it can invest in all the components of productivity.E) None of the above
F) All of the above

Question 16

During the industrial revolution, inventors in England developed new industrial technologies. This change meant that, relative to other countries, England:

Accepted Answer

A)   could produce more outputs with the same level of physical capital.
B)   would produce less with the same amount of physical capital.
C)   could institute fairer labor laws.
D)   would continue to produce the same amount of output.E) C) and D)
F) B) and D)

Question 17

Which of the following is an example of human capital?

Accepted Answer

A)   The Internet
B)   The Google search engine
C)   Your ability to use Google
D)   None of these are examples of human capital.E) B) and C)
F) A) and D)

Question 18

In a given year, suppose the real GDP per capita growth rate is 3.8 percent, the inflation rate is 2 percent, and the population growth rate is 1.2 percent. What is the nominal GDP growth rate?

Accepted Answer

A)   3.8 percent
B)   5.0 percent
C)   5.8 percent
D)   7.0 percentE) All of the above
F) A) and B)

Question 19

Promoting health contributes to growth because:

Accepted Answer

A)   workers who are in good health will be more productive and less likely to miss work.
B)   businesses are able to make larger investments in physical capital.
C)   citizens can plan for larger families.
D)   workers who get free health care are more likely to spend their money on other goods.E) B) and D)
F) A) and B)

Question 20

In a given year, suppose the nominal GDP growth rate is 5 percent, the inflation rate is 1.2 percent, and the population growth rate is 3.8 percent. What is the real GDP per capita growth rate?

Accepted Answer

A)   3.8 percent
B)   5.0 percent
C)   1.2 percent
D)   0.0 percentE) A) and B)
F) C) and D)

Exam 10: Economicgrowth

The level of savings in an economy can be an important:

Correct AnswerverifiedA

Which of the following is generally not a result of increases in productivity per person?

Correct AnswerverifiedShow Answer

If a country has a high level of economic growth, it must have:

Correct AnswerverifiedA

Often, improvements in technology can:

Correct AnswerverifiedD

We can calculate how long it will take a country to double its real GDP per capita using:

Correct AnswerverifiedShow Answer

Providing high-quality public education will:

Correct AnswerverifiedShow Answer

If a country has a high level of income, it likely has:

Correct AnswerverifiedShow Answer

The poverty trap is often a justification for:

Correct AnswerverifiedShow Answer

Which of the following is an example of technology captured in growth accounting?

Correct AnswerverifiedShow Answer

The table shown displays GDP growth rates and GDP per capita values for different countries. Which country has the lowest level of income?

Correct AnswerverifiedShow Answer

Human capital refers to the:

Correct AnswerverifiedShow Answer

If a country grows at an average rate of 3.5 percent per year over a ten year period, what is its compounded growth rate over that time period?

Correct AnswerverifiedShow Answer

Government investments in education and health often provide:

Correct AnswerverifiedShow Answer

Using the growth accounting equation, if the growth rate of output is 9 percent, the growth rate of labor is 5 percent, the growth rate of technology is 2 percent, and α = 0.8, then the growth rate of capital can be estimated to be:

Correct AnswerverifiedShow Answer

The poorer a country is the:

Correct AnswerverifiedShow Answer

During the industrial revolution, inventors in England developed new industrial technologies. This change meant that, relative to other countries, England:

Correct AnswerverifiedShow Answer

Which of the following is an example of human capital?

Correct AnswerverifiedShow Answer

In a given year, suppose the real GDP per capita growth rate is 3.8 percent, the inflation rate is 2 percent, and the population growth rate is 1.2 percent. What is the nominal GDP growth rate?

Correct AnswerverifiedShow Answer

Promoting health contributes to growth because:

Correct AnswerverifiedShow Answer

In a given year, suppose the nominal GDP growth rate is 5 percent, the inflation rate is 1.2 percent, and the population growth rate is 3.8 percent. What is the real GDP per capita growth rate?

Correct AnswerverifiedShow Answer

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