Question 1

The different starting dates for modern economic growth in different parts of the world are the main cause of:

Accepted Answer

A)  today's small differences in per capita GDP levels around the world.
B)  today's large differences in per capita GDP levels around the world.
C)  today's small differences in nominal GDP levels around the world.
D)  today's large differences in population levels around the world.E) A) and B)
F) None of the above

Question 2

An increase in the quantity and quality of natural resources is a demand factor for economic growth.

Accepted Answer

A) True 
 B)False

Question 3

Labour productivity may best be defined as:

Accepted Answer

A)  total output/worker-hours.
B)  nominal GDP minus real GDP.
C)  the ratio of real capital to worker-hours.
D)  the annual increase in nominal GDP per worker.E) A) and B)
F) B) and D)

Question 4

If an economy's real GDP is growing by 5 percent per year, its real domestic output will double in approximately fourteen years.

Accepted Answer

A) True 
 B)False

Question 5

Refer to the above diagram.Assume a nation's current production possibilities are represented by the curve AB.Positive economic growth would best be indicated by a:

Accepted Answer

A)  shift in the curve from AB to CD.
B)  shift in the curve from AB to EF.
C)  movement from point 1 to point 2.
D)  movement from point 3 to point 4.E) A) and D)
F) B) and D)

Question 6

Real GDP was $9,950 billion in Year 1 and $10,270 billion in Year 2.The population rose from 270 million in Year 1 to 275 million in Year 2.What was the approximate increase in real GDP per capita rate from Year 1 to Year 2?

Accepted Answer

A)  1.3 percent
B)  2.1 percent
C)  3.3 percent
D)  4.2 percentE) A) and B)
F) None of the above

Question 7

About two-thirds of Canada's growth rate in the last half century has been due to rising productivity and about one-third has been due to the use of more inputs.

Accepted Answer

A) True 
 B)False

Question 8

In Canada, the lowest increase in the average annual rates of productivity growth was observed during the period of:

Accepted Answer

A)  1981-1989.
B)  1946-2015.
C)  1973-1981.
D)  2000-2015.E) B) and C)
F) A) and D)

Question 9

Labour productivity is measured by:

Accepted Answer

A)  the ratio of capital to labour.
B)  real output per worker hour.
C)  real output per capital.
D)  the ratio of worker hours to nominal GDP.E) A) and C)
F) B) and D)

Question 10

Which of the following statements is correct?

Accepted Answer

A)  During 1961-2017, Canadian real GDP has grown at about 3.2 percent per year and real GDP per capita has grown at about 2.1 percent per year.
B)  During 1961-2017, Canadian real GDP has grown at about 2.1 percent per year and real GDP per capita has grown at about 3.3 percent per year.
C)  between 1960 to 2010, Canadian real GDP and real GDP per capita have both grown at about 4 percent per year.
D)  between 1960 to 2010, Canadian real GDP and real GDP per capita have both grown at about 2 percent per year.E) B) and D)
F) None of the above

Question 11

The average living standards in Canada compared to Africa are much higher because:

Accepted Answer

A)  the economic growth has occurred for nearly two centuries in Africa compared to a few decades in Canada.
B)  the economic growth has occurred for nearly two centuries in Canada compared to more than two centuries in Africa.
C)  the economic growth differences have no relationship to the differences in the average standards of living.
D)  the economic growth has occurred for nearly two centuries in Canada compared to a few decades in Africa.E) B) and D)
F) A) and C)

Question 12

Increasing returns would be a situation where a firm increases its workforce and other inputs by:

Accepted Answer

A)  10 percent and its output increases by 5 percent.
B)  5 percent and its output increase by 10 percent.
C)  8 percent and its output increases by 8 percent.
D)  12 percent and its output increases by 10 percent.E) B) and C)
F) A) and C)

Question 13

Increases in the value of the product to each user, including existing users, as the total number of users rises is called:

Accepted Answer

A)  network effects.
B)  simultaneous consumption.
C)  learning by doing.
D)  the spreading of development costs.E) A) and B)
F) A) and C)

Question 14

In 2017, the standard workweek in Canada was about:

Accepted Answer

A)  35 hours.
B)  32 hours.
C)  40 hours.
D)  44 hours.E) A) and B)
F) A) and C)

Question 15

Refer to the above graph.If the production possibilities curve for an economy is at CD but the economy is operating at point X, the reasons are most likely to be:

Accepted Answer

A)  technological progress and industrial change.
B)  increases in the quantity and the quality of resources.
C)  improvement in labour productivity and the number of worker-hours.
D)  lack of full employment and inefficient allocation of resources.E) A) and D)
F) A) and B)

Question 16

Suppose total output (real GDP)  is $4000 and labour productivity is 8.We can conclude that:

Accepted Answer

A)  real GDP per capita must be $500.
B)  the price-level index must be greater than 100.
C)  nominal GDP must be $500.
D)  the number of worker-hours must be 500.E) A) and B)
F) None of the above

Question 17

Refer to the above diagram.If there is a movement away from the full employment of resources in an economy with production possibilities curve AB, this can be shown by:

Accepted Answer

A)  a shift of the curve from AB to CD.
B)  a movement from point 3 to point 1.
C)  a movement from point 2 to point 4.
D)  point 5 in the diagram.E) None of the above
F) All of the above

Question 18

Nominal GDP was $9,500 billion in Year 1 and $10,000 billion in Year 2.The GDP price index was 170 in Year 1 and 175 in Year 2.Between Years 1 and 2, the rate of growth in real GDP was approximately:

Accepted Answer

A)  1.6 percent.
B)  2.3 percent.
C)  4.4 percent.
D)  5.3 percent.E) A) and B)
F) None of the above

Question 19

The countries which have begun modern economic growth later than the others can catch up because:

Accepted Answer

A)  for them, it is quicker to adopt technology rather than inventing one.
B)  for them, it is harder to adopt technology rather than inventing one.
C)  for them, it is as hard to adopt technology as it is to invent one.
D)  for them, it is very easy to invent a new technology with lower cost.E) A) and B)
F) A) and C)

Question 20

Economic growth can be shown as a movement from a point on one production possibility curve to a point on a curve located farther from the origin.

Accepted Answer

A) True 
 B)False

Exam 8: Part B: Economic Growth

Refer to the above graph.If the production possibilities curve for an economy is at CD but the economy is operating at point X, the reasons are most likely to be:

Correct AnswerverifiedShow Answer

Increases in the value of the product to each user, including existing users, as the total number of users rises is called:

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In 2017, the standard workweek in Canada was about:

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Real GDP was $9,950 billion in Year 1 and $10,270 billion in Year 2.The population rose from 270 million in Year 1 to 275 million in Year 2.What was the approximate increase in real GDP per capita rate from Year 1 to Year 2?

Correct AnswerverifiedShow Answer

Refer to the above diagram.If there is a movement away from the full employment of resources in an economy with production possibilities curve AB, this can be shown by:

Correct AnswerverifiedShow Answer

About two-thirds of Canada's growth rate in the last half century has been due to rising productivity and about one-third has been due to the use of more inputs.

Correct AnswerverifiedShow Answer

The countries which have begun modern economic growth later than the others can catch up because:

Correct AnswerverifiedShow Answer

Nominal GDP was $9,500 billion in Year 1 and $10,000 billion in Year 2.The GDP price index was 170 in Year 1 and 175 in Year 2.Between Years 1 and 2, the rate of growth in real GDP was approximately:

Correct AnswerverifiedShow Answer

Refer to the above diagram.Assume a nation's current production possibilities are represented by the curve AB.Positive economic growth would best be indicated by a:

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

An increase in the quantity and quality of natural resources is a demand factor for economic growth.

Correct AnswerverifiedShow Answer

Economic growth can be shown as a movement from a point on one production possibility curve to a point on a curve located farther from the origin.

Correct AnswerverifiedShow Answer

Increasing returns would be a situation where a firm increases its workforce and other inputs by:

Correct AnswerverifiedShow Answer

Labour productivity may best be defined as:

Correct AnswerverifiedShow Answer

The different starting dates for modern economic growth in different parts of the world are the main cause of:

Correct AnswerverifiedShow Answer

Suppose total output (real GDP) is $4000 and labour productivity is 8.We can conclude that:

Correct AnswerverifiedShow Answer

In Canada, the lowest increase in the average annual rates of productivity growth was observed during the period of:

Correct AnswerverifiedShow Answer

If an economy's real GDP is growing by 5 percent per year, its real domestic output will double in approximately fourteen years.

Correct AnswerverifiedShow Answer

Labour productivity is measured by:

Correct AnswerverifiedShow Answer

The average living standards in Canada compared to Africa are much higher because:

Correct AnswerverifiedShow Answer

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