Question 1

Which of the following has made the largest contribution to the growth of labour productivity in Canada?

Accepted Answer

A)  technological advance
B)  education and training of labour
C)  economies of scale
D)  improved resource allocationE) B) and C)
F) C) and D)

Question 2

Assume that an economy has 1500 workers, each working 2000 hours per year.If the average real output per worker-hour is $20, then total output or real GDP will be:

Accepted Answer

A)  $3 million.
B)  $30 million.
C)  $45 million.
D)  $60 million.E) A) and B)
F) A) and D)

Question 3

Which would be the best economic measure to compare standards of living among nations over time?

Accepted Answer

A)  changes in labour productivity
B)  changes in real domestic output
C)  changes in real GDP per capita
D)  changes in nominal income per capitaE) A) and C)
F) B) and D)

Question 4

Other things being equal, all of the following would cause a rise in a country's real per capita GDP, except a(n) :

Accepted Answer

A)  increase in the general price level.
B)  decrease in the population size.
C)  increase in labour productivity.
D)  decrease in imports.E) B) and C)
F) All of the above

Question 5

Real GDP = worker-hours * labour productivity.

Accepted Answer

A) True 
 B)False

Question 6

Improvements in education and training explain nearly 80 percent of the historical growth of Canadian labour productivity.

Accepted Answer

A) True 
 B)False

Question 7

If an economy's real GDP doubles in fourteen years, then the average annual rate of growth in real GDP is about:

Accepted Answer

A)  3 percent.
B)  4 percent.
C)  5 percent.
D)  6 percent.E) B) and C)
F) A) and B)

Question 8

Simultaneous consumption is a source of increasing returns and economies of scale.

Accepted Answer

A) True 
 B)False

Question 9

Economic growth is best defined as an increase in:

Accepted Answer

A)  either real GDP or real GDP per capita.
B)  nominal GDP.
C)  total consumption expenditures.
D)  wealth in the economy.E) B) and C)
F) B) and D)

Question 10

Refer to the diagram below.A shift in the production possibilities curve from AB to CD is most likely due to:

Accepted Answer

A)  the use of the economy's resources in an efficient way.
B)  an increase in the spending of business and consumers.
C)  an increase in government purchase of the economy's output.
D)  an increase in the quantity and quality of labour resources.E) A) and B)
F) C) and D)

Question 11

Refer to the above table, between years 2 and 3:

Accepted Answer

A)  Italy's real GDP grew more rapidly than China's real GDP.
B)  real GDP fell in China.
C)  population growth reduced Italy's real GDP growth to zero.
D)  population fell in Italy's.E) A) and D)
F) A) and B)

Question 12

Which of the following is an effect of economic growth on the production possibilities curve?

Accepted Answer

A)  An outward shift of the curve
B)  A downward movement along the curve
C)  An upward movement along the curve
D)  An inward shift of the curveE) None of the above
F) A) and B)

Question 13

Compared to the leader countries, the follower countries can grow at a faster rate because:

Accepted Answer

A)  follower countries have a hard time adopting a technology.
B)  leader countries cannot grow anymore.
C)  follower countries can skip past many stages of technology that the leader countries had to pass through.
D)  leader countries can skip past many stages of technology that the follower countries had to pass through.E) A) and B)
F) C) and D)

Question 14

The movement of workers from lower productivity jobs to higher productivity jobs would be an example of a(n) :

Accepted Answer

A)  technological advance.
B)  network effects.
C)  simultaneous consumption.
D)  improved resource allocation.E) None of the above
F) A) and B)

Question 15

If an economy's real GDP is growing by 5 percent per year, its real domestic output will double in approximately fourteen years.

Accepted Answer

A) True 
 B)False

Question 16

In Canada, the highest increase in the average annual rates of productivity growth was observed during the period of:

Accepted Answer

A)  1946-1973.
B)  1946-2015.
C)  1973-1981.
D)  2000-2015.E) A) and D)
F) B) and C)

Question 17

Poorer follower countries can grow much faster than leader countries because they can simply adopt existing technologies from richer leader countries.

Accepted Answer

A) True 
 B)False

Question 18

Which is a demand factor in economic growth?

Accepted Answer

A)  more human and natural resources
B)  technological progress and innovation
C)  an increase in the economy's stock of capital goods
D)  an increase in total spending in the economyE) B) and D)
F) B) and C)

Question 19

Over a year, a nation's GDP at current prices rose by 15 percent while the price index increased from 100 to 110.GDP at constant prices rose by about:

Accepted Answer

A)  3 percent.
B)  5 percent.
C)  7 percent.
D)  9 percent.E) A) and D)
F) A) and B)

Question 20

Economic well-being in Canada is understated by growth rates because they:

Accepted Answer

A)  account for pollution expenditures.
B)  don't account for improvement in products.
C)  account for illegal activity.
D)  don't account for the slowdown in productivity.E) A) and B)
F) B) and C)

Exam 8: B: Economic Growth

Over a year, a nation's GDP at current prices rose by 15 percent while the price index increased from 100 to 110.GDP at constant prices rose by about:

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Economic growth is best defined as an increase in:

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Assume that an economy has 1500 workers, each working 2000 hours per year.If the average real output per worker-hour is $20, then total output or real GDP will be:

Correct AnswerverifiedShow Answer

Refer to the above table, between years 2 and 3:

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Which of the following has made the largest contribution to the growth of labour productivity in Canada?

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Which of the following is an effect of economic growth on the production possibilities curve?

Correct AnswerverifiedShow Answer

Economic well-being in Canada is understated by growth rates because they:

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If an economy's real GDP doubles in fourteen years, then the average annual rate of growth in real GDP is about:

Correct AnswerverifiedShow Answer

Which would be the best economic measure to compare standards of living among nations over time?

Correct AnswerverifiedShow Answer

Refer to the diagram below.A shift in the production possibilities curve from AB to CD is most likely due to:

Correct AnswerverifiedShow Answer

Poorer follower countries can grow much faster than leader countries because they can simply adopt existing technologies from richer leader countries.

Correct AnswerverifiedShow Answer

Simultaneous consumption is a source of increasing returns and economies of scale.

Correct AnswerverifiedShow Answer

Real GDP = worker-hours * labour productivity.

Correct AnswerverifiedShow Answer

If an economy's real GDP is growing by 5 percent per year, its real domestic output will double in approximately fourteen years.

Correct AnswerverifiedShow Answer

The movement of workers from lower productivity jobs to higher productivity jobs would be an example of a(n) :

Correct AnswerverifiedShow Answer

In Canada, the highest increase in the average annual rates of productivity growth was observed during the period of:

Correct AnswerverifiedShow Answer

Improvements in education and training explain nearly 80 percent of the historical growth of Canadian labour productivity.

Correct AnswerverifiedShow Answer

Other things being equal, all of the following would cause a rise in a country's real per capita GDP, except a(n) :

Correct AnswerverifiedShow Answer

Which is a demand factor in economic growth?

Correct AnswerverifiedShow Answer

Compared to the leader countries, the follower countries can grow at a faster rate because:

Correct AnswerverifiedShow Answer

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