For a country to double its per capita income every twenty years, it would have to sustain an annual economic growth rate equal to
a. 1.75 percent.
b. 2 percent.
c. 3.5 percent.
d. 4 percent.
C
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Answer the following statements true (T) or false (F)
1) Between 1953 and 2011, rising labor productivity contributed more to U.S. economic growth than did increases in inputs. 2) Real GDP = worker-hours × labor productivity. 3) Labor productivity = worker-hours/real GDP. 4) Improvements in education and training explain about 80 percent of the historical growth of U.S. labor productivity.
If businesses spend an additional $150 billion for investment projects in 2010, what will be the impact on national income (Y) if the multiplier is 2?
A. Y will increase by $50 billion. B. Y will increase by $150 billion. C. Y will increase by $300 billion. D. Y will increase by $450 billion.
When the tax structure of a nation is progressive, as real incomes increase, the tax revenues of the government will
a. decline. b. increase by the same proportion as the increase in real income. c. increase by a larger proportion than the increase in real income. d. remain unchanged unless legislative action is undertaken.
Suppose that a violent earthquake causes the uninhabited Hawaiian island of Mokuauia (also called Goat Island) to fall into the Pacific Ocean. No people are killed or injured, and since the island is undeveloped, no buildings are destroyed. The island was a source of tourist income for Hawaiian landowners. Which of the following statements correctly describes the rents earned by the people who
own land on the surrounding islands? a. As the supply of vacation land decreases, the marginal productivity of the remaining land will decrease; thus rents will decrease. b. As the supply of vacation land decreases, the marginal productivity of the remaining land will increase; thus, rents will decrease. c. As the supply of vacation land decreases, the marginal productivity of the remaining land will increase; thus, rents will increase. d. There would be no change in the rents earned by the other landowners because the effects of supply and demand would exactly cancel each other out.