Multiple Choice Identify the letter of the choice that best completes the
statement or answers the question.
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1.
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What
is the relationship between productivity and economic growth? A. | Increases in
productivity tend to increase economic growth. | B. | Increases in
productivity tend to decrease economic growth. | C. | Productivity has
nothing to do with economic growth. | D. | Productivity is not likely to affect economic growth unless the
government intervenes. | | |
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2.
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An index of
average level of prices for all goods and services in the economy is the A. | implicit GDP price
deflator. | C. | producer price
index. | B. | consumer price index. | D. | current GDP. | | | | |
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3.
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Which
of the following is the best measurement of consumer income available to spend on goods and
services? A. | national
income | C. | disposable
income | B. | personal income | D. | consumer spending | | | | |
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4.
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The
largest component of GDP is A. | foreign trade | C. | government spending | B. | business
investment | D. | consumer
spending | | | | |
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5.
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What
is the likely result of the baby boom population retiring? A. | The need for
medical care will decline. | C. | Transfer
payments will rise. | B. | The need for high schools will
rise. | D. | Fewer jobs will
be available. | | | | |
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6.
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Which
of the following is NOT counted in gross domestic product? A. | jeans made in
China but sold to Americans | B. | jeans made in America but sold in
China | C. | food produced in Iowa but sold in
California | D. | computers produced by Dell and sold to the
government | | |
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7.
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In
order to compare economic output from one year to the next, what must be taken out of gross domestic
product? A. | inflation | C. | business
investment | B. | consumer spending | D. | government spending | | | | |
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8.
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Which
of the following is the best measure of the standard of living? A. | Consumer Price
Index | C. | Real Gross
Domestic Product | B. | Producer Price Index | D. | Per Capita Real Gross Domestic
Product | | | | |
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9.
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What
are economists expecting to happen to the dependency ratio? A. | It will increase
as more babies are born. | C. | It will increase
as more people retire. | B. | It will decrease as fewer babies are
born. | D. | It will decrease
as people work longer. | | | | |
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10.
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The benefits
of long-term economic growth include all of the following EXCEPT A. | an increase in the
standard of living. | C. | faster growth in other
nations. | B. | an increase in employment. | D. | an increase in the availability of land. | | | | |
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