1) Which of the following is an example of a measure of labor productivity?
a. Autos get 30 gallons to the mile.
b. The growth rate of per capita real GDP is 3.5 percent per year.
c. Farm workers produce 30 bushels of wheat per worker per day.
d. Wages increase by 3.5 percent per year
for 5 years.
2) Labor productivity increases when
a. the unemployment rate decreases.
b. the average output produced per worker during a specified time period decreases.
c. the average number of hours people work goes up.
d. the average output produced per worker during a specified time period increases.
3) To consume more in the future, a society must
a. plan carefully.
b. have low tax rates on consumption.
c. maintain low inflation.
d. consume less today.
4) Which of the following statements is not true about economic growth?
a. Growth represents an increase in a nation's productive capacity.
b. Growth generally means that overall the members of the nation are better off materially.
c. Growth is measured as the overall level of real GDP.
d. When growth occurs the production possibilities curve shifts outward.
5) A system of private property rights
a. discourages economic growth by discouraging the development of new ideas and ways of doing things.
b. encourages investment but discourages entrepreneurial activity, so the effect on economic growth is uncertain.
c. reduces the efficiency of government, which reduces the growth rate of the economy over time.
d. encourages economic growth by creating incentives to invest in capital and to be innovative.
6) Economic growth occurs when
a. there is an increase in the amount of capital.
b. we discover a sleeping worker who is forced to go back to work.
c. there is an increase in the inflation rate.
d. there is a decrease in the unemployment rate.
1. c
I'll be glad to check your answers for the other questions.
2) d
3)a
4)b
5)c
6)a
I agree with all of your answers except 5. Doesn't private property rights encourage economic growth? Check your text materials.
so is it b for # 5?
never mind its d
Yes, d is correct for # 5.
1) The correct answer for the measure of labor productivity is c. Farm workers produce 30 bushels of wheat per worker per day. Labor productivity is measured by the amount of output produced per unit of labor input, and in this case, it is specifically measured by the number of bushels of wheat produced per worker per day.
2) The correct answer for the factor that increases labor productivity is d. the average output produced per worker during a specified time period increases. When the average output produced per worker increases, it indicates that workers are becoming more efficient and productive in their tasks, leading to an increase in labor productivity.
3) The correct answer for how a society can consume more in the future is d. consume less today. To consume more in the future, a society needs to save and invest resources in productive activities. By consuming less today and diverting resources towards investment, a society can increase its productive capacity and have more resources available for consumption in the future.
4) The correct answer for the statement that is not true about economic growth is c. Growth is measured as the overall level of real GDP. Economic growth is generally measured as the increase in real GDP over time, but it is not equivalent to the overall level of real GDP. Economic growth represents an increase in the production capacity of a nation and generally leads to improvements in the well-being of its members.
5) The correct answer for the effect of a system of private property rights on economic growth is d. encourages economic growth by creating incentives to invest in capital and to be innovative. Private property rights provide individuals and businesses with secure ownership and control over resources. This, in turn, encourages investment in capital (such as buildings, machinery, and technology) and fosters innovation and entrepreneurship, both of which are crucial drivers of economic growth.
6) The correct answer for when economic growth occurs is a. there is an increase in the amount of capital. Economic growth occurs when there is an increase in the factors of production, such as labor and capital. Capital refers to the machinery, equipment, infrastructure, and technology used in production. When the amount of capital increases, it leads to greater production capacity and can result in economic growth.