Question 1

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) B) and D)
F) None of the above

Question 2

All else equal,which of the following would tend to cause real GDP per person to rise?

Accepted Answer

A)   a change from inward-oriented policies to outward-oriented policies
B)   an increase in investment in human capital
C)   strengthening of property rights.
D)   All of the above are correct.E) A) and D)
F) None of the above

Question 3

Last year real GDP in the imaginary nation of Populia was 907.5 billion and the population was 3.3 million.The year before real GDP was 750 billion and the population was 3 million.What was the growth rate of real GDP per person during the year?

Accepted Answer

A)   10 percent
B)   14 percent
C)   17 percent
D)   21 percentE) A) and B)
F) B) and C) A

Question 4

The return to schooling for society is higher than the return to schooling for the individual if

Accepted Answer

A)   the concept of diminishing returns applies to education.
B)   the concept of constant returns to scale applies to education.
C)   human capital conveys positive externalities.
D)   investment in human capital involves no opportunity costs.E) A) and B)
F) C) and D)

Question 5

If a rich country reduced subsidies to domestic producers of goods that poor countries have a comparative advantage producing,the standard of living in these poor countries would likely rise.

Accepted Answer

A) True 
 B)False

Question 6

Why is productivity related to the standard of living? In your answer be sure to explain what productivity and standard of living mean.Make a list of things that determine labor productivity.

Accepted Answer

The standard of living is a measure of h...

Question 7

Countries with more than 80 percent of their population living within 100 kilometers of a coast will have an average GDP per person that is

Accepted Answer

A)   around four times a country with less than 20 percent of the population living near the coast.
B)   around ten times a country with less than 20 percent of the population living near the coast.
C)   around twenty times a country with less than 20 percent of the population living near the coast.
D)   around fifty times a country with less than 20 percent of the population living near the coast.E) A) and C)
F) None of the above

Question 8

Suppose over the last year that the price of copper increased from ore increased from $1.70 a pound to $1.79 per pound.Over the same time a measure of the overall price level increased from 300 to 309.The price of copper increased by

Accepted Answer

A)   less than inflation,and this means it became relatively less scarce.
B)   less than inflation,and this means it became scarcer.
C)   more than inflation,and this means it became scarcer.
D)   more than inflation,but this doesn't necessarily mean that it become scarcer.E) B) and C)
F) A) and B) C

Question 9

In the past there have been violent protests against the World Bank and the World Trade Organization.The protesters argued that these institutions promote free trade and also encourage corporations in rich countries to invest in poor countries.The protesters contended that these practices make rich countries richer and poor countries poorer.An economist would

Accepted Answer

A)   disagree with the protesters because these practices will help make both rich and poor countries richer.
B)   disagree with the protesters about free trade,but would agree with the protesters about corporate investment.
C)   disagree with the protesters about corporate investment,but would agree with the protesters about free trade.
D)   agree with the protesters.E) C) and D)
F) A) and D)

Question 10

A leading environmental group recently published a report contending that humans are running a "resource deficit" because we are using natural resources faster than they can be regenerated.The group claims that this means that economic growth will eventually stop,and will even be reversed.An economist would

Accepted Answer

A)   agree with the report,and would point to rising natural resource prices as evidence.
B)   agree with the report,but wouldn't think it was important because growth will not slow down for several centuries.
C)   disagree with the report,in part because it ignores the mitigating effects of technological change.
D)   disagree with the report because labor and capital are the primary determinants of growth,and since they are plentiful,growth will not slow down.E) A) and B)
F) B) and D)

Question 11

Megan is a landscaper.Which of the following are included in her human capital?

Accepted Answer

A)   her knowledge of landscaping learned in college and her landscaping equipment
B)   her knowledge of landscaping learned in college,but not her landscaping equipment
C)   her landscaping equipment,but not her knowledge of landscaping learned in college
D)   neither her knowledge of landscaping learned in college nor her landscaping equipmentE) A) and D)
F) A) and C)

Question 12

Patents turn new ideas into

Accepted Answer

A)   public goods,and increase the incentive to engage in research.
B)   public goods,but decrease the incentive to engage in research.
C)   private goods,and increase the incentive to engage in research.
D)   private goods,but decrease the incentive to engage in research.E) C) and D)
F) B) and D)

Question 13

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

Question 14

Last year real GDP in the imaginary nation of Oceania was 561.0 billion and the population was 2.2 million.The year before,real GDP was 500.0 billion and the population was 2.0 million.What was the growth rate of real GDP per person during the year?

Accepted Answer

A)   12 percent
B)   10 percent
C)   4 percent
D)   2 percentE) C) and D)
F) A) and B)

Question 15

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Accepted Answer

A)   most economists do not regard the availability of natural resources as a determinant of productivity.
B)   the quantity of natural resources does not enter into any production function.
C)   inflation-adjusted prices of most natural resources have been stable or fallen over time.
D)   inflation-adjusted prices of most natural resources have risen over time.E) None of the above
F) B) and D)

Question 16

Suppose that a country increased its saving rate.In the long run it would have

Accepted Answer

A)   higher productivity,and another unit of capital would increase output by more than before.
B)   higher productivity,but another unit of capital would increase output by less than before.
C)   lower productivity,and another unit of capital would increase output by more than before.
D)   lower productivity,but another unit of capital would increase output by less than before.E) B) and D)
F) A) and B) B

Question 17

In 2009,Modern Electronics,Inc.produced 60,000 calculators,employing 80 workers,each of whom worked 8 hours per day.In 2010,the same firm produced 76,500 calculators,employing 85 workers,each of whom worked 10 hours per day.Productivity at Modern Electronics

Accepted Answer

A)   decreased by 4%
B)   remained constant.
C)   increased by 8.33%
D)   increased by 27.50%E) A) and B)
F) None of the above

Question 18

A forest is an example of a nonrenewable resource.

Accepted Answer

A) True 
 B)False

Question 19

Country A has a population of 1,000,of whom 800 work 8 hours a day to make 128,000 final goods.Country B has a population of 2,000,of whom 1,800 work 6 hours a day to make 270,000 final goods.

Accepted Answer

A)   Country A has higher productivity and higher real GDP per person than country B.
B)   Country A has lower productivity and lower real GDP per person than country B.
C)   Country A has higher productivity,but lower real GDP per person than country B.
D)   Country B has lower productivity,but higher real GDP per person than country B.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) B) and D)

Exam 17: Production and Growth

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 Answer
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All else equal,which of the following would tend to cause real GDP per person to rise?

Correct Answer
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Last year real GDP in the imaginary nation of Populia was 907.5 billion and the population was 3.3 million.The year before real GDP was 750 billion and the population was 3 million.What was the growth rate of real GDP per person during the year?

Correct Answer
verified
A

The return to schooling for society is higher than the return to schooling for the individual if

Correct Answer
verified

If a rich country reduced subsidies to domestic producers of goods that poor countries have a comparative advantage producing,the standard of living in these poor countries would likely rise.

Correct Answer
verified

Why is productivity related to the standard of living? In your answer be sure to explain what productivity and standard of living mean.Make a list of things that determine labor productivity.

Correct Answer
verified
The standard of living is a measure of h...
View Answer

Countries with more than 80 percent of their population living within 100 kilometers of a coast will have an average GDP per person that is

Correct Answer
verified

Suppose over the last year that the price of copper increased from ore increased from $1.70 a pound to $1.79 per pound.Over the same time a measure of the overall price level increased from 300 to 309.The price of copper increased by

Correct Answer
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C

Correct Answer
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Megan is a landscaper.Which of the following are included in her human capital?

Correct Answer
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Patents turn new ideas into

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

Correct Answer
verified

Last year real GDP in the imaginary nation of Oceania was 561.0 billion and the population was 2.2 million.The year before,real GDP was 500.0 billion and the population was 2.0 million.What was the growth rate of real GDP per person during the year?

Correct Answer
verified

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Correct Answer
verified

Suppose that a country increased its saving rate.In the long run it would have

Correct Answer
verified
B

In 2009,Modern Electronics,Inc.produced 60,000 calculators,employing 80 workers,each of whom worked 8 hours per day.In 2010,the same firm produced 76,500 calculators,employing 85 workers,each of whom worked 10 hours per day.Productivity at Modern Electronics

Correct Answer
verified

A forest is an example of a nonrenewable resource.

Correct Answer
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Country A has a population of 1,000,of whom 800 work 8 hours a day to make 128,000 final goods.Country B has a population of 2,000,of whom 1,800 work 6 hours a day to make 270,000 final goods.

Correct Answer
verified

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

Correct Answer
verified

Exam 17: Production and Growth

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

All else equal,which of the following would tend to cause real GDP per person to rise?

Correct AnswerverifiedShow Answer

Last year real GDP in the imaginary nation of Populia was 907.5 billion and the population was 3.3 million.The year before real GDP was 750 billion and the population was 3 million.What was the growth rate of real GDP per person during the year?

Correct AnswerverifiedA

The return to schooling for society is higher than the return to schooling for the individual if

Correct AnswerverifiedShow Answer

If a rich country reduced subsidies to domestic producers of goods that poor countries have a comparative advantage producing,the standard of living in these poor countries would likely rise.

Correct AnswerverifiedShow Answer

Why is productivity related to the standard of living? In your answer be sure to explain what productivity and standard of living mean.Make a list of things that determine labor productivity.

Correct AnswerverifiedThe standard of living is a measure of h...View AnswerShow Answer

Countries with more than 80 percent of their population living within 100 kilometers of a coast will have an average GDP per person that is

Correct AnswerverifiedShow Answer

Suppose over the last year that the price of copper increased from ore increased from $1.70 a pound to $1.79 per pound.Over the same time a measure of the overall price level increased from 300 to 309.The price of copper increased by

Correct AnswerverifiedC

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Megan is a landscaper.Which of the following are included in her human capital?

Correct AnswerverifiedShow Answer

Patents turn new ideas into

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Last year real GDP in the imaginary nation of Oceania was 561.0 billion and the population was 2.2 million.The year before,real GDP was 500.0 billion and the population was 2.0 million.What was the growth rate of real GDP per person during the year?

Correct AnswerverifiedShow Answer

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Correct AnswerverifiedShow Answer

Suppose that a country increased its saving rate.In the long run it would have

Correct AnswerverifiedB

In 2009,Modern Electronics,Inc.produced 60,000 calculators,employing 80 workers,each of whom worked 8 hours per day.In 2010,the same firm produced 76,500 calculators,employing 85 workers,each of whom worked 10 hours per day.Productivity at Modern Electronics

Correct AnswerverifiedShow Answer

A forest is an example of a nonrenewable resource.

Correct AnswerverifiedShow Answer

Country A has a population of 1,000,of whom 800 work 8 hours a day to make 128,000 final goods.Country B has a population of 2,000,of whom 1,800 work 6 hours a day to make 270,000 final goods.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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A

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The standard of living is a measure of h...
View Answer

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C

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B

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