| 15. |
Long-run economic growth depends almost entirely on: |
|
A) |
labor productivity growth. |
|
B) |
population growth. |
|
C) |
agricultural production growth. |
|
D) |
the number of hours worked. |
|
|
|
| 16. |
Productivity is equal to: |
|
A) |
real GDP divided by the number of workers. |
|
B) |
real GDP divided by the population. |
|
C) |
the number of workers per machine. |
|
D) |
the total output produced. |
|
|
|
| 17. |
The term human capital describes: |
|
A) |
improvement made possible by better machines and the equipment available. |
|
B) |
improvement in the technology available to the work force. |
|
C) |
improvement in a worker’s skills made possible by education, training and knowledge. |
|
D) |
improvement in the robotics technology that can substitute for a human worker. |
|
|
|
| 18. |
Which of the following will NOT increase the productivity of labor? |
|
A) |
technological improvements |
|
B) |
an increase in the capital stock |
|
C) |
improvements in education |
|
D) |
an increase in the size of the labor force |
|
|
|
| 19. |
For developed countries, which of the following would be considered the most important driver in productivity growth? |
|
A) |
the level of educational attainment |
|
B) |
the amount of physical capital |
|
C) |
technological progress |
|
D) |
the abundance of natural resources |
|
|
|
| 20. |
An example of physical capital would be: |
|
A) |
a truck a company purchases for work. |
|
B) |
a worker who physically learns to work on a truck his company buys. |
|
C) |
a truck a worker buys for personal use like hunting, going to work, or going to the beach. |
|
D) |
a truck a company purchases for work, a worker who physically learns to work on a truck his company buys, or a truck a worker buys for personal use like hunting, going to work, or going to the beach. |
|
|
|
| 21. |
Workers now are more productive than in the past because workers today: |
|
A) |
have more natural resources to use. |
|
B) |
work four-day weeks. |
|
C) |
are better educated and so have more human capital. |
|
D) |
are physically larger than their parents. |
|
|
|
| 22. |
According to the text, productivity is driven by all of the following EXCEPT: |
|
A) |
physical capital. |
|
B) |
human capital. |
|
C) |
technological progress. |
|
D) |
natural resources. |
|
|
|
| 23. |
Investment in human capital shifts the aggregate production function: |
|
A) |
downward. |
|
B) |
leftward. |
|
C) |
upward. |
|
D) |
rightward. |
|
|
|
| 24. |
All of the following are sources of federal tax revenue EXCEPT: |
|
A) |
the personal income tax. |
|
B) |
sales taxes. |
|
C) |
social insurance taxes. |
|
D) |
the corporate profits tax. |
|
|
|
|
|
| 25. |
The federal government’s largest source of tax revenue is: |
|
A) |
property taxes. |
|
B) |
personal income and corporate profit taxes. |
|
C) |
sales taxes. |
|
D) |
social insurance taxes. |
|
|
|
| 26 |
Government payments to households for which no good or service is provided in return are called: |
|
A) |
transfer payments. |
|
B) |
government purchases. |
|
C) |
consumption expenditures. |
|
D) |
investment expenditures. |
|
|
|
| 27. |
In the basic equation of national income accounting, the government directly controls _____ and influences ______. |
|
A) |
G; C and I |
|
B) |
T; G and C |
|
C) |
C; X and M |
|
D) |
I; G and T |
| 28. |
A change in taxes or a change in government transfers affects consumption through a change in: |
|
A) |
autonomous consumption. |
|
B) |
the marginal propensity to save. |
|
C) |
disposable income. |
|
D) |
government spending. |
