Question 1

A certain production process requires only two types of inputs - capital and labor. In 2006, 100 units of labor and 50 units of capital were employed, and 100 units of output were produced. In 2013, 112 units of labor and 56 units of capital were employed. If the production process displays constant returns to scale, then how many units of output were produced in 2013?

Accepted Answer

A)  100
B)  112
C)  124
D)  144E) A) and C)
F) C) and D)

Question 2

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 D)
F) B) and C)

Question 3

In some countries it is time consuming and costly to establish ownership of property. Reforms to reduce these costs would likely

Accepted Answer

A)  have no affect on either real GDP nor productivity
B)  raise real GDP and productivity.
C)  raise real GDP but not productivity.
D)  raise productivity but not real GDP.E) B) and C)
F) A) and B)

Question 4

Apple founder Steve Jobs received patents on many of his ideas. 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) All of the above

Question 5

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

Question 6

The level of real GDP person

Accepted Answer

A)  differs widely across countries, but the growth rate of real GDP per person is similar across countries.
B)  is very similar across countries, but the growth rate of real GDP per person differs widely across countries.
C)  and the growth rate of real GDP per person are similar across countries.
D)  and the growth rate of real GDP per person vary widely across countries.E) B) and C)
F) All of the above

Question 7

Proprietary technology is technology that is

Accepted Answer

A)  widely used because it is easy to learn.
B)  widely used because the government subsidizes its use.
C)  not widely used because people could, but have not, taken the time to learn how to apply it.
D)  not widely used because it is known or controlled only by the company that discovered it.E) A) and B)
F) None of the above

Question 8

Waldo works eight hours and produces 7 units of goods per hour. Emerson works six hours and produces 10 units of goods per hour.

Accepted Answer

A)  Waldo's productivity and output are greater than Emerson's.
B)  Waldo's productivity is greater than Emerson's but his output is less.
C)  Emerson's productivity and output are greater than Waldo's.
D)  Emerson's productivity is greater than Waldo's but his output is less.E) A) and D)
F) A) and C)

Question 9

Which of the following is an example of human capital?

Accepted Answer

A)  the comfortable chair in your dorm room where you read economics texts
B)  the amount you get paid each week to work at the library
C)  the things you have learned this semester
D)  any capital goods that require a human to be present to operateE) None of the above
F) A) and B)

Question 10

Over extended periods of time, population growth

Accepted Answer

A)  has no effect on the standard of living.
B)  has uncertain effects on the standard of living.
C)  clearly raises the standard of living.
D)  clearly lowers the standard of living.E) B) and C)
F) C) and D)

Question 11

Brazil gives cash payments to its poor citizens on the condition that those citizens' children stay in school. In terms of the determinants of productivity, how might this public policy contribute to higher productivity in Brazil?

Accepted Answer

This public policy aims to inc...

Question 12

Hit-It produces 320 baseball bats per day using 2 workers who each work 8 hours per day. What is Hit-It's productivity?

Accepted Answer

A)  320 baseball bats
B)  160 baseball bats per hour
C)  20 baseball bats per hour
D)  None of the above is correct.E) B) and D)
F) None of the above

Question 13

"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) B) and D)
F) B) and C)

Question 14

Which of the following nations experienced average rates of economic growth of a bit under 2% over the last 100 years or so?

Accepted Answer

A)  Mexico
B)  Brazil
C)  the United States
D)  All of the above are correct.E) None of the above
F) A) and B)

Question 15

Scenario 25-1. An economy's production form takes the form Y = AF(L, K, H, N) .
-Refer to Scenario 25-1. If the production function has the constant-returns-to-scale property, then it can be rewritten as

Accepted Answer

A)  Y/L = AF(1, K/L, H/L, N/L) 
B)  Y/L = AF(L, 1, H/L, N/L) 
C)  Y/L = AF(L, K/L, 1, N/L) 
D)  Y/L = AF(L, K/L, H/L, 1) E) None of the above
F) A) and D)

Question 16

Matt is going to college to become a pharmacist. What he learns about existing information increases

Accepted Answer

A)  both technological knowledge and human capital.
B)  technological knowledge but not human capital.
C)  human capital but not technological knowledge.
D)  neither technological knowledge nor human capital.E) All of the above
F) A) and B)

Question 17

Productivity is defined as the quantity of

Accepted Answer

A)  labor required to produce a nation's GDP.
B)  labor required to produce one unit of goods and services.
C)  goods and services produced from each unit of labor input.
D)  goods and services produced per unit of time.E) B) and D)
F) None of the above

Question 18

An increase in capital will increase real GNP per person

Accepted Answer

A)  more in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is from domestic rather than foreign investment.
B)  more in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is foreign rather than from domestic investment.
C)  less in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is from domestic rather than foreign investment.
D)  less in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is foreign rather than from domestic investment.E) A) and B)
F) B) and D)

Question 19

​Which of the following countries has had the greatest productivity per worker within the last ten years?

Accepted Answer

A)  ​Germany
B)  ​Nigeria
C)  ​Nicaragua
D)  ​IndiaE) B) and C)
F) C) and D)

Question 20

Suppose that there are diminishing returns to capital. Suppose also that two countries are the same except one has less capital and so less real GDP per person. Suppose that both increase their saving rate from 3 percent to 4 percent. In the long run

Accepted Answer

A)  both countries will have permanently higher growth rates of real GDP per person, and the growth rate will be higher in the country with more capital.
B)  both countries will have permanently higher growth rates of real GDP per person, and the growth rate will be higher in the country with less capital.
C)  both countries will have higher levels of real GDP per person, and the temporary increase in growth in the level of real GDP per person will have been greater in the country with more capital.
D)  both countries will have higher levels of real GDP per person, and the temporary increase in growth in the level of real GDP per person will have been greater in the country with less capital.E) All of the above
F) C) and D)

Exam 25: Production and Growth

Apple founder Steve Jobs received patents on many of his ideas. While the patents existed, his ideas were

Correct Answer
verified

"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 Answer
verified

Which of the following countries has had the greatest productivity per worker within the last ten years?

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

Correct Answer
verified

An increase in capital will increase real GNP per person

Correct Answer
verified

Scenario 25-1. An economy's production form takes the form Y = AF(L, K, H, N) . -Refer to Scenario 25-1. If the production function has the constant-returns-to-scale property, then it can be rewritten as

Correct Answer
verified

Productivity is defined as the quantity of

Correct Answer
verified

Suppose that there are diminishing returns to capital. Suppose also that two countries are the same except one has less capital and so less real GDP per person. Suppose that both increase their saving rate from 3 percent to 4 percent. In the long run

Correct Answer
verified

Which of the following nations experienced average rates of economic growth of a bit under 2% over the last 100 years or so?

Correct Answer
verified

Which of the following is an example of human capital?

Correct Answer
verified

Waldo works eight hours and produces 7 units of goods per hour. Emerson works six hours and produces 10 units of goods per hour.

Correct Answer
verified

Matt is going to college to become a pharmacist. What he learns about existing information increases

Correct Answer
verified

Brazil gives cash payments to its poor citizens on the condition that those citizens' children stay in school. In terms of the determinants of productivity, how might this public policy contribute to higher productivity in Brazil?

Correct Answer
verified
This public policy aims to inc...
View Answer

The level of real GDP person

Correct Answer
verified

Hit-It produces 320 baseball bats per day using 2 workers who each work 8 hours per day. What is Hit-It's productivity?

Correct Answer
verified

In some countries it is time consuming and costly to establish ownership of property. Reforms to reduce these costs would likely

Correct Answer
verified

Over extended periods of time, population growth

Correct Answer
verified

Proprietary technology is technology that is

Correct Answer
verified

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

Correct Answer
verified

Exam 25: Production and Growth

Apple founder Steve Jobs received patents on many of his ideas. While the patents existed, his ideas were

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

​Which of the following countries has had the greatest productivity per worker within the last ten years?

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

Correct AnswerverifiedShow Answer

An increase in capital will increase real GNP per person

Correct AnswerverifiedShow Answer

Scenario 25-1. An economy's production form takes the form Y = AF(L, K, H, N) . -Refer to Scenario 25-1. If the production function has the constant-returns-to-scale property, then it can be rewritten as

Correct AnswerverifiedShow Answer

Productivity is defined as the quantity of

Correct AnswerverifiedShow Answer

Suppose that there are diminishing returns to capital. Suppose also that two countries are the same except one has less capital and so less real GDP per person. Suppose that both increase their saving rate from 3 percent to 4 percent. In the long run

Correct AnswerverifiedShow Answer

Which of the following nations experienced average rates of economic growth of a bit under 2% over the last 100 years or so?

Correct AnswerverifiedShow Answer

Which of the following is an example of human capital?

Correct AnswerverifiedShow Answer

Waldo works eight hours and produces 7 units of goods per hour. Emerson works six hours and produces 10 units of goods per hour.

Correct AnswerverifiedShow Answer

Matt is going to college to become a pharmacist. What he learns about existing information increases

Correct AnswerverifiedShow Answer

Brazil gives cash payments to its poor citizens on the condition that those citizens' children stay in school. In terms of the determinants of productivity, how might this public policy contribute to higher productivity in Brazil?

Correct AnswerverifiedThis public policy aims to inc...View AnswerShow Answer

The level of real GDP person

Correct AnswerverifiedShow Answer

Hit-It produces 320 baseball bats per day using 2 workers who each work 8 hours per day. What is Hit-It's productivity?

Correct AnswerverifiedShow Answer

In some countries it is time consuming and costly to establish ownership of property. Reforms to reduce these costs would likely

Correct AnswerverifiedShow Answer

Over extended periods of time, population growth

Correct AnswerverifiedShow Answer

Proprietary technology is technology that is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Which of the following countries has had the greatest productivity per worker within the last ten years?

Correct Answer
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This public policy aims to inc...
View 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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