1) Assume that an economy has 9000 workers, each working 2000 hours per year. The average real output per worker hour is $20. What will the total output or real GDP be? Explain.

2) Suppose an economy's real GDP is $125 billion in year one and $130 billion in year two. What is the growth rate of its GDP?

3) Summarize the historical growth record of the United States over the past 50 years in terms of growth in real GDP and in real per capita GDP. 4) Why do small differences in the rate of economic growth produce large differences in the size of the economy over time? Illustrate with an example. 5) Give the approximate importance of productivity as a source of economic growth in the United States and less the various sources which account for this productivity growth and the relative importance.

6) How does investment in capital goods and infrastructure contribute to economic growth?

7) What is meant by economies of scale and what is the importance of this concept of economic growth?

8) Use productivity to explain why some economists think a "new economy" has been established in the United States.

9) Explain why even small changes in the rate of productivity are significant. Use the "rule of 70" to demonstrate the point.

10) How are real output, real income, and real wages linked to labor productivity?

11) How has the influx of women into the paid labor force over the past half century influenced economic growth? Stay at least three of the six reasons given for the increase in the number of women in the paid workforce over the past half century.