Question 1

In which of the following countries has economic growth been sufficiently high that income would double every ten years?

Accepted Answer

A)   India
B)   Mexico
C)   South Korea
D)   ZimbabweE) All of the above
F) B) and C)

Question 2

Popeye produces 20 cans of spinach in 8 hours. Wimpy produces 15 hamburgers in 10 hours. If each hamburger trades for 1.5 cans of spinach, then

Accepted Answer

A)   Popeye's production and productivity are greater than Wimpy's.
B)   Popeye's production is greater than Wimpy's, but his productivity is less.
C)   Wimpy's production and productivity are greater than Popeye's.
D)   Wimpy's production is greater than Popeye's, but his productivity is less.E) C) and D)
F) None of the above

Question 3

List the four determinants of an economy's productivity.

Accepted Answer

The four determinants are phys...

Question 4

Which of the following is correct?

Accepted Answer

A)   Over the last 100 years Japan had a higher average growth rate than the United States. It follows that, today, the standard of living in Japan is higher than in the United States.
B)   The typical person in Bangladesh today has about twice the real income of a typical American 100 years ago.
C)   The typical citizen of China today has about one-half as much real income as the typical citizen of America today.
D)   None of the above is correct.E) A) and B)
F) None of the above

Question 5

Studies have found that there is a relationship between height and productivity. Briefly explain.

Accepted Answer

Studies show that taller worke...

Question 6

Suppose a person receives an education in her home country. Which of the following will tend to make the increase in GDP of the person's home country larger than the increase in this person's income?

Accepted Answer

A)   externalities and brain drain
B)   externalities but not brain drain
C)   brain drain but not externalities
D)   neither externalities nor brain drainE) A) and D)
F) A) and B)

Question 7

All else equal, if there are diminishing returns and constant returns to scale, then what happens to productivity if capital and labor both increase but capital increases by more?

Accepted Answer

A)   Productivity will definitely fall.
B)   Productivity will definitely be unchanged.
C)   Productivity will definitely rise.
D)   None of the above are necessarily correct.E) A) and B)
F) C) and D)

Question 8

Suppose Japanese-based Toshiba Corporation builds and operates a new computer factory in the United States. Future production from such an investment will

Accepted Answer

A)   increase U.S. GNP more than it increases U.S. GDP.
B)   increase U.S. GDP more than it increases U.S. GNP.
C)   have no affect on U.S. GNP, but will increase U.S. GDP.
D)   have no affect on U.S. GNP or GDP.E) A) and B)
F) None of the above

Question 9

Table 25-1.
Athens and Troy both produce only ribs and baked potatoes.
 
-Refer to Table 25-1. Which of the following is correct?

Accepted Answer

A)   Both real GDP and real GDP per person are higher in Athens than Troy.
B)   Real GDP is higher in Athens while real GDP per person is higher in Troy
C)   Real GDP is higher in Troy while real GDP per person is higher in Athens.
D)   Both real GDP and real GDP per person are higher in Troy than Athens.E) None of the above
F) C) and D)

Question 10

The opening of a new American-owned factory in Algeria would tend to increase Algeria's GDP more than it increases Algeria's GNP because

Accepted Answer

A)   some of the income from the factory accrues to people who do not live in Algeria.
B)   gross domestic product is income earned within a country by both residents and nonresidents, whereas gross national product is the income earned by residents of a country while producing both at home and abroad.
C)   all of the income from the factory is included in Algeria's GDP.
D)   All of the above are correct.E) C) and D)
F) A) and D)

Question 11

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) B) and D)

Question 12

A barber shop produces 192 haircuts a day. Each barber in the shop works 8 hours per day and produces the same number of haircuts per hour. If the shop's productivity is 2 haircuts per hour of labor, then how many barbers does the shop employ?

Accepted Answer

A)   8
B)   12
C)   16
D)   None of the above is correct.E) All of the above
F) C) and D)

Question 13

Despite its status as one of the richest countries in the world, Japan

Accepted Answer

A)   has a very low level of productivity.
B)   has few natural resources.
C)   has very little human capital.
D)   engages in a relatively small amount of international trade.E) A) and D)
F) B) and C)

Question 14

Other things the same, which of the following would increase productivity?

Accepted Answer

A)   an increase in either human or physical capital
B)   an increase in human capital but not an increase in physical capital
C)   an increase in physical capital but not an increase in human capital
D)   neither an increase in human capital nor an increase in physical capitalE) A) and B)
F) B) and D)

Question 15

"When workers have a relatively small quantity of capital to use in producing goods and services, giving them an additional unit of capital increases their productivity by a relatively large amount." This statement

Accepted Answer

A)   is an assertion that production functions have the property of constant returns to scale.
B)   is consistent with the view that capital is subject to diminishing returns.
C)   is inconsistent with the view that it is easier for a country to grow fast if it starts out relatively poor.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 16

Over the last ten years productivity grew faster in Mapoli than in Romeria while the population and total hours worked remained the same in both countries. It follows that

Accepted Answer

A)   real GDP per person grew faster in Mapoli than in Romeria.
B)   real GDP per person must be higher in Mapoli than in Romeria.
C)   the standard of living must be higher in Mapoli than in Romeria.
D)   All of the above are correct.E) None of the above
F) A) and B)

Question 17

All else equal, if there are diminishing returns, then which of the following is true if a country increases its capital by one unit?

Accepted Answer

A)   Output will rise by more than it did when the previous unit was added.
B)   Output will rise but by less than it did when the previous unit was added.
C)   Output will fall by more than it did when the previous unit was added.
D)   Output will fall but by less then it did when the previous unit was added.E) B) and D)
F) B) and C)

Question 18

Productivity is the amount of goods and services

Accepted Answer

A)   an economy produces. It is not linked to a nation's economic policies.
B)   an economy produces. It is linked to a nation's economic policies.
C)   produced for each hour of a worker's time. It is not linked to a nation's economic policies.
D)   produced for each hour of a worker's time. It is linked to a nation's economic policies.E) B) and D)
F) C) and D)

Question 19

Which of the following is correct?

Accepted Answer

A)   Although levels of real GDP per person vary substantially from country to country, the growth rate of real GDP per person is similar across countries.
B)   Productivity is not closely linked to government policies.
C)   The level of real GDP per person is a good gauge of economic prosperity, and the growth rate of real GDP per person is a good gauge of economic progress.
D)   Productivity may be measured by the growth rate of real GDP per person.E) A) and B)
F) A) and C)

Question 20

According to research by Robert Fogel, what proportion of the British population in 1780 was so malnourished that they could not perform manual labor?

Accepted Answer

A)   5 percent
B)   10 percent
C)   20 percent
D)   25 percentE) B) and C)
F) B) and D)

Exam 17: Production and Growth

Popeye produces 20 cans of spinach in 8 hours. Wimpy produces 15 hamburgers in 10 hours. If each hamburger trades for 1.5 cans of spinach, then

Correct AnswerverifiedShow Answer

All else equal, if there are diminishing returns and constant returns to scale, then what happens to productivity if capital and labor both increase but capital increases by more?

Correct AnswerverifiedShow Answer

List the four determinants of an economy's productivity.

Correct AnswerverifiedThe four determinants are phys...View AnswerShow Answer

According to research by Robert Fogel, what proportion of the British population in 1780 was so malnourished that they could not perform manual labor?

Correct AnswerverifiedShow Answer

Suppose a person receives an education in her home country. Which of the following will tend to make the increase in GDP of the person's home country larger than the increase in this person's income?

Correct AnswerverifiedShow Answer

Over the last ten years productivity grew faster in Mapoli than in Romeria while the population and total hours worked remained the same in both countries. It follows that

Correct AnswerverifiedShow Answer

Human capital is

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

In which of the following countries has economic growth been sufficiently high that income would double every ten years?

Correct AnswerverifiedShow Answer

Other things the same, which of the following would increase productivity?

Correct AnswerverifiedShow Answer

Productivity is the amount of goods and services

Correct AnswerverifiedShow Answer

Table 25-1. Athens and Troy both produce only ribs and baked potatoes. -Refer to Table 25-1. Which of the following is correct?

Correct AnswerverifiedShow Answer

The opening of a new American-owned factory in Algeria would tend to increase Algeria's GDP more than it increases Algeria's GNP because

Correct AnswerverifiedShow Answer

Despite its status as one of the richest countries in the world, Japan

Correct AnswerverifiedShow Answer

All else equal, if there are diminishing returns, then which of the following is true if a country increases its capital by one unit?

Correct AnswerverifiedShow Answer

Studies have found that there is a relationship between height and productivity. Briefly explain.

Correct AnswerverifiedStudies show that taller worke...View AnswerShow Answer

Suppose Japanese-based Toshiba Corporation builds and operates a new computer factory in the United States. Future production from such an investment will

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

A barber shop produces 192 haircuts a day. Each barber in the shop works 8 hours per day and produces the same number of haircuts per hour. If the shop's productivity is 2 haircuts per hour of labor, then how many barbers does the shop employ?

Correct AnswerverifiedShow Answer

"When workers have a relatively small quantity of capital to use in producing goods and services, giving them an additional unit of capital increases their productivity by a relatively large amount." This statement

Correct AnswerverifiedShow Answer

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The four determinants are phys...
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Studies show that taller worke...
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