Chapter 8 Economic growth

Taylor Economics – Chapter 8 1. Which is a demand factor in economic growth? More human and natural resources Technological progress and innovation An increase in the economy's stock of capital goods An increase in total spending in the economy Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 8 1. Which is a demand factor in economic growth? More human and natural resources Technological progress and innovation An increase in the economy's stock of capital goods An increase in total spending in the economy Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 8 2. The entry of women into the workforce since the 1960s resulted in: A shift outward in the production possibilities curve of the United States A shift inward in the production possibilities curve in the United States A movement along the existing production possibilities curve in the United States A falling real wage for women workers of the United States Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 8 2. The entry of women into the workforce since the 1960s resulted in: A shift outward in the production possibilities curve of the United States A shift inward in the production possibilities curve in the United States A movement along the existing production possibilities curve in the United States A falling real wage for women workers of the United States Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 8 3. A decline in a nation's rate of productivity growth will: Reduce the inflation rate Increase education and training Slow the growth of the standard of living Make industry more competitive in world markets Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 8 3. A decline in a nation's rate of productivity growth will: Reduce the inflation rate Increase education and training Slow the growth of the standard of living Make industry more competitive in world markets Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 8 4. If the annual growth in a nation's productivity is 2.5 percent rather than 1.5 percent, then the nation's standard of living will double in about: 20 years 28 years 46 years 56 years Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 8 4. If the annual growth in a nation's productivity is 2.5 percent rather than 1.5 percent, then the nation's standard of living will double in about: 20 years 28 years 46 years 56 years Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 8 5. Which is best considered a supply factor for long-run economic growth? Government spending The stock of capital goods Full employment of resources Personal consumption expenditures Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 8 5. Which is best considered a supply factor for long-run economic growth? Government spending The stock of capital goods Full employment of resources Personal consumption expenditures Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 8 6. Real GDP per capita: cannot grow more rapidly than real GDP. cannot grow more slowly than real GDP. necessarily grows more rapidly than real GDP. can grow either more slowly or more rapidly than real GDP. Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 8 6. Real GDP per capita: cannot grow more rapidly than real GDP. cannot grow more slowly than real GDP. necessarily grows more rapidly than real GDP. can grow either more slowly or more rapidly than real GDP. Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 8 7. Growth is advantageous to a nation because it: promotes faster population growth. lessens the burden of scarcity. eliminates the economizing problem. slows the growth of wants. Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 8 7. Growth is advantageous to a nation because it: promotes faster population growth. lessens the burden of scarcity. eliminates the economizing problem. slows the growth of wants. Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 8 8. Increases in the value of a product to each user, including existing users, as the total number of users rises are called: information cascades. learning effects. network effects. scale economies. Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 8 8. Increases in the value of a product to each user, including existing users, as the total number of users rises are called: information cascades. learning effects. network effects. scale economies. Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 8 9. Economists who believe that the recent increase in the average productivity growth rate may be permanent claim that the above-normal economic growth in the United States between 1995 and 2009 was caused by: increases in the rate of personal saving. increased entrepreneurial activity, application of information technology, and global competition. rising Federal budget surpluses that reduced real interest rates. expansionary monetary policy. Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 8 9. Economists who believe that the recent increase in the average productivity growth rate may be permanent claim that the above-normal economic growth in the United States between 1995 and 2009 was caused by: increases in the rate of personal saving. increased entrepreneurial activity, application of information technology, and global competition. rising Federal budget surpluses that reduced real interest rates. expansionary monetary policy. Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 8 10. Critics of economic growth: contend that growth and industrialization reduce pollution. argue that economic growth does not resolve socioeconomic problems such as an unequal distribution of income and wealth. point out that growth results in greater economic security for workers. say that its benefits accrue nearly exclusively to white males. Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.

Taylor Economics – Chapter 8 10. Critics of economic growth: contend that growth and industrialization reduce pollution. argue that economic growth does not resolve socioeconomic problems such as an unequal distribution of income and wealth. point out that growth results in greater economic security for workers. say that its benefits accrue nearly exclusively to white males. Source: Ch 1, Micro Test Bank, #2 Copyright © Houghton Mifflin Company. All rights reserved.