Countries with high rates of economic growth tend to have

• A.a labor force that is more productive.
• B.a lower life expectancy at birth.
• C.low rates of technological advancement.
• D.a declining incidence of business cycle fluctuations.

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Question 52 of 70If labor productivity growth slows down in a country, this means that the growth rate in ________ has declined.

• A.labor force participation
• B.the quantity of goods or services that can be produced by one hour of work
• C.the working-age population
• D.nominal GDP

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Question 53 of 70Which of the following is true regarding the national income accounts?

• A.GDP > GNP
• B.NNP > GNP
• C.Personal income > national income
• D.National income > NNP
• E.Personal income > disposable personal income

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Question 54 of 70In the Robinson Crusoe example, what determine his standard of living?

• A.size of the island
• B.productivity
• C.weather conditions
• D.time

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Question 55 of 70The inflation rate measures the average prices of goods and services in the economy. The producer price index tracks the prices firms receive for goods and services at all stages of production.

• A.Both statements are true
• B.Both statements are false
• C.1st statement is true but 2nd statement is false
• D.1st statement is false but 2nd statement is true

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Question 56 of 70The GDP price index:

• A.includes fewer goods and services than the consumer price index.
• B.is identical to the consumer price index.
• C.is another term for the producer price index.
• D.includes all goods comprising the nation's domestic output.

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Question 57 of 70A price index is:

• A.a comparison of the price of a market basket from a fixed point of reference.
• B.a comparison of real GDP in one period relative to another.
• C.the cost of a market basket of goods and services in a base period divided by the cost of the same market basket in another period.
• D.a ratio of real GDP to nominal GDP.

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Question 58 of 70In terms of the circular flow diagram, businesses obtain revenue through the _____ market and make expenditures in the _____ market.

• A.product; financial
• B.resource; product
• C.product; resource
• D.capital; product

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Question 59 of 70Technological advances generally result in

• A.decreased incomes.
• B.increased life expectancy.
• C.increased infant mortality rates.
• D.increased average number of hours worked per day.

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Question 60 of 70Akosua grows corn in her backyard garden to feed her family. The corn she grows is not counted in GDP because

• A.it was not produced for the marketplace
• B.it is an intermediate good that Susie will process further before feeding her family
• C.goods produced using land are not included in GDP
• D.the corn has no value
• E.it reduces the amount of corn she will buy at the store

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Question 61 of 70Which of the following effects of inflation are true?

• A.Discourages savings
• B.Encourages savings
• C.Fixed income earners gain
• D.Value of money increases

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Question 62 of 70Increases in capital per hour worked cannot sustain high rates of economic growth unless accompanied by technological change.

• A.TRUE
• B.FALSE

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Question 63 of 70The introduction of new goods makes the Cedi worth more. Introducing new good into the economy means consumers' available options (or alternatives to choose from) increase.

• A.Both statements are true, and 2nd statement is the correct explanation of 1st statement
• B.Both statements are true but 2nd statement is not the correct explanation of 1st statement
• C.1st statement is true but 2nd statement is false
• D.1st statement is false but 2nd statement is true

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Question 64 of 70Real GDP is:

• A.the nominal value of all goods and services produced in the economy.
• B.the nominal value of all goods and services produced in the domestic economy corrected for inflation or deflation.
• C.that aggregate output that is produced when the economy is operating at full employment.
• D.always greater than nominal GDP.

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Question 65 of 70If your nominal wage rises faster than the price level, we can say your real wage has ________ and the purchasing power of your income has ________.

• A.fallen; fallen
• B.fallen; risen
• C.risen; risen
• D.risen; fallen

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Question 66 of 70The inflation rate measures the percentage increase in the price level from one year to the next. The GDP deflator is the best measure that reflects the prices of goods and services purchased by the typical household.

• A.Both statements are true
• B.Both statements are false
• C.1st statement is true but 2nd statement is false
• D.1st statement is false but 2nd statement is true

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Question 67 of 70Suppose the labor force stays constant, and the working-age population stays constant, but a greater number of persons who were unemployed become employed. The labor force participation rate will

• A.increase.
• B.decrease.
• C.remain constant.
• D.not change in a way that can be predicted.

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Question 68 of 70The largest component of GDP is

• A.tax revenue
• B.government purchases of goods and services
• C.the nation's capital stock
• D.private investment spending
• E.private consumption expenditures

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Question 69 of 70Real GDP refers to:

• A.the value of the domestic output after adjustments have been made for environmental pollution and changes in the distribution of income.
• B.GDP data that embody changes in the price level, but not changes in physical output.
• C.GDP data that reflect changes in both physical output and the price level.
• D.GDP data that have been adjusted for changes in the price level.

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Question 70 of 70Labor productivity will increase if the ________ increases and ________.

• A.quantity of capital per hour worked; technology improves
• B.quantity of labor per unit of capital; technology improves
• C.quantity of capital per hour worked; immigration increases while capital is fixed
• D.quantity of labor per unit of capital; immigration increases while capital is fixed

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