Question 1

New methods of producing existing products and new designs that make it possible to create new products are best regarded as examples of
A) innovation.
B) investment.
C) technological change.
D) supply-side economics.
E) asymmetric information.

Accepted Answer

Technological change encompasses new methods of producing existing products and the introduction of new designs that enable the creation of new products. This process involves the application of new knowledge or technologies to improve or enhance production capabilities and product offerings.

Question 2

Productivity is measured by the
A) rate of growth of output per hour of labor.
B) rate of growth in the money supply.
C) rate of unemployment.
D) rate of accelerated depreciation.
E) Phillips curve.

Accepted Answer

Productivity is a measure of the efficiency of production, and it is usually measured as the amount of output produced per unit of input (such as labor, capital, or land). The most common measure of labor productivity is output per hour worked, and this is often used as a key indicator of economic growth and competitiveness. Therefore, the rate of growth of output per hour of labor is the best choice for measuring productivity.

Question 3

The rate of real per capita GDP growth in the United States
A) has consistently exceeded that of every other major nation except Japan.
B) steadily increased by 4 percent during each decade from 1870 to 1970.
C) has not been affected by changes in labor force productivity.
D) has averaged about 2 percent per year over the last century.
E) has averaged in excess of 5 percent per year in the decades since World War II.

Accepted Answer

According to the passage, the rate of real per capita GDP growth in the United States has averaged about 2 percent per year over the last century.

Question 4

In 1840,the country with the highest per capita output was
A) the United States.
B) Canada.
C) Germany.
D) Japan.
E) England.

Accepted Answer

In 1840, the country with the highest per capita output was England, due to its industrialization and expanding mass production. The United States was rapidly industrializing, but did not surpass England's per capita output until later in the 19th century. Canada, Germany, and Japan were not yet industrialized and did not have high per capita outputs at this time.

Question 5

In recent decades research and development activities in the United States have been
A) funded primarily by universities and nonprofit institutions.
B) carried out by independent inventors inside commercial research laboratories.
C) noticeably declining in importance as a source of economic growth.
D) generally directed toward making incremental improvements rather than major advances.
E) directed primarily toward achieving civilian rather than military or political objectives.

Accepted Answer

According to the passage, research and development activities in the US have been "generally directed toward making incremental improvements rather than major advances." This suggests that the focus has been on small, gradual developments rather than game-changing breakthroughs.

Question 6

Economic growth is generally measured by the rate of increase in
A) population.
B) the price level.
C) output per hour of labor.
D) technological change.
E) per capita output.

Accepted Answer

Economic growth is typically measured by the rate of increase in per capita output, which reflects the average output per person in an economy, indicating how the economy's productivity and wealth are growing over time.

Question 7

Generally,in the field of technology,the United States has been
A) a world leader for much of its history.
B) a step behind most European nations, even in recent years.
C) ahead of Europe but far behind Japan.
D) a leader in science but not in manufacturing.
E) a user rather than a creator of new technologies.

Accepted Answer

The United States has been a world leader in technology for much of its history, with significant contributions in areas such as communication, transportation, and computing. This can be seen in the prevalence of American tech companies and their impact on global innovation.

Question 8

A major contribution to economic growth comes from
A) increases in the labor-output ratio.
B) a growing proportion of youths and unskilled people in the labor force.
C) runaway inflation.
D) expansions in the level of government regulation.
E) expenditures on research and development.

Accepted Answer

Expenditures on research and development lead to the development of new technologies and innovations, which can lead to increased productivity and economic growth. This is because new technologies can improve production processes, which can result in increased efficiency, lower costs, and increased output. This can stimulate investment, job creation, and economic activity. The other choices are not likely to contribute positively to economic growth.

Question 9

The federal government is the source of over ________ of all research and development (R&D)funds.
A) one-third
B) one-half
C) two-thirds
D) three-quarters
E) four-fifths

Accepted Answer

The answer of The federal government is the source of...

Question 10

New methods of producing existing products and new designs that make it possible to create new products are forms of
A) depreciation.
B) natural endowments.
C) compensation.
D) technological change.
E) price stability.

Accepted Answer

New methods of producing existing products and new designs that make it possible to create new products are examples of technological change. This refers to innovations in technology that improve production processes, reduce costs, and lead to the creation of new products.

Question 11

In the late 1990s and early 2000s,in the United States
A) negative increases in productivity were experienced.
B) productivity growth improved, returning to levels closer to those of the 1960s.
C) increases in productivity averaged zero.
D) productivity achieved the lowest values in history.
E) the measurement of productivity was discontinued because of the ambiguity surrounding its interpretation.

Accepted Answer

Productivity growth improved in the late 1990s and early 2000s, returning to levels closer to those of the 1960s. This period is often referred to as the "New Economy" era, in which technological advancements and increased efficiency led to higher levels of productivity.

Question 12

High rates of economic growth are clearly related to high rates of
A) unemployment.
B) consumption.
C) inflation.
D) technological change.
E) taxes on profits.

Accepted Answer

Technological change has been a major driver of economic growth throughout history. It leads to increases in productivity, efficiency, and innovation, which can contribute to sustained economic growth. Higher economic growth rates do not necessarily lead to higher unemployment levels, inflation, or taxes on profits. While consumption can contribute to economic growth, it is not directly related to growth rates.

Question 13

Most R&D funds provided by the federal government are spent on
A) national security and education.
B) space technology and defense.
C) education and medicine.
D) education and space technology.
E) subsidies to start up high-tech small businesses.

Accepted Answer

The question specifically mentions "R&D funds provided by the federal government" and the most significant recipients of those funds are typically space technology and defense, as those industries often require large amounts of government funding to develop new technologies and keep the country safe. While education and medicine may also receive funding, they are not typically the primary beneficiaries of federal R&D funds. Education and space technology may receive some funds, but they are not as significant as space technology and defense. Subsidies to start up high-tech small businesses may exist, but they are not typically part of federal R&D funds.

Question 14

The average annual growth rate of labor productivity
A) has remained relatively constant at about 3 percent.
B) fell to an average rate of about 1.5 percent during the period 1977 to 1995 and has averaged 3.2 percent since then.
C) steadily rose to about 4.5 percent in the late 1990s and early 2000s.
D) fell steadily to its postwar low in 1984 but has risen rapidly since then.
E) reached a peak in 1995 but has fallen steadily since then.

Accepted Answer

According to the information provided, the average annual growth rate of labor productivity fell to an average rate of about 1.5 percent during the period 1977 to 1995 and has averaged 3.2 percent since then. Therefore, option B is the correct choice.

Question 15

The source of the largest share of research and development funds in the United States is
A) the federal government.
B) universities and colleges.
C) industry.
D) nonprofit foundations.
E) the stock market.

Accepted Answer

Industry is the largest source of research and development funds in the United States, surpassing the federal government and other entities.

Question 16

As compared to earlier years,the rate of growth of labor productivity in the United States from the 1970s through the mid-1990s
A) increased dramatically.
B) increased slightly.
C) slowed considerably.
D) increased in the 1970s and declined in the late 1980s.
E) remained constant.

Accepted Answer

The rate of growth of labor productivity in the United States slowed considerably from the 1970s through the mid-1990s. This period is often referred to as the "productivity slowdown" as the rate of growth of labor productivity was significantly lower than in the previous decades.

Question 17

In 2009 the federal government was the source of ________ percent of all R&D funds.
A) less than 10
B) between 10 and 20
C) between 20 and 30
D) between 30 and 40
E) over 40

Accepted Answer

The answer of In 2009 the federal government was the...

Question 18

It is sometimes hard to separate the impact of technology from that of investment because
A) you can directly measure investment, but there is no way to quantify new technology.
B) neither has been a major factor in economic growth for about 10 years now.
C) technology has grown at a such a variable rate that its impact cannot be effectively measured.
D) new technology is useful only when it is embodied in the physical capital financed through investment.
E) neither activity is reflected in the prices we pay for goods and services.

Accepted Answer

New technology can only have an impact when it is actually embodied or incorporated into physical capital, such as machinery or equipment, which is ultimately financed through investment. Therefore, it can be hard to separate the impact of technology from that of investment, as they are closely intertwined.

Question 19

In their study on the resurgence of growth in the late 1990s,Oliner and Sichel identified the following three sources of growth that were more than twice as important in the late 1990s as in the 1970s:
A) money supply, labor hours, and output.
B) information technology capital, labor quality, and greater efficiency.
C) population growth, research and development, and other capital.
D) foreign imports, the federal budget deficit, and technological change.
E) new products, tax-rate reductions, and labor hours.

Accepted Answer

Oliner and Sichel identified information technology capital, labor quality, and greater efficiency as the three sources of growth that were more than twice as important in the late 1990s as in the 1970s.

Question 20

By 2009 U.S.expenditures on research and development
A) averaged about 10 percent of the GDP.
B) fell well below the levels of the 1960s.
C) were over 11 times what they were in 1953.
D) consistently led those of other developed nations in all fields.
E) have been directed primarily to making major advances in civilian technology.

Accepted Answer

According to the passage, U.S. expenditures on research and development in 2009 were over 11 times what they were in 1953.

Quiz 23: Productivity,growth,and Technology Policy

New methods of producing existing products and new designs that make it possible to create new products are best regarded as examples of

Productivity is measured by the

The rate of real per capita GDP growth in the United States

In 1840,the country with the highest per capita output was

In recent decades research and development activities in the United States have been

Economic growth is generally measured by the rate of increase in

Generally,in the field of technology,the United States has been

A major contribution to economic growth comes from

The federal government is the source of over ________ of all research and development (R&D) funds.

New methods of producing existing products and new designs that make it possible to create new products are forms of

In the late 1990s and early 2000s,in the United States

High rates of economic growth are clearly related to high rates of

Most R&D funds provided by the federal government are spent on

The average annual growth rate of labor productivity

The source of the largest share of research and development funds in the United States is

As compared to earlier years,the rate of growth of labor productivity in the United States from the 1970s through the mid-1990s

In 2009 the federal government was the source of ________ percent of all R&D funds.

It is sometimes hard to separate the impact of technology from that of investment because

In their study on the resurgence of growth in the late 1990s,Oliner and Sichel identified the following three sources of growth that were more than twice as important in the late 1990s as in the 1970s:

By 2009 U.S.expenditures on research and development