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Chapter 08 - Economic Growth
95. Economists who believe that the recent rise in the average rate of productivity growth will
be long lasting say that:
96. Between 1995 and 2009, the U.S. productivity rate:
Chapter 08 - Economic Growth
97. Which of the following is a true statement?
98. Proponents of economic growth say that pollution:
99. Critics of economic growth:
Chapter 08 - Economic Growth
100. Proponents of economic growth make all of the following arguments except:
101. (Consider This) The main point of the Consider This box about hypothetical countries
Slogo, Sumgo, and Speedo is that over several decades differing:
102. (Consider This) According to the Consider This box about hypothetical countries Slogo,
Sumgo, and Speedo, small differences in __________ make for large differences in
_________ over several decades, assuming the same growth of population for each country.
Chapter 08 - Economic Growth
103. (Consider This) According to the Consider This box on patents and innovation, the cost
for U.S. and European drug companies to research, patent, and safety-test a new drug is
about:
104. (Consider This) The Consider This box on patents and innovation demonstrates that:
105. (Consider This) Over the past several decades, the percentage of women in the paid U.S.
workforce has:
Chapter 08 - Economic Growth
106. (Consider This) Rising wages for women in the United States have increased:
107. (Last Word) Over the past twenty-five years, China has averaged annual growth rates of
nearly:
108. (Last Word) Growth of real per capita income and China has largely resulted from:
Chapter 08 - Economic Growth
109. (Last Word) Which of the following problems has not accompanied China's rapid
economic growth over the past twenty-five years?
110. In the United States, real GDP per capita has increased more rapidly than real GDP.
111. An economy with an average growth rate of 10 percent can expect to see its real GDP
double in approximately 7 years.
Chapter 08 - Economic Growth
112. Growth is a widely held economic goal primarily because it creates a more equal
distribution of wealth and income.
113. Real GDP per capita is found by dividing real GDP by the size of the labor force.
114. The rule of 70 is used to find how long it will take an economy to grow by 70 percent.
115. Growth in well-being tends to be understated by growth in real GDP because of
increases in leisure time.
Chapter 08 - Economic Growth
116. Modern economic growth is defined as increases in real GDP over time.
117. Modern economic growth since the 1820s has widened wealth and income disparities
between richer and poorer nations.
118. Leader countries tend to have higher growth rates than follower countries.
119. Follower countries achieve high rates of growth by adopting technologies developed by
leader countries.
Chapter 08 - Economic Growth
120. Strong economic growth since 1960 has allowed nations like Singapore and Ireland to
surpass nations such as the United Kingdom and France in real GDP per capita.
121. Strong property rights inhibit economic growth by strictly regulating economic
behavior.
122. Strong patent laws encourage innovation and promote economic growth.
123. The intense competition of free trade prevents the investment that generates economic
growth.
Chapter 08 - Economic Growth
124. A competitive market system promotes growth by providing producers with market
signals on which to base investment and production decisions.
125. Improvements in technology are considered a demand factor in economic growth.
126. Increases in household and business spending are a demand factor in economic growth.
127. To fully realize economic growth through the efficiency factor, an economy must
increase its stock of capital goods and improve its technology.
Chapter 08 - Economic Growth
128. If an economy is currently producing on its production possibilities curve, a rightward
shift of the curve is a necessary but not sufficient condition for economic growth.
129. Economic growth can be shown as a movement from a point on one production
possibility curve to a point on a curve located farther from the origin.
130. An increase in total spending generates economic growth by shifting the production
possibilities curve farther from the origin.
131. Between 1953 and 2007, rising labor productivity contributed more to U.S. economic
growth than did increases in inputs.
Chapter 08 - Economic Growth
132. Real GDP = worker-hours labor productivity.
133. Labor productivity = worker-hours/real GDP.
134. Improvements in education and training explain about 80 percent of the historical growth
of U.S. labor productivity.
135. Productivity growth was greater between 1973 and 1995 than between 1995 and 2009.
Chapter 08 - Economic Growth
136. The economy of 1995-2009 was characterized by greater productivity growth and greater
economic growth than in the immediately preceding two decades.
137. Because of the recent rise in the average rate of productivity growth, the business cycle
is dead.
138. Critics of economic growth say studies show that people are not interested in achieving
higher standards of living.
139. Proponents of economic growth claim that rising living standards can lead to
environmental improvements as people can afford to care more about the environment.
Chapter 08 - Economic Growth
140. Proponents of economic growth claim that growth leads to greater equality of income in
an economy.
