宏观经济学题库

MacroeconomicsylOe(Parkin)

Chapter6EconomicGrowth

1TheBasicsofEconomicGrowth

1)Thebestdefinitionforeconomicgrowthis

A)asustainedexpansionofproductionpossibilitiesmeasuredastheincreaseinrealGDPovera

givenperiod.

B)asustainedexpansionofproductionpossibilitiesmeasuredastheincreaseinnominalGDP

overagivenperiod.

C)asustainedexpansionofconsumptiongoodsoveragivenperiod.

D)asustainedexpansionofproductiongoodsoveragivenperiod.

Answer:A

Topic:Long-TermGrowthTrends

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

2)Economicgrowthismeasuredby

A)changesinrealGDP.

B)changesinnominalGDP.

C)changesintheemploymentrate.

D)Alloftheaboveareusedtomeasureeconomicgrowth.

Answer:A

Topic:Long-TermGrowthTrends

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

3)Weareinterestedinlong-termgrowthprimarilybecauseitbrings

A)higherpricelevels.

B)lowerpricelevels.

C)higherstandardsofliving.

D)tradewarswithourtradingpartners.

Answer:C

Topic:Long-TermGrowthTrends

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

4)Ifanation'spopulationgrows,then,

A)growthinrealGDPperpersonwillbelessthanthegrowthofrealGDP.

B)therecanbenoeconomicgrowth.

C)growthinrealGDPperpersonwillbegreaterthanthegrowthofrealGDP.

D)theremustbeanincreaseinrealGDPperperson.

Answer:A

Topic:Long-TermGrowthTrends

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

5)In2008,ArmeniahadarealGDPof$4.21billionandapopulationof2.98million.In2009,

realGDPwas$4.59billionandpopulationwas2.97million.WhatwasArmenia'seconomic

growthratefrom2008to2009?

A)0.38percent

B)9.0percent

C)3.8percent

D)8.3percent

Answer:B

Topic:EconomicGrowthRate

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

6)In2008,ArmeniahadarealGDPofapproximately$4.21billionandapopulationof2.98

inillion.In2009,realGDPwas$4.59billionandpopulationwas2.97million.From2008to

2009,Armenia'sstandardofliving.

A)increased

B)decreased

C)didnotchange

D)mighthaveincreased,decreased,orremainedunchangedbutmoreinformationisneededto

determinewhich.

Answer:A

Topic:EconomicGrowthRate

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

7)In2008,ArmeniahadarealGDPofapproximately$4.21billionandapopulationof2.98

million.In2009,realGDPwas$4.59billionandpopulationwas2.97million.Armenia'sreal

GDPperpersonin2009was

A)$1,545

B)$38()

C)$1,413

D)$132

Answer:A

Topic:EconomicGrowthRate

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

8)During2011,thecountryofEconomiahadarealGDPof$115billionandthepopulationwas

0.9billion.In2010,realGDPwas105billionandthepopulationwas().85billion.In2011,

realGDPperpersonwas

A)$128

B)$124

C)$135

D)$117

Answer:A

Topic:EconomicGrowthRate

Skill:Analytical

Questionhistory:Modified10thedition

AACSB:AnalyticalSkills

9)During2011,thecountryofEconomiahadarealGDPof$115billionandthepopulationwas

0.9billion.In2010,realGDPwas105billionandthepopulationwas0.85billion.In2010,

realGDPperpersonwas

A)$128

B)$124

C)$135

D)$117

Answer:B

Topic:EconomicGrowthRate

Skill:Analytical

Questionhistory:Modified10thedition

AACSB:AnalyticalSkills

10)SupposerealGDPforacountryis$13trillionin2007,$14trillionin2008,$15trillionin

2009,and$16trillionin2010.Overthistimeperiod,therealGDPgrowthrateis

A)increasing.

B)decreasing.

C)constant.

D)negative.

Answer:B

Topic:EconomicGrowthRate

Skill:Analytical

Questionhistory:New10thedition

AACSB:AnalyticalSkills

11)Supposethatin2009acountryhasapopulationof1millionandrealGDPof$1billion.In

2010,thepopulationis1.1millionandtherealGDPis$1.1billion.TherealGDPperperson

growthrateis

A)$10(X).

B)positive.

C)negative.

D)zero.

Answer:D

Topic:EconomicGrowthRate

Skill:Analytical

Questionhistory:New10thedition

AACSB:AnalyticalSkills

12)During2009,thecountryofEconomiahadarealGDPof$115billionandthepopulation

was0.9billion.In2008,realGDPwas105billionandthepopulationwas0.85billion.

Economia'sgrowthrateofrealGDPperpersonis

A)3.23percent

B)5percent

C)5.88percent

D)9.52percent

Answer:A

Topic:EconomicGrowthRate

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

13)Supposeanation'spopulationgrowsby2percentand,atthesametime,itsGDPgrowsby5

percent.ApproximatelyhowfastwillrealGDPperpersonincrease?

A)3percentperyear

B)2percentperyear

C)5

D)1()percentperyear

Answer:A

Topic:EconomicGrowthRate

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

14)Whichofthefollowingisusedtocalculatethestandardofliving?

A)realGDP/population

B)((realGDPinthecurrentyear-realGDPinpreviousyear)/realGDPinpreviousyear)x

100

C)theone-thirdrule

D)realGDP/aggregatehours

Answer:A

Topic:EconomicGrowthRate

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

15)TheRuleof70isusedto

A)estimatehowmuchofaneconomy'sgrowthrateisduetoincreasesincapitalperhourof

labor

B)calculatethestandardofliving

C)calculatetheeconomy'sgrowthrate

D)estimatehowlongitwilltakethelevelofanyvariabletodouble

Answer:D

Topic:Ruleof7()

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

16)UsingtheRuleof70,ifthecountryofFlowerdom^currentgrowthrateofrealGDPper

personwas7percentayear,howlongwouldittakethecountry'srealGDPperpersonto

double?

A)1year

B)2years

C)1()years

D)49years

Answer:C

Topic:Ruleof70

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

17)UsingtheRuleof70,ifthecountryofFlowerdom'scurrentgrowthrateofrealGDPper

personwas10percentayear,howlongwouldittakethecountry'srealGDPperpersonto

double?

A)0.7years

B)1year

C)7years

D)1()years

Answer:C

Topic:Ruleof70

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

18)Slowdonia'scurrentgrowthrateofrealGDPperpersonis2percentayear.Howlongwill

ittaketodoublerealGDPperperson?

A)halfayear

B)approximately10years

C)28.6years

D)35years

Answer:D

Topic:Ruleof70

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

19)Slowdonia'scurrentgrowthrateofrealGDPperpersonis1percentayear.Approximately

howlongwillittaketodoublerealGDPperperson?

A)10year2

B)35years

C)70years

D)100years

Answer:C

Topic:Ruleof70

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

20)IfrealGDPperpersonisgrowingat4percentperyear,approximatelyhowmanyyearswill

ittaketodouble?

A)17.5

B)25

C)4

D)8

Answer:A

Topic:Ruleof70

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

21)Supposeacountryisproducing$20millionofrealGDP.Iftheeconomygrowsat10

percentperyear,approximatelyhowmanyyearswilltotakeforrealGDPtogrowto$80

million?

A)14

B)7

C)4

D)30

Answer:A

Topic:Ruleof70

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

22)RealGDPperpersoninthecountryofFlipis$10,000,andthegrowthrateis10percenta

year.RealGDPperpersoninthecountryofFlapis$20,000andthegrowthrateis5percenta

year.WhenwillrealGDPperpersonbegreaterinFlipthaninFlap?

A)in2years

B)in15years

C)never

D)in1()years

Answer:B

Topic:Ruleof70

Skill:Analytical

Questionhistory:Previousedition,Chapter6

AACSB:AnalyticalSkills

2EconomicGrowthTrends

1)Overthelast100years,theaverageU.S.growthrateinrealGDPperpersonwasabout

A)2percentperyear.

B)6percentperyear.

C)12.5percentperyear.

D)1percentperyear.

Answer:A

Topic:Long-TermEconomicGrowthintheUnitedStates

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

2)Overthepast100years,realGDPperpersonintheUnitedStateshasgrownatanaverageof

percentayear.

A)1

B)2

C)3

D)4

Answer:B

Topic:Long-TermEconomicGrowthintheUnitedStates

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

3)ThegrowthrateofrealGDPperpersonintheUnitedStateshas

A)averagedapproximately2percentperyearoverthepastcentury.

B)hasconsistentlybeen2percentperdecadeoverthepastcentury.

C)hasbeenthehighestintheworldoverthepast5decades.

D)hasincreasedeveryyearoverthepastcentury.

Answer:A

Topic:Long-TermEconomicGrowthintheUnitedStates

Skill:Recognition

Questionhistory:New10thedition

AACSB:ReflectiveThinking

4)Overthepast10()yearsrealGDPperpersonintheUnitedStates,onaverage,has

A)decreasedbyabout5percentperyear.

B)increasedbyabout2percentperyear.

C)increasedbyabout5percentperyear.

D)increasedbyabout10percentperyear.

Answer:B

Topic:Long-TermEconomicGrowthintheUnitedStates

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

5)Overthepast100years,intheUnitedStatestheaveragegrowthrateofgrewata

fasterratethan.

A)realGDP;nominalGDP

B)thepopulation;realGDP

C)realGDP;thepopulation

D)inflation;realGDP

Answer:C

Topic:Long-TermEconomicGrowthintheUnitedStates

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

6)Overthepastfourdecades,

A)thegrowthrateofrealGDPperpersonintheUnitedStateshasbeenincreasing.

B)U.S.realGDPperpersonhasfallenbelowthatoftheotherrichindustrialcountries.

C)U.S.realGDPperpersonhasincreased.

D)BothanswersAandCarecorrect.

Answer:C

Topic:Long-TermEconomicGrowthintheUnitedStates

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

7)ThehistoricalrecordfortheUnitedStatesforthepast100yearsshows

A)growthinrealGDPperpersonduringmostyears.

B)economicgrowthforabouthalftheyearsandeconomicdeclinefortheotherhalf.

C)growthuntil1970andthenaperiodofconstantperpersonrealGDP.

D)continuouseconomicgrowth,althoughatdifferentrates,throughouttheentirecentury.

Answer:A

Topic:Long-TermEconomicGrowthintheUnitedStates

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

8)Whichoffollowingwasaperiodofbelow-averageeconomicgrowthintheUnitedStates?

A)the1920s

B)the1960s

C)the1930s

D)alloftheabove

Answer:C

Topic:Long-TermEconomicGrowthintheUnitedStates

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

9)Whichofthefollowingstatementsarecorrect?

I.TheaverageeconomicgrowthrateinrealGDPperpersonintheUnitedStatesoverthelast

centurywas5percentperyear.

II.TheUnitedStateshasthehighesteconomicgrowthrateofanynation.

A)Ionly

B)IIonly

C)bothIandII

D)neitherInorII

Answer:D

Topic:Long-TermEconomicGrowthintheUnitedStates

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

10)ThehistoricalrecordfortheUnitedStatessince1910shows

A)mostlypositiveeconomicgrowth,thoughtheGreatDepressioncausedactualGDPtodip

wellbelowpotentialGDP.

B)economicgrowthforabouthalftheyearsandeconomicdeclinefortheotherhalf.

C)growthuntil1970andthenaperiodofconstantperpersonrealGDP.

D)continuouseconomicgrowthforeachyear,althoughatdifferentrates,throughouttheentire

century.

Answer:A

Topic:Long-TermEconomicGrowthintheUnitedStates

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

11)WhichofthefollowingstatementsregardingU.S.economicgrowthisNOTcorrect?

A)Overthepast100years,ontheaveragerealGDPperpersongrew2percentayear.

B)TheaverageannualgrowthrateofrealGDPperpersonintheUnitedStateswasrapidduring

WorldWarIL

C)Inthe1930s,realGDPfellwellbelowitstrend.

D)ThegrowthrateofrealGDPperpersonacceleratedbetween1973to1984.

Answer:D

Topic:Long-TermEconomicGrowthintheUnitedStates

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

12)In2010,ofthefollowingwhichnationshadthehighestlevelofrealGDPperperson?

A)Japan.

B)EuropeBig4.

C)Canada.

D)China.

Answer:C

Topic:RealGDPGrowthintheWorldEconomy

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

13)In2010,ofthefollowinghadthehighestrealGDPperperson.

A)Japan

B)Canada

C)theEuropeBig4countries

D)theUnitedStates

Answer:D

Topic:RealGDPGrowthintheWorldEconomy

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

14)Duringthelatterhalfofthe20thcentury,whichofthefollowinghadthelowestlevelofreal

GDPperperson?

A)Africa

B)CentralandSouthAmerica

C)UnitedStates

D)CentralEurope

Answer:A

Topic:RealGDPGrowthintheWorldEconomy

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

15)Duringthe1990s,whichofthefollowingexperiencedtheslowestrateofgrowthinrealGDP

perperson?

A)Japan

B)Thebig4nationsofEurope

C)UnitedStates

D)Canada

Answer:A

Topic:RealGDPGrowthintheWorldEconomy

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

16)CountriesorregionsinwhichrealGDPperpersonhasnotgrownasfastasintheUnited

Statessince1960include

A)Japan.

B)countriesinAfrica.

C)HongKong.

D)Canada.

Answer:B

Topic:RealGDPGrowthintheWorldEconomy

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

17)Whichofthefollowingstatementsaboutworldgrowthduringthelasthalfofthe20th

centuryiscorrect?

A)Ineverydecade,JapanhasexperiencedfastergrowththantheUnitedStates.

B)GrowthratesinSouthAmericancountrieshaveexceededthoseinNorthAmerica.

C)RealGDPperpersoninHongKongandSingaporeareapproachingorsurpassingthatinthe

UnitedStates.

D)Duetorapidgrowth,realGDPperpersoninChinaisnowabout5()percentofthatinthe

UnitedStates.

Answer:C

Topic:RealGDPGrowthintheWorldEconomy

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

18)Since1960,whichofthefollowingcountrieshadaveragegrowthratesinrealGDPper

personhigherthanthatoftheUnitedStates?

A)Singapore

B)HongKong

C)SouthKorea

D)Alloftheaboveanswersarecorrect.

Answer:D

Topic:RealGDPGrowthintheWorldEconomy

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

19)OfthefollowingAsiancountries,whichhasthelowestlevelofrealGDPperperson?

A)China

B)Korea

C)Singapore

D)HongKong

Answer:A

Topic:RealGDPGrowthintheWorldEconomy

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

20)ThegapbetweenrealGDPperpersoninAfricaandrealGDPperpersonintheUnitedStates

hasbeen

A)increasing.

B)decreasing.

C)remainingfairlyconstant.

D)thereisnogapinrealGDPperpersonbetweenAfricaandtheUnitedStates.

Answer:A

Topic:RealGDPGrowthintheWorldEconomy

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

21)Overthepastfiftyyears,therehasbeensubstantialclosureofthegapinrealGDPperperson

betweenwhichofthefollowinggroupsofcountries?

A)theUnitedStatesandCentralandSouthAmerica

B)AfricaandWesternEurope

C)CentralandSouthAmericaandAfrica

D)theUnitedStatesandJapan

Answer:D

Topic:RealGDPGrowthintheWorldEconomy

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

22)BetweenwhichpairofcountriesorcontinentslistedbelowhasrealGDPperperson

convergedthemostsince1960?

A)CanadaandJapan

B)UnitedStatesandAfrica

C)UnitedStatesandSouthAmerica

D)CanadaandSouthAmerica

Answer:A

Topic:RealGDPGrowthintheWorldEconomy

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

23)Ifarichcountrygrowsatafasterratethanapoorone,then

A)thegapintheirstandardoflivingwillwidenovertime.

B)thegapintheirstandardoflivingwillcloseovertime.

C)thedifferenceintheirlivingstandardswillnotchangeovertime.

D)whetherornotthelivingstandardsgapwidensorclosesovertimedependsontheabsolute

sizeoftherelativegrowthrates.

Answer:A

Topic:RealGDPGrowthintheWorldEconomy

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

24)Convergenceoftheincomegaphasbeenmostdramaticbetween

A)HongKongandtheUnitedStates.

B)theCentralEuropeancountriesandtheUnitedStates.

C)AfricaandtheUnitedStates.

D)SouthAmericaandtheUnitedStates.

Answer:A

Topic:RealGDPGrowthintheWorldEconomy

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

25)ThegapsbetweentheUnitedStatesandtheAsiancountriesofHonkKong,Singapore,

KoreaandChinahavebeen

A)decreasing

B)increasing

C)remainingfairlyconstant

D)therearenogapsbetweentheseAsiancountriesandtheUnitedStates

Answer:A

Topic:RealGDPGrowthintheWorldEconomy

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

26)BymeasuringwecanseethattheeconomiesofHongKongandSingaporeare

catchinguptotheeconomiesofNorthAmericabutthattheeconomiesofCentralandSouth

Americaarenot.

A)inflationperperson

B)realGDPperperson

C)thepopulation

D)realGDP

Answer:B

Topic:RealGDPGrowthintheWorldEconomy

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

3HowPotentialGDPGrows

1)Movingalongtheaggregateproductionfunctionshowstherelationshipbetween

holdingallelseconstant.

A)capitalinputandrealGDP

B)laborinputandrealGDP

C)laborinput,capitalinputandrealGDP

D)technologyandrealGDP

Answer:B

Topic:AggregateProductionFunction

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

2)Theaggregateproductionfunctionshowshowvarieswith.

A)leisuretime;labor

B)labor;leisuretime

C)realGDP;labor

D)labor;capital

Answer:C

Topic:AggregateProductionFunction

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

3)Anaggregateproductionfunctionshowstherelationshipbetween

A)realGDPandleisure.

B)realGDPandthequantityoflaboremployed.

C)leisureandunemployment.

D)realGDPandunemployment.

Answer:B

Topic:AggregateProductionFunction

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

4)Theaggregateproductionfunctiondescribestherelationshipbetween

A)realGDPandthequantityoflaboremployed.

B)realGDPandthepricelevel.

C)therateofgrowthofrealGDPandinflation.

D)realGDPandtheunemploymentrate.

Answer:A

Topic:AggregateProductionFunction

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

5)Amovementalongtheaggregateproductionfunctionistheresultofachangein

A)thequantityoflabor

B)technology

C)capital

D)interestrates

Answer:A

Topic:AggregateProductionFunction

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

6)Alongtheaggregateproductionfunction,asthequantityoflaborrises,realGDP

A)rises

B)falls

C)staysthesame

D)mayfall,rise,orstaythesame

Answer:A

Topic:AggregateProductionFunction

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

7)TheaggregateproductionfunctionshowsthataneconomyincreasesitsrealGDPintheshort

runby

A)developingnewtechnologies.

B)increasingitsphysicalcapitalstock.

C)usingmorelabor.

D)exploringfornewdepositsofnaturalresources.

Answer:C

Topic:AggregateProductionFunction

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

8)Movingalongtheaggregateproductionfunction,allofthefollowingareheldconstant

EXCEPT

A)labor

B)capital

C)humancapital

D)technology

Answer:A

Topic:AggregateProductionFunction

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

9)Anincreaseinlaborhourswillleadto

A)ashiftoftheaggregateproductionfunctionbutnomovementalongit.

B)amovementalongtheaggregateproductionfunctionbutnoshiftinit.

C)bothamovementalongandashiftintheaggregateproductionfunction.

D)neitheramovementalongnorashiftintheaggregateproductionfunction.

Answer:B

Topic:AggregateProductionFunction

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

10)Theaggregateproductionfunctionisgraphedas

A)adownwardslopingcurve.

B)anupwardslopingstraightline.

C)anupwardslopinglinethatbecomesflatterasthequantityoflaborincreases.

D)anupwardslopinglinethatbecomessteeperasthequantityoflaborincreases.

Answer:C

Topic:AggregateProductionFunction

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

11)Theaggregateproductionfunction

A)measurestheproductivityoflaborasleisuredecreases.

B)increasesonlywithincreasesinproductivity.

C)showsthatrealGDPcanincreasebecauseofincreasedproductivityaswellasincreasedlabor

hours.

D)cannotshowtheimpactsofproductivityimprovements.

Answer:C

Topic:AggregateProductionFunction

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

12)TheaggregateproductionfunctionrelatingrealGDPtolaborhours

A)hasaconstantslope.

B)hasanegativeslope.

C)hasapositiveslopeandbecomessteeperasemploymentincreases.

D)hasapositiveslopeandbecomeslesssteepasemploymentincreases.

Answer:D

Topic:AggregateProductionFunction,DiminishingReturns

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

13)Thecurvatureoftheproductionfunctionshowsthatasemploymentincreases,the

productivityoflabor

A)remainspositiveandincreases.

B)remainspositivebutdecreases.

C)decreasesandbecomesnegative.

D)remainsconstant.

Answer:B

Topic:AggregateProductionFunction,DiminishingReturns

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

14)Thedecreasingslopeofaproductionfunctionreflects

A)diminishingreturns.

B)risingunemployment.

C)decreasingcosts.

D)increasingaggregatedemand.

Answer:A

Topic:AggregateProductionFunction,DiminishingReturns

Skill:Conceptual

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

15)Aslaborincreases,thereisa

A)shiftoftheaggregateproductionfunction,butnomovementalongit.

B)movementalongtheaggregateproductionfunction,butnoshiftinit.

C)movementalongtheaggregateproductionfunctionandrealGDPwillincreaselesswitheach

additionalincreaseinlabor.

D)movementalongtheaggregateproductionfunctionandrealGDPwilldecreaselesswitheach

additionalincreaseinlabor.

Answer:C

Topic:AggregateProductionFunction

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

16)Accordingtothelawofdiminishingreturns,anadditionalunitof

A)capitalproducesmoreoutputthananadditionalunitoflabor.

B)labordecreasesoutput.

C)laborproducesmoreoutputthanthepreviousunit.

D)laborproduceslessoutputthanthepreviousunit.

Answer:D

Topic:LawofDiminishingReturns

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:ReflectiveThinking

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dd

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£&

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d』

.yd-RealGDPRealGDP

FigureCFigureD

17)Intheillustrationabove,whichfigureshowsanaggregateproductionfunction?

A)FigureA

B)FigureB

C)FigureC

D)FigureD

Answer:A

Topic:AggregateProductionFunction

Skill:Recognition

Questionhistory:Previousedition,Chapter6

AACSB:Communication

c

=o

po

g

o

o

z

o

S

u

。

三

)w

d

o

o

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f

0Labor(billionsofhoursperyear)

18)ThecountryofKemperisonitsaggregateproductionfunctionatpointWintheabovefigure.

ThegovernmentofKemperpassesalawthatmakes4yearsofcollegemandatoryforallcitizens.

Afterallcitizens