Question 1

The productivity slowdown experienced in the United States from the mid-1970s to the mid-1990s occurred in all high-income countries.

Accepted Answer

The productivity slowdown was a global phenomenon affecting all high-income countries, not just the United States.

Question 2

Economists who believe that real GDP may grow slowly because of insufficient demand for investment spending cite three main reasons for the low demand for loanable funds. Which of the following is not one of those reasons?
A) a smaller capital requirement for modern information technology firms
B) the falling price of capital relative to other goods
C) a reduced demand for housing due to slowing population growth
D) the continued decrease in the value of the dollar relative to the currencies of major U.S. trading partners

Accepted Answer

Reasons A, B, and C directly relate to the demand for loanable funds by affecting investment decisions and housing market dynamics, which are integral to discussions on real GDP growth. However, D, the continued decrease in the value of the dollar relative to the currencies of major U.S. trading partners, is more related to international trade dynamics and currency valuation rather than the domestic demand for loanable funds for investment.

Question 3

The rate of growth of productivity in the United States was positive during the 20th century.

Accepted Answer

The rate of growth of productivity in the United States was positive throughout the 20th century, with some periods being more productive than others.

Question 4

Describe the pattern of growth rates in real GDP per hour worked in the United States since the early nineteenth century. Has output per hour worked consistently increased at the same rate? Explain.

Accepted Answer

The answer of Describe the pattern of growth rates in...

Question 5

Which of the following accurately describes growth rates in the United States from 1900 to the present?
A) Growth rates rose until the 1970s and then fell until the present.
B) Growth rates have risen continuously from 1900 to the present.
C) Growth rates rose until the 1970s, slowed until the 1990s, rose again until 2005, and then slowed again to the present.
D) Growth rates have fallen continuously from 1900 to the present.

Accepted Answer

Growth rates in the United States rose steadily from 1900 until the 1970s, when they began to slow down. This was due in part to factors such as the end of the post-World War II economic boom, the oil crisis, and the rise of global competition. Growth rates then picked up again in the late 1990s, fueled by the dot-com boom, but slowed down again after the 2008 financial crisis. Overall, the pattern has been one of growth and contraction, with periods of rapid expansion followed by periods of slower growth.

Question 6

Which of the following is not an explanation for the revival in the growth of productivity starting in the mid-1990s?
A) Information and communication innovations are increasingly geared toward improving business processes and not consumer products.
B) Faster computers have sped up data processing.
C) Internet use has increased the efficiency of how firms buy and sell to each other and to consumers.
D) Cell phones and wireless Internet access have increased worker flexibility.

Accepted Answer

The revival in the growth of productivity starting in the mid-1990s can be attributed to several factors, including faster computers, the increased use of the internet, and the advent of cell phones and wireless internet, which have all increased efficiency and flexibility in business operations. However, the statement that information and communication innovations are increasingly geared toward improving business processes and not consumer products does not explain this revival, as many innovations have also significantly targeted and benefited consumer products, contributing to overall productivity growth.

Question 7

One of the primary reasons that Mexico has had trouble attracting foreign investment and has therefore experienced relatively low rates of economic growth is
A) the failure to fully establish the rule of law.
B) persistent wars between Mexico and its neighboring countries.
C) poor public education and health.
D) low rates of saving and investment.

Accepted Answer

The failure to fully establish the rule of law has hindered Mexico's ability to attract foreign investment, as investors are often hesitant to put their money into a country without reliable legal protections for their investments. This has led to low rates of economic growth in Mexico. The other choices listed may also contribute to Mexico's economic challenges, but they are not as significant as the lack of rule of law.

Question 8

One explanation for recent productivity growth rates appearing worse than they actually are is
A) measurement problems.
B) creative destruction.
C) a decline in oil prices.
D) an increase in labor quality.

Accepted Answer

Measurement problems, such as difficulty in accurately measuring the impact of technological advancements or intangible assets, can lead to an underestimation of productivity growth rates.

Question 9

Growth in real GDP per hour worked in the United States was slowest during what period of time?
A) 1900-1949
B) 1950-1973
C) 1974-1995
D) 2006-2016

Accepted Answer

The answer of Growth in real GDP per hour worked...

Question 10

In the United States, the number of hours worked per person has decreased since 1800. How would growth rates since 1800 be different if they were calculated for real GDP per capita instead of GDP per hour worked?

Accepted Answer

The answer of In the United States, the number of...

Question 11

Because of the productivity slowdown in the United States from the mid-1970s through the mid-1990s
A) real GDP per capita grew more rapidly.
B) real GDP per capita grew more slowly.
C) the standard of living did not change.
D) the standard of living increased in the United States.

Accepted Answer

The productivity slowdown means that there was a decrease in the rate at which goods and services were being produced, which would lead to a slower growth in real GDP per capita. Therefore, B is the correct answer.

Question 12

Despite the improvements in information technology, productivity growth since 2006 has fallen to an even lower rate than during the period of slow growth from the mid-1970s to the mid-1990s.

Accepted Answer

This statement is true. According to data from the Bureau of Labor Statistics, productivity growth has declined since 2006 and is currently at a historically low rate. Despite advancements in technology, productivity growth has not kept pace with previous periods of economic growth.

Question 13

Some economists argue that the higher productivity growth that began in the mid-1990s is based on the development of
A) manufacturing.
B) financial services.
C) information technology.
D) retail sales.

Accepted Answer

The higher productivity growth that began in the mid-1990s is largely attributed to the development of information technology. This includes the use of computers, the internet, and other digital tools to streamline processes and increase efficiency in industries ranging from manufacturing to financial services.

Question 14

Some economists argue that the productivity slowdown from mid-1970s to mid-1990s actually didn't happen, but just "appeared" to happen because
A) exports were becoming a less important part of the economy, and it was hard to measure decreases in output from exports.
B) new environmental laws had passed and forced firms to spend to reduce pollution, and this spending did not raise output.
C) increased spending on health and safety raised worker productivity.
D) of the high inflation levels of the 1970s.

Accepted Answer

Some economists argue that the productivity slowdown from mid-1970s to mid-1990s actually didn't happen, but just "appeared" to happen because new environmental laws had passed and forced firms to spend to reduce pollution, and this spending did not raise output. This argument suggests that the productivity slowdown was an illusion rather than a real phenomenon.

Question 15

Over the last three decades in the United States, services have become a smaller fraction of GDP relative to goods.

Accepted Answer

Over the last three decades in the United States, the service sector has grown significantly, becoming a larger fraction of GDP relative to goods. This reflects a broader shift in advanced economies from manufacturing-based to service-oriented economies.

Question 16

Growth in the United States from 1800 to 1900 can be characterized as
A) positive and increasing.
B) positive and flat.
C) positive and decreasing.
D) negative.

Accepted Answer

The United States experienced a period of significant growth during the 19th century, including population growth, urbanization, industrialization, and territorial expansion. This growth was generally positive and increasing throughout the century.

Question 17

Productivity growth in the United States has steadily increased since 1995.

Accepted Answer

While there have been periods of increased productivity growth in the United States since 1995, it has not been a steady increase. Productivity growth has experienced fluctuations, with significant growth in the late 1990s and early 2000s, but slower growth rates in other periods, particularly following the Great Recession of 2007-2009.

Question 18

Which of the following advances contributed to the productivity growth of the mid-1990s?
A) the increased use of the Internet in selling products and services
B) expanded cell phone use
C) increased availability of wireless Internet access, smartphones, tablets, and laptop computers
D) all of the above

Accepted Answer

All of the above advances contributed to the productivity growth of the mid-1990s. The increased use of the internet in selling products and services allowed for more efficient and widespread commerce. Expanded cell phone use gave people more flexibility in communication and remote work. The increased availability of wireless internet access and mobile devices like smartphones, tablets, and laptops allowed for greater connectivity and productivity.

Question 19

Which of the following explains the ability of the U.S. economy to avoid diminishing marginal returns and experience accelerating growth in the early to mid-20th century?
A) continuing technological change
B) immigration
C) additions of a greater amount of capital of the same quality
D) a decrease in the quality of labor

Accepted Answer

Continuing technological change allowed the U.S. economy to innovate and introduce new, more efficient methods of production and use of resources, leading to accelerating growth without experiencing diminishing marginal returns.

Question 20

In the United States, the annual growth rate of real GDP per hour worked between 2006 and 2016 averaged
A) -0.3%.
B) 1.2%.
C) 6.9%.
D) 10.2%.

Accepted Answer

According to the Bureau of Labor Statistics, the annual growth rate of real GDP per hour worked in the United States between 2006 and 2016 averaged 1.2%.

Quiz 22: Long-Run Economic Growth: Sources and Policies

The productivity slowdown experienced in the United States from the mid-1970s to the mid-1990s occurred in all high-income countries.

Economists who believe that real GDP may grow slowly because of insufficient demand for investment spending cite three main reasons for the low demand for loanable funds. Which of the following is not one of those reasons?

The rate of growth of productivity in the United States was positive during the 20th century.

Describe the pattern of growth rates in real GDP per hour worked in the United States since the early nineteenth century. Has output per hour worked consistently increased at the same rate? Explain.

Which of the following accurately describes growth rates in the United States from 1900 to the present?

Which of the following is not an explanation for the revival in the growth of productivity starting in the mid-1990s?

One of the primary reasons that Mexico has had trouble attracting foreign investment and has therefore experienced relatively low rates of economic growth is

One explanation for recent productivity growth rates appearing worse than they actually are is

Growth in real GDP per hour worked in the United States was slowest during what period of time?

In the United States, the number of hours worked per person has decreased since 1800. How would growth rates since 1800 be different if they were calculated for real GDP per capita instead of GDP per hour worked?

Because of the productivity slowdown in the United States from the mid-1970s through the mid-1990s

Despite the improvements in information technology, productivity growth since 2006 has fallen to an even lower rate than during the period of slow growth from the mid-1970s to the mid-1990s.

Some economists argue that the higher productivity growth that began in the mid-1990s is based on the development of

Some economists argue that the productivity slowdown from mid-1970s to mid-1990s actually didn't happen, but just "appeared" to happen because

Over the last three decades in the United States, services have become a smaller fraction of GDP relative to goods.

Growth in the United States from 1800 to 1900 can be characterized as

Productivity growth in the United States has steadily increased since 1995.

Which of the following advances contributed to the productivity growth of the mid-1990s?

Which of the following explains the ability of the U.S. economy to avoid diminishing marginal returns and experience accelerating growth in the early to mid-20th century?

In the United States, the annual growth rate of real GDP per hour worked between 2006 and 2016 averaged