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28-96
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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?
28-97
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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?
28-98
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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
28-99
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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)
28-100
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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
28-101
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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.
28-103
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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.
28-104
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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.
28-105
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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.
28-108
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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.
28-109
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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.
28-110
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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."
