Macroeconomics

‭Chapter 6: Review Questions‬ ‭1. In economics, what does GDP per capita represent?‬ ‭A.‬ ‭The total economic output of a country‬ ‭B.‬ ‭The marginal propensity to consume‬ ‭C.‬ ‭The share of an economy’s output per individual‬ ‭D.‬ ‭The net investment level in an economy‬ ‭2. How does new technology contribute to economic growth?‬

‭A.‬ ‭It decreases productivity.‬ ‭B.‬ ‭It has no impact on growth.‬ ‭C.‬ ‭It increases productivity and innovation.‬ ‭D.‬ ‭It blocks efforts to achieve it.‬ ‭3. Which of the following is most likely to be a barrier to economic growth?‬

‭A.‬ ‭Better capacity utilization‬ ‭B.‬ ‭Higher interest rate‬ ‭C.‬ ‭Increases in capital‬ ‭D.‬ ‭Investment in education and training‬ ‭4. Suppose that all factors of production in an economy are held constant, except for labor. What‬ ‭could have happened in the economy if output increased?‬ ‭C.‬ ‭Technology increased‬ ‭D.‬ ‭Employment increased‬ ‭5. Which of the following is a reason behind an increase in labor productivity?‬ ‭A.‬ ‭An increase in the quantity of workers‬ ‭B.‬ ‭An equal increase in technology and workers‬ ‭C.‬ ‭An increase in output per worker‬ ‭D.‬ ‭Better education per worker‬ ‭6. Which of the following policies is most likely to increase potential output in the long run?‬ ‭A.‬ ‭Capital increased‬ ‭B.‬ ‭Capital decreased‬

‭A.‬ ‭Policies that encourage more saving‬ ‭B.‬ ‭Policies that encourage more consumption‬

‭C.‬ ‭An increase in corporate tax‬ ‭D.‬ ‭A decrease in spending on R&D‬

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