Question : 7.3   Long-Run Growth 1) We can safely say that total output : 1381104

 

7.3   Long-Run Growth

 

1) We can safely say that total output can increase if there is a(n)

A) increase in the size of the labor force and a decrease in the productivity of workers.

B) decrease in the size of capital and an increase in the productivity of machines.

C) increase in the number of machines per worker.

D) decrease in the number of workers per machine.

2) The productivity of workers is defined as the

A) total output produced by the labor force.

B) output produced by a worker per hour.

C) number of hours a worker spends at work.

D) number of workers needed to produce one day’s volume of output.

 

3) The capital per worker ratio is a measure of

A) how many tools or machines each worker has to work with.

B) how productive workers are.

C) how much GDP is growing.

D) how much borrowed money is needed per worker.

 

4) Productivity is the ratio of

A) total output to the total number of worker hours.

B) total output to the total population.

C) total output to the total number of unemployed.

D) total capital to the total number of workers.

 

5) For the 1952-2012 period in the United States, output per worker hour

A) increased at a constant rate.

B) decreased during the 1960s.

C) fluctuated around an upward trend.

D) showed the largest increase during the 1980s.

6) All of the following explain the growth in output per worker hour during the 20th century EXCEPT

A) the quality of labor improved during that period.

B) the quantity of labor increased during that period.

C) the quality of capital improved during that period.

D) the worker capital ratio decreased during that period.

 

7) Which of the following is NOT a desirable feature in an economy?

A) rapid increase in output per worker

B) rapid increase in the general price level

C) low unemployment

D) low inflation

 

8) Which of the following is a desirable characteristic in an economy?

A) high inflation

B) rapid increase in the general price level

C) low unemployment

D) low employment

 

9) Which of the following is a desirable characteristic in an economy?

A) growing per-capita output

B) rapid increase in the general price level

C) population growing the same rate as output

D) population growing faster than output

10) Which of the following is a desirable characteristic in an economy?

A) growing per-capita output

B) high inflation

C) cyclical unemployment

D) sustained deflation

 

11) Output in an economy can be increased by

A) adding more workers.

B) limiting the work week.

C) using fewer machines.

D) decreasing inflation.

 

12) Human capital is

A) the machines people own.

B) the money people have.

C) the mental or physical skills people have.

D) the property people own.

 

13) The average growth rate of output in the U.S. economy since 1900 has been

A) 2.4%.

B) 3.3%.

C) 6.3%.

D) 10.5%.

14) A prolonged and deep recession is a

A) hyperinflation.

B) slowdown.

C) contraction.

D) depression.

 

15) Which of the following is not considered capital?

A) a factory a company builds to produce other output

B) a tractor produced by John Deere

C) the knowledge an individual acquires through education

D) 10,000 U.S. dollars