Question 1

Historically,the market prices of most natural resources (adjusted for inflation) have

Accepted Answer

A)   increased.
B)   remained stable.
C)   remained stable or decreased.
D)   decreased.E) A) and D)
F) All of the above

Question 2

Which of the following statements is true?

Accepted Answer

A)   Productivity is calculated as hours worked divided by output produced.
B)   Americans have a higher standard of living than Indonesians because American workers are more productive than Indonesian workers.
C)   Trends in the market prices of most resources indicate that they have become increasingly scarce over time.
D)   All of the above are correct.E) B) and C)
F) A) and C)

Question 3

Like physical capital,human capital is a produced factor of production.

Accepted Answer

A) True 
 B)False

Question 4

Countries that pursued outward-oriented policies in the 20th century

Accepted Answer

A)   experienced lower rates of economic growth than did countries that pursued inward-oriented policies.
B)   experienced higher levels of political instability than did countries that pursued inward-oriented policies.
C)   include Singapore,South Korea,and Taiwan.
D)   All of the above are correct.E) B) and C)
F) B) and D)

Question 5

The traditional view that the production process has diminishing returns implies that

Accepted Answer

A)   the increase in output growth from an increase in the saving rate rises over time,and that,other things the same,rich countries should grow faster than poor ones.
B)   the increase in output growth from an increase in the saving rate falls over time,and that,other things the same,rich countries should grow faster than poor ones.
C)   the increase in output growth from an increase in the saving rate rises over time,and that,other things the same,poor countries should grow faster than rich ones.
D)   the increase in output growth from an increase in the saving rate falls over time,and that,other things the same,poor countries should grow faster than rich ones.E) None of the above
F) All of the above

Question 6

In some East Asian countries,average income,as measured by real GDP per person,has recently grown at an average annual rate that implies output will double about every

Accepted Answer

A)   10 years.
B)   15 years.
C)   20 years.
D)   25 years.E) A) and B)
F) A) and D)

Question 7

In the U.S. ,each additional year of schooling has historically raised a person's wage on average by about

Accepted Answer

A)   2 percent.
B)   5 percent.
C)   10 percent.
D)   15 percent.E) None of the above
F) B) and C)

Question 8

Human capital is

Accepted Answer

A)   the same thing as technological knowledge.
B)   the same thing as labor.
C)   the tools and equipment operated by humans.
D)   knowledge and skills that workers have acquired.E) B) and C)
F) C) and D)

Question 9

It has been suggested that a possible benefit of rapid population growth is the likelihood that when there are more people,then there are more

Accepted Answer

A)   teachers,and so students acquire more knowledge and skills.
B)   people to discover things,and so technological progress is rapid.
C)   savers,and so capital per worker tends to increase over time.
D)   consumers,and so economic growth is more rapid.E) B) and C)
F) C) and D)

Question 10

The inputs used to produce goods and services are also called

Accepted Answer

A)   productivity indicators.
B)   capitalization producers.
C)   production functions.
D)   factors of production.E) None of the above
F) A) and D)

Question 11

Other things the same,another unit of capital will increase output by more in a poor country than in a rich country.

Accepted Answer

A) True 
 B)False

Question 12

Workland has a population of 10,000,of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods.Laborland has a population of 5,000,of whom 4,000 work 12 hours a day to produce a total of 120,000 final goods.

Accepted Answer

A)   Workland has higher productivity and higher real GDP per person than Laborland.
B)   Workland has higher productivity but lower real GDP per person than Laborland.
C)   Workland has lower productivity but higher real GDP per person than Laborland.
D)   Workland has lower productivity and lower real GDP per person than Laborland.E) B) and C)
F) A) and D)

Question 13

Thomas Edison received patents on many of his inventions.While the patents existed,his ideas were

Accepted Answer

A)   public goods and proprietary knowledge.
B)   public goods but not proprietary knowledge.
C)   private goods and proprietary knowledge.
D)   private goods but not proprietary knowledge.E) None of the above
F) B) and C)

Question 14

Which of the following countries benefited significantly from the catch-up effect in the last half of the twentieth century?

Accepted Answer

A)   Ethiopia
B)   the United States
C)   Canada
D)   South KoreaE) A) and B)
F) A) and C)

Question 15

Human capital is the term economists use to refer to the knowledge and skills that workers acquire through education,training,and experience.

Accepted Answer

A) True 
 B)False

Question 16

Suppose U.S.-based Intel Corporation builds and operates a new computer chip factory in Honduras.Future production from such an investment would

Accepted Answer

A)   increase Honduran GDP more than it would increase Honduran GNP.
B)   increase Honduran GNP more than it would increase Honduran GDP.
C)   not affect Honduran GNP,but would increase Honduran GDP.
D)   have no affect on either Honduran GDP or GNP.E) None of the above
F) A) and C)

Question 17

As of 2006,using real GDP per person as a measure,we would classify

Accepted Answer

A)   the United States and Mexico as advanced economies and Bangladesh as a middle-income country.
B)   Canada as an advanced economy,Mexico as a middle-income country,and Mali as a poor country.
C)   Japan and India as advanced economies and Mexico as a poor country.
D)   Japan as an advanced economy,the United Kingdom as a middle-income country,and Argentina as a poor country.E) C) and D)
F) A) and C)

Question 18

Constant returns to scale is the point on a production function where increasing inputs will no longer increase output.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is a part of your economics professor's human capital?

Accepted Answer

A)   the things she learned at some prestigious university
B)   her copy of Mankiw's text
C)   her chalk holder
D)   All of the above are correct.E) A) and C)
F) None of the above

Question 20

Which of the following countries had the lowest level of real GDP per person in 2006?

Accepted Answer

A)   Pakistan
B)   Indonesia
C)   Mexico
D)   ChinaE) A) and B)
F) A) and C)

Exam 25: Production and Growth

It has been suggested that a possible benefit of rapid population growth is the likelihood that when there are more people,then there are more

Correct AnswerverifiedShow Answer

As of 2006,using real GDP per person as a measure,we would classify

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Countries that pursued outward-oriented policies in the 20th century

Correct AnswerverifiedShow Answer

Human capital is

Correct AnswerverifiedShow Answer

The inputs used to produce goods and services are also called

Correct AnswerverifiedShow Answer

Like physical capital,human capital is a produced factor of production.

Correct AnswerverifiedShow Answer

In some East Asian countries,average income,as measured by real GDP per person,has recently grown at an average annual rate that implies output will double about every

Correct AnswerverifiedShow Answer

Thomas Edison received patents on many of his inventions.While the patents existed,his ideas were

Correct AnswerverifiedShow Answer

Constant returns to scale is the point on a production function where increasing inputs will no longer increase output.

Correct AnswerverifiedShow Answer

Which of the following is a part of your economics professor's human capital?

Correct AnswerverifiedShow Answer

Historically,the market prices of most natural resources (adjusted for inflation) have

Correct AnswerverifiedShow Answer

Which of the following countries had the lowest level of real GDP per person in 2006?

Correct AnswerverifiedShow Answer

Other things the same,another unit of capital will increase output by more in a poor country than in a rich country.

Correct AnswerverifiedShow Answer

The traditional view that the production process has diminishing returns implies that

Correct AnswerverifiedShow Answer

Which of the following countries benefited significantly from the catch-up effect in the last half of the twentieth century?

Correct AnswerverifiedShow Answer

Workland has a population of 10,000,of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods.Laborland has a population of 5,000,of whom 4,000 work 12 hours a day to produce a total of 120,000 final goods.

Correct AnswerverifiedShow Answer

Suppose U.S.-based Intel Corporation builds and operates a new computer chip factory in Honduras.Future production from such an investment would

Correct AnswerverifiedShow Answer

In the U.S. ,each additional year of schooling has historically raised a person's wage on average by about

Correct AnswerverifiedShow Answer

Human capital is the term economists use to refer to the knowledge and skills that workers acquire through education,training,and experience.

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

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