ECON 2010 EXAM 1 QUESTIONS AND
CORRECT ANSWERS
Capital; Real GDP; Technology ✅✅CORRECT ANSW-The per-worker production function shows
the relationship between ________ per hour workers and ________ per hour worked, holding
________ constant
Quantity of capital per hour worked; Technology improves ✅✅CORRECT ANSW-Labor
productivity will increase if the _______ increases and _______
Automobiles ✅✅CORRECT ANSW-Which of the following goods would see the largest decline in
demand during a recession?
For which the government does not receive a good or service in return ✅✅CORRECT ANSW-A
transfer payment is a payment by the government to an individual ...
70/10 = 7 (years to double) ✅✅CORRECT ANSW-If between 1999 and 2009, the economy's real
GDP grew from $20 billion to $40 billion, what was the annual growth rate in the economy?
Higher wages increase the productivity of Costco workers and reduce turnover, thereby potentially
increasing profit ✅✅CORRECT ANSW-Costco pays its employees higher wages, on average, than
Wal-Mart pays its employees. Which of the following best explains that difference?
GDP per capita of poor countries will grow more rapidly than in rich countries ✅✅CORRECT
ANSW-The economic growth model predicts that...
Structural Unemployment ✅✅CORRECT ANSW-Unemployment arising from a persistent
mismatch between the skills and characteristics of workers and the requirements of jobs is called...
GDP would decrease if the pollution controls reduce productivity by more than the cost of the
controls ✅✅CORRECT ANSW-If China decides to enacts laws to clean up the environment, what
would be the effect on GDP?
Less; Lenders; Borrowers OR Greater; Borrowers; Lenders ✅✅CORRECT ANSW-Inflation that is
________ than what is expected benefits ________ and hurts ________
CORRECT ANSWERS
Capital; Real GDP; Technology ✅✅CORRECT ANSW-The per-worker production function shows
the relationship between ________ per hour workers and ________ per hour worked, holding
________ constant
Quantity of capital per hour worked; Technology improves ✅✅CORRECT ANSW-Labor
productivity will increase if the _______ increases and _______
Automobiles ✅✅CORRECT ANSW-Which of the following goods would see the largest decline in
demand during a recession?
For which the government does not receive a good or service in return ✅✅CORRECT ANSW-A
transfer payment is a payment by the government to an individual ...
70/10 = 7 (years to double) ✅✅CORRECT ANSW-If between 1999 and 2009, the economy's real
GDP grew from $20 billion to $40 billion, what was the annual growth rate in the economy?
Higher wages increase the productivity of Costco workers and reduce turnover, thereby potentially
increasing profit ✅✅CORRECT ANSW-Costco pays its employees higher wages, on average, than
Wal-Mart pays its employees. Which of the following best explains that difference?
GDP per capita of poor countries will grow more rapidly than in rich countries ✅✅CORRECT
ANSW-The economic growth model predicts that...
Structural Unemployment ✅✅CORRECT ANSW-Unemployment arising from a persistent
mismatch between the skills and characteristics of workers and the requirements of jobs is called...
GDP would decrease if the pollution controls reduce productivity by more than the cost of the
controls ✅✅CORRECT ANSW-If China decides to enacts laws to clean up the environment, what
would be the effect on GDP?
Less; Lenders; Borrowers OR Greater; Borrowers; Lenders ✅✅CORRECT ANSW-Inflation that is
________ than what is expected benefits ________ and hurts ________
