Question 1

Which of the following is an example of the "brain drain?"

Accepted Answer

A)   A country's most highly educated workers emigrate to rich countries.
B)   A country has such a poor educational system that human capital falls over time.
C)   The population of a country grows so fast that the educational system can't keep up.
D)   A country steals patented technology from another country.E) B) and C)
F) A) and D)

Question 2

In a market economy,scarcity of resources is most clearly reflected in

Accepted Answer

A)   supply.
B)   demand.
C)   market prices.
D)   the stock of the resource.E) None of the above
F) B) and C)

Question 3

What is the difference between human capital and technology?

Accepted Answer

Technology is society's understanding of...

Question 4

Rapid population growth

Accepted Answer

A)   was hailed by Thomas Robert Malthus as the key to future economic growth.
B)   tends to lead to higher levels of educational attainment.
C)   is the main reason that less developed nations are poor.
D)   may depress economic prosperity by reducing the amount of capital which each worker has to work with.E) All of the above
F) C) and D)

Question 5

Use the data on U.S.real GDP below to compute real GDP per person for each year.Then use these numbers to compute the percentage increase in real GDP per person from 1987 to 2005.

Accepted Answer

Real GDP per person in 1987 wa...

Question 6

Which of the following best illustrates the human capital of a survivor stranded on an island?

Accepted Answer

A)   the fishing poles she has produced
B)   the invention of a better fishing lure
C)   the fresh fruit and fish on and around the island
D)   her previous training in a survival courseE) A) and D)
F) None of the above

Question 7

Which of the following is an example of a renewable natural resource?

Accepted Answer

A)   the knowledge possessed by scientists
B)   carpenters' labor services
C)   lumber
D)   All of the above are correct.E) B) and D)
F) None of the above

Question 8

The catch-up effect refers to the idea that

Accepted Answer

A)   saving will always catch-up with investment spending.
B)   it is easier for a country to grow fast and so catch-up if it starts out relatively poor.
C)   population eventually catches-up with increased output.
D)   if investment spending is low,increased saving will help investment to "catch-up."E) A) and D)
F) B) and D)

Question 9

In 2009,the imaginary nation of Viloxia had a population of 5,000 and real GDP of 500,000.In 2010 it had a population of 5,100 and real GDP of 520,200.During 2009 real GDP in Viloxia 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) A) and D)
F) A) and C)

Question 10

If a production function has the property called __________,then doubling all inputs causes the amount of output to double as well.

Accepted Answer

constant r...

Question 11

In addition to investment in physical and human capital,what other public policies might a country adopt to increase productivity?

Accepted Answer

In addition to investment in physical an...

Question 12

Consider the nations of China,Japan,and the United States.Over the past century,which of these nations has progressed,in an economic sense,more rapidly than the other two nations?

Accepted Answer

Japan's growth rate (2.71 perc...

Question 13

The slope of the production function with capital per worker on the horizontal axis and output per worker on the vertical axis

Accepted Answer

A)   is positive and gets steeper as capital per worker rises.
B)   is positive and gets flatter as capital per worker rises.
C)   is negative and gets steeper as capital per worker rises.
D)   is negative and gets flatter as capital per worker rises.E) A) and B)
F) A) and C)

Question 14

Refer to Scenario 12-1.If the production function has the constant-returns-to-scale property,then if we know the values of A,K/L,H/L,and N/L,we also know the value of

Accepted Answer

A)   output.
B)   labor productivity.
C)   A.
D)   All of the above are correct.E) None of the above
F) All of the above

Question 15

Which well-known economist from the past asserted that "the power of population is infinitely greater than the power in the earth to produce subsistence for man?"

Accepted Answer

The econom...

Question 16

Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over the last 100 or so years?

Accepted Answer

A)   Germany and Japan
B)   Indonesia and the United Kingdom
C)   the United States and Japan
D)   Mexico and PakistanE) A) and B)
F) None of the above

Question 17

If the price of a good has risen over time,

Accepted Answer

A)   it must have become more scarce.
B)   it must have become less scarce.
C)   it has become more scarce only if the price adjusted for inflation has risen.
D)   it has become less scarce only if the price adjusted for inflation has risen.E) A) and B)
F) B) and C)

Question 18

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) A) and D)
F) All of the above

Question 19

Which of the following are human capital and physical capital,respectively?

Accepted Answer

A)   for an accounting firm: the accountants' knowledge of tax laws and computer software
B)   for a grocery store: grocery carts and shelving
C)   for a school: chalkboard and desks
D)   for a library: the building and the reference librarians' knowledge of the InternetE) B) and D)
F) None of the above

Question 20

Economists generally believe that inward-oriented policies are more likely to foster growth than outward-oriented policies.

Accepted Answer

A) True 
 B)False

Exam 25: Production and Growth

Refer to Scenario 12-1.If the production function has the constant-returns-to-scale property,then if we know the values of A,K/L,H/L,and N/L,we also know the value of

Correct AnswerverifiedShow Answer

Economists generally believe that inward-oriented policies are more likely to foster growth than outward-oriented policies.

Correct AnswerverifiedShow Answer

In a market economy,scarcity of resources is most clearly reflected in

Correct AnswerverifiedShow Answer

Which well-known economist from the past asserted that "the power of population is infinitely greater than the power in the earth to produce subsistence for man?"

Correct AnswerverifiedThe econom...View AnswerShow Answer

Use the data on U.S.real GDP below to compute real GDP per person for each year.Then use these numbers to compute the percentage increase in real GDP per person from 1987 to 2005.

Correct AnswerverifiedReal GDP per person in 1987 wa...View AnswerShow Answer

Rapid population growth

Correct AnswerverifiedShow Answer

In 2009,the imaginary nation of Viloxia had a population of 5,000 and real GDP of 500,000.In 2010 it had a population of 5,100 and real GDP of 520,200.During 2009 real GDP in Viloxia grew by

Correct AnswerverifiedShow Answer

Which of the following is an example of the "brain drain?"

Correct AnswerverifiedShow Answer

Which of the following are human capital and physical capital,respectively?

Correct AnswerverifiedShow Answer

Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over the last 100 or so years?

Correct AnswerverifiedShow Answer

Consider the nations of China,Japan,and the United States.Over the past century,which of these nations has progressed,in an economic sense,more rapidly than the other two nations?

Correct AnswerverifiedJapan's growth rate (2.71 perc...View AnswerShow Answer

In addition to investment in physical and human capital,what other public policies might a country adopt to increase productivity?

Correct AnswerverifiedIn addition to investment in physical an...View AnswerShow Answer

The catch-up effect refers to the idea that

Correct AnswerverifiedShow Answer

Which of the following is an example of a renewable natural resource?

Correct AnswerverifiedShow Answer

The slope of the production function with capital per worker on the horizontal axis and output per worker on the vertical axis

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

If a production function has the property called __________,then doubling all inputs causes the amount of output to double as well.

Correct Answerverifiedconstant r...View AnswerShow Answer

Which of the following best illustrates the human capital of a survivor stranded on an island?

Correct AnswerverifiedShow Answer

If the price of a good has risen over time,

Correct AnswerverifiedShow Answer

What is the difference between human capital and technology?

Correct AnswerverifiedTechnology is society's understanding of...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The econom...
View Answer

Correct Answer
verified
Real GDP per person in 1987 wa...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Japan's growth rate (2.71 perc...
View Answer

Correct Answer
verified
In addition to investment in physical an...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
constant r...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Technology is society's understanding of...
View Answer