Chapter 08 – Economic Growth
53. In the U.S. economic-growth experience:
54. Which is the single most important source of U.S. economic growth?
55. Historically, the total amount of real capital per worker in the United States has:
Chapter 08 – Economic Growth
56. Human capital refers to the:
57. Trends in educational attainment in the U.S. since 1960 indicate that the percentage of
adults:
58. In 2009, about how many percent of adults in the U.S. were college graduates or more?
Chapter 08 – Economic Growth
59. One concern regarding educational attainment in the U.S. is that:
60. What economic concept would be most closely associated with a situation where an
aluminum plant expands its operations and uses extensive computerization in the production
line to reduce per-unit costs of production?
61. The movement of workers from lower productivity jobs to higher productivity jobs would
be an example of a(n):
Chapter 08 – Economic Growth
62. The shift of labor out of agriculture to industry in the United States has tended to:
63. One major aspect of the socio-cultural-political environment of the United States which
has generally been conducive to economic growth is the:
64. Labor productivity in the U.S. in the periods 1973-1995 and 1995-2009 grew at average
rates of:
Chapter 08 – Economic Growth
65. If the annual growth in a nation’s productivity is 2.8 percent rather than 1.5 percent, then
the nation’s standard of living will double in about:
66. Factors that contributed to the higher U.S. labor productivity growth in 1995-2009 relative
to the earlier period include the following, except:
67. A major effect of the rise in the rate of productivity growth in the United States is a(n):
Chapter 08 – Economic Growth
68. Compared with the period from 1973-1995, the annual rate of productivity growth from
1995-2009 was about:
69. Increasing returns would be a situation where a firm increases its workforce and other
inputs by:
70. Sources of increasing returns that help raise productivity growth include the following,
except:
Chapter 08 – Economic Growth
71. Increases in the value of the product to each user, including existing users, as the total
number of users rises is called:
72. A piece of software that benefits many users at the same time would be an example of:
73. Which of the following is a main source of increasing returns in recent years?
Chapter 08 – Economic Growth
74. One major economic benefit of global competition is:
75. Which of the flowing countries ranked highest in the Global Competitiveness Index?
76. The rapid productivity growth experienced in 1995-2009:
Chapter 08 – Economic Growth
77. Critics of growth policies focus on the following arguments, except:
78. One of the main arguments against further growth for industrialized nations focuses on the
problem of:
79. An antigrowth view would be that there may be a significant tradeoff between
productivity and:
Chapter 08 – Economic Growth
80. One of the basic economic defenses of economic growth rests on the conclusion that:
81. “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):
82. Rising real wages for women in the U.S. workforce since the 1960s have:
Chapter 08 – Economic Growth
83. The entry of women into the workforce since the 1960s resulted in:
84. Over the past twenty-five years China has experienced nearly a:
85. Which of the following statements is true?
Chapter 08 – Economic Growth
86. The growth of per capita income in China is largely the result of:
87. There are two common measures of economic growth: increase in real GDP and increases
in real GDP per capita.
88. 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.
Chapter 08 – Economic Growth
89. 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.
90. If real GDP grows at an average annual rate of 2.0% instead of 3.5%, then it would take
about 35 years – instead of 20 years – for real GDP to double.
91. Leader countries that experience modern economic growth early on will always grow
faster than follower countries.
92. In the period 1960 to 2007, the U.S. experienced a more rapid annual growth in real GDP
per capita than countries like Ireland, Singapore, and South Korea.
Chapter 08 – Economic Growth
93. One important growth-promoting institutional structure is the protection of domestic jobs
against outsourcing.
94. An increase in the quantity and quality of natural resources is an example of a demand
factor of economic growth.
95. The supply factors of economic growth are those factors that shift a country’s possibilities
curve.
96. The ability to expand production is sufficient for a nation to achieve maximum possible
growth.
Chapter 08 – Economic Growth
97. A shift outward in the production possibilities curve is the direct result of improvements
in the efficiency factor of economic growth.
98. Total output for an economy is basically equal to work-hours divided by labor
productivity.
99. If an economy has 50,000 work-hours employed, and its labor productivity is $20/hour,
then its real GDP must be $2500.
100. Since 1950, the U.S. average annual rate of growth of real GDP was higher than the
average annual growth of real GDP per capita.
Chapter 08 – Economic Growth
101. Increased labor productivity has been less important as a source of growth than the
increased labor inputs in the U.S. economy since 1950.
102. The real GDP of the United States has grown since 1953 largely because of increases in
labor productivity.
103. The largest factor that raised labor productivity in the U.S. economy since 1953 has been
the increased amount of capital available.
104. Human capital refers to the amount of capital available for the economy’s human
resources to work with.
Chapter 08 – Economic Growth
105. The rate of growth of labor productivity in the U.S. has declined from the period 1973–
1995 to the period 1995-2009.
106. There tends to be a high positive correlation between the rate of productivity growth and
the rate of economic growth.
107. There tends to be a positive correlation between real wages of workers and the
productivity of labor in the economy.
108. Global competition has tended to slow down the rate of productivity growth in the
United States.
Chapter 08 – Economic Growth
109. Simultaneous consumption and network effects are sources of increasing returns and
economies of scale that promote productivity growth.
110. There is unanimous agreement that economic growth is desirable and sustainable.
111. In the growth debate, defenders of economic growth believe that it is the primary path to
raising living standards.
112. In the growth debate, critics of economic growth say that it will deplete economic
resources.