Question 1

Economic well-being in Canada is understated by growth rates because they:

Accepted Answer

A)   account for pollution expenditures.
B)   account for improvement in products.
C)   account for illegal activity.
D)   don't account for the added leisure of labour.E) B) and C)
F) All of the above

Question 2

A nation's "infrastructure" refers to:

Accepted Answer

A)   its ability to realize economies of scale.
B)   its stock of technological knowledge.
C)   public capital goods such as highways and utilities.
D)   the productivity of its labour force.E) All of the above
F) A) and D)

Question 3

-Refer to the above diagram.If the production possibilities curve of an economy shifts from AB to EF,it is most likely the result of what factor affecting economic growth?

Accepted Answer

A)   a supply factor
B)   a demand factor
C)   an efficiency factor
D)   an allocation factorE) C) and D)
F) B) and C)

Question 4

-Refer to the above table,per capita GDP was about:

Accepted Answer

A)   $105 in year 3 in Italy.
B)   $303 in year 3 in China.
C)   $200 in year 1 in China
D)   $5 in year 2 in Italy.E) B) and C)
F) A) and D)

Question 5

Real GDP per capita is found by:

Accepted Answer

A)   adding real GDP and population.
B)   subtracting population from real GDP.
C)   dividing real GDP by population.
D)   dividing population by real GDP.E) A) and B)
F) A) and C)

Question 6

Economic well-being in Canada is overstated by growth rates because they don't account for:

Accepted Answer

A)   increases in services.
B)   increase in leisure time.
C)   improvements in product quality.
D)   adverse effects on the environment.E) A) and C)
F) A) and D)

Question 7

-Refer to the above diagram.If there is a movement away from the full employment of resources in an economy with production possibilities curve AB,this can be shown by:

Accepted Answer

A)   a shift of the curve from AB to CD.
B)   a movement from point 3 to point 1.
C)   a movement from point 2 to point 4.
D)   point 5 in the diagram.E) A) and B)
F) A) and C)

Question 8

Economic growth lessens the burden of scarcity and provides increases in domestic output which can be used to alleviate national economic problems.

Accepted Answer

A) True 
 B)False

Question 9

-Refer to the above table.Between years 1 and 2,real GDP per capita grew by _____ percent in Italy:

Accepted Answer

A)   3
B)   4
C)   5
D)   10E) B) and C)
F) A) and C)

Question 10

Which is a demand factor in economic growth?

Accepted Answer

A)   more human and natural resources
B)   technological progress and innovation
C)   an increase in the economy's stock of capital goods
D)   an increase in total spending in the economyE) A) and D)
F) A) and B)

Question 11

Poorer follower countries can grow much faster than leader countries because they can simply adopt existing technologies from richer leader countries.

Accepted Answer

A) True 
 B)False

Question 12

If the economy's real GDP doubles in 18 years,we can:

Accepted Answer

A)   not say anything about the average annual rate of growth.
B)   conclude that its average annual rate of growth is about 5.5 percent.
C)   conclude that its average annual rate of growth is about 2 percent.
D)   conclude that its average annual rate of growth is about 4 percent.E) A) and B)
F) A) and D)

Question 13

Which of the following is not a supply factor in economic growth?

Accepted Answer

A)   the stock of capital
B)   technological advance
C)   the size and quality of the labour force
D)   full employmentE) B) and D)
F) B) and C)

Question 14

Which of the following is correct?

Accepted Answer

A)   total output = labour productivity/worker-hours
B)   labour productivity = worker-hours/total output
C)   total output = worker-hours × labour productivity
D)   worker-hours = labour productivity × total outputE) B) and D)
F) B) and C)

Question 15

Suppose nominal GDP in 1996 was $100 billion and in 1998 it was $260 billion.The general price index in 1996 was 100 and in 1998 it was 180.Between 1996 and 1998 the real GDP rose by:

Accepted Answer

A)   160 percent.
B)   44 percent.
C)   37 percent.
D)   12 percent.E) B) and D)
F) C) and D)

Question 16

-Refer to the above diagram.If the production possibilities curve for an economy is at AB but the economy is operating at point 4,the reasons are most likely to be because of:

Accepted Answer

A)   supply and environmental factors.
B)   demand and efficiency factors.
C)   labour inputs and labour productivity.
D)   technological progress.E) A) and B)
F) None of the above

Question 17

The rise in productivity seen in the last decade is believed to be due to a significant new wave of technological advance coupled with global competition.

Accepted Answer

A) True 
 B)False

Question 18

Increases in the value of the product to each user,including existing users,as the total number of users rises is called:

Accepted Answer

A)   network effects.
B)   simultaneous consumption.
C)   learning by doing.
D)   the spreading of development costs.E) None of the above
F) A) and B)

Question 19

One of the basic economic defences of economic growth rests on the conclusion that:

Accepted Answer

A)   growth makes workers less obsolete and more secure in employment.
B)   growth reduces the cost to society of "common property" resources.
C)   growth makes the gap between unlimited wants and scarce resources less acute.
D)   a growth-oriented society confers a "work and look to the future" attitude on the members of society.E) All of the above
F) A) and B)

Question 20

The best measure of economic growth adjusted for the population of a nation is the increase in:

Accepted Answer

A)   aggregate demand over time.
B)   real GDP per worker over time.
C)   real GDP per capita over time.
D)   real GDP per dollar of capital stock over time.E) B) and C)
F) A) and B)

Exam 8: Economic Growth

A nation's "infrastructure" refers to:

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Real GDP per capita is found by:

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-Refer to the above diagram.If the production possibilities curve for an economy is at AB but the economy is operating at point 4,the reasons are most likely to be because of:

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Which of the following is correct?

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Which of the following is not a supply factor in economic growth?

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If the economy's real GDP doubles in 18 years,we can:

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The rise in productivity seen in the last decade is believed to be due to a significant new wave of technological advance coupled with global competition.

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-Refer to the above table,per capita GDP was about:

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Economic well-being in Canada is understated by growth rates because they:

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Increases in the value of the product to each user,including existing users,as the total number of users rises is called:

Correct AnswerverifiedShow Answer

Economic growth lessens the burden of scarcity and provides increases in domestic output which can be used to alleviate national economic problems.

Correct AnswerverifiedShow Answer

Economic well-being in Canada is overstated by growth rates because they don't account for:

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Poorer follower countries can grow much faster than leader countries because they can simply adopt existing technologies from richer leader countries.

Correct AnswerverifiedShow Answer

-Refer to the above diagram.If the production possibilities curve of an economy shifts from AB to EF,it is most likely the result of what factor affecting economic growth?

Correct AnswerverifiedShow Answer

One of the basic economic defences of economic growth rests on the conclusion that:

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-Refer to the above table.Between years 1 and 2,real GDP per capita grew by _____ percent in Italy:

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The best measure of economic growth adjusted for the population of a nation is the increase in:

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Suppose nominal GDP in 1996 was $100 billion and in 1998 it was $260 billion.The general price index in 1996 was 100 and in 1998 it was 180.Between 1996 and 1998 the real GDP rose by:

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-Refer to the above diagram.If there is a movement away from the full employment of resources in an economy with production possibilities curve AB,this can be shown by:

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Which is a demand factor in economic growth?

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