Question 1

Which of the following would be a source of economies of scale?

Accepted Answer

A)   the social environment
B)   the quantity of labour
C)   decreasing returns
D)   more specialized inputsE) A) and B)
F) A) and C)

Question 2

Which of the following would not be expected to increase labour productivity?

Accepted Answer

A)   technological advance
B)   the acquisition of more education and training by the labour force
C)   an increase in the size of the labour force
D)   the realization of economies of scaleE) B) and D)
F) C) and D)

Question 3

A source of increasing returns to scale is:

Accepted Answer

A)   less specialized inputs.
B)   less investment in technology.
C)   simultaneous consumption.
D)   the labour-force participation rate.E) B) and C)
F) All of the above

Question 4

Compared to the leader countries,the follower countries can grow at a faster rate because:

Accepted Answer

A)   follower countries have a hard time adopting a technology.
B)   leader countries cannot grow anymore.
C)   follower countries can skip past many stages of technology that the leader countries had to pass through.
D)   leader countries can skip past many stages of technology that the follower countries had to pass through.E) A) and C)
F) All of the above

Question 5

The slowdown of a nation's rate of productivity growth may:

Accepted Answer

A)   slow the growth of its standard of living.
B)   contribute to deflation.
C)   make its industries more competitive in world markets.
D)   reduce real wages.E) A) and B)
F) A) and D)

Question 6

A decline in a nation's rate of productivity growth will:

Accepted Answer

A)   reduce the inflation rate.
B)   increase education and training.
C)   slow the growth of the standard of living.
D)   make industry more competitive in world markets.E) B) and C)
F) A) and C)

Question 7

Which of the following statements is correct?

Accepted Answer

A)   between 1961 to 2011,Canadian real GDP has grown at about 3.3 percent per year and real GDP per capita has grown at about 2.1 percent per year.
B)   between 1961 to 2011,Canadian real GDP has grown at about 2.1 percent per year and real GDP per capita has grown at about 3.3 percent per year.
C)   between 1961 to 2011,Canadian real GDP and real GDP per capita have both grown at about 4 percent per year.
D)   between 1961 to 2011,Canadian real GDP and real GDP per capita have both grown at about 2 percent per year.E) None of the above
F) A) and B)

Question 8

If a nation's real GDP is growing by 5 percent per year,its real GDP will double in approximately:

Accepted Answer

A)   22 years.
B)   20 years.
C)   14 years.
D)   8 years.E) C) and D)
F) A) and B)

Question 9

Assume that an economy has 1500 workers,each working 2000 hours per year.If the average real output per worker-hour is $20,then total output or real GDP will be:

Accepted Answer

A)   $3 million.
B)   $30 million.
C)   $45 million.
D)   $60 million.E) B) and C)
F) All of the above

Question 10

-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:

Accepted Answer

A)   technological progress and industrial change.
B)   increases in the quantity and the quality of resources.
C)   improvement in labour productivity and the number of worker-hours.
D)   lack of full employment and inefficient allocation of resources.E) C) and D)
F) None of the above

Question 11

-Refer to the above diagram.Assume a nation's current production possibilities are represented by the curve AB.Positive economic growth would best be indicated by a:

Accepted Answer

A)   shift in the curve from AB to CD.
B)   shift in the curve from AB to EF.
C)   movement from point 1 to point 2.
D)   movement from point 3 to point 4.E) None of the above
F) A) and C)

Question 12

The most important contributor to increases in the productivity of Canadian labour is:

Accepted Answer

A)   the reallocation of labour from agriculture to manufacturing.
B)   improvements in labour quality.
C)   increases in the quantity of capital.
D)   technological advance.E) A) and C)
F) None of the above

Question 13

The rate of economic growth is best defined as the:

Accepted Answer

A)   increase in investment as a percentage of GDP over time.
B)   percentage increase in nominal GDP over time.
C)   percentage increase in real GDP over time.
D)   percentage increase in the quantity and quality of capital,human,and natural resources which occurs over time.E) A) and B)
F) A) and C)

Question 14

Defenders of growth say that it is the primary path to raising living standards.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)   labour inputs divided by resource outputs.
B)   labour productivity multiplied by real output.
C)   worker-hours multiplied by labour productivity.
D)   worker-hours divided by labour productivity.E) A) and B)
F) A) and C)

Question 16

Assume that in 2012 the nominal GDP was $350 billion and in 2013 it was $375 billion.On the basis of this information we:

Accepted Answer

A)   cannot make a meaningful comparison of the economy's performance in 2013 relative to 2012.
B)   can conclude that the economy was achieving real economic growth.
C)   can conclude that real GDP was higher in 2012 than in 2013.
D)   can conclude that real GDP was lower in 2012 than in 2013.E) A) and B)
F) B) and D)

Question 17

-Refer to the above table,between years 2 and 3:

Accepted Answer

A)   Italy's real GDP grew more rapidly than China's real GDP.
B)   real GDP fell in China.
C)   population growth reduced Italy's real GDP growth to zero.
D)   population fell in Italy's.E) All of the above
F) C) and D)

Question 18

The achievement of full employment through time will:

Accepted Answer

A)   diminish labour productivity.
B)   reduce the level of investment as a percentage of GDP.
C)   increase the rate of growth of real GDP.
D)   have no impact on the rate of growth of real GDP.E) A) and C)
F) A) and B)

Question 19

Which would be the best economic measure to compare standards of living among nations over time?

Accepted Answer

A)   changes in labour productivity
B)   changes in real domestic output
C)   changes in real GDP per capita
D)   changes in nominal income per capitaE) A) and D)
F) All of the above

Question 20

Real GDP was $9,950 billion in Year 1 and $10,270 billion in Year 2.What was the approximate rate of economic growth from Year 1 to Year 2?

Accepted Answer

A)   1.6 percent
B)   2.4 percent
C)   3.2 percent
D)   4.3 percentE) A) and B)
F) B) and D)

Exam 8: Economic Growth

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

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Which of the following would be a source of economies of scale?

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Which of the following statements is correct?

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A decline in a nation's rate of productivity growth will:

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-Refer to the above diagram.Assume a nation's current production possibilities are represented by the curve AB.Positive economic growth would best be indicated by a:

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Which would be the best economic measure to compare standards of living among nations over time?

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-Refer to the above table,between years 2 and 3:

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Which of the following would not be expected to increase labour productivity?

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Compared to the leader countries,the follower countries can grow at a faster rate because:

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Defenders of growth say that it is the primary path to raising living standards.

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Assume that an economy has 1500 workers,each working 2000 hours per year.If the average real output per worker-hour is $20,then total output or real GDP will be:

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A source of increasing returns to scale is:

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Real GDP was $9,950 billion in Year 1 and $10,270 billion in Year 2.What was the approximate rate of economic growth from Year 1 to Year 2?

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If a nation's real GDP is growing by 5 percent per year,its real GDP will double in approximately:

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The most important contributor to increases in the productivity of Canadian labour is:

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The rate of economic growth is best defined as the:

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-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:

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The achievement of full employment through time will:

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Assume that in 2012 the nominal GDP was $350 billion and in 2013 it was $375 billion.On the basis of this information we:

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The slowdown of a nation's rate of productivity growth may:

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