Question

What might be the short run impact of a completely open immigration policy that allowed labor to move freely across the U.S. border?

- An increase in real GDP growth caused by an increase in the labor force

- A decrease in real GDP growth caused by an increase in the labor force

- An increase in real GDP growth caused by an increase in demand for public goods

- A decrease in real GDP growth caused by an increase in demand for public goods

Most economists favor less interference in the marketplace by government because

-          Economist ignore the negative impact of government because they focus only on GDP

-          The government is too corrupt

-          They believe that cooperation’s and individuals are in a better position to know which investments are most likely to pay off

-          Economists have a lot of money invested in the stock market, and they don’t want the government to spoil their investments

An increase in living standards is measured by which of the following?

-          The increase in the number of workers employed

-          The increase in private consumption spending

-          The increase in real GDP

-          The increase in real GDP per capita

The economy is growing if and only if

-          GDP is rising

-          The average price level is rising

-          Real GDP is rising

-          GDP per capita is rising

The real growth rate is calculated by

-          The BEA adjusting the GDP for inflation

-          The BEA using nominal rates to reflect the GDP

-          The BLS adjusting the GDP per capita for inflation

-          The BLS calculating price level changes and population changes

GDP growth on a year-to-year basis is called

-          Nominal growth

-          Real growth

-          Short-term growth

-          Long-term growth

Productivity growth is usually an indicator of

-          The possibility of inflation

-          Future increases in the unemployment rate

-          The decline in the health and prosperity of the economy

-          The increase in the health and prosperity of the economy

Investment in physical capital means

-          Hiring more employees

-          Purchasing equipment and buildings

-          Purchasing supplies

-          Taking out loans

What would NOT be one of the reasons for a much lower real GDP in 1905, compared with 2007?

-          Productive capability in 1905 was lower than in 2007

-          Fewer goods and services were available in 1905 than in 2007

-          On average, there were fewer poor people in 1905 than in 2007

-          Automobiles were rare in 1905, but common in 2007

Real GDP is usually measured in

-          2009 dollars

-          Units of output

-          1982-1984 dollars

-          Tons (for goods) and hours (for services)

By 2016, economists had drawn what conclusion about the very low productivity growth that lasted from 2005 to 2015?

-          It was merely a temporary pause in otherwise strong productivity growth

-          Productivity slowed because of government overregulation

-          Productivity slowed because of a decrease in investment

-          Productivity averaged only 1.2 percent during that time

Standards of living are measured by

-          Nominal GDP per capita

-          Real GDP per capita

-          Inflation rates

-          Unemployment rates

Answer 1

Question:- What might be the short run impact of a completely open immigration policy that allowed labor to move freely across the U.S. border?

Answer:- An increase in real GDP growth caused by an increase in the labor force

Reason:- Due to increased resources, GDP will grow

Question:- Most economists favor less interference in the marketplace by government because

Answer:- They believe that cooperation’s and individuals are in a better position to know which investments are most likely to pay off

Reason:- Without government interference, corporations and investors are in better position to take decision related to their investment.

Question:- An increase in living standards is measured by which of the following?

Answer:-     The increase in real GDP per capita

Reason:- The most commonly used method for estimating living standard is GDP per capita

Question:- The economy is growing if and only if

Answer- GDP per capita is rising

Question:- GDP growth on a year-to-year basis is called

Answer:- Real GDP      

Question:- Investment in physical capital means

Answer:- Purchasing equipment and buildings

Reason:- Physical capitals are land, machines, physical assets

Question:- Real GDP is usually measured in

Answer:- Units of output

Reason:- GDP is a measure of production in the economy

Question:- Standards of living are measured by

Answer:- Real GDP per capita

Reason:- The most commonly used method for estimating living standard is GDP per capita