Macro Chapter 7 part 1

1.

1 point

The productivity growth rates of richer countries tend to be ____ than those of poorer countries.

higher

increasing faster

lower

decreasing faster

2.

1 point

The new growth theory emphasizes the critical role of ____ in modern economic growth.

new government programs

new natural resources

new machinery

new knowledge

3.

1 point

The shrinking gap between the income levels of poor and rich countries is known as the

convergence hypothesis

divergence hypothesis

confluent hypothesis

conservative hypothesis

4.

1 point

A productivity increase is illustrated by a shift in the production function

leftward

upward

rightward

downward

5.

1 point

The wealthy nations of the world have

larger labor forces

more supplies of capital

more supplies of natural resources

the largest populations

6.

1 point

The phrase "capital formation" is synonymous with

investment spending

creating mutual funds

purchasing financial assets

buying shares of stock

7.

1 point

Capital is a(n) ____ variable and investment is a(n) ____ variable.

physical, financial

asset, liability

stock, flow

flow, stock

8.

1 point

Higher rates of productivity growth are most closely associated with higher rates of

consumer spending

government spending

investment spending

import spending

9.

1 point

What determines the productivity growth rates of a country?

Current level of gross domestic product.

Amount of working capital currently available.

Rates of increase of capital, technology, and workforce quality

Current levels of human capital, physical capital, and technology.

10.

1 point

During the mid to late 1990s, the incentives for investment spending were provided by rising

aggregate demand

levels of capital gains

levels of corporate taxes

real interest rates

11.

1 point

In general, as productivity levels increase, the potential for productivity growth

increases

decreases

increases if GDP increases

remains the same

12.

1 point

The profitability of an investment project will increase if

tax rates increase

business tax deductions decrease

real interest rates increase

real interest rates decrease

13.

1 point

Compared to workers in poor countries, workers in richer countries have

the same productivity but higher wages

lower productivity but higher wages

higher productivity and higher wages

higher productivity but lower wages

14.

1 point

In the United States, the wage premium for college education has been

higher for males

decreasing since 1990

decreasing since 1980

increasing since 1980

15.

1 point

Which of the following would tend to shift the production function upward?

an increase in the size of the labor force

an increase in the level of technology

an increase in the number of hours worked.

an increase in population

16.

1 point

For a given technology and a given labor force, labor productivity will be ____ when the capital stock is ____.

lower;unchanged

lower; larger

higher; larger

higher; smaller

17.

1 point

Property rights uncertainty will usually cause

higher levels of real interest rates

lower levels of real interest rates

lower levels of investment spending

higher levels of investment spending

18.

1 point

The business sector in the United States has the most influence on

teacher training

primary education

higher education

on-the-job training

19.

1 point

In general, countries with lower rates of growth of labor productivity have

higher levels of productivity

lower levels of productivity

higher levels of natural resource endowments

lower levels of educational attainment

20.

1 point

Which of the following is not one of the three pillars of productivity growth?

rate of capital exapansion

rate of capacity utilization

rate of improvement in workforce quality

rate of technological improvement

21.

1 point

Human capital is the amount of

skill embodied in the workforce

capital available to workforce

output the labor force can produce

healthy work force in the total population

22.

1 point

How is human capital most commonly measured?

By the organizational rank and seniority

By the amount of education and training

By the amount of pay and incentives

By the compensation structure and work policies

23.

1 point

Capital gains are profits that you earn on the sale of your

financial asset

economics textbook

labor

money

24.

1 point

Getting more output from a given amount of inputs is usually the result of increases in

technology

the capital stock

investment

the labor force

25.

1 point

The graph that relates hours of labor input to output is called the

consumption function

conjunction function

capital function

production function

26.

1 point

In order to improve living standards for future generations, the economy must

increase government spending

reduce its investment goods

reduce growth in the population

sacrifice consumer goods today