Question:

Answer: invented and built a more powerful and efficient steam engine.

Question: More than half the growth of real GDP in the United States is caused by:

increases in the productivity of labor.

the use of fewer inputs of labor.

a falling price level.

the reallocation of labor from manufacturing to agriculture.

Answer: increases in the productivity of labor.

Question: At an annual growth rate of 7 percent, real GDP will double in about:

13 ½ years.

9 years.

10 years.

11 ½ years.

Answer: 10 years.

Question: To fully realize economic growth through the efficiency factor, an economy must increase its stock of capital goods and improve its technology.

True

False

Answer: False

Question: Based on the annual number of hours worked per capita, labor supply in the United States exceeds that of France by about _______ percent.

51

62

20

40

Answer: 40

Question: Suppose total output (real GDP) is $10,000 and worker-hours are 20,000. We can conclude that:

nominal GDP must be between $10,000 and $20,000.

real GDP per capita must be $200,000.

labor productivity must be $0.5.

the price-level index must be less than 100.

Answer: labor productivity must be $0.5.

Question:

Answer: technological advances account for about 40 percent of U.S. productivity growth.

Question: Proponents of economic growth claim that rising living standards can lead to environmental improvements as people can afford to care more about the environment.

True

False

Answer: True

Question: Given the annual rate of economic growth, the “rule of 70” allows one to:

calculate the size of the GDP gap.

calculate the number of years required for real GDP to double.

determine the accompanying rate of inflation.

determine the growth rate of per capita GDP.

Answer: calculate the number of years required for real GDP to double.

Question:

Answer: neither ensures a nation of an increase in real GDP nor of an increase in real GDP per capita.