Question
Question 1 GDP is a summary statistic, which attempts to capture ____________ in the economy, which in turn is _______________ with other measures of well-being
Question 1
GDP is a summary statistic, which attempts to capture ____________ in the economy, which in turn is _______________ with other measures of well-being in the economy.
- consumption, uncorrelated
- standard of living, uncorrelated
- happiness, correlated
- production, highly correlated
Flag question: Question 2
The GDP at the steady-state growth is also referred to as
- potential GDP.
- Short-run GDP and cyclical GDP.
- sustainable GDP.
- cyclical GDP.
- short-run GDP.
- Potential GDP and sustainable GDP.
Flag question: Question 3
When it comes to the long-term growth rate of the aggregate economy, a percentage point or two difference __________.
- really doesn't make much of a difference in the standard of living of the people
- may or may not affect standard of living of the people. Hard to say.
- makes a huge difference in the standard of living of the people
Flag question: Question 4
To move along the production function, __________ must be increased.
- Consumption rate
- Export level
- Savings rate
- Import level
Flag question: Question 5
The "old economy" production function suffers from the curse of __________.
Diminishing returns to scale
- Diminishing value of production
- Diminishing capital
- Diminishing savings
Flag question: Question 6
To twist up the production function, __________ must be improved.
- Technology
- Savings rate
- Output
- Exports
Flag question: Question 7
Labor productivity determines the value of a unit of labor. Increases in labor productivity drive increases in GDP per capita. What drives increases in labor productivity?
- Increases in capital and "technology" that allow a (skilled) workforce to produce more
- Decreases in the reliance on technology and machinery, resulting in more people being put to work
- Increases in number of labor-intensive jobs
- Decreasing the hours in the work week so more people are put to work
Flag question: Question 8
Rule of __________ and __________ rights have been identified as crucial "environment" variables necessary to support a robust and sustainable production function.
- Thirds; human
- law; property
- 70; property
- law; human
Flag question: Question 9
The financial system has been characterized as the "brains" of the economy. What roles does that brain play in the macroeconomy?
- Moving capital from those who have excess to those who have good ideas
- Risk sharing
- Allocating capital to its most productive uses
- Information regarding expected future cash flows and risk
- Liquidity provision
Group of answer choices
- 3 and 4 only
- 1 and 2 only
- 1, 3, and 5 only
- All the options provided
Flag question: Question 10
_____________ is/are what households have left from national income and transfer payments after they consume and pay taxes.
- Private savings
- Capital investment
- Imports
- Exports
Flag question: Question 11
Total national savings is what the economy has left over from __________ after household consumption spending and government spending on goods and services.
- Investments
- GDP
- Government Debt
- Taxes
Flag question: Question 12
____________ is what the government has left from taxes after spending on goods and services and transfer payments to households. For most governments, most of the time, this tends to be ________________.
- Public investment; positive
- Public savings; negative
- Subsidies; positive
- Private savings; positive
Flag question: Question 13
In developed economies, growth depends more on technological change than on increases in capital per hour worked. Which of the following does NOT drive technological change?
- Uncontrollable, unexplainable random "shocks" to the production function
- Development of human capital
- A competitive environment
- Entrepreneurial risk taking
Flag question: Question 14
New growth theory focuses on the virtuous cycle between __________ and __________.
- Savings and consumption
- Technology and capital
- Savings and investments
- Capital and investment
Flag question: Question 15
Wheelan says, " [A] market economy inspires hard work and progress not just because it rewards winners, but because it crushes losers." This is a characterization of Schumpeter's __________.
- Creative destruction
- Old growth theory
- Destructive creation
- New growth theory
Flag question: Question 16
According to Wheelan, "The important point is that productivity growth, like so much else in economics, is ____________."
- what drives population growth
- not a zero-sum game
- available to everyone globally
- secondary to economic growth
Flag question: Question 17
Modern growth theory does not assume that improved "________" appears exogenously as a "shock" - like a "gift from the gods."
- Savings
- Output
- Investment
- Technology
Flag question: Question 18
Modern growth theory sees no role for the government, essentially leaving everything to "the market."
- False
- Maybe
- Don't know
- True
Flag question: Question 19
Government can play a crucial role in fostering long-term economic growth. Which of the below is NOT an example of this?
- Protect the status quo for narrow, politically powerful interests
- Facilitate investment in physical and social infrastructure
- Foster a healthy, skilled workforce
- Safeguard property rights and enforce rule of law
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started