Question 1

Growth in real GDP per hour worked in the United States was slowest during what period of time?
A) 1900-1949
B) 1950-1972
C) 1973-1994
D) 1995-2008

Accepted Answer

The period between 1973 and 1994 saw the slowest growth in real GDP per hour worked in the United States, which is commonly referred to as the "productivity slowdown." During this time, there were several factors at play, including rising oil prices, increased global competition, and a shift in the economy away from manufacturing towards services.

Question 2

Which of the following advances contributed to the "new economy" of the mid-1990s?
A) the increased use of the Internet in selling products and services
B) expanded cell phone use
C) the lower cost and increased availability of laptop computers
D) all of the above

Accepted Answer

All of the choices contributed to the "new economy" of the mid-1990s. The increased use of the Internet in selling products and services led to the rise of e-commerce and online businesses. Expanded cell phone use allowed for greater connectivity and communication, which facilitated business transactions. The lower cost and increased availability of laptop computers made it easier for people to work remotely and access information on-the-go.

Question 3

Describe the process of "creative destruction" using a specific example.

Accepted Answer

The answer of Describe the process of "creative destruction" using...

Question 4

In the United States,the annual growth rate of real GDP per hour worked between 1995 and 2010 averaged
A) -0.3%.
B) 2.1%.
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 1995 and 2010 averaged around 2.1%.

Question 5

Human capital refers to the percentage of the working-age population in the labor force.

Accepted Answer

Human capital refers to the knowledge, skills, and abilities possessed by individuals that contribute to their productivity in the workforce. It is not directly related to the percentage of the working-age population in the labor force.

Question 6

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

Accepted Answer

While there were ups and downs in productivity growth during the 20th century, overall it remained positive. According to the Bureau of Labor Statistics, productivity grew at an average rate of 2.1% per year from 1947 to 2019.

Question 7

One drawback of the patent system is that firms must disclose to the public information about the product or process.

Accepted Answer

Firms must disclose information about the product or process in order to receive a patent, which can make it easier for competitors to replicate the innovation.

Question 8

Explain how advances in technology are critical to sustaining economic growth,even if capital per hour worked is consistently increasing.Provide a graph of a per-worker production function to support your answer.

Accepted Answer

The answer of Explain how advances in technology are critical...

Question 9

Is knowledge capital subject to the law of diminishing returns? Explain.

Accepted Answer

The answer of Is knowledge capital subject to the law...

Question 10

Which of the following is true regarding the productivity slowdown in the United States during the mid-1970s?
A) The productivity slowdown occurred despite a rising quality of labor.
B) The productivity slowdown was unique to the United States as foreign countries experienced unprecedented rates of growth during that time.
C) High oil prices raised the costs of doing business for markets worldwide, and reduced output worldwide as well.
D) The move toward a "New Economy" ended in the early 1970s, resulting in less technological progress in the United States during the mid-1970s.

Accepted Answer

High oil prices during the 1970s, particularly due to the oil embargo, increased costs globally and contributed to reduced output worldwide, affecting productivity.

Question 11

The productivity slowdown of the mid-1970s can be explained by which of the following?
A) excessive use of fiscal policy
B) large increases in research and development
C) a decline in labor quality
D) diminishing marginal returns

Accepted Answer

The answer of The productivity slowdown of the mid-1970s can...

Question 12

Starting at point B in the diagram below,identify which combinations of points illustrate technological change.Give a brief explanation to support your answer.

Accepted Answer

The answer of Starting at point B in the diagram...

Question 13

Explain how market economies are generally better able to achieve technological progress than are centrally planned economies.

Accepted Answer

The answer of Explain how market economies are generally better...

Question 14

Technological change is the key to sustaining economic growth.

Accepted Answer

Technological change leads to increased efficiency, productivity and innovation, which in turn drives economic growth. This has been evident throughout history, with periods of significant technological advancement coinciding with economic booms. Without continued technological progress, economic growth would stagnate or even decline.

Question 15

Provide examples of three kinds of government policies that can help increase the accumulation of knowledge capital and explain why government policies are often necessary to encourage the accumulation of knowledge capital.

Accepted Answer

The answer of Provide examples of three kinds of government...

Question 16

Why do some economists point to a decline in the quality of labor as an explanation for the productivity slowdown in the mid-1970s?
A) The average level of education of citizens of the United States rose dramatically during this period of time.
B) The skill level required to perform many jobs increased during this period of time, although the skills of the labor force did not increase as quickly.
C) Scores on standardized tests during that period of time began to rise.
D) Increases in the amount of capital available reduced labor quality.

Accepted Answer

Economists point to a decline in the quality of labor as an explanation for the productivity slowdown in the mid-1970s because the skill level required to perform many jobs increased during this period of time, although the skills of the labor force did not increase as quickly.

Question 17

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 growth in the United States from 1800 to 1900 was positive and increasing, as the country experienced significant expansion in its land area, population, economy, and influence. This period saw the Louisiana Purchase, the Mexican-American War, the California Gold Rush, the completion of the transcontinental railroad, the rise of industrialization, and the emergence of America as a world power.

Question 18

Some economists argue that the apparent slowdown in economic growth in the United States during the mid-1970s may not really have reduced the standard of living because
A) spending on new government regulations such as the Clean Air Act increased output dramatically without increasing the standard of living of Americans.
B) significant improvements in the quality of services occurred, although the quantity of these services did not increase much during this time.
C) changes in well-being are accurately reflected in statistics measuring economic growth.
D) higher production costs from higher oil prices raised production and transportation costs and reduced output.

Accepted Answer

Some economists argue that even though the economic growth may have slowed down in the mid-1970s, the standard of living may not have reduced because there were significant improvements in the quality of services during this time, although the quantity did not increase much. This means that even though the GDP growth may have been slow, the quality of goods and services that people consumed improved, which could have enhanced their standard of living.

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 helped the US economy to avoid diminishing marginal returns and experience accelerating growth in the early to mid-20th century. This allowed for improvements in productivity and efficiency, leading to increased production and economic growth.

Question 20

The "new economy" that emerged in the mid-1990s is based on
A) manufacturing.
B) financial services.
C) information technology.
D) retail sales.

Accepted Answer

The "new economy" that emerged in the mid-1990s is based on information technology. This refers to the shift towards a knowledge-based economy where the production and exchange of information and knowledge is the main driver of economic growth. This includes industries such as software development, telecommunications, and e-commerce, which rely heavily on information technology.

Quiz 11: Long-Run Economic Growth: Sources and Policies

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

Which of the following advances contributed to the "new economy" of the mid-1990s?

Describe the process of "creative destruction" using a specific example.

In the United States,the annual growth rate of real GDP per hour worked between 1995 and 2010 averaged

Human capital refers to the percentage of the working-age population in the labor force.

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

One drawback of the patent system is that firms must disclose to the public information about the product or process.

Explain how advances in technology are critical to sustaining economic growth,even if capital per hour worked is consistently increasing.Provide a graph of a per-worker production function to support your answer.

Is knowledge capital subject to the law of diminishing returns? Explain.

Which of the following is true regarding the productivity slowdown in the United States during the mid-1970s?

The productivity slowdown of the mid-1970s can be explained by which of the following?

Starting at point B in the diagram below,identify which combinations of points illustrate technological change.Give a brief explanation to support your answer.

Explain how market economies are generally better able to achieve technological progress than are centrally planned economies.

Technological change is the key to sustaining economic growth.

Provide examples of three kinds of government policies that can help increase the accumulation of knowledge capital and explain why government policies are often necessary to encourage the accumulation of knowledge capital.

Why do some economists point to a decline in the quality of labor as an explanation for the productivity slowdown in the mid-1970s?

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

Some economists argue that the apparent slowdown in economic growth in the United States during the mid-1970s may not really have reduced the standard of living because

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?

The "new economy" that emerged in the mid-1990s is based on