The largest contributor to increases in the productivity of American labor is: Answer
￼ technological advance.
Refer to the above graph. An increase in an economy's labor productivity would: Answer
￼ shift curve AB to CD.
(Consider This) Rising wages for women in the United States have increased: Answer
￼ the percentage of married women in the workforce.
Countries that have experienced modern economic growth have also tended to: Answer
￼ move toward more democratic forms of government.
Between 1950 and 2009, U.S. real GDP per capita grew at an average annual rate of about: Answer
￼ 2.0 percent.
(Last Word) Growth of real per capita income and China has largely resulted from: Answer
￼ increased use of technology and improved technology.
Use the list below to answer the following questions:
1. Improvements in technology
2. Increases in the supply (stock) of capital goods
3. Purchases of expanding output
4. Obtaining the optimal combination of goods, each at least-cost production
5. Increases in the quantity and quality of natural resources
6. Increases in the quantity and quality of human resources
Refer to the above list. As distinct from the demand and efficiency factors of economic growth, the supply factors of economic growth are:
￼ 1, 2, 5, and 6 only.
Other things equal, which of the following would increase labor productivity the most? Answer
￼ the increase in the stock of real capital exceeds the increase in inputs of labor
(Last Word) Over the past twenty-five years, China has averaged annual growth rates of nearly: Answer
￼ 9 percent.
Growth is advantageous to a nation because it: Answer
￼ lessens the burden of scarcity.
Suppose that an economy's labor productivity and total worker-hours each grew by 3 percent between year 1 and year 2. We could conclude that this economy's: Answer
￼ production possibilities curve shifted outward.
The number of years required for real GDP to double can be found by: Answer
￼ dividing 70 by the annual growth rate.
If a nation's real GDP is growing by 5 percent per year, its real GDP will double in approximately: Answer
￼ 14 years.
Which of the following statements is correct? Answer
￼ Between 1953 and 2009, increases in labor productivity account for more of the growth in U.S. real GDP than do increases in the quantity of labor.
(Consider This) The Consider This box on patents and innovation demonstrates that: Answer
￼ Patent protection for U.S. companies may not be as effective when other countries do not respect or enforce U.S. patent laws.
Real Per Capita GDP in the United States in 2009 was approximately: Answer
(Consider This) According to the Consider This box about hypothetical countries Slogo, Sumgo, and Speedo, small differences in __________ make for large differences in _________ over several decades, assuming the same growth of population for each country. Answer
￼ economic growth rates; real GDP per capita
Other things equal, which of the following would increase the rate of economic growth, as measured by changes in real GDP? Answer
￼ An increase in the size of the working age population.
Real per capita GDP: Answer
￼ was much more equal across nations in 1820 than it is today.
A competitive market system: Answer
￼ encourages growth by allowing producers to make profitable investment decisions based on market signals.
The achievement of full employment through time will: Answer
￼ increase the realized rate of economic growth.
Between 1995 and 2009, the U.S. productivity rate: Answer
￼ grew substantially compared to prior years, leading some economists to predict a long-lasting resurgence of productivity growth.
Skeptics of the recent rise in the average rate of productivity growth say that: Answer
￼ it is too soon to judge whether the high productivity advances between 1995 and 2009 are long-lasting or transitory.
Other things equal, if a full-employment economy reallocated a substantial quantity of its resources to capital goods, we would expect: Answer
￼ labor productivity to rise.
Which of the following is a true statement? Answer
￼ Economists who support economic growth say that it is the most practical route to the higher standards of living that the vast majority of people desire.