Question 1

Well-defined property rights:

Accepted Answer

A)  are clearly written in English.
B)  restrict the use of land and natural resources to productive uses.
C)  allow the government to confiscate property.
D)  clearly state who owns resources and how the resources can be used.E) A) and D)
F) B) and C)

Question 2

The principle that if the amount of labor and other inputs is held constant,then the greater the amount of capital in use,the less an additional unit of capital adds to production is called the principle of:

Accepted Answer

A)  increasing average capital productivity.
B)  diminishing returns to capital.
C)  increasing returns to capital.
D)  decreasing output per unit of capital.E) All of the above
F) B) and C)

Question 3

Over the period from 1950 to 2008,which country experienced the fastest average annual growth rate of real GDP per person?

Accepted Answer

A)  United States
B)  Japan
C)  China
D)  CanadaE) All of the above
F) None of the above

Question 4

A political system that promotes the free and open exchange of ideas:

Accepted Answer

A)  will not have well-defined property rights.
B)  slows the development of new technologies and products.
C)  increases average labor productivity.
D)  is detrimental to economic growth.E) None of the above
F) A) and D)

Question 5

Governments contribute to increased average labor productivity in each of the following ways EXCEPT by:

Accepted Answer

A)  establishing well-defined property rights.
B)  maintaining political stability.
C)  imposing taxes on wages.
D)  allowing the free and open exchange of ideas.E) B) and C)
F) None of the above

Question 6

Bank C promises to pay a compound annual interest rate of 6 percent,while Bank S pays an 8 percent simple annual interest rate on deposits.If you deposit $1,000 in each bank,after 10 years,your deposit in Bank C equals _____,while your deposit in Bank S equals ______.

Accepted Answer

A)  $1,060;$1,800
B)  $1,600;$1,800
C)  $1,600;$2,159
D)  $1,791;$1,800E) B) and C)
F) None of the above

Question 7

Entrepreneurs contribute to increased average labor productivity in each of the following ways EXCEPT by:

Accepted Answer

A)  introducing new production methods.
B)  implementing new technological processes.
C)  developing new products.
D)  assigning workers to jobs.E) B) and C)
F) A) and D)

Question 8

Getting a college degree is an example of investing in:

Accepted Answer

A)  human capital.
B)  physical capital.
C)  technology.
D)  research and development.E) B) and D)
F) A) and B)

Question 9

Increasing the capital available to the workforce,holding other factors constant,tends to ______ total output while ______ average labor productivity.

Accepted Answer

A)  increase;decreasing
B)  increase;increasing
C)  increase;not changing
D)  decrease;increasingE) B) and D)
F) A) and D)

Question 10

In the Soviet Union,firm managers had ______ incentive to reduce costs and produce better products because of ______.

Accepted Answer

A)  little;the absence of private property rights
B)  little;the absence of free markets
C)  great;government threats
D)  great;the complexity of coordinating economic activityE) A) and B)
F) A) and C)

Question 11

If you left $2,500 on deposit with a bank promising to pay you a 6 percent compound annual rate of interest,then after 50 years your deposit would be worth approximately:

Accepted Answer

A)  $2,800
B)  $18,420
C)  $46,050
D)  $250,750E) A) and C)
F) A) and B)

Question 12

If 50 percent of the population in a country is employed and average labor productivity equals $30,000,then real GDP per person equals:

Accepted Answer

A)  $15,000.
B)  $30,000.
C)  $50,000.
D)  $60,000.E) None of the above
F) B) and C)

Question 13

A government policy that allows retirement savings to accumulate tax-free is an example of a policy to promote economic growth by:

Accepted Answer

A)  increasing human capital.
B)  increasing physical capital.
C)  improving technology.
D)  increasing the availability of natural resources.E) None of the above
F) B) and C)

Question 14

Mike and Tom debone chicken breasts for Ted's Chicken Co.Mike is new and can only debone 60 chicken breasts per hour,while Tom's experience allows him to debone 120 chicken breasts per hour.Both Mike and Tom work 40 hours per week.Their average hourly productivity as a team is ______ chicken breasts.

Accepted Answer

A)  60
B)  75
C)  90
D)  100E) A) and B)
F) A) and C)

Question 15

Most political scientists and economists agree that ______ is detrimental to economic growth.

Accepted Answer

A)  a set of well-defined property rights
B)  the free and open exchange of ideas
C)  political instability
D)  a just-in-time inventory systemE) A) and B)
F) A) and C)

Question 16

Arguing that economic growth will eventually stop because we will run out of natural resources:

Accepted Answer

A)  must be correct because scarcity exists.
B)  will only be correct if growth takes the form of newer,more efficient goods and services.
C)  ignores the power of markets to recognize shortages and induce changes in behavior.
D)  is supported today by the fact that richer countries have fewer natural resources.E) A) and D)
F) All of the above

Question 17

Economists refer to the talents,training,and education of workers as:

Accepted Answer

A)  human capital.
B)  physical capital.
C)  average labor productivity.
D)  labor supply.E) None of the above
F) A) and B)

Question 18

High rates of saving and investing in the private sector promote economic growth by:

Accepted Answer

A)  increasing human capital.
B)  improving the social and legal environment.
C)  increasing physical capital.
D)  improving technology.E) A) and B)
F) All of the above

Question 19

U.S.productivity growth has rebounded since 1995 largely as a result of:

Accepted Answer

A)  increases in human capital.
B)  discoveries of new natural resources.
C)  increased political stability.
D)  advances in information and communication technology.E) None of the above
F) A) and D)

Question 20

Which of the following is consistent with a political and legal framework that discourages economic growth?

Accepted Answer

A)  The allocation of bank credit by the government rather than by markets
B)  A speedy approval process for new businesses
C)  Agricultural prices that are allowed to vary according to market conditions
D)  Taxation and regulation that are not very burdensomeE) C) and D)
F) A) and B)

Exam 18: Economic Growth

Which of the following is consistent with a political and legal framework that discourages economic growth?

Correct Answer
verified

Getting a college degree is an example of investing in:

Correct Answer
verified

Increasing the capital available to the workforce,holding other factors constant,tends to total output while average labor productivity.

Correct Answer
verified

U.S.productivity growth has rebounded since 1995 largely as a result of:

Correct Answer
verified

Over the period from 1950 to 2008,which country experienced the fastest average annual growth rate of real GDP per person?

Correct Answer
verified

High rates of saving and investing in the private sector promote economic growth by:

Correct Answer
verified

The principle that if the amount of labor and other inputs is held constant,then the greater the amount of capital in use,the less an additional unit of capital adds to production is called the principle of:

Correct Answer
verified

A government policy that allows retirement savings to accumulate tax-free is an example of a policy to promote economic growth by:

Correct Answer
verified

Arguing that economic growth will eventually stop because we will run out of natural resources:

Correct Answer
verified

Governments contribute to increased average labor productivity in each of the following ways EXCEPT by:

Correct Answer
verified

If you left $2,500 on deposit with a bank promising to pay you a 6 percent compound annual rate of interest,then after 50 years your deposit would be worth approximately:

Correct Answer
verified

A political system that promotes the free and open exchange of ideas:

Correct Answer
verified

Economists refer to the talents,training,and education of workers as:

Correct Answer
verified

In the Soviet Union,firm managers had incentive to reduce costs and produce better products because of .

Correct Answer
verified

Entrepreneurs contribute to increased average labor productivity in each of the following ways EXCEPT by:

Correct Answer
verified

If 50 percent of the population in a country is employed and average labor productivity equals $30,000,then real GDP per person equals:

Correct Answer
verified

Correct Answer
verified

Most political scientists and economists agree that ______ is detrimental to economic growth.

Correct Answer
verified

Bank C promises to pay a compound annual interest rate of 6 percent,while Bank S pays an 8 percent simple annual interest rate on deposits.If you deposit $1,000 in each bank,after 10 years,your deposit in Bank C equals _,while your deposit in Bank S equals __.

Correct Answer
verified

Well-defined property rights:

Correct Answer
verified

Exam 18: Economic Growth

Which of the following is consistent with a political and legal framework that discourages economic growth?

Correct AnswerverifiedShow Answer

Getting a college degree is an example of investing in:

Correct AnswerverifiedShow Answer

Increasing the capital available to the workforce,holding other factors constant,tends to ______ total output while ______ average labor productivity.

Correct AnswerverifiedShow Answer

U.S.productivity growth has rebounded since 1995 largely as a result of:

Correct AnswerverifiedShow Answer

Over the period from 1950 to 2008,which country experienced the fastest average annual growth rate of real GDP per person?

Correct AnswerverifiedShow Answer

High rates of saving and investing in the private sector promote economic growth by:

Correct AnswerverifiedShow Answer

The principle that if the amount of labor and other inputs is held constant,then the greater the amount of capital in use,the less an additional unit of capital adds to production is called the principle of:

Correct AnswerverifiedShow Answer

A government policy that allows retirement savings to accumulate tax-free is an example of a policy to promote economic growth by:

Correct AnswerverifiedShow Answer

Arguing that economic growth will eventually stop because we will run out of natural resources:

Correct AnswerverifiedShow Answer

Governments contribute to increased average labor productivity in each of the following ways EXCEPT by:

Correct AnswerverifiedShow Answer

If you left $2,500 on deposit with a bank promising to pay you a 6 percent compound annual rate of interest,then after 50 years your deposit would be worth approximately:

Correct AnswerverifiedShow Answer

A political system that promotes the free and open exchange of ideas:

Correct AnswerverifiedShow Answer

Economists refer to the talents,training,and education of workers as:

Correct AnswerverifiedShow Answer

In the Soviet Union,firm managers had ______ incentive to reduce costs and produce better products because of ______.

Correct AnswerverifiedShow Answer

Entrepreneurs contribute to increased average labor productivity in each of the following ways EXCEPT by:

Correct AnswerverifiedShow Answer

If 50 percent of the population in a country is employed and average labor productivity equals $30,000,then real GDP per person equals:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Most political scientists and economists agree that ______ is detrimental to economic growth.

Correct AnswerverifiedShow Answer

Bank C promises to pay a compound annual interest rate of 6 percent,while Bank S pays an 8 percent simple annual interest rate on deposits.If you deposit $1,000 in each bank,after 10 years,your deposit in Bank C equals _____,while your deposit in Bank S equals ______.

Correct AnswerverifiedShow Answer

Well-defined property rights:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Increasing the capital available to the workforce,holding other factors constant,tends to total output while average labor productivity.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

In the Soviet Union,firm managers had incentive to reduce costs and produce better products because of .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Bank C promises to pay a compound annual interest rate of 6 percent,while Bank S pays an 8 percent simple annual interest rate on deposits.If you deposit $1,000 in each bank,after 10 years,your deposit in Bank C equals _,while your deposit in Bank S equals __.

Correct Answer
verified

Correct Answer
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