Question 1

In the United States in 2008 real GDP per person was about $47,000,while in some poor countries real GDP per person was less than $4,000.

Accepted Answer

A) True 
 B)False

Question 2

The Economic Development Minister of a country has a list of things she thinks may explain her country's low growth of real GDP per person relative to other countries.She asks you to pick the one you think most likely explains her country's low growth.Which of the following contributes to low growth?

Accepted Answer

A)   poorly enforced property rights
B)   outward-oriented trade policies
C)   policies that permit foreign investment
D)   All of the above are correct.E) A) and D)
F) All of the above

Question 3

Which of these countries' growth rates of real GDP per person have exceeded the United States' growth rate of real GDP per person over the last century?

Accepted Answer

A)   Japan and Brazil
B)   Bangladesh and Indonesia
C)   India and China
D)   India and PakistanE) A) and B)
F) A) and C)

Question 4

Which of the following items plays a role in determining productivity?

Accepted Answer

A)   physical capital
B)   natural resources
C)   technological knowledge
D)   All of the above are correct.E) C) and D)
F) A) and D)

Question 5

You and your friend work together for 4 hours to produce a total of 12 futons.What is productivity?

Accepted Answer

A)   12 futons
B)   24 futons
C)   3 futons per hour of labor
D)   1.5 futons per hour of laborE) B) and D)
F) B) and C)

Question 6

International data on real GDP per person gives us a sense of how standards of living vary across countries.

Accepted Answer

A) True 
 B)False

Question 7

Ralph is a plumber.Which of the following are included in his physical capital?

Accepted Answer

A)   the knowledge he learned on the job,and the tools he uses
B)   the knowledge he learned on the job,but not the tools he uses
C)   the tools he uses,but not the knowledge he learned on the job
D)   neither the knowledge he learned on the job nor the tools he usesE) A) and D)
F) C) and D)

Question 8

Allied Business Consultants employs five researchers that each work 8 hour days.In one day the researchers prepare 60 reports for its 10 largest clients.What was Allied Business Consultants' productivity?

Accepted Answer

A)   1.5 reports per hour
B)   6 reports per client
C)   7.5 reports per hour
D)   60 reportsE) A) and C)
F) B) and D)

Question 9

Human capital is the

Accepted Answer

A)   knowledge and skills that workers acquire through education,training,and experience.
B)   stock of equipment and structures that is used to produce goods and services.
C)   total number of hours worked in an economy.
D)   same thing as technological knowledge.E) All of the above
F) A) and B)

Question 10

Thomas Malthus's predictions turned out to be wrong due to

Accepted Answer

A)   technological advances such as those during the Industrial Revolution.
B)   smaller populations now than in the time of Malthus.
C)   the effects of brain-drain.
D)   unlimited natural resources.E) All of the above
F) C) and D)

Question 11

Which of the following is generally an opportunity cost of investment in human capital?

Accepted Answer

A)   future job security
B)   forgone present wages
C)   increased earning potential
D)   All of the above are correct.E) A) and C)
F) B) and C)

Question 12

An increase in a country's population may contribute to the rate of technological progress because a larger population

Accepted Answer

A)   forces the capital stock to be spread more thinly.
B)   forces natural resources to be spread more thinly.
C)   brings with it more scientists,inventors,and engineers.
D)   brings with it more favorable recognition from other countries.E) A) and B)
F) A) and C)

Question 13

Other things the same,a country that increases its savings rate will have

Accepted Answer

A)   higher future capital and higher future real GDP per person.
B)   higher future capital but not higher future real GDP per person.
C)   higher future real GDP per person but not higher future capital.
D)   neither higher future capital nor higher future real GDP per person.E) All of the above
F) A) and C)

Question 14

Which of the following is considered human capital?

Accepted Answer

A)   the comfortable chair in your dorm room where you read economics texts
B)   the amount you get paid each week to work at the library
C)   the things you have learned this semester
D)   any capital goods that require a human to be present to operateE) A) and B)
F) All of the above

Question 15

The saws,lathes,and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called

Accepted Answer

A)   human capital.
B)   physical capital.
C)   natural resources.
D)   technological knowledge.E) A) and B)
F) A) and C)

Question 16

Natural resources

Accepted Answer

A)   are inputs provided by nature.
B)   include land,rivers,and mineral deposits.
C)   take two forms: renewable and nonrenewable.
D)   All of the above are correct.E) A) and B)
F) C) and D)

Question 17

Suppose that a country increased its saving rate.In the long run it would have

Accepted Answer

A)   higher productivity,and another unit of capital would increase output by more than before.
B)   higher productivity,but another unit of capital would increase output by less than before.
C)   lower productivity,and another unit of capital would increase output by more than before.
D)   lower productivity,but another unit of capital would increase output by less than before.E) All of the above
F) A) and D)

Question 18

Country A and country B are the same except country A has a capital stock of 5,000 a population of 12,000 and employment of 10,000.Country B has a capital stock of 8,000 and a population of 24,000 and employment of 20,000.

Accepted Answer

A)   Country A has a higher standard of living and country B will not catch up.
B)   Country A has a higher standard of living but country B will catch up.
C)   Country B has a higher standard of living and country A will not catch up.
D)   Country B has a higher standard of living but country A will catch up.E) B) and C)
F) A) and D)

Question 19

Average income has been stagnant for many years in

Accepted Answer

A)   Gabon.
B)   Ireland.
C)   Singapore.
D)   All of the above are correct.E) B) and C)
F) B) and D)

Question 20

Economists differ in their views of the role of the government in promoting economic growth.A controversial idea is that government should

Accepted Answer

A)   lend support to the invisible hand by maintaining property rights and political stability.
B)   lower barriers and impediments to free trade.
C)   encourage capital formation.
D)   target and subsidize specific industries important for technological progress.E) None of the above
F) A) and D)

Exam 25: Production and Growth

Thomas Malthus's predictions turned out to be wrong due to

Correct Answer
verified

Ralph is a plumber.Which of the following are included in his physical capital?

Correct Answer
verified

Which of the following is considered human capital?

Correct Answer
verified

Natural resources

Correct Answer
verified

Other things the same,a country that increases its savings rate will have

Correct Answer
verified

Human capital is the

Correct Answer
verified

The saws,lathes,and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called

Correct Answer
verified

Which of these countries' growth rates of real GDP per person have exceeded the United States' growth rate of real GDP per person over the last century?

Correct Answer
verified

Correct Answer
verified

You and your friend work together for 4 hours to produce a total of 12 futons.What is productivity?

Correct Answer
verified

Which of the following is generally an opportunity cost of investment in human capital?

Correct Answer
verified

Economists differ in their views of the role of the government in promoting economic growth.A controversial idea is that government should

Correct Answer
verified

Country A and country B are the same except country A has a capital stock of 5,000 a population of 12,000 and employment of 10,000.Country B has a capital stock of 8,000 and a population of 24,000 and employment of 20,000.

Correct Answer
verified

Which of the following items plays a role in determining productivity?

Correct Answer
verified

Suppose that a country increased its saving rate.In the long run it would have

Correct Answer
verified

An increase in a country's population may contribute to the rate of technological progress because a larger population

Correct Answer
verified

Allied Business Consultants employs five researchers that each work 8 hour days.In one day the researchers prepare 60 reports for its 10 largest clients.What was Allied Business Consultants' productivity?

Correct Answer
verified

In the United States in 2008 real GDP per person was about $47,000,while in some poor countries real GDP per person was less than $4,000.

Correct Answer
verified

Average income has been stagnant for many years in

Correct Answer
verified

International data on real GDP per person gives us a sense of how standards of living vary across countries.

Correct Answer
verified

Exam 25: Production and Growth

Thomas Malthus's predictions turned out to be wrong due to

Correct AnswerverifiedShow Answer

Ralph is a plumber.Which of the following are included in his physical capital?

Correct AnswerverifiedShow Answer

Which of the following is considered human capital?

Correct AnswerverifiedShow Answer

Natural resources

Correct AnswerverifiedShow Answer

Other things the same,a country that increases its savings rate will have

Correct AnswerverifiedShow Answer

Human capital is the

Correct AnswerverifiedShow Answer

The saws,lathes,and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called

Correct AnswerverifiedShow Answer

Which of these countries' growth rates of real GDP per person have exceeded the United States' growth rate of real GDP per person over the last century?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

You and your friend work together for 4 hours to produce a total of 12 futons.What is productivity?

Correct AnswerverifiedShow Answer

Which of the following is generally an opportunity cost of investment in human capital?

Correct AnswerverifiedShow Answer

Economists differ in their views of the role of the government in promoting economic growth.A controversial idea is that government should

Correct AnswerverifiedShow Answer

Country A and country B are the same except country A has a capital stock of 5,000 a population of 12,000 and employment of 10,000.Country B has a capital stock of 8,000 and a population of 24,000 and employment of 20,000.

Correct AnswerverifiedShow Answer

Which of the following items plays a role in determining productivity?

Correct AnswerverifiedShow Answer

Suppose that a country increased its saving rate.In the long run it would have

Correct AnswerverifiedShow Answer

An increase in a country's population may contribute to the rate of technological progress because a larger population

Correct AnswerverifiedShow Answer

Allied Business Consultants employs five researchers that each work 8 hour days.In one day the researchers prepare 60 reports for its 10 largest clients.What was Allied Business Consultants' productivity?

Correct AnswerverifiedShow Answer

In the United States in 2008 real GDP per person was about $47,000,while in some poor countries real GDP per person was less than $4,000.

Correct AnswerverifiedShow Answer

Average income has been stagnant for many years in

Correct AnswerverifiedShow Answer

International data on real GDP per person gives us a sense of how standards of living vary across countries.

Correct AnswerverifiedShow Answer

Correct Answer
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