United States – BPROG: Analytic
Productivity and growth
The Productivity Slowdown and Speed-Up in The United States
188. From the late 1960s to the late 1980s, SAT scores in the United States
a.
help explain the productivity increases.
b.
rose consistently throughout the period.
c.
declined throughout the period.
d.
indicated improving workforce quality.
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
The Productivity Slowdown and Speed-Up in The United States
189. From the late 1960s to the late 1980s, in the United States SAT scores
a.
and graduation rates increased.
b.
and graduation rates decreased.
c.
and school attendance rates decreased.
d.
decreased and school attendance rates increased.
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
The Productivity Slowdown and Speed-Up in The United States
190. Workforce quality arguments are very difficult to prove for the period of 1970 to 1990 because during that period
SAT scores
a.
and graduation rates increased.
b.
increased and graduation rates decreased.
c.
and school attendance rates decreased.
d.
decreased and school attendance rates increased.
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
The Productivity Slowdown and Speed-Up in The United States
191. A major contributor to the slowdown in U.S. labor productivity during the 1973-1995 period was
a.
capital spending.
b.
technological change.
c.
labor force growth.
d.
investment spending.
Moderate
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
The Productivity Slowdown and Speed-Up in The United States
192. A constant contributor to labor productivity growth during the entire 1948-2000 period was
a.
capital formation.
b.
technological change.
c.
labor force growth.
d.
government spending.
a
Moderate
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
The Productivity Slowdown and Speed-Up in The United States
193. Labor productivity growth in the United States during the 1973-1995 period could be explained by a ____ slowdown.
a.
b.
c.
d.
c
Moderate
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
The Productivity Slowdown and Speed-Up in The United States
194. The information technology revolution seems to have had its greatest positive effect on labor productivity growth in
the ____ period.
a.
1948-1973
b.
1973-1995
c.
1995-2005
d.
1948-2005
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
The Productivity Slowdown and Speed-Up in The United States
195. The productivity speed-up of the 1950s and the 1960s could have been caused by
a.
wartime innovations.
b.
civilian innovations after World War II.
c.
industrial innovations spurred by the Korean and Vietnam conflicts.
d.
decreases in the rate of population growth.
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
196. The productivity speed-up in the United States began in the
a.
mid 1970s.
b.
mid 1980s.
c.
mid 1990s.
d.
beginning of 2001.
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
The Productivity Slowdown and Speed-Up in The United States
197. The productivity speed-up in the United States could be explained by
a.
improvements in labor force quality.
b.
falling energy prices.
c.
rising rates of domestic saving.
d.
advances in information technology.
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
The Productivity Slowdown and Speed-Up in The United States
198. Falling energy prices could explain rising labor productivity in the 1990s
a.
and the 1980s.
b.
and the 1970s.
c.
but not the 1980s.
d.
but not the 1970s.
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
The Productivity Slowdown and Speed-Up in The United States
199. All of the following are reasonable explanations of the labor productivity speed-up in the United States except
a.
labor force quality.
b.
technological change.
c.
investment spending.
d.
research and development.
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
The Productivity Slowdown and Speed-Up in The United States
200. The labor productivity speed-up in the United States could be explained by a delayed
a.
educational benefit.
b.
technology benefit.
c.
military spending benefit.
d.
baby boom benefit.
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
The Productivity Slowdown and Speed-Up in The United States
201. Two of the three pillars of labor productivity growth responsible for the changes in the United States after 1995 are
technological change and
a.
labor force improvement.
b.
labor force growth.
c.
capital formation.
d.
consumption growth.
c
Moderate
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
The Productivity Slowdown and Speed-Up in The United States
202. Compared to the price of long-distance telephone calls, college tuition in the United States has
a.
fallen.
b.
risen.
c.
stayed the same.
d.
risen at the same rate as the CPI.
Easy
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
The Productivity Slowdown and Speed-Up in The United States
203. Compared to college tuition, the prices of automobiles in the United States have
a.
fallen.
b.
risen.
c.
stayed the same.
d.
risen at the same rate as the CPI.
a
Easy
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
The Productivity Slowdown and Speed-Up in The United States
204. According to the cost disease of the personal services, service activities that require direct personal contact
a.
tend to fall in price relative to other goods and services.
b.
tend to rise in price relative to other goods and services.
c.
follow price patterns similar to other goods and services.
d.
tend to move up and down in price ignoring the rest of the market.
Easy
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
The Productivity Slowdown and Speed-Up in The United States
205. Which price would you expect to rise the most in a high-income growing economy?
a.
semiconductors for personal computers
b.
tickets to a ballet performance
c.
passenger automobiles
d.
Blu-ray players
Moderate
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
The Productivity Slowdown and Speed-Up in The United States
206. Real wages in the United States tend to rise at the same rate as
a.
prices.
b.
tax rates.
c.
average productivity levels.
d.
inflation.
c
Moderate
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
The Productivity Slowdown and Speed-Up in The United States
207. Productivity increases are most likely to be achieved by
a.
Tony Soprano’s psychiatrist.
b.
major league baseball teams.
c.
symphony orchestras.
d.
personal computer manufacturers.
Moderate
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
The Productivity Slowdown and Speed-Up in The United States
208. Which of the following are problems that may limit economic growth in developing countries?
a.
geography
b.
health
c.
governance
d.
all of the above.
Moderate
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
Growth in Developing Countries
209. Which of the following is an explanation for why some poor countries suffer from lower productivity growth?
a.
Too much saving has lead to the accumulation of capital in poor countries.
b.
The adoption of technology too quickly hurts the labor force in poor countries.
c.
Primary education is universal in poor countries.
d.
Poor countries have lower capital stocks.
Moderate
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
Growth in Developing Countries
210. Development assistance is designed to encourage a developing country to
a.
increase consumer goods today.
b.
restrict the inflow of foreign direct investment.
c.
invest in its capital stock.
d.
reduce labor productivity.
a
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
Growth in Developing Countries
211. Compared with the U.S., developing countries
a.
face geographic conditions that limit productivity.
b.
have universal health care that prevent the spread of diseases.
c.
more political stability.
d.
higher levels of educational attainment.
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
Growth in Developing Countries
212. Private investment from a foreign country is known as
a.
development assistance.
b.
foreign direct investment.
c.
technical progress.
d.
the cost disease of personal services.
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
Growth in Developing Countries
213. Poor countries often have difficulty investing in capital because
a.
development assistance is designed in increase consumer goods.
b.
multinational corporations do not bring technological advances into poor countries.
c.
the population is living at subsistence level and cannot afford to save.
d.
they suffer from the cost disease of personal services.
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
Growth in Developing Countries
214. Part of the tremendous growth in China can be attributed to
a.
loans received from the international financial bodies like World Bank, ADB.
b.
FDI inflows and its ability to save and invest nearly half of its GDP.
c.
financial aid received from foreign governments.
d.
development assistance inflows from developed countries.
Easy
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
Growth in Developing Countries
215. When actual GDP does not rise as fast as potential GDP, the economy most likely will experience
a.
inflation.
b.
recession.
c.
economic growth.
d.
falling unemployment.
Moderate
DISC: Productivity and growth
United States – BPROG: Reflective Thinking – BPROG: Analysis
Productivity and growth
From The Long Run To The Short Run
216. A recession will occur if an economy’s actual GDP ____ its potential GDP.
a.
rises above
b.
equals
c.
falls below
d.
grows faster than
c
Moderate
DISC: Measuring the Economy
United States – BPROG: Analytic
Measuring the Economy
From The Long Run To The Short Run
217. Some years ago, the World Bank surveyed the ways in which countries encouraged or discouraged market activity.
Its conclusion was:
a.
when poor people are allowed access to the institutinos richer people enjoy, they are ill equipped to take
advantage of those benefits
b.
when poor people are allowed access to the institutions richer people enjoy, they can thrive and help
themselves
c.
that there was no measurable difference between the countries that actively encouraged market activity from
those that discouraged it.
d.
without the proper resources, encouraging market activity had no effect
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
Growth Policy: Encouraging Capital Formation
218. On the job training:
a.
is an important component for building human capital
b.
may be just as important as formal education in raising productivity
c.
is less amenable to influence by the government
d.
All of the above are correct.
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
Growth Policy: Improving Education and Training
219. Draw a production function and illustrate the effects of capital investment and technological improvement on labor
productivity.
DISC: Productivity and growth
United States – BPROG: Reflective Thinking – BPROG: Analysis
Productivity and growth
The Three Pillars of Productivity Growth
BLOOMS: Application
220. Describe the three pillars of productivity growth.
Easy
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
The Three Pillars of Productivity Growth
221. What is convergence hypothesis? Why should we expect convergence in the long run?
Easy
DISC: Productivity and growth
United States – BPROG: Analytic
Productivity and growth
Levels, Growth Rates, and the Convergence Hypothesis
222. Define the following terms:
a.
Human capital
b.
Investment
c.
Capital formation
d.
Property rights
commonly measured by the amount of education and training.
c.
Capital formation is synonymous with investment. It refers to the process of building
223. What is the price of investment? How are they related? What has to be done to increase investment?
224. Explain the ways in which the government can persuade private businesses to invest more in order to speed up the
process of capital formation?
225. Give some possible explanations of the productivity slowdown in the United States that occurred in the 1973-1995
period.
226. Discuss that factors that help explain the rapid productivity growth in the United States after 1995.
227. What is the “cost disease of personal services” phenomenon and why does it help explain why tuition rates keep
going up so fast?
228. Several countries in the world have failed to “converge” with industrialized countries. What does this mean about
their economic growth rates? Explain why poorer countries have failed to “catch up”, in terms of the pillars of economic
growth. Are there any special problems facing these countries?