Download 1. For comparing changes in potential military strength and political

Pre test – chp 25 2015
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1. For comparing changes in potential military strength and political preeminence, the most
meaningful measure of economic growth would be changes in:
A. total nominal output.
B. total real output.
C. per capita output.
D. per family output.
2. The number of years required for real GDP to double can be found by:
A. dividing the annual growth rate by .07.
B. multiplying the annual growth rate by 70.
C. dividing 70 by the annual growth rate.
D. adding 14 to annual growth rate.
3. Which of the following statements is most accurate about modern economic growth?
A. Economic historians mark modern economic growth as beginning around A.D. 1500.
B. Modern economic growth is characterized by sustained and ongoing increases in living
standards.
C. Modern economic growth has virtually eliminated business cycle fluctuations.
D. Modern economic growth has been distributed more or less equally across nations.
4. Real per capita GDP:
A. grows at approximately the same rate for all countries.
B. was much more equal across nations in 1820 than it is today.
C. has been about 20 times higher in the richer nations than the poorer nations for about 2000
years.
D. grows much faster in "leader countries" than in "follower countries."
5. Based on the annual number of hours worked per capita, labor supply in the United States
exceeds that of France by about _______ percent.
A. 20
B. 40
C. 51
D. 62
Pre test – chp 25 2015
Use the list below to answer the following questions:
1. Improvements in technology
2. Increases in the supply (stock) of capital goods
3. Purchases of expanding output
4. Obtaining the optimal combination of goods, each at least-cost production
5. Increases in the quantity and quality of natural resources
6. Increases in the quantity and quality of human resources
6. Refer to the above list. As distinct from the supply factors and efficiency factor of economic
growth, the demand factor(s) of economic growth is (are):
A. 1 only.
B. 4 only.
C. 1 and 3 only.
D. 3 only.
AACSB: Analytic
Bloom's: Level 2 Understand
Difficulty: 2 Medium
Learning Objective: 25-03 Identify the general supply; demand; and efficiency forces that give rise to economic growth.
Topic: Determinants of growth
7. Refer to the above list. As distinct from the supply factors and demand factor of economic
growth, the efficiency factor(s) of economic growth is (are):
A. 1 only.
B. 4 only.
C. 1 and 3 only.
D. 3 only.
8. Which set of items in the above list would move an economy from a point inside its
production possibilities curve to a point on its production possibilities curve?
A. 1, 2, 5, and 6 only
B. 3 and 4 only
C. 3 only
D. 1, 3, 4 only
Pre test – chp 25 2015
9. Which of the following is correct?
A. total output = labor productivity/worker-hours
B. labor productivity = worker-hours/total output
C. total output = worker-hours × labor productivity
D. worker-hours = labor productivity × total output
10. Other things equal, which of the following would decrease the rate of economic growth, as
measured by changes in real GDP?
A. An increase in the educational attainment of the labor force
B. A permanent decrease in frictional unemployment
C. An increase in the amount of capital per worker
D. A decrease in the labor force participation rate
11. Which of the following statements is correct?
A. Between 1953 and 2009, all growth in U.S. real GDP can be attributed to increases in labor
productivity.
B. Between 1953 and 2009, increases in labor productivity account for more of the growth in
U.S. real GDP than do increases in the quantity of labor.
C. Between 1953 and 2009, increases in the quantity of labor account for more of the growth in
U.S. real GDP than do increases in labor productivity.
D. Between 1953 and 2009, all growth in U.S. real GDP can be attributed to increases in the
quantity of labor.
12. Between 2009 and 2020, productivity growth is expected to account for about ________
percent of the growth of real GDP in the United States.
A. 23
B. 40
C. 75
D. 92
13. The historical reallocation of labor from agriculture to manufacturing in the United States
has:
A. been inflationary.
B. had no effect on the average productivity of labor.
C. increased the average productivity of labor.
D. reduced the average productivity of labor.
14. A nation's infrastructure refers to:
A. its ability to realize economies of scale.
B. its stock of technological knowledge.
C. public capital goods such as highways and sanitation systems.
D. the productivity of its labor force.
Pre test – chp 25 2015
15. What percentage of the U.S. adult population has a college or post-college education (as of
2009)?
A. 8 percent
B. 29 percent
C. 41 percent
D. 87 percent
16. If the growth trend of labor productivity is 3 percent per year, the number of years that it will
take for the standard of living to double will be about:
A. 15 years.
B. 17 years.
C. 20 years.
D. 23 years.
17. The period in the U.S. economy from 1995 to 2009 is characterized by:
A. a higher trend rate of saving.
B. a higher natural rate of unemployment.
C. a higher trend rate of productivity growth.
Pre test – chp 25 2015
Answers:
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B
C
B
B
B
D
B
B
C
D
B
D
C
C
B
D
C