Macro 3rd Meeting

Over the past century, real GDP per person in the

United States has grown about _________ percent

per year, meaning it has roughly doubled every

_________ years.

• 2; 14

• 2; 35

• 5; 14

• 5; 35

The world’s rich countries, such as the United

States and Germany, have income per person that is

about _________ times the income per person in the

world’s poor countries, such as Pakistan and India.

• 2

• 14

• 10

• 30

Over the past century, _________ has experienced

particularly strong growth, and _________ has

experienced particularly weak growth.

• Japan; the United Kingdom

• Japan; Canada

• the United Kingdom; Canada

• Canada; Japan

Increases in the amount of human capital in the

economy tend to _________ real incomes because

they increase the _________ of labor.

• increase; bargaining power

• increase; productivity

• decrease; bargaining power

• decrease; productivity

Most economists are _________ that natural

resources will eventually limit economic growth. As

evidence, they note that the prices of most natural

resources, adjusted for overall inflation, have tended

to _________ over time.

• concerned; rise

• concerned; fall

• not concerned; rise

• not concerned; fall

Because capital is subject to diminishing returns,

higher saving and investment do not lead to higher

• income in the long run

• income in the short run

• growth in the long run

• growth in the short run

When the Japanese car maker Toyota expands one of

its car factories in the United States, what is the likely

impact of this event on the gross domestic product

and gross national product of the United States?

• GDP rises and GNP falls

• GNP rises and GDP falls

• GDP and GNP both rise but GDP rises by more

• GDP and GNP both rise but GNP rises by more

Thomas Robert Malthus believed that population

growth would

• put stress on the economy’s ability to produce

  food, dooming humans to remain in poverty.

• spread the capital stock too thinly across

  the labor force, lowering each worker’s

  productivity.

• promote technological progress, because there

  would be more scientists and inventors.

• eventually decline to sustainable levels, as

  birth control improved and people had smaller

  families.

From 2008 to 2012, in the aftermath of the financial

crisis, the ratio of government debt to GDP in the

United States

• increased markedly.

• decreased markedly.

• was stable at a historically high level.

• was stable at a historically low level.

Which of the following policy actions would

unambiguously reduce the supply of loanable funds

and crowd out investment?

• an increase in taxes and a decrease in

  government spending

• a decrease in taxes together with an increase in

  government spending

• an increase in both taxes and government

  spending

• a decrease in both taxes and government spending