Question 1

The Paris Agreement attempts to limit greenhouse gas emissions.

Accepted Answer

A) True 
 B)False

Question 2

Growth accounting estimates the contribution of each major factor in the aggregate production function to economic growth.

Accepted Answer

A) True 
 B)False

Question 3

Thomas Malthus:

Accepted Answer

A)   was President Reagan's primary economic adviser.
B)   successfully predicted the nationalization of the insurance company AIG.
C)   predicted that limited land supplies would prevent large increases in real incomes per capita.
D)   wrote The Limits to Growth in 1972.

Question 4

According to the convergence hypothesis,differences in real GDP per capita among countries tend to narrow over time because countries that start with a _____ real GDP per capita tend to have _____ growth rates.

Accepted Answer

A)   lower;higher
B)   lower;lower
C)   higher;higher
D)   higher;negative

Question 5

Long-run economic growth depends almost entirely on rising productivity.

Accepted Answer

A) True 
 B)False

Question 6

Suppose that real GDP per capita of Canada is $32 000 and its growth rate is 2% per year and that real GDP per capita of China is $4 000,and its annual growth rate is 7%.How many years will it take for China's real GDP per capita to be larger than real GDP per capita in Canada?

Accepted Answer

A)   70-75 years
B)   40-45 years
C)   15-20 years
D)   5-10 years

Question 7

If a country has a population of 1 000 people,an area of 100 square miles,and a GDP of $5 million,then its GDP per capita is:

Accepted Answer

A)   $500.
B)   $5 000.
C)   $50 000.
D)   $5 million.

Question 8

Diminishing returns to physical capital suggest that:

Accepted Answer

A)   when the amount of human capital per worker and the state of technology are fixed,successive increases in the amount of physical capital per worker lead to smaller increases in productivity.
B)   physical capital increases lead to drops in productivity when the amount of human capital per worker and the state of technology are fixed.
C)   increases in technological progress lead to decreases in productivity.
D)   physical capital must be increased less than human capital and technological progress for growth to occur.

Question 9

From 2010 to 2011,nation A's real GDP increased from $100 billion to $106 billion and its population grew from 50 million to 51 million.As a result,real GDP per capita _____ because real GDP rose _____ than the population.

Accepted Answer

A)   increased;more slowly
B)   increased;faster
C)   decreased;more slowly
D)   decreased;faster

Question 10

The convergence hypothesis is:

Accepted Answer

A)   wrong because Latin American and African countries have not been able to grow.
B)   not wrong,but education,infrastructure,and the rule of law are not equal among nations.
C)   not wrong,but because poorer nations are involved in so many destabilizing incidents like wars,disease,and famines;they will never be able to catch up with the rest of the world.
D)   wrong because the income of poorer nations seems to get worse over time and the income of richer nations gets better.

Question 11

Economic growth is likely to entail:

Accepted Answer

A)   a reduction in investment.
B)   a decrease in the capital stock.
C)   higher saving.
D)   lower saving.

Question 12

Having achieved sustained rapid growth,Chile is an exception to the disappointing slow economic growth among most other Latin American nations.

Accepted Answer

A) True 
 B)False

Question 13

Economic growth in sub-Saharan Africa has been dismal.Which factor is NOT a reason for Africa's problem?

Accepted Answer

A)   stable governments
B)   government corruption
C)   a lack of property rights
D)   a lack of infrastructure

Question 14

Holding the human capital per worker and technology unchanged,the estimated aggregate production function in Jamaica is Y / L = 50 * K / L,where Y = real output,L = number of workers,and K = quantity of physical capital.If real GDP per worker equals $3 200,physical capital per worker equals:

Accepted Answer

A)   $81.
B)   $64.
C)   $49.
D)   $100.

Question 15

Diminishing returns to physical capital means that,as more and more physical capital is added to fixed amounts of human capital with a fixed technology,eventually real GDP per worker declines.

Accepted Answer

A) True 
 B)False

Question 16

Sources of funds for investment spending include both foreign and domestic savings.

Accepted Answer

A) True 
 B)False

Question 17

Real GDP per capita,growing at a constant rate over a 35-year period,has doubled at the end of that period.What must the annual growth rate of real GDP per capita be for this economy?

Accepted Answer

A)   1%
B)   2%
C)   4%
D)   15%

Question 18

Diminishing returns to physical capital suggests that:

Accepted Answer

A)   at some point,increasing the amount of physical capital per worker is not worth the cost of the additional amount of capital.
B)   after some point,increasing the amounts of physical capital per worker will lead to decreases in productivity.
C)   increasing the amount of physical capital per worker is always worth the cost of the capital.
D)   there are increasing returns to technology and human capital.

Question 19

Increases in human capital will promote economic growth.

Accepted Answer

A) True 
 B)False

Question 20

Which statement accurately describes what is happening along a typical aggregate production function?

Accepted Answer

A)   At some point,increasing the amount of physical capital per worker will reduce productivity.
B)   Increases in physical capital per worker will always bring about an increase in productivity that is worth the cost of the additional physical capital.
C)   Because of diminishing returns,increasing the amount of physical capital per worker will eventually bring smaller and smaller increases in productivity.
D)   Adding workers results in real GDP per worker rising at an increasing rate throughout the function.

Exam 9: Long-Run Economic Growth

According to the convergence hypothesis,differences in real GDP per capita among countries tend to narrow over time because countries that start with a _____ real GDP per capita tend to have _____ growth rates.

Correct AnswerverifiedShow Answer

Economic growth in sub-Saharan Africa has been dismal.Which factor is NOT a reason for Africa's problem?

Correct AnswerverifiedShow Answer

Diminishing returns to physical capital suggests that:

Correct AnswerverifiedShow Answer

From 2010 to 2011,nation A's real GDP increased from $100 billion to $106 billion and its population grew from 50 million to 51 million.As a result,real GDP per capita _____ because real GDP rose _____ than the population.

Correct AnswerverifiedShow Answer

Thomas Malthus:

Correct AnswerverifiedShow Answer

Long-run economic growth depends almost entirely on rising productivity.

Correct AnswerverifiedShow Answer

Increases in human capital will promote economic growth.

Correct AnswerverifiedShow Answer

Growth accounting estimates the contribution of each major factor in the aggregate production function to economic growth.

Correct AnswerverifiedShow Answer

The Paris Agreement attempts to limit greenhouse gas emissions.

Correct AnswerverifiedShow Answer

Economic growth is likely to entail:

Correct AnswerverifiedShow Answer

Sources of funds for investment spending include both foreign and domestic savings.

Correct AnswerverifiedShow Answer

Holding the human capital per worker and technology unchanged,the estimated aggregate production function in Jamaica is Y / L = 50 * K / L,where Y = real output,L = number of workers,and K = quantity of physical capital.If real GDP per worker equals $3 200,physical capital per worker equals:

Correct AnswerverifiedShow Answer

Suppose that real GDP per capita of Canada is $32 000 and its growth rate is 2% per year and that real GDP per capita of China is $4 000,and its annual growth rate is 7%.How many years will it take for China's real GDP per capita to be larger than real GDP per capita in Canada?

Correct AnswerverifiedShow Answer

Real GDP per capita,growing at a constant rate over a 35-year period,has doubled at the end of that period.What must the annual growth rate of real GDP per capita be for this economy?

Correct AnswerverifiedShow Answer

Which statement accurately describes what is happening along a typical aggregate production function?

Correct AnswerverifiedShow Answer

Diminishing returns to physical capital suggest that:

Correct AnswerverifiedShow Answer

Having achieved sustained rapid growth,Chile is an exception to the disappointing slow economic growth among most other Latin American nations.

Correct AnswerverifiedShow Answer

Diminishing returns to physical capital means that,as more and more physical capital is added to fixed amounts of human capital with a fixed technology,eventually real GDP per worker declines.

Correct AnswerverifiedShow Answer

If a country has a population of 1 000 people,an area of 100 square miles,and a GDP of $5 million,then its GDP per capita is:

Correct AnswerverifiedShow Answer

The convergence hypothesis is:

Correct AnswerverifiedShow Answer

According to the convergence hypothesis,differences in real GDP per capita among countries tend to narrow over time because countries that start with a _ real GDP per capita tend to have _ growth rates.

Correct Answer
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From 2010 to 2011,nation A's real GDP increased from $100 billion to $106 billion and its population grew from 50 million to 51 million.As a result,real GDP per capita _ because real GDP rose _ than the population.

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