Question 1

Which of the following lists contains,in this order,natural resources,human capital,and physical capital?

Accepted Answer

A)   For a shoe factory: leather,hand tools,the managers' knowledge of shoe making.
B)   For a steel mill: the blast furnaces,the workers,iron ore.
C)   For an airline: oil used to make jet fuel,the pilots' knowledge of flying,jets.
D)   None of the above is correct.E) A) and D)
F) B) and D)

Question 2

According to studies using international data,an increase in the saving rate

Accepted Answer

A)   does not increase the growth rate of output.
B)   increases the growth rate of output for a few years.
C)   increases the growth rate of output for about a decade.
D)   increases the growth rate of output for several decades.E) All of the above
F) None of the above

Question 3

Table 12-1.
Athens and Troy both produce only ribs and baked potatoes.
 
-Refer to Table 12-1.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) A) and D)
F) B) and C)

Question 4

Figure 12-1.On the horizontal axis,K/L represents capital (K) per worker (L) .On the vertical axis,Y/L represents output (Y) per worker (L) . 
-Refer to Figure 12-1.The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

Accepted Answer

A)   In the long run,a higher saving rate leads to a higher growth rate of productivity.
B)   In the long run,a higher saving rate leads to a higher growth rate of income.
C)   Returns to capital become increasingly smaller as the amount of capital per worker increases.
D)   All of the above are correct.E) All of the above
F) None of the above

Question 5

In an economy where net exports are zero,if saving rises in some period,then in that period

Accepted Answer

A)   consumption and investment fall.
B)   consumption falls and investment rises.
C)   consumption rises and investment falls
D)   consumption rises and investment falls.E) All of the above
F) B) and D)

Question 6

For a given year,productivity in a particular country is most closely matched with that country's

Accepted Answer

A)   level of real GDP over that year.
B)   level of real GDP divided by hours worked over that year.
C)   growth rate of real GDP divided by hours worked over that year.
D)   growth rate of real GDP per person over that year.E) A) and B)
F) A) and C)

Question 7

Which of the following is not correct?

Accepted Answer

A)   China allows only one child per family and couples that violate this rule are subject to substantial fines.
B)   In developed countries,population growth is consistently about 3 percent per year;in developing countries it is consistently about 5 percent per year.
C)   Educational attainment tends to be lowest in countries with the highest population growth.
D)   Economists generally believe that a country that decreases a high population growth rate can increase its economic growth rate.E) B) and C)
F) A) and B)

Question 8

Productivity can be computed as the number of hours worked divided by output.

Accepted Answer

A) True 
 B)False

Question 9

The average citizen of India in 2008 had

Accepted Answer

A)   less real income than the typical resident of Canda in 1870.
B)   less real income than the typical resident of the United Kingdom in 1870.
C)   higher real income than a resident of Japan in 2008.
D)   higher real income than a resident of China in 2008.E) A) and C)
F) None of the above

Question 10

"When workers acquire tools,they become more productive." This statement reflects the general fact that __________ is a determinant of productivity.

Accepted Answer

physical c...

Question 11

Incentives for parents to send their children to school,such as small monthly payments to parents if their children have regular attendance,appear to increase school attendance.

Accepted Answer

A) True 
 B)False

Question 12

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,or should we examine the growth rate of that nation's real GDP?

Accepted Answer

The level of that na...

Question 13

In the United States,as measured by real GDP per person,average income is about how many times as high as average income a century ago?

Accepted Answer

A)   2
B)   4
C)   6
D)   8E) A) and C)
F) None of the above

Question 14

Productivity is the

Accepted Answer

A)   key determinant of living standards,and growth in productivity is the key determinant of growth in living standards.
B)   key determinant of living standards,but growth in productivity is not the key determinant of growth in living standards.
C)   not the key determinant of living standards,but growth in productivity is the key determinant of growth in living standards.
D)   not the key determinant of living standards,and growth in productivity is not the key determinant of growth in living standards.E) A) and C)
F) A) and D)

Question 15

Outward-oriented policies

Accepted Answer

A)   allow countries to take advantage of gains from trade.
B)   have generally led to high growth for the countries that pursued them.
C)   receive widespread support from economists.
D)   All of the above are correct.E) C) and D)
F) A) and B)

Question 16

Other things the same,if a country raises its saving rate,when is productivity growth higher?

Accepted Answer

A)   as the economy moves toward the long run and in the long run.
B)   as the economy moves toward the long run,but not in the long run.
C)   in the long run,but not as the economy moves toward the long run.
D)   neither as the economy moves toward the long run,nor in the long run.E) None of the above
F) C) and D)

Question 17

Of the following countries,which grew most slowly,in terms of real GDP per person,over the last 100 years?

Accepted Answer

A)   Brazil
B)   Mexico
C)   China
D)   United StatesE) A) and D)
F) All of the above

Question 18

Strike Out Bowling Balls produces 800 bowling balls per day using 2 workers who each work 8 hours per day.What is Strike Out's productivity?

Accepted Answer

A)   800 bowling balls
B)   100 bowling balls per hour
C)   50 bowling balls per hour
D)   None of the above is correct.E) B) and C)
F) A) and B)

Question 19

Other things the same,if a country raises its saving rate,then in the long run

Accepted Answer

A)   both the level and growth rate of real GDP are unchanged.
B)   the level of real GDP is higher but the growth rate of real GDP is unchanged.
C)   both the level and growth rate of real GDP are higher.
D)   None of the above are correct.E) B) and C)
F) A) and D)

Question 20

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) B) and C)
F) A) and B)

Exam 25: Production and Growth

"When workers acquire tools,they become more productive." This statement reflects the general fact that __________ is a determinant of productivity.

Correct Answerverifiedphysical c...View AnswerShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Of the following countries,which grew most slowly,in terms of real GDP per person,over the last 100 years?

Correct AnswerverifiedShow Answer

According to studies using international data,an increase in the saving rate

Correct AnswerverifiedShow Answer

Incentives for parents to send their children to school,such as small monthly payments to parents if their children have regular attendance,appear to increase school attendance.

Correct AnswerverifiedShow Answer

Productivity can be computed as the number of hours worked divided by output.

Correct AnswerverifiedShow Answer

Which of the following lists contains,in this order,natural resources,human capital,and physical capital?

Correct AnswerverifiedShow Answer

Strike Out Bowling Balls produces 800 bowling balls per day using 2 workers who each work 8 hours per day.What is Strike Out's productivity?

Correct AnswerverifiedShow Answer

Figure 12-1.On the horizontal axis,K/L represents capital (K) per worker (L) .On the vertical axis,Y/L represents output (Y) per worker (L) . -Refer to Figure 12-1.The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

Correct AnswerverifiedShow Answer

Table 12-1. Athens and Troy both produce only ribs and baked potatoes. -Refer to Table 12-1.Which of the following is correct?

Correct AnswerverifiedShow Answer

Other things the same,if a country raises its saving rate,when is productivity growth higher?

Correct AnswerverifiedShow Answer

Productivity is the

Correct AnswerverifiedShow Answer

In an economy where net exports are zero,if saving rises in some period,then in that period

Correct AnswerverifiedShow Answer

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,or should we examine the growth rate of that nation's real GDP?

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

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

Correct AnswerverifiedShow Answer

For a given year,productivity in a particular country is most closely matched with that country's

Correct AnswerverifiedShow Answer

The average citizen of India in 2008 had

Correct AnswerverifiedShow Answer

Other things the same,if a country raises its saving rate,then in the long run

Correct AnswerverifiedShow Answer

In the United States,as measured by real GDP per person,average income is about how many times as high as average income a century ago?

Correct AnswerverifiedShow Answer

Outward-oriented policies

Correct AnswerverifiedShow Answer

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The level of that na...
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