Question 1

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, as data shows that productivity growth has indeed been slower since 2006 than during the period of slow growth from the mid-1970s to the mid-1990s, despite the advancements in information technology.

Question 2

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 3

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

From 1900 to the 1970s, the US experienced a steady rise in growth rates. However, from the 1970s to the 1990s, the growth rate slowed down, before rising again until 2005. Since then, growth rates have slowed down again. Therefore, the answer is C.

Question 4

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 and widespread adoption of information technology. This technology has enabled businesses to streamline operations, automate tasks, access vast amounts of data, and improve communication and collaboration. Therefore, option C - information technology - is the best choice.

Question 5

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

The argument that the productivity slowdown from mid-1970s to mid-1990s didn't actually happen is based on the fact that the increased spending to reduce pollution due to new environmental laws did not raise output. This suggests that the slowdown in productivity growth was only apparent, as the spending on pollution reduction suppressed the output growth that would have been seen otherwise. Therefore, option B is the best choice. The other options are not supported by evidence and are not as well-reasoned as option B.

Question 6

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 7

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 hours...

Question 8

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 9

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 during that time period.

Question 10

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 11

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 12

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 between 2006 and 2016 averaged 1.2%.

Question 13

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 advances listed contributed to the productivity growth of the mid-1990s. The increased use of the internet allowed for easier and faster communication, as well as greater online commerce. Expanded cell phone use allowed for greater on-the-go communication and flexibility in conducting business. The increased availability of wireless internet access, smartphones, tablets, and laptop computers further enhanced the ability to work and communicate from virtually anywhere.

Question 14

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 15

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 in accurately capturing and valuing output and inputs can lead to underestimating productivity growth rates. This could be due to challenges in measuring productivity for certain industries or accounting for advancements in technology and intangible assets.

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

During the 19th century, the United States experienced a period of significant economic growth, with advancements in transportation, communication, and manufacturing. This growth was fueled by factors such as increased immigration, westward expansion, industrialization, and new inventions such as the telegraph and steam engine. As a result, the population grew and the economy expanded, leading to a rise in standards of living and increased opportunities for trade and commerce.

Question 17

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 meant that output per worker was growing more slowly, which resulted in a slower rate of growth in real GDP per capita. Therefore, B) real GDP per capita grew more slowly is the correct answer.

Question 18

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 in Mexico has led to issues such as corruption and insecurity, which deter foreign investment and hinder economic growth.

Question 19

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

Accepted Answer

According to data from the U.S. Bureau of Labor Statistics, the rate of growth of productivity in the United States was generally positive throughout the 20th century, with some periods of slower growth or even decline during certain years or decades. However, overall productivity levels increased during this time due to various factors such as technological advancements, changes in the workforce, and improvements in business practices.

Question 20

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 for the development of new products and processes that increased productivity and efficiency, leading to economic growth without experiencing diminishing marginal returns.

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

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.

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

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

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

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.

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?

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

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?

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

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

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

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

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

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

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

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

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?