Question 1

In the United States,the annual growth rate of real GDP per hour worked between 2006 and 2014 averaged
A)-0.3%.
B)1.2%.
C)6.9%.
D)10.2%.

Accepted Answer

According to the information provided by the Bureau of Labor Statistics, the annual growth rate of real GDP per hour worked between 2006 and 2014 averaged at around 1.2%. Therefore, the best choice is B.

Question 2

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 significant economic growth from 1800 to 1900, driven by factors such as industrialization, westward expansion, and increased immigration. The country's population increased from approximately 5.3 million in 1800 to nearly 76 million in 1900, and real GDP per capita also grew substantially over the same period. While there were certainly economic downturns and periods of recession during this century, overall growth was positive and increasing.

Question 3

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 slowdown in productivity would result in a slower rate of growth for real GDP per capita, which is a measure of economic output per person.

Question 4

Using the points on the diagram below,identify which combinations of these points illustrate diminishing returns to capital.Give a brief explanation to support your answer.

Accepted Answer

The answer of Using the points on the diagram below,identify...

Question 5

An explanation for the productivity slowdown from 1974 through 1995 is
A)measurement problems.
B)creative destruction.
C)a decline in oil prices.
D)an increase in labor quality.

Accepted Answer

The productivity slowdown from 1974 through 1995 may be due to measurement problems. This is because it is difficult to accurately measure productivity, and there may have been changes in the economy that were not captured by the metrics used at the time.

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

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 8

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 9

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 advances listed contributed to the "new economy" of the mid-1990s. The increased use of the Internet allowed for new ways of selling products and services, expanded cell phone use allowed for greater communication and accessibility, and the lower cost and increased availability of laptop computers allowed for more flexibility in work and communication.

Question 10

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, which includes advancements in telecommunications, e-commerce, and digital technologies. Manufacturing, financial services, and retail sales are important sectors, but they don't fully capture the changes and innovations that define the new economy.

Question 11

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 reaching a peak in the 1970s. From there, growth rates slowed down until the 1990s when they began to rise again. This increase in growth continued until 2005, after which growth rates once again began to decline. Therefore, choice C accurately reflects the growth rates in the United States from 1900 to the present.

Question 12

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 13

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 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)2006-2014

Accepted Answer

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

Question 15

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 new and improved methods of production, which led to increased efficiency and productivity. This allowed for the economy to avoid diminishing marginal returns and experience accelerating growth.

Question 16

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 17

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

Accepted Answer

According to data from the Bureau of Labor Statistics, labor productivity in the United States increased by an annual average of 2.3% from 1947 to 2019, indicating a positive rate of growth throughout the 20th century.

Question 18

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

Accepted Answer

This statement is true. The productivity slowdown was a global phenomenon and affected all high-income countries during the mentioned time period.

Question 19

Compared to the previous 20 years,productivity growth in the United States increased between 1996 and 2014.

Accepted Answer

The answer of Compared to the previous 20 years,productivity growth...

Question 20

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.

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

In the United States,the annual growth rate of real GDP per hour worked between 2006 and 2014 averaged

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

Using the points on the diagram below,identify which combinations of these points illustrate diminishing returns to capital.Give a brief explanation to support your answer.

An explanation for the productivity slowdown from 1974 through 1995 is

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

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.

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.

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

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

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

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?

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?

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

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?

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

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

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

Compared to the previous 20 years,productivity growth in the United States increased between 1996 and 2014.

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