Question 1

An increase in capital increases productivity only if it is purchased and operated by domestic residents.

Accepted Answer

A) True 
 B)False

Question 2

Suppose that real GDP grew more in Country A than in Country B last year.

Accepted Answer

A)   Country A must have a higher standard of living than country B.
B)   Country A's productivity must have grown faster than country B's.
C)   Both of the above are correct.
D)   None of the above are correct.E) None of the above
F) All of the above

Question 3

The one variable that stands out as the most significant explanation of large variations in living standards around the world is

Accepted Answer

A)   productivity.
B)   population.
C)   preferences.
D)   prices.E) A) and B)
F) None of the above

Question 4

Suppose that a new government is elected in Eurnesia. The new government takes steps toward improving the court system and reducing government corruption. The citizens of Eurnesia find these efforts credible and outsiders believe these changes will be effective and long lasting. These changes will probably

Accepted Answer

A)   raise real GDP per person and productivity in Eurnesia.
B)   raise real GDP per person but not productivity in Eurnesia.
C)   raise productivity but not real GDP per person in Eurnesia.
D)   raise neither productivity nor real GDP per person in Eurnesia.E) A) and D)
F) All of the above

Question 5

Which list contains, in this order, a country whose real GDP per person grew faster and one whose real GDP per person grew slower than real GDP per person in the U.S. over about the last 100 years?

Accepted Answer

A)   Bangladesh, India
B)   China, United Kingdom
C)   Japan, Brazil
D)   Pakistan, MexicoE) A) and B)
F) C) and D)

Question 6

Economists generally believe that policies such as reducing barriers to trade are likely to foster economic growth.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is correct?

Accepted Answer

A)   Productivity is a determinant of human capital per worker.
B)   Technological knowledge is a determinant of productivity.
C)   Human capital and technological knowledge are the same thing.
D)   All of the above are correct.E) C) and D)
F) B) and C)

Question 8

In 2010, the imaginary nation of Mainland had a population of 6,000 and real GDP of 120,000. In 2011 the population was 6,200 and real GDP of 128,960. Over the year in question, real GDP per person in Mainland grew by

Accepted Answer

A)   2 percent, which is high compared to average U.S. growth over the last one-hundred years.
B)   2 percent, which is about the same as average U.S. growth over the last one-hundred years.
C)   4 percent, which is high compared to average U.S. growth over the last one-hundred years.
D)   4 percent, which is about the same as average U.S. growth over the last one-hundred years.E) All of the above
F) None of the above

Question 9

Which of the following statements is correct?

Accepted Answer

A)   In the late 1800s, real GDP per person was higher in the United Kingdom than in the United States.
B)   In 2010, real GDP per person was higher in the United Kingdom than in the United States.
C)   The average annual growth rate of real GDP was higher in the United Kingdom than in the United States between the late 1800s and 2010.
D)   All of the above are correct.E) B) and D)
F) B) and C)

Question 10

Compare and contrast the population theories of Malthus and Kremer.

Accepted Answer

The difference is that Malthus predicted...

Question 11

Country A had a population of 1,000, of whom 600 worked an average of 8 hours a day and had a productivity of 2.5. Country B had a population of 800, of whom 560 worked 8 hours a day and had productivity of 3.0. Country

Accepted Answer

A)   A had the higher level of real GDP and real GDP per person.
B)   A had the higher level of real GDP and Country B had the higher level of real GDP per person
C)   B had the higher level of real GDP and Country A had the higher level of real GDP per person
D)   B had the higher level of real GDP and real GDP per person.E) None of the above
F) A) and B)

Question 12

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units. This year the same country had 1000 workers who worked an average of 8 hours and produced 14,000 units. This country's productivity was

Accepted Answer

A)   higher this year than last year. A possible source of this change in productivity is a change in the size of the capital stock.
B)   higher this year than last year. A change in the size of the capital stock does not affect productivity.
C)   lower this year than last year. A possible source of this change in productivity is a change in the size of the capital stock.
D)   lower this year than last year. A change in the size of the capital stock does not affect productivity.E) C) and D)
F) A) and D)

Question 13

The population growth rate tends to be higher in developed countries than in developing countries.

Accepted Answer

A) True 
 B)False

Question 14

Since 1870 Canadian and U.S real GDP per person grew from below to above that in the United Kingdom. The explanation for this is likely that productivity grew faster in Canada and the U.S. than in the United Kingdom.

Accepted Answer

A) True 
 B)False

Question 15

According to some estimates, over the last two decades China has had an annual average growth rate of about 12 percent.

Accepted Answer

A) True 
 B)False

Question 16

In 2010, real GDP per person in Bangladesh was

Accepted Answer

A)   about 3 times as high as it was in the U.S. in 1870.
B)   about twice as high as it was in the U.S. in 1870.
C)   about the same as it was in the U.S. in 1870.
D)   less than it was in the U.S. in 1870.E) A) and B)
F) B) and C)

Question 17

In order to assess the level of prosperity in a nation in a given year, should we examine the level of that nation's real GDP per person, or should we examine the growth rate of that nation's real GDP per person?

Accepted Answer

The level of that na...

Question 18

Suppose that the U.S. undertakes a policy to increase its saving rate. This policy will likely

Accepted Answer

A)   have no impact on the level of real GDP per person.
B)   immediately and permanently decrease the level of real GDP per person.
C)   immediately and permanently increase the level of real GDP person.
D)   gradually raise the level of real GDP per person.E) All of the above
F) A) and B)

Question 19

Which of the following correctly ranks the three countries, from highest to lowest, for percentage of high-school age children in school?

Accepted Answer

A)   United Kingdom, Mali, Mexico.
B)   Mexico, Mali, United Kingdom.
C)   United Kingdom, Mexico, Mali.
D)   Mali, Mexico, United Kingdom.E) B) and C)
F) A) and B)

Question 20

Which of the following terms is used to refer to the ability of people to exercise authority over the resources they own?

Accepted Answer

A)   natural rights
B)   property rights
C)   input control
D)   collective controlE) A) and B)
F) A) and C)

Exam 7: Production and Growth

In order to assess the level of prosperity in a nation in a given year, should we examine the level of that nation's real GDP per person, or should we examine the growth rate of that nation's real GDP per person?

Correct Answer
verified
The level of that na...
View Answer

Economists generally believe that policies such as reducing barriers to trade are likely to foster economic growth.

Correct Answer
verified

Which of the following correctly ranks the three countries, from highest to lowest, for percentage of high-school age children in school?

Correct Answer
verified

Suppose that real GDP grew more in Country A than in Country B last year.

Correct Answer
verified

In 2010, the imaginary nation of Mainland had a population of 6,000 and real GDP of 120,000. In 2011 the population was 6,200 and real GDP of 128,960. Over the year in question, real GDP per person in Mainland grew by

Correct Answer
verified

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units. This year the same country had 1000 workers who worked an average of 8 hours and produced 14,000 units. This country's productivity was

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

Compare and contrast the population theories of Malthus and Kremer.

Correct Answer
verified
The difference is that Malthus predicted...
View Answer

An increase in capital increases productivity only if it is purchased and operated by domestic residents.

Correct Answer
verified

Correct Answer
verified

Which of the following terms is used to refer to the ability of people to exercise authority over the resources they own?

Correct Answer
verified

According to some estimates, over the last two decades China has had an annual average growth rate of about 12 percent.

Correct Answer
verified

In 2010, real GDP per person in Bangladesh was

Correct Answer
verified

Country A had a population of 1,000, of whom 600 worked an average of 8 hours a day and had a productivity of 2.5. Country B had a population of 800, of whom 560 worked 8 hours a day and had productivity of 3.0. Country

Correct Answer
verified

Which list contains, in this order, a country whose real GDP per person grew faster and one whose real GDP per person grew slower than real GDP per person in the U.S. over about the last 100 years?

Correct Answer
verified

The population growth rate tends to be higher in developed countries than in developing countries.

Correct Answer
verified

The one variable that stands out as the most significant explanation of large variations in living standards around the world is

Correct Answer
verified

Since 1870 Canadian and U.S real GDP per person grew from below to above that in the United Kingdom. The explanation for this is likely that productivity grew faster in Canada and the U.S. than in the United Kingdom.

Correct Answer
verified

Suppose that the U.S. undertakes a policy to increase its saving rate. This policy will likely

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

Exam 7: Production and Growth

In order to assess the level of prosperity in a nation in a given year, should we examine the level of that nation's real GDP per person, or should we examine the growth rate of that nation's real GDP per person?

Correct AnswerverifiedThe level of that na...View AnswerShow Answer

Economists generally believe that policies such as reducing barriers to trade are likely to foster economic growth.

Correct AnswerverifiedShow Answer

Which of the following correctly ranks the three countries, from highest to lowest, for percentage of high-school age children in school?

Correct AnswerverifiedShow Answer

Suppose that real GDP grew more in Country A than in Country B last year.

Correct AnswerverifiedShow Answer

In 2010, the imaginary nation of Mainland had a population of 6,000 and real GDP of 120,000. In 2011 the population was 6,200 and real GDP of 128,960. Over the year in question, real GDP per person in Mainland grew by

Correct AnswerverifiedShow Answer

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units. This year the same country had 1000 workers who worked an average of 8 hours and produced 14,000 units. This country's productivity was

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Compare and contrast the population theories of Malthus and Kremer.

Correct AnswerverifiedThe difference is that Malthus predicted...View AnswerShow Answer

An increase in capital increases productivity only if it is purchased and operated by domestic residents.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following terms is used to refer to the ability of people to exercise authority over the resources they own?

Correct AnswerverifiedShow Answer

According to some estimates, over the last two decades China has had an annual average growth rate of about 12 percent.

Correct AnswerverifiedShow Answer

In 2010, real GDP per person in Bangladesh was

Correct AnswerverifiedShow Answer

Country A had a population of 1,000, of whom 600 worked an average of 8 hours a day and had a productivity of 2.5. Country B had a population of 800, of whom 560 worked 8 hours a day and had productivity of 3.0. Country

Correct AnswerverifiedShow Answer

Which list contains, in this order, a country whose real GDP per person grew faster and one whose real GDP per person grew slower than real GDP per person in the U.S. over about the last 100 years?

Correct AnswerverifiedShow Answer

The population growth rate tends to be higher in developed countries than in developing countries.

Correct AnswerverifiedShow Answer

The one variable that stands out as the most significant explanation of large variations in living standards around the world is

Correct AnswerverifiedShow Answer

Since 1870 Canadian and U.S real GDP per person grew from below to above that in the United Kingdom. The explanation for this is likely that productivity grew faster in Canada and the U.S. than in the United Kingdom.

Correct AnswerverifiedShow Answer

Suppose that the U.S. undertakes a policy to increase its saving rate. This policy will likely

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Correct Answer
verified
The level of that na...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
The difference is that Malthus predicted...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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