Test Bank For Economics and Contemporary Issues International Edition 9th Edition by William McLean

ISBN-10: 1111823391, ISBN-13: 9781111823399

Chapter 1—Economic Growth: An Introduction to Scarcity and Choice

TRUE/FALSE

1. Since 1977, the growth rate of per capita GDP in the U.S. has been lower than it was in previous periods.

ANS:  T                    PTS:   1

2. The four primary resources are land, labor, capital, and entrepreneurship.

ANS:  T                    PTS:   1

3. The production possibilities curve shows the maximum combinations of goods and services that can be produced by an economy when unemployment is below the natural rate.

ANS:  F                    PTS:   1

4. All points on or below the production possibilities curve are attainable.

ANS:  T                    PTS:   1

5. The economic decisions that influence growth are those that increase capital and improve technology.

ANS:  T                    PTS:   1

6. It pays to increase the production of capital goods if the marginal cost of the production decision exceeds the marginal benefit.

ANS:  F                    PTS:   1

7. It is always better for the economy to experience economic growth.

ANS:  F                    PTS:   1

8. As resources are transferred from production of trucks to the production of computers, marginal cost of computers decreases.

ANS:  F                    PTS:   1

9. Technological improvement allows more output to be obtained from a given level of inputs, thereby shifting the production possibilities curve to the right.

ANS:  T                    PTS:   1

10. The decline in the growth of capital intensity in the United States has been caused largely by a rapid increase in labor inputs in addition to slow growth in capital inputs.

ANS:  T                    PTS:   1