The meaning of economic growth to an economist is best described in which of the following options?

a

A decrease in the unemployment rate

b

A shift outward in the production possibilities frontier

c

An increase in the labor force participation rate bringing us closer to the production possibilities frontier

d

Increased spending

Which of the following options will be most likely to help real GDP per capita grow in the long run?

a

Reducing unemployment

b

Attempting to discover new natural resources

c

Research and development of new technology

d

Increasing population

A 401k is a retirement plan that provides tax benefits intended to encourage people to save for retirement. Suppose that the U.S. removed the tax benefit associated with 401k plans. Which determinant of productivity growth would be impacted by this policy?

a

Physical capital

b

Human capital

c

Technology growth

d

Natural resources

Suppose that a developing country successfully implements reforms to decrease corruption in the court system. Which determinant of economic growth will this impact most directly?

a

Physical capital

b

Human capital

c

Technology growth

d

Natural resources

The average U.S. growth rate since 2008 has been 1.5% per year. Using the rule of 72, how long will it take for the size of the U.S. economy to quadruple at this growth rate?

Numeric Answer:____________

China's average growth rate since 2008 has been 7.9% per year. Using the rule of 72, how long will it take for the size of China's economy to double at this growth rate?

Numeric Answer:______________

If the economy is on the production possibilities frontier, which of the following might allow the economy to increase its capacity?

a

Increase consumption and decrease government spending

b

Decrease exports

c

Decrease imports

d

Increase government spending

Changes in which of the following is most responsible for the slower economic growth in the period from 1973 to now as compared to 1960 to 1973?

a

Capital

b

Education

c

Technology

d

International competition

Which determinant of productivity can help to explain the slowdown in growth since 2008, but not the slowdown from 1973 to 1995?

.

a

Capital

b

Education

c

Technology

d

International competition

Which factor best explains changes in the productivity of U.S. workers since 1960?

a

Labor force participation

b

The unemployment rate

c

Average weekly hours

d

Output per hour

Given the following policies, which is most likely to increase economic growth in the long run? Consider only the direct effects.

.

a

Lower taxes on income

b

Increase education spending

c

Decrease government research and development spending

d

Increase Social Security payments

Suppose the U.S. government increased its spending on infrastructure and paid for this increased spending with a tax on consumption. How would this policy affect economic growth?

a

Increase economic growth

b

Decrease economic growth

c

Not impact economic growth

d

We cannot tell

EOC 20.22

Suppose that the U.S. government began to pay for a portion of everyone's college education, and it paid for this by increasing taxes on business investment. How would this policy affect economic growth?

.

a

Increase economic growth

b

Decrease economic growth

c

Not impact economic growth

d

We cannot tell