Question 1

If total output in an economy is $600,000 and the total number of worker-hours in the economy is 40,000,labour productivity is

Accepted Answer

A)   $7.
B)   $9.
C)   $13.
D)   $15.
E)   $18.F) B) and C)
G) D) and E)

Question 2

The costs of economic growth include all of the following EXCEPT consumption sacrificed for

Accepted Answer

A)   physical capital formation.
B)   acquiring new human capital.
C)   research and development into new technologies.
D)   additional hours of leisure.
E)   training workers.F) C) and E)
G) B) and D)

Question 3

The key variable in determining changes in a country's standard of living is the

Accepted Answer

A)   interest rate.
B)   inflation rate.
C)   unemployment rate.
D)   population growth rate.
E)   long-run rate of economic growth.F) All of the above
G) C) and E)

Question 4

The table below provides data on Canada's real GDP per person,average labour productivity,and share of population employed in 1960 and 2000.Use this information for the following questions.(Assume that between 1960 and 2000 there are 40 years) .
 
-Canada's real GDP per person in 2000,which shows the quantity of goods and services each person can consume in 2000,depends on the quantity of goods and services each worker can ___________ in 2000,and the number of people (as a proportion of the total population) __________ in 2000.

Accepted Answer

A)   produce;working
B)   produce;not working
C)   produce;not in the labour force
D)   produce;in the labour force
E)   consume;workingF) B) and C)
G) B) and D)

Question 5

Government support of basic research,by funding scientists through the National Research Council of Canada,is an example of a government policy to promote economic growth by

Accepted Answer

A)   increasing human capital.
B)   increasing physical capital.
C)   improving technology.
D)   improving the social and legal environment.
E)   increasing the availability of natural resources.F) C) and D)
G) A) and B)

Question 6

Assume that an economy has 2,000 workers,each working 4,000 hours per year.If the average real output per worker-hour is $10,then total output or real GDP will be

Accepted Answer

A)   $20 million.
B)   $40 million.
C)   $80 million.
D)   $100 million.
E)   $120 million.F) B) and C)
G) A) and E)

Question 7

The life of Florence Nightingale,who successfully championed the cause of nurses and helped to establish nursing as a profession in nineteenth-century England,provides a classic example of

Accepted Answer

A)   managerial entrepreneurship.
B)   owner entrepreneurship.
C)   entrepreneurship in a for-profit activity.
D)   entrepreneurship in a non-profit activity.
E)   entrepreneurship in government activity.F) None of the above
G) B) and D)

Question 8

Real GDP per person in Northland is $30,000,while real GDP in Southland is $10,000.However,Northland's real GDP per person is growing at 1% per year and Southland's is growing at 3% per year.If these growth rates persist indefinitely,then

Accepted Answer

A)   Northland's real GDP per person will decline until it equals Southland's.
B)   Northland's real GDP per person will always be greater than Southland's.
C)   Southland's real GDP per person will always be less than Northland's.
D)   Southland's real GDP per person will eventually be greater than Northland's.
E)   Southland's real GDP per person will catch up to Northland's,but never exceed Northland's.F) C) and D)
G) B) and D)

Question 9

The establishment of well-defined property rights increases

Accepted Answer

A)   average labour productivity.
B)   the amount of pollution.
C)   the unemployment rate.
D)   the quantity of human capital.
E)   the labour force participation ratE.F) C) and D)
G) C) and E)

Question 10

Real GDP per person equals average labour productivity

Accepted Answer

A)   multiplied by one minus the unemployment rate.
B)   minus the share of population employed.
C)   multiplied by the labour force participation rate.
D)   divided by the labour force participation rate.
E)   multiplied by the share of population employed.F) C) and E)
G) All of the above

Question 11

A Bangladeshi worker who immigrates to Canada is likely to find that his average labour productivity is much higher in Canada than it was in Bangladesh.Possible reasons for this increased productivity may include all of the following EXCEPT

Accepted Answer

A)   Canada's private sector capital per worker is higher.
B)   Canada's legal and political system encourages greater individual initiative.
C)   Canada's public infra-structure system is better developed.
D)   Canada has more natural resources.
E)   Canada has overcome the law of diminishing returns.F) C) and E)
G) A) and B)

Question 12

One factor that contributed to the growth in the share of the population employed in Canada between 1961 and 2010 was increased

Accepted Answer

A)   labour union participation.
B)   female labour force participation.
C)   male labour force participation.
D)   emigration.
E)   minimum wages.F) A) and B)
G) A) and E)

Question 13

Usually,an abundance of natural resources __________ average labour productivity.

Accepted Answer

A)   doubles
B)   increases
C)   decreases
D)   has no affect on
E)   may either increase or decreaseF) A) and B)
G) B) and E)

Question 14

Growth in the share of the population employed in Canada is likely to decline in the future because

Accepted Answer

A)   increasing female labour force participation is predicted.
B)   increasing male labour force participation is predicted.
C)   population growth is expected to increase.
D)   an increasing proportion of those currently employed will be retiring.
E)   a decreasing proportion of those currently employed will be retiring.F) C) and D)
G) A) and E)

Question 15

Managers contribute to increased average labour productivity in each of the following ways,EXCEPT by

Accepted Answer

A)   developing new products.
B)   obtaining financing.
C)   assigning workers to jobs.
D)   dealing with suppliers.
E)   motivating workers.F) B) and C)
G) None of the above

Question 16

The introduction of new technologies that allow producers to specialize in those activities in which they are relatively more efficient is an example of how overall productivity increases because of

Accepted Answer

A)   the principle of comparative advantage.
B)   diminishing returns to capital.
C)   the scarcity principle.
D)   the equilibrium principle.
E)   the cost-benefit principlE.F) B) and D)
G) A) and D)

Question 17

From the late 1970s to the late 1990s,real wages in Canada

Accepted Answer

A)   increased steadily.
B)   neither increased nor decreased.
C)   decreased steadily.
D)   changed in the same way as the unemployment rate.
E)   changed at the same rate as GDP.F) A) and B)
G) A) and C)

Question 18

An example of a government policy to enhance technological progress is

Accepted Answer

A)   the construction of the Trans-Canada Highway.
B)   government support for basic research.
C)   the maintenance of a well-functioning legal system.
D)   the provision of publicly-funded education.
E)   publicly-funded job training programs.F) B) and D)
G) A) and E)

Question 19

The population of Omega totals one million people,of whom 30% are employed.Average output per worker in Omega is $30,000.Real GDP per person in Omega totals

Accepted Answer

A)   $9,000.
B)   $21,000.
C)   $30,000.
D)   $39,000.
E)   $9 billion.F) A) and D)
G) B) and C)

Question 20

A rough indicator of a country's living standards and stage of economic development is

Accepted Answer

A)   the unemployment rate.
B)   the inflation rate.
C)   real GDP.
D)   real GDP per person.
E)   average labour productivity.F) A) and E)
G) C) and D)

Exam 14: International Trade

Real GDP per person equals average labour productivity

Correct Answer
verified

From the late 1970s to the late 1990s,real wages in Canada

Correct Answer
verified

Managers contribute to increased average labour productivity in each of the following ways,EXCEPT by

Correct Answer
verified

Growth in the share of the population employed in Canada is likely to decline in the future because

Correct Answer
verified

Government support of basic research,by funding scientists through the National Research Council of Canada,is an example of a government policy to promote economic growth by

Correct Answer
verified

The introduction of new technologies that allow producers to specialize in those activities in which they are relatively more efficient is an example of how overall productivity increases because of

Correct Answer
verified

Correct Answer
verified

The population of Omega totals one million people,of whom 30% are employed.Average output per worker in Omega is $30,000.Real GDP per person in Omega totals

Correct Answer
verified

A rough indicator of a country's living standards and stage of economic development is

Correct Answer
verified

A Bangladeshi worker who immigrates to Canada is likely to find that his average labour productivity is much higher in Canada than it was in Bangladesh.Possible reasons for this increased productivity may include all of the following EXCEPT

Correct Answer
verified

If total output in an economy is $600,000 and the total number of worker-hours in the economy is 40,000,labour productivity is

Correct Answer
verified

The costs of economic growth include all of the following EXCEPT consumption sacrificed for

Correct Answer
verified

The key variable in determining changes in a country's standard of living is the

Correct Answer
verified

The life of Florence Nightingale,who successfully championed the cause of nurses and helped to establish nursing as a profession in nineteenth-century England,provides a classic example of

Correct Answer
verified

One factor that contributed to the growth in the share of the population employed in Canada between 1961 and 2010 was increased

Correct Answer
verified

Usually,an abundance of natural resources __________ average labour productivity.

Correct Answer
verified

The establishment of well-defined property rights increases

Correct Answer
verified

Real GDP per person in Northland is $30,000,while real GDP in Southland is $10,000.However,Northland's real GDP per person is growing at 1% per year and Southland's is growing at 3% per year.If these growth rates persist indefinitely,then

Correct Answer
verified

Assume that an economy has 2,000 workers,each working 4,000 hours per year.If the average real output per worker-hour is $10,then total output or real GDP will be

Correct Answer
verified

An example of a government policy to enhance technological progress is

Correct Answer
verified

Exam 14: International Trade

Real GDP per person equals average labour productivity

Correct AnswerverifiedShow Answer

From the late 1970s to the late 1990s,real wages in Canada

Correct AnswerverifiedShow Answer

Managers contribute to increased average labour productivity in each of the following ways,EXCEPT by

Correct AnswerverifiedShow Answer

Growth in the share of the population employed in Canada is likely to decline in the future because

Correct AnswerverifiedShow Answer

Government support of basic research,by funding scientists through the National Research Council of Canada,is an example of a government policy to promote economic growth by

Correct AnswerverifiedShow Answer

The introduction of new technologies that allow producers to specialize in those activities in which they are relatively more efficient is an example of how overall productivity increases because of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The population of Omega totals one million people,of whom 30% are employed.Average output per worker in Omega is $30,000.Real GDP per person in Omega totals

Correct AnswerverifiedShow Answer

A rough indicator of a country's living standards and stage of economic development is

Correct AnswerverifiedShow Answer

A Bangladeshi worker who immigrates to Canada is likely to find that his average labour productivity is much higher in Canada than it was in Bangladesh.Possible reasons for this increased productivity may include all of the following EXCEPT

Correct AnswerverifiedShow Answer

If total output in an economy is $600,000 and the total number of worker-hours in the economy is 40,000,labour productivity is

Correct AnswerverifiedShow Answer

The costs of economic growth include all of the following EXCEPT consumption sacrificed for

Correct AnswerverifiedShow Answer

The key variable in determining changes in a country's standard of living is the

Correct AnswerverifiedShow Answer

The life of Florence Nightingale,who successfully championed the cause of nurses and helped to establish nursing as a profession in nineteenth-century England,provides a classic example of

Correct AnswerverifiedShow Answer

One factor that contributed to the growth in the share of the population employed in Canada between 1961 and 2010 was increased

Correct AnswerverifiedShow Answer

Usually,an abundance of natural resources __________ average labour productivity.

Correct AnswerverifiedShow Answer

The establishment of well-defined property rights increases

Correct AnswerverifiedShow Answer

Real GDP per person in Northland is $30,000,while real GDP in Southland is $10,000.However,Northland's real GDP per person is growing at 1% per year and Southland's is growing at 3% per year.If these growth rates persist indefinitely,then

Correct AnswerverifiedShow Answer

Assume that an economy has 2,000 workers,each working 4,000 hours per year.If the average real output per worker-hour is $10,then total output or real GDP will be

Correct AnswerverifiedShow Answer

An example of a government policy to enhance technological progress is

Correct AnswerverifiedShow Answer

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