Question 1

After 1979 there was an upsurge in labor productivity growth in the U.S. ________ sector, mainly coming from the ________ industry.

Accepted Answer

The question specifically mentions that the upsurge in labor productivity growth in the U.S. occurred after 1979, which coincides with the rise of the computer industry. Additionally, manufacturing is mentioned as the primary sector in which this productivity growth occurred, making choice A the best fit. The other options are either not mentioned in the question or are unlikely candidates for the highest productivity growth in this time period.

Question 2

By comparison to U.S. labor market policies, European labor market policies promote

Accepted Answer

The answer of By comparison to U.S. labor market policies,...

Question 3

The U.S. record is superior to that of Europe in ________.

Accepted Answer

The answer of The U.S. record is superior to that...

Question 4

Relative to the United States, Europe has

Accepted Answer

The answer of Relative to the United States, Europe has
...

Question 5

William Nordhaus' depletion hypothesis

Accepted Answer

Nordhaus' depletion hypothesis suggests that the depletion of natural resources may explain part of the drop in multifactor productivity growth (option B) and that a drop in the rate at which new inventions are made may also explain part of the drop (option C).

Question 6

Which of the following is not one of the potential sources of lower growth in productivity cited by Gordon?

Accepted Answer

The answer of Which of the following is not one...

Question 7

In calculating multifactor productivity growth, the elasticity of output to changes in capital (given as "b" in the textbook) is assumed to be

Accepted Answer

The elasticity of output to changes in capital, denoted as "b," is assumed to be the share of capital income in GDP. This reflects the proportion of total economic output that is attributable to the use of capital in the production process.

Question 8

Which of the following policies have been suggested as ways to boost the growth of productivity?

Accepted Answer

All of the above policies have been suggested as ways to boost productivity growth. Tax cuts can incentivize saving and investment, reducing the budget deficit can create a stable economic environment, investment in education can improve human capital and technological advancement, and reducing regulation can create a more business-friendly environment. However, the effectiveness of these policies may vary depending on the specific economic conditions and the implementation of the policies.

Question 9

Gordon notes that the average growth rate of labor productivity between 1996 and 2004 was ________ percent, and the average reached ________ percent in 2003-04.

Accepted Answer

The answer of Gordon notes that the average growth rate...

Question 10

The relative flexibility of the United States labor market explains why ________ in the United States than in Europe.

Accepted Answer

The relative flexibility of the U.S. labor market, characterized by less stringent labor laws, lower levels of unionization, and a more dynamic job creation and destruction process, contributes to greater income inequality, slower real wage growth, and lower unemployment compared to Europe. This flexibility allows for easier hiring and firing, leading to these outcomes.

Question 11

The period between ________ is commonly regarded by economists as a "golden age" of rapid productivity growth in the United States.

Accepted Answer

The period between 1948 and 1973 is commonly known as the "golden age" of productivity growth in the United States. During this time, there was a sustained period of economic growth, low unemployment, and rising wages. Many factors contributed to this growth, including technological advancements, increased education and training, and government investment in infrastructure and research. However, productivity growth slowed significantly after 1973, leading some economists to refer to the period since then as a "productivity paradox."

Question 12

The slowdown in labor productivity growth from 1973 to 1995 ________ matched by a similar slowdown in MFP growth, suggesting that the growth rate of capital had ________ to do with the productivity problem.

Accepted Answer

The sentence states that the slowdown in labor productivity growth was not matched by a similar slowdown in MFP growth, suggesting that the growth rate of capital had little to do with the productivity problem. Therefore, the best choice is B) was, little.

Question 13

Dating the start of falling labor productivity growth in 1973 is very suggestive of this explanation for it: ________ energy prices and ________ use of energy per worker.

Accepted Answer

The 1973 oil crisis resulted in higher energy prices, which incentivized firms to decrease their use of energy per worker in order to reduce costs. This, in turn, could have contributed to the falling labor productivity growth.

Question 14

Productivity growth slowed rapidly after 1973. Bruno and Sachs argue that the slowdown is partially explained by

Accepted Answer

The answer of Productivity growth slowed rapidly after 1973. Bruno...

Question 15

According to Gordon, which of the following is not a plausible explanation for a decrease in the measured growth of capital per worker in the United States after 1973?

Accepted Answer

The answer of According to Gordon, which of the following...

Question 16

Relative to the United States, Europe has

Accepted Answer

Europe has caught up in the growth of labor productivity relative to the United States, but it has not caught up in output per capita or experienced faster job growth.

Question 17

The labor supply shock hypothesis suggests that

Accepted Answer

The answer of The labor supply shock hypothesis suggests that
...

Question 18

The simplest calculation of the growth rate of multifactor productivity starts with the growth rate of real GDP and then

Accepted Answer

The growth rate of multifactor productivity can be calculated by subtracting the growth rate of labor and some fraction of the growth rate of the capital-labor ratio from the growth rate of real GDP. This is because the growth rate of real GDP captures the overall growth in production, while the growth rate of labor and capital only capture the growth in inputs. By subtracting a portion of the growth rate of the capital-labor ratio, which represents the efficiency with which inputs are being used, we can isolate the growth in productivity. This method is known as the Solow residual approach.

Question 19

Relative growth rates of the standard of living in the United States and Europe indicate that workers in ________ have chosen to "spend" ________ of their higher productivity on leisure rather than on consumption of market goods and services.

Accepted Answer

Studies have shown that workers in Europe have chosen to prioritize leisure time over the consumption of market goods and services, resulting in a relatively slower growth rate of the standard of living compared to the United States. This is reflected in the significant amount of vacation time and shorter work hours that are common in many European countries.

Question 20

Comparison of the European and U.S. labor markets suggests that

Accepted Answer

The comparison between European and U.S. labor markets shows that hiring workers is relatively cheaper in the U.S., the U.S. labor market is more flexible, and job security and income equality are greater in the European labor market.

Quiz 11: The Big Questions of Economic Growth

After 1979 there was an upsurge in labor productivity growth in the U.S. sector, mainly coming from the industry.

By comparison to U.S. labor market policies, European labor market policies promote

The U.S. record is superior to that of Europe in ________.

Relative to the United States, Europe has

William Nordhaus' depletion hypothesis

Which of the following is not one of the potential sources of lower growth in productivity cited by Gordon?

In calculating multifactor productivity growth, the elasticity of output to changes in capital (given as "b" in the textbook) is assumed to be

Which of the following policies have been suggested as ways to boost the growth of productivity?

Gordon notes that the average growth rate of labor productivity between 1996 and 2004 was percent, and the average reached percent in 2003-04.

The relative flexibility of the United States labor market explains why ________ in the United States than in Europe.

The period between ________ is commonly regarded by economists as a "golden age" of rapid productivity growth in the United States.

The slowdown in labor productivity growth from 1973 to 1995 matched by a similar slowdown in MFP growth, suggesting that the growth rate of capital had to do with the productivity problem.

Dating the start of falling labor productivity growth in 1973 is very suggestive of this explanation for it: energy prices and use of energy per worker.

Productivity growth slowed rapidly after 1973. Bruno and Sachs argue that the slowdown is partially explained by

According to Gordon, which of the following is not a plausible explanation for a decrease in the measured growth of capital per worker in the United States after 1973?

Relative to the United States, Europe has

The labor supply shock hypothesis suggests that

The simplest calculation of the growth rate of multifactor productivity starts with the growth rate of real GDP and then

Relative growth rates of the standard of living in the United States and Europe indicate that workers in have chosen to "spend" of their higher productivity on leisure rather than on consumption of market goods and services.

Comparison of the European and U.S. labor markets suggests that