1. What was the average yearly increase in U.S. labor productivity growth betwee
ID: 1177802 • Letter: 1
Question
1. What was the average yearly increase in U.S. labor productivity growth between the 1870s and the early years of the 21st century?
a. ~1%
b. ~2%
c. ~5%
d. ~10%
2. Economics grow for a variety of reasons. Which of the following is not a primary cause of economic growth?
a. government regulation
b. growth in the availability of productive resources
c. improvements in the quality of resources
d. techonological change
3. A chain-weighted price index recognizes the fact that the composition of output changes over time
a. true
b. false
4. Properly applied, a federal budget deficit can simultaneously reduce inflation and unemployment
a. true
b. false
5. An increase in the interest rate, other things constant, decrease the amount of investment spending
a. true
b. false
6. Changes in the price level will not shift the consumption function
a. true
b. false
7. If the household's income falls from $20,000 to $17,00 and its consumption spending falls from $18,000 to $15,000, than its marginal propensity
a. to consume is -0.67
b. to consume is -0.88
c. to consume is 0.20
d. to save is zero
8. The opportunity cost of investing in capital is the interest rate.
a. true
b. false
9. When the real estate market in the United States crashed in 2006, it caused a significant decline in net wealth.
a. true
b. false
10. The unemployment rate rises any time there is an increase in the number of unemployed
a. true
b. false
11. Since the end of World War II, the U.S. unemployment rate
a. has displayed an upward trend
b. has displayed a downward trend
c. has remained almost constant from year to year
d. none of the above
12. Which of the following is true concerning the relationship between the marginal propensity to consume and the consumption function?
a. the larger the MPC, the higher the level of autonomous consumption
b. the larger the MPC, the steeper the consumption function
c. the larger the MPC, the larger the MPS
d. the smaller the MPC, the steeper the consumption function
13. In the simple aggregate expenditures model, planned investment is
a. a function of disposable income
b. a function of profit expectations
c. a function of the interest rate
d. autonomous
Explanation / Answer
1. B
2. C
3. b
4.a
5. b
6. b
7.c
8 c
9 b
10 c
11. c
12 b
13 d
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