978-1259723223 Test Bank TBChap028 Part 6

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Difficulty: 02 Medium

Learning Objective: 28-05 Explain how the average rate of U.S. productivity growth has

fluctuated since 1973.

Test Bank: II

Topic: Recent Fluctuations in the Average Rate of Productivity Growth

229.

Which of the following is a main source of increasing returns in recent years?

230.

One major economic benefit of global competition is

231.

Which of the following countries ranked highest in the World Economic Forum‘s

Global Competitiveness Ranking in 2015–2016?

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D.

the United States

232.

The dramatic slowdown in productivity growth experienced after the Great Recession

233.

Which of the following is not an explanation put forward to explain the recent

productivity slowdown?

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Learning Objective: 28-05 Explain how the average rate of U.S. productivity growth has

fluctuated since 1973.

Test Bank: II

Topic: Recent Fluctuations in the Average Rate of Productivity Growth

234.

Which of the following arguments is not made by critics of growth policies?

235.

One of the main arguments against further growth for industrialized nations focuses on

the problem of

236.

An antigrowth view would be that there may be a significant trade-off between

productivity and

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D.

the quality of life.

237.

One of the basic economic defenses of economic growth rests on the conclusion that

238.

“Show me a pastoral society with an untouched environment, an abundance of leisure,

and nonsecular values, and I will show you an underdeveloped, poverty-ridden country.“

This statement is most likely to be made by a(n)

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Topic: Is Growth Desirable and Sustainable?

239.

If the working-age population in an economy shrinks, real GDP can still grow if

240.

To keep the population in an economy stable, the total fertility rate (average number of

births per woman in her lifetime) must be about

241.

The “inverse dependency ratio” is defined as the ratio of

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Blooms: Remember

Dif f i c ul t y : 01 Easy

Learning Objective: 28-02 Define modern economic growth and explain the institutional

structures needed for an economy to experience it.

Test Bank: II

Topic: Modern Economic Growth

242.

From 2010 to 2050, the “inverse dependency ratio” in the U.S. is expected to

243.

The problematic trend in the “inverse dependency ratio” in the U.S. is likely to show up

first in

True / False Questions

244.

There are two common measures of economic growth: (1) increases in real GDP over

some period of time and (2) increases in real GDP per capita over some time period.

245.

If a country has a larger real GDP than another country, then it should also have a

higher real GDP per capita than the other country.

246.

The so-called Rule of 70 is a formula for finding the approximate number of times that

a value will double in a period of 70 years.

247.

If real GDP grows at an average annual rate of 2.0 percent instead of 3.5 percent, then

it would take about 35 years—instead of 20 years—for real GDP to double.

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Blooms: Remember

Dif f i c ul t y : 01 Easy

Learning Objective: 28-01 List two ways that economic growth is measured.

Test Bank: II

Topic: Economic Growth

248.

Leader countries that experience modern economic growth early on will always grow

faster than follower countries.

249.

In the period 1960 to 2010, the U.S. experienced a more rapid annual growth in real

GDP per capita than countries like Ireland, Singapore, and South Korea.

250.

One important growth-promoting institutional structure is the protection of domestic

jobs against outsourcing.

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structures needed for an economy to experience it.

Test Bank: II

Topic: Institutional Structures That Promote Growth

251.

An increase in the quantity and quality of natural resources is an example of a demand

factor of economic growth.

252.

The supply factors of economic growth are those factors that shift a country’s

production possibilities curve.

253.

The ability to expand production is sufficient for a nation to achieve maximum possible

growth.

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Topic: Determinants of Growth

254.

A shift outward in the production possibilities curve is the direct result of

improvements in the efficiency factor of economic growth.

255.

Total output for an economy is basically equal to total work-hours multiplied by labor

productivity.

256.

If an economy has 800,000 work-hours employed, and its labor productivity is

$16/hour, then its real GDP must be $50,000.

257.

Since the 1950s, the U.S. average annual rate of growth of real GDP was higher than

258.

Increased labor productivity has been less important as a source of growth than the

increased labor inputs in the U.S. economy since the 1950s.

259.

The real GDP of the United States has grown since the 1950s largely because of

increases in labor productivity.

260.

The largest factor that raised labor productivity in the U.S. economy since the 1950s

has been the increased amount of capital available.

261.

Human capital refers to the amount of capital available for the economy’s human

resources to work with.

262.

The rate of growth of labor productivity in the U.S. declined from the period 1973–

1995 to the period 1995–2010.

263.

The significant increase in U.S. labor-productivity growth experienced in the period

1995–2010 continued to be observed in the period 2010–2015.

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FA LSE

264.

There tends to be a high positive correlation between the rate of productivity growth

and the rate of economic growth.

265.

There tends to be a positive correlation between real wages of workers and the

productivity of labor in the economy.

266.

Global competition has tended to slow down the rate of productivity growth in the

United States.

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AACSB: Knowledge Application

Accessibility: Keyboard Navigation

Blooms: Understand

Difficulty: 02 Medium

Learning Objective: 28-05 Explain how the average rate of U.S. productivity growth has

fluctuated since 1973.

Test Bank: II

Topic: Recent Fluctuations in the Average Rate of Productivity Growth

267.

Simultaneous consumption and network effects are sources of increasing returns and

economies of scale that promote productivity growth.

268.

There is unanimous agreement that economic growth is both desirable and sustainable.

269.

In the growth debate, defenders of economic growth believe that it is the primary path

to raising living standards.

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Difficulty: 02 Medium

Learning Objective: 28-06 Discuss differing perspectives as to whether growth is desirable

and sustainable.

Test Bank: II

Topic: Is Growth Desirable and Sustainable?

270.

In the growth debate, critics of economic growth say that it will deplete our finite

economic resources.

271.

In the growth debate, critics of economic growth define “making a better living” as

identical to “the good life.”