Question 1

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

Accepted Answer

A)   present consumption to rise.
B)   future consumption to fall.
C)   a lower rate of growth of real GDP.
D)   labour productivity to rise.E) A) and B)
F) B) and C)

Question 2

If the number of worker-hours in an economy is 100 and its labour productivity is 5 units of output per worker-hour,the economy's real GDP:

Accepted Answer

A)   is $20.
B)   is $500.
C)   is $5000.
D)   cannot be calculated.E) A) and D)
F) B) and C)

Question 3

One of the distinguishing features of the recent productivity growth is:

Accepted Answer

A)   decreasing returns to scale in manufacturing.
B)   the need for less specialized inputs in manufacturing.
C)   technological progress from the investment in the space program.
D)   technological progress from the microchip and information technology.E) B) and C)
F) A) and D)

Question 4

Real GDP = worker-hours × labour productivity.

Accepted Answer

A) True 
 B)False

Question 5

Other things being equal,all of the following would cause a rise in a country's real per capita GDP,except a(n) :

Accepted Answer

A)   increase in the general price level.
B)   decrease in the population size.
C)   increase in labour productivity.
D)   decrease in imports.E) B) and C)
F) A) and C)

Question 6

Over the past half century the growth of real GDP in Canada has been caused primarily by:

Accepted Answer

A)   a falling price level.
B)   the reallocation of labour from manufacturing to agriculture.
C)   increases in the productivity of labour.
D)   the use of fewer inputs of labour.E) C) and D)
F) A) and B)

Question 7

One of the main arguments against further growth for industrialized nations focuses on the problem of:

Accepted Answer

A)   technological knowledge.
B)   environmental quality.
C)   feedback mechanisms.
D)   infrastructure.E) All of the above
F) A) and B)

Question 8

An outward shift in the production possibilities curve is the direct result of improvements in the efficiency factor for economic growth.

Accepted Answer

A) True 
 B)False

Question 9

Improvements in education and training explain nearly 80 percent of the historical growth of Canadian labour productivity.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following countries has achieved the highest average annual rate of growth of real GDP from 1960 to 2007?

Accepted Answer

A)   United Kingdom
B)   South Korea
C)   Canada
D)   United StatesE) None of the above
F) C) and D)

Question 11

The movement of workers from lower productivity jobs to higher productivity jobs would be an example of a(n) :

Accepted Answer

A)   technological advance.
B)   network effects.
C)   simultaneous consumption.
D)   improved resource allocation.E) A) and D)
F) B) and C)

Question 12

What economic concept would be most closely associated with a situation where an aluminum plant uses extensive computerization on the production line to reduce per-unit costs of production?

Accepted Answer

A)   infrastructure
B)   human capital
C)   network effects
D)   economies of scaleE) A) and D)
F) A) and C)

Question 13

An anti-growth view would be that there may be a significant trade-off between productivity and:

Accepted Answer

A)   education.
B)   employment.
C)   economies of scale.
D)   the quality of life.E) C) and D)
F) B) and C)

Question 14

Which is best considered a supply factor for long-run economic growth?

Accepted Answer

A)   government spending
B)   the stock of capital goods
C)   full employment of resources
D)   personal consumption expendituresE) B) and D)
F) A) and B)

Question 15

The case against economic growth is often made using which of the following arguments?

Accepted Answer

A)   Limiting growth will contribute to more income equality across nations.
B)   Common property resources need to be protected by the price system.
C)   Economic growth permits us to "make a living," but it does not provide us with "the good life."
D)   Economic growth will contribute to more economic security,but it will also produce more boring life styles.E) A) and D)
F) A) and C)

Question 16

Real GDP was $9,950 billion in Year 1 and $10,270 billion in Year 2.The population rose from 270 million in Year 1 to 275 million in Year 2.What was the approximate increase in real GDP per capita rate from Year 1 to Year 2?

Accepted Answer

A)   1.3 percent
B)   2.1 percent
C)   3.3 percent
D)   4.2 percentE) A) and B)
F) B) and C)

Question 17

An outward shift of a nation's production possibilities curve:

Accepted Answer

A)   ensures the nation of an increase in real GDP per capita.
B)   could increase the nation's real GDP,but not the real- GDP per capita.
C)   could reduce the nation's real GDP.
D)   corresponds to a leftward shift of the nation's long-run aggregate supply curve.E) B) and D)
F) B) and C)

Question 18

The historical reallocation of labour from agriculture to manufacturing in Canada has:

Accepted Answer

A)   been inflationary.
B)   had no effect upon the average productivity of labour.
C)   increased the average productivity of labour.
D)   reduced the average productivity of labour.E) A) and D)
F) B) and C)

Question 19

-Refer to the above diagram.The most likely cause of a shift from AB to CD would be a(n) :

Accepted Answer

A)   increase in productivity.
B)   increase in the price level.
C)   decrease in the size of the labour force.
D)   recession.E) A) and B)
F) C) and D)

Question 20

Which of the following arguments are correct:

Accepted Answer

A)   Canada is entering an era of low structural unemployment due to rapid technological change.
B)   technological advance will result in a lower rate of economic growth.
C)   innovations in computers and communications,together with global competition,are boosting Canadian productivity and the economy's potential economic growth rate.
D)   technological change will require more central planning and government regulation.E) A) and C)
F) A) and B)

Exam 8: Economic Growth

The movement of workers from lower productivity jobs to higher productivity jobs would be an example of a(n) :

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The historical reallocation of labour from agriculture to manufacturing in Canada has:

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The case against economic growth is often made using which of the following arguments?

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An anti-growth view would be that there may be a significant trade-off between productivity and:

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If the number of worker-hours in an economy is 100 and its labour productivity is 5 units of output per worker-hour,the economy's real GDP:

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Which of the following arguments are correct:

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One of the main arguments against further growth for industrialized nations focuses on the problem of:

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Improvements in education and training explain nearly 80 percent of the historical growth of Canadian labour productivity.

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One of the distinguishing features of the recent productivity growth is:

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Real GDP was $9,950 billion in Year 1 and $10,270 billion in Year 2.The population rose from 270 million in Year 1 to 275 million in Year 2.What was the approximate increase in real GDP per capita rate from Year 1 to Year 2?

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What economic concept would be most closely associated with a situation where an aluminum plant uses extensive computerization on the production line to reduce per-unit costs of production?

Correct AnswerverifiedShow Answer

Over the past half century the growth of real GDP in Canada has been caused primarily by:

Correct AnswerverifiedShow Answer

-Refer to the above diagram.The most likely cause of a shift from AB to CD would be a(n) :

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An outward shift of a nation's production possibilities curve:

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Which of the following countries has achieved the highest average annual rate of growth of real GDP from 1960 to 2007?

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Which is best considered a supply factor for long-run economic growth?

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Real GDP = worker-hours × labour productivity.

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An outward shift in the production possibilities curve is the direct result of improvements in the efficiency factor for economic growth.

Correct AnswerverifiedShow Answer

Other things being equal,all of the following would cause a rise in a country's real per capita GDP,except a(n) :

Correct AnswerverifiedShow Answer

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

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