SOLVED

21) What two factors are the keys to determining labor productivity? A) the business cycle and the growth rate of real GDP B) the growth rate of real GDP and the interest rate C) technology and the quantity of capital per hour worked D) the average level of education of the workforce and the price level 22) If labor productivity growth slows down in a country, this will A) accelerate the increase in real GDP per capita. B) accelerate the increase in nominal GDP. C) slow down the increase in real GDP per capita. D) slow down the increase in nominal GDP. 23) If 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 24) Which of the following is an example of human capital? A) a computer B) a factory building C) a college education D) a software program 25) Human capital refers to which of the following? A) the quantity of goods and services that can be produced by one worker or by one hour of work B) the accumulated knowledge and skills workers acquire from education and training or from their life experiences C) manufactured goods that are used to produce other goods and services D) physical equipment that is made by human laborers, not machines 26) Long-run economic growth requires all of the following except A) technological change. B) increases in capital per hour worked. C) government provision of secure property rights. D) political instability. 27) Which of the following would contribute to a sustained high rate of economic growth in the long run in an economy? A) growth in capital per hour accompanied by technological change B) increases in labor force participation rates as workers who are out of the labor force pursue rising wages C) a shift of workers in the economy from the agricultural sector to the nonagricultural sector D) an influx of immigrant labor into an economy without any accompanying technological change 28) Botswana’s rapid growth can be explained by A) protection of private property and avoiding political instability. B) investment in human capital from 1960 through 2009. C) the movement of workers from the agricultural sector to the manufacturing sector. D) an increase in labor force participation. 29) Which of the following does not describe governmental policy actions that are helpful in supporting growth in an economy? Governmental policies that A) avoid playing any role in developing communication systems. B) provide secure rights to private property. C) establish an independent court system that enforces contracts. D) facilitate the development of an efficient financial system. 30) Potential GDP refers to A) the level of GDP attained when all firms are producing at capacity. B) the level of GDP attained by the country with the highest growth in real GDP in a given year. C) the difference between the highest level of real GDP per quarter and the lowest level of real GDP per quarter within any given year. D) the extent to which real GDP is above or below nominal GDP.