Macroeconomics Chapter 11 Exam Solution Manual Already Passed
When an economy faces diminishing returns,
A. the slope of the per-worker production function becomes steeper as capital per hour worked increases
B. the per-worker production function shifts to the right
C. the per-worker productio...
A. the slope of the per-worker production function becomes steeper as capital per hour worked
increases
B. the per-worker production function shifts to the right
C. the per-worker production function shifts to the left
D. the slope of the per-worker production function becomes flatter as capital per hour worked increases
- Answers D. the slope of the per-worker production function becomes flatter as capital per hour worked
increases
The "New Economy" that emerged in the mid-1990s is based on
A. financial services
B. retail sales
C. manufacturing
D. information technology - Answers D. information technology
The Soviet Union's economy grew rapidly in terms of GDP per hour worked in the 1950s, but eventually
this growth slowed. Why did this occur?
A. Capital per hour worked grew slowly, but technological change grew very rapidly
B. Capital per hour worked grew rapidly from 1950 to 1980, but technological change occurred very
slowly
C. The centrally planned economy invested too heavily in technological change
D. Increasing implementation of new technologies eventually suffered diminishing marginal returns -
Answers B. Capital per hour worked grew rapidly from 1950 to 1980, but technological change occurred
very slowly
The purchase by an individual or firm of stock or bonds issued in another country is called
A. global stock exchange
B. foreign direct investment
C. foreign portfolio investment
D. foreign exchange arbitrage - Answers C. foreign portfolio investment
,Which of the following best explains why productivity growth in the United States has been faster than
in other leading industrialized nations?
A. European countries have more flexible policies regarding the number of hours employees are
permitted to work
B. There are fewer government regulations in the United States regarding the way firms can hire and fire
workers
C. The financial systems of foreign countries are generally more efficient than those in the United States
D. Job mobility in the United States is more restricted than it is in many foreign countries - Answers B.
There are fewer government regulations in the United States regarding the way firms can hire and fire
workers
Which of the following would you expect to result in faster economic growth?
A. the invention of new computers that increase labor productivity
B. a decrease in the average level of education in the economy
C. a decrease in research and development spending
D. a decrease in the stock of capital per worker - Answers A. the invention of new computers that
increase labor productivity
If real GDP per capita in the United States is $8,000, what will real GDP per capita in the United States be
after 5 years at an annual growth rate of 3.2%?
A. $9,280
B. $8,520
C. $10,560
D. $9,365 - Answers D. $9,365
In the United States, the annual growth rate of real GDP per hour worked between 1996 and 2012
averaged
A. 1.9%
B. -0.3%
C. 10.2%
D. 6.9% - Answers A. 1.9%
, Consider two countries, A and B. In country A, real GDP per capita is $6,000. In country B, real GDP per
capita is $9,000. Based on the economic growth model, what would you predict about the growth rates
in real GDP per capita across these two countries?
A. The economic growth model makes no predictions regarding differences in growth rates of real GDP
per capita across the two countries
B. The growth rate of real GDP per capita will be lower in country A than it is in country B
C. The growth rate of real GDP per capita in country A and country B will be the same
D. The growth rate of real GDP per capita will be higher in country A than it is in country B - Answers D.
The growth rate of real GDP per capita will be higher in country A than it is in country B
Which of the following government provisions would help increase the accumulation of knowledge
capital?
A. copyrights
B. patents
C. education subsidies
D. all of the above are correct - Answers D. all of the above are correct
One reason why many low-income countries experience low rates of growth is because of low rates of
saving and investment in those countries.
-True
-False - Answers True
The period of time from 1,000,000 B.C. to 1300 A.D. was a period of
A. slow and steady economic growth
B. moderate economic growth
C. rapid and sustained economic growth
D. no sustained economic growth - Answers D. no sustained economic growth
You are an economic advisor to the president. You are asked to recommend a policy to promote long
term economic growth in the economy. Which of the following policies would you choose?
A. an investment tax credit
B. a reduction in sales taxes
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