1) Which of the following institutional arrangements is most likely to promote growth? A. Patents and copyrights that expire quickly and are loosely enforced B. Strong government control over resource allocation decisions. C. Unrestricted trade between nations. D. All of these 2) Suppose that an economy's labor productivity rose by 3 percent and its total worker-hours remained constant between year 1 and year 2. We could conclude that this economy's: A. capital stock increased. C. production possibilities curve shifted inward. B. real GDP increased. D. natural resource base expanded. 3) Which of the following is not a supply factor in economic growth? A. the stock of capital C. the size of the labor force D aggregate expenditures of households B. technological advance , firms & government ) Suppose total output (real GDP) is S4000 and labor productivity is s8. We can conclude that A. real GDP per capita must be $500. C. nominal GDP must be $500. B. the price-level index must be greater than 100 D. the number of worker-hours must be 500 5) Which of the following would not be expected to increase labor productivity2 A. technological advance B. the acquisition of more education and training by the labor force C. an increase in the size of the labor force D. the realization of economies of scale 6) Other things equal, in which of the following instances would the increase in labor productivity be the greatest? A. the stock of real capital and inputs of labor increase proportionately B. the increase in the stock of real capital exceeds the increase in inputs of labor C. the increase in inputs of labor exceeds the increase in the stock of real capital D. inputs of labor increase and the stock of real capital remains constant