1.
Growth is advantageous to a nation because it:
A.
promotes faster population growth.
B.
lessens the burden of scarcity.
C.
eliminates the economizing problem.
D.
slows the growth of wants.
2.
Which of the following is
not
a supply factor in economic growth?
A.
the stock of capital
B.
technological advance
C.
the size and quality of the labor force
D.
full employment
3.
Which of the following would
not
be expected to increase labor productivity?
A.
technological advance
B.
the acquisition of more education and training by the labor force
C.
an increase in the size of the labor force
D.
the realization of economies of scale
4.
Labor productivity may be defined as:
A.
total output/worker-hours.
B.
nominal GDP
minus
real GDP.
C.
the ratio of real capital to worker-hours.
D.
the annual increase in nominal GDP per worker.
5.
In a full-employment economy, a high rate of growth requires a:
A.
low rate of saving and a low rate of investment.
B.
high rate of saving and a low rate of investment.
C.
high rate of saving and a high rate of investment.
D.
low rate of saving and a high rate of investment.
6.
Which of the following is a likely implication of the United States' productivity slowdown?
A.
a lower rate of inflation
B.
a decline in the growth of real living standards
C.
expanded U.S. exports.
D.
a significant rise in real wages.
7.
Demand-side growth policies emphasize:
A.
government budget surpluses to restrain inflation.
B.
government programs to expand high-productivity industries and to hasten the decline of low-productivity industries.
C.
the use of tax reductions to stimulate saving, investment, and incentives to work.
D.
low interest rates and high rates of investment.
8.
Education and training programs (such as general tuition tax credits and retraining programs for those losing jobs to imports) best exemplify:
A.
"demand-side policies" designed to increase labor productivity.
B.
"supply-side policies" designed to increase economic growth.
C.
"fiscal policies" designed to hold down inflation.
D.
"industrial policies" designed to promote U.S. exports.
9.
(Last Word) Critics of economic growth:
A.
contend that growth and industrialization reduce pollution.
B.
argue that economic growth does not resolve socioeconomic problems such as income inequality.
C.
feel that growth results in greater economic security for workers.
D.
say its benefits acrue nearly exclusively to white males.
10.
(Last Word) Proponents of economic growth make all of the following arguments
except
:
A.
Growth is the basic means of improving living standards.
B.
It is easier to reduce poverty when the economy is growing than when it is not.
C.
There is a direct relationship between a growing real GDP and pollution.
D.
Growth provides an economic environment favorable to education and self-fulfillment.
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