Chapterr 17

Question
n 1 (1 point))

Property rights are no

ot a factor in
n producing economic grrowth.
Question
n 1 options:
TRU
UE
FAL
LSE
Question
n 2 (1 point))
Per-capitta real econo
omic growth refers to an increase froom one periood to the nexxt in
Question
n 2 options:
per-capita GDP..
GDP
P.
Real GDP.
per-capita Real GDP.
nonee of the abov
ve
Question
n 3 (1 point))
If an econ
nomy can in
ncrease its steady annual growth ratee from 2 perccent to 3.5 percent, this
reduces the
t time it taakes for the economy
e
to double
d
in sizze by ___________ yearss.
Question
n 3 options:
5
8
10
15
20

Question
n 4 (1 point))
Technolo
ogical advan
nces make it possible to
Question
n 4 options:
prod
duce goods without
w
using
g any resourrces.
obtaain the same output by ussing more reesources.
obtaain the same output by ussing fewer reesources.
loweer labor prod
ductivity.
Question
n 5 (1 point))
p
function
fu
is grraphed with Real GDP oon the verticaal axis and laabor on the
When a production
horizontaal axis, a risee in labor __
___________
______________, and a rrise in the tecchnology
coefficien
nt ________
___________
_.
Question
n 5 options:
shift
fts the producction functio
on upward; also
a shifts the productionn function uppward
mov
ves us up alo
ong a given production
p
fu
unction; shiffts the produuction function upward
shift
fts the producction functio
on downward
d; shifts the production ffunction upw
ward
shift
fts the producction functio
on upward; moves
m
us up along a giveen productioon function
Question
n 6 (1 point))
Refer to Exhibit 17-3
3 Assume th
hat the startin
ng point on tthe production function is point A. After
an increaase in the tecchnology coeefficient, theere would bee a ________________________ whichh
would sh
hift the LRAS curve from
m LRAS1 to ________________ resuulting in ____
______________..
Question
n 6 options:
mov
vement along
g the producction function
n to point C;; LRAS2; ecconomic growth
shift
ft upward of the productiion function to point B; L
LRAS2; ecoonomic grow
wth
mov
vement along
g the producction function
n to point C;; LRAS3; a shrinking ecconomy
shift
ft upward of the productiion function to point B; L
LRAS3; a shhrinking ecoonomy
Question
n 7 (1 point))

Comparee a property rights

r
system
m in which people
p
are alllowed to keeep one-thirdd of the moneetary
rewards of
o their labor with a systtem in which
h they keep ttwo-thirds. W
We should exxpect more
entrepren
neurship und
der the _____
______ systeem and fasteer real econoomic growthh under the
________
___ system.
Question
n 7 options:
form
mer; former
form
mer; latter
latteer; former
latteer; latter
Question
n 8 (1 point))
New grow
wth theory puts
p emphasiis on
Question
n 8 options:
ideaas.
expeerimenting with
w new ways of doing things.
t
rearrranging reso
ources in way
ys that are more
m
valuablle.
b an
nd c
a, b,, and c
Question
n 9 (1 point))
________
___ rights reefer to the raange of laws, rules, and rregulations tthat define riights for the use
and transsfer of resourrces.
Question
n 9 options:
Individual
Con
nstitutional
Prop
perty
Econ
nomic
nonee of the abov
ve
Question
n 10 (1 point)

When a production
p
function
fu
is grraphed with Real GDP oon the verticaal axis and laabor on the
horizontaal axis, a risee in capital__
__________
_______________, and a rise in the teechnology
coefficien
nt ________
___________
_.
Question
n 10 options:
shift
fts the producction functio
on upward; also
a shifts the productionn function uppward
shift
fts the producction functio
on downward
d; shifts the production ffunction upw
ward
mov
ves us up alo
ong a given production
p
fu
unction; shiffts the produuction function upward
shift
fts the producction functio
on upward; moves
m
us up along a giveen productioon function
Question
n 11 (1 point)
Neoclasssical growth theory does not emphasize how ___________ coontribute to ggrowth.
Question
n 11 options:
the quantity
q
of capital
c
tech
hnological ch
hanges
the quantity
q
of labor
facto
ors limiting population growth
g
a an
nd c
Question
n 12 (1 point)
The conccept that economic grow
wth can do mo
ore than justt give us moore goods andd services gooes
back to Adam
A
Smith.
Question
n 12 options:
TRU
UE
FAL
LSE
Question
n 13 (1 point)
Refer to Exhibit 17-1
1. If this pro
oduction funcction is grapphed with Reeal GDP on tthe vertical aaxis
and laborr on the horiizontal axis, the resulting
g graph wouuld be
Question
n 13 options:
upw
ward sloping..

wnward slopiing.
dow
vertical.
horizontal.
Question
n 14 (1 point)
on specifies the
t relation between
b
_____________ and the ____________ too
A producction functio
________
__________
____.
Question
n 14 options:
tech
hnology; outp
put; Real GD
DP
tech
hnology; the factor inputss; Real GDP
P
price; quantity; Real
R GDP
Real GDP; the factor
f
inputs; the price leevel
Question
n 15 (1 point)
In the pro
oduction fun
nction Real GDP
G
= T (L,, K, NR, H), the T repressents the _______________
coefficien
nt, the L rep
presents ____
__________
____, the K rrepresents _________________, the NR
representts natural ressources, and the H represents __________________.
Question
n 15 options:
tax; labor; capitaal; humanity
y
tech
hnology; labo
or; knowledg
ge; humanity
y
tech
hnology; labo
or; capital; human
h
capitaal
trade; labor; kno
owledge; hum
man capital
Question
n 16 (1 point)

Refer to Exhibit 17-1

1. If there aree 4 units of capital
c
and 6 units of labbor, _________ units of ooutput
(Real GD
DP) will be produced.
p
Question
n 16 options:
10
5

5
10.5
20
n 17 (1 point)
Question
mmitted the United
U
Statess to a manneed lunar misssion by the eend
In 1961, President Kennedy com
of the decade. Few th
hought we co
ould actually
y do it, but oof course we did, with fivve months too
his story mig
ght illustrate a ________
___ growth thheory argum
ment that techhnological
spare. Th
change __________.
_
Question
n 17 options:
new
w; can be deliiberately acccelerated
new
w; relies on government policy
p
neocclassical; can
n be deliberaately accelerrated
neocclassical; rellies on goverrnment policcy
Question
n 18 (1 point)
Refer to Exhibit 17-1
1. If this pro
oduction funcction is grapphed with Reeal GDP on tthe vertical aaxis
and laborr on the horiizontal axis, and the tech
hnology coeffficient rises from 0.50 to 0.60, it woould
cause a
Question
n 18 options:
shift
ft upward in the
t production function to a higher llevel of Reall GDP.
shift
ft downward in the produ
uction function to a loweer level of Reeal GDP.
mov
vement down
n along the same
s
producction functionn to a lower level of Reaal GDP.
mov
vement up allong the sam
me production
n function too a higher levvel of Real G
GDP.
Question
n 19 (1 point)
Absolutee real econom
mic growth is
i an increasee in ___________ from oone period too the next.
Question
n 19 options:
GDP
P
Real GDP
per-capita Real GDP

per-capita GDP
ve
nonee of the abov
Question
n 20 (1 point)
wth theory holds
h
that tecchnology is __________
_
_ and that thee more resouurces that goo to
New grow
develop technology,
t
the _______
____ technollogy that is pproduced.
Question
n 20 options:
exog
genous; morre and better
exog
genous; less
endo
ogenous; mo
ore and betteer
endo
ogenous; lesss
Question
n 21 (1 point)
Accordin
ng to Paul Ro
omer, one way
w to producce more ideaas and know
wledge is by
Question
n 21 options:
inveesting in reseearch and development.
givin
ng the federal governmeent more con
ntrol over thee direction oof research.
givin
ng businessees less contro
ol over federral research monies.
a, b and c
Question
n 22 (1 point)
Neoclasssical growth theory emph
hasized how
w ___________ contributee to growth.
Question
n 22 options:
the resources
r
lab
bor and capiital
tech
hnological ch
hanges
goveernment poliicies
facto
ors limiting population growth
g
Question
n 23 (1 point)

If an econ
nomy's stead
dy annual grrowth rate faalls from 2.5 percent to 22.0 percent, tthis adds
________
___ years to
o the time it takes
t
for thee economy too double in ssize.
Question
n 23 options:
24
7
5.3
10.2
2
Question
n 24 (1 point)
The Reall GDP of cou
untry X doub
bled in 10 yeears. It follows that
Question
n 24 options:
the per-capita
p
Real
R GDP dou
ubled during
g this time, tooo.
the per-capita
p
Real
R GDP rem
mained stable during thiss time.
the per-capita
p
Real
R GDP fell during this time.
disp
posable incom
me also doub
bled during this
t time.
nonee of the abov
ve
Question
n 25 (1 point)
Stan Lau
urel and Oliv
ver Hardy actted separatelly in comedyy shorts for tthe Hal Roach Studio foor
over a deecade withou
ut greatly disstinguishing themselves from hundreeds of other screen
comedian
ns. Then in 1927,
1
Roach
h writer-direcctor Leo MccCarey tried them out as a comedy teeam
in one more routine short.
s
Only then
t
was the fantastic chhemistry betw
ween "the fidddle and thee
bow" reaalized. The reest is immorrtality. This story
s
relates to the "new
w growth theoory" idea of
Question
n 25 options:
emp
ployee involv
vement.
rearrranging.
exog
geneity.
objeects and ideaas.
Question
n 26 (1 point)

Productio
on functionss used in economic grow
wth theory aree always lim
mited to two inputs: laborr and
capital.
Question
n 26 options:
TRU
UE
FAL
LSE
Question
n 27 (1 point)
Refer to Exhibit 17-1
1. If this pro
oduction funcction is grapphed with Reeal GDP on tthe vertical aaxis
and laborr on the horiizontal axis, and capital rises
r
from 4 units to 6 unnits it wouldd cause a
Question
n 27 options:
shift
ft upward in the
t production function to a higher llevel of Reall GDP.
shift
ft downward in the produ
uction function to a loweer level of Reeal GDP.
mov
vement down
n along the same
s
producction functionn to a lower level of Reaal GDP.
mov
vement up allong the sam
me production
n function too a higher levvel of Real G
GDP.
Question
n 28 (1 point)
When intterest rates in
n a given economy are reduced,
r
it caauses firms tto employ ___________
capital go
oods. In term
ms of the pro
oduction fun
nction (graphhed with labbor on the hoorizontal axiss and
Real GDP on the verrtical axis), th
his then causes ______________________ .
Question
n 28 options:
morre; the produ
uction functio
on to shift up
pward
less;; the producttion function
n to shift dow
wnward
morre; a movemeent up along
g a given pro
oduction funcction
morre; a movemeent down alo
ong a given production
p
ffunction
Question
n 29 (1 point)
________
__________
_______ specifies the rellation betweeen technologgy and the fa
factor inputs to
output.
Question
n 29 options:
Neo
oclassical gro
owth theory

Metta-ideas
ve
The LRAS curv
A prroduction fu
unction
Question
n 30 (1 point)
a lowered in a given ecconomy, it ccauses the suupply of laboor curve to shhift
When inccome taxes are
________
___which __
__________
_ the equilibrrium quantitty of labor em
mployed. Inn terms of thhe
productio
on function (graphed
(
witth labor on the horizontaal axis and R
Real GDP onn the verticall
axis) thiss then causess _________
_______, wh
hich makes thhe LRAS cuurve shift ______________
resulting in ________
__________
______.
Question
n 30 options:
righ
htward; raises; the producction functio
on to shift uppward; rightw
ward; econoomic growth
leftw
ward; lowerss; the producction function to shift doownward; lefftward; a shrrinking econnomy
righ
htward; raises; a movemeent up along a given prodduction funcction; rightw
ward; econom
mic
grow
wth
righ
htward; raises; a movemeent down alo
ong a given pproduction ffunction; lefttward; a
shrin
nking econo
omy