Any Help Will Be Appreciated/// 1) An economic growth model explains... A) chang

Question

Any Help Will Be Appreciated///

1) An economic growth model explains...

A) changes in real GDP per capita in the long run.

B) how changes in the money supply affect real interest rates.

C) changes in government tax policies over time.

D) the growth rate of the price level over time.

2) Which of the following is not one of the three sources of technological change?

A) additional amounts of existing capital

B) better machinery and equipment

C) increases in human capital

D) better means of organizing and managing production

3) When additions of input to a fixed quantity of another input lead to progressively smaller increases in output, we say we are facing

A) diminishing returns.

B) negative returns.

C) accelerating returns.

D) decreasing production.

4) The Soviet Union's economy grew rapidly in terms of GDP per hour worked in the 1950s, but eventually this growth slowed. Why did this occur?

A) Capital per hour worked grew rapidly from 1950 to 1980, but technological change occurred very slowly.

B) Capital per hour worked grew slowly, but technological change grew very rapidly.

C) Increasing implementation of new technologies eventually suffered diminishing marginal returns.

D) The centrally planned economy invested too heavily in technological change.

5) Under the Soviet system of communism,

A) managerial pay was determined by the extent to which managers could lower the per-unit costs of production.

B) technological progress was slow because managers had little incentive to develop new technologies.

C) competitive pressures in the Soviet Union allowed the country's technological progress to keep pace with the rest of the world.

D) the per-worker production function in the Soviet Union shifted up more rapidly than production functions in other countries.

6) Technological improvements are more likely to occur if

A) the economy is centrally planned.

B) entrepreneurs are compensated with higher profits for taking risks.

C) economic decisions are made by politicians rather than entrepreneurs.

D) companies face little competition in their markets.

Explanation / Answer

1) A

2) A

3) A

4) C

5) B

6) B

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