Ch 8

Question 0

The number of years required for real GDP to double can be found by

Answer 0

Dividing 70 by the annual growth rate

Question 1

Real GDP per capita is found by

Answer 1

Dividing real GDP by population

Question 2

Countries that have experienced modern economic growth have also tended to

Answer 2

Move towards more democratic forms of government

Question 3

Real per capita GDP

Answer 3

Was much more equal across nations in 1820s and it is today

Question 4

Which of the following statements is most accurate about the prospects for poorer countries catching up with richer countries

Answer 4

Catching up is possible as follower countries tend to grow faster than leader countries

Question 5

True or false total output equals worker hours times labor productivity

Answer 5

True

Question 6

Other things equal, which of the following would increase the rate of economic growth, as measured by changes in real GDP

Answer 6

An increase in the size of the working age population

Question 7

The largest contributor to increases the productivity of American labor is

Answer 7

Technological advance

Question 8

Other things equal, if a full employment economy reallocated a substantial quantity of its resources to capital goods, we would expect

Answer 8

Labor productivity to rise

Question 9

Other things equal, which of the following would increase labor productivity the most

Answer 9

The increase in the stock of real capital exceeds the increase in inputs of labor

Question 10

Increases in the value of a product to each user, including existing users, as the total number of users prices are called

Answer 10

Network effects

Question 11

Between 1995 and 2009, the US productivity rate

Answer 11

Grew substantially compared to prior years, leading Some economist to predict a long-lasting resurgence of productivity growth

Question 12

True or false economist who support economic growth say that it is the most practical route to the higher standards of living that the vast majority of people desire

Answer 12

True

Question 13

The main point of the consider this box about hypothetical country’s Slogo, Sumgi, and Speedo is that over several decades different

Answer 13

Economic growth rates create large differences in real GDP per capita

Question 14

True or false. Growth is a widely held economical primarily because it creates a more equal distribution of wealth and income

Answer 14

False

Question 15

Growth is advantageous to a nation because it

Answer 15

Lessens the burden of scarcity

Question 16

If the economy real GDP doubles and 18 years we can

Answer 16

Conclude that its average annual rate of growth is about 4%

Question 17

The Industrial Revolution and modern economic growth resulted in

Answer 17

The average human lifespan more than doubling

Question 18

Supposed that an economies labor productivity and total work hours each grew by 4% between year one and year two. We could conclude that this economies

Answer 18

Production possibilities curve shifted outward

Question 19

Suppose that an economies labor productivity fell by 3% and it’s total worker hours remained constant between year 1 and 2. we could conclude that this economy

Answer 19

Real GDP declined

Question 20

Which of the following would not be expected to increase labor productivity

Answer 20

An increase in the size of the labor force

Question 21

Empirical studies suggest that

Answer 21

Technological advances account for about 40% of US productivity growth

Question 22

More than half the growth of real GDP in the US is caused by

Answer 22

Increases in the productivity of labor

Question 23

A nation’s infrastructure refers to

Answer 23

Public capital goods such as highways and sanitation systems

Question 24

The percentage of US adults with a high school education or above has

Answer 24

Risen from 41% in 1960 to 87% in 2009

Question 25

If the secular trends of labor productivity rises from 2% per year to 4%, the number of years that it will take for the standard of living to double to decline by about

Answer 25

17 years

Question 26

Proponents of economic growth say that pollution

Answer 26

Occurs, not because of growth, but because common resources are treated as free goods

Question 27

To consider this box patents and innovation demonstrates that

Answer 27

Patent protections for US companies may not be as effective when other countries do not respect or enforce US patent laws