Question 1

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 2

An important prerequisite for the price system to work is an economy-wide respect for _______ rights.

Accepted Answer

The answer of An important prerequisite for the price system...

Question 3

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

Question 4

The equipment and structures available to produce goods and services are called

Accepted Answer

A)   physical capital.
B)   human capital.
C)   the production function.
D)   technology.E) A) and C)
F) B) and C)

Question 5

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

Question 6

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

Question 7

Is coal a produced factor of production?

Accepted Answer

No. Coal is a natural resource...

Question 8

Which of the following is a correct way to measure productivity?

Accepted Answer

A)   Divide the number of hours worked by the quantity of output.
B)   Divide the quantity of output by the number of hours worked.
C)   Determine how much output is produced in a given time.
D)   Determine how much time it takes to produce a unit of output.E) A) and B)
F) A) and C)

Question 9

If per capita real income grows by 2 percent per year, then it will double in approximately 20 years.

Accepted Answer

A) True 
 B)False

Question 10

Assuming constant returns to scale, if two countries are otherwise the same, the one that is poorer grows faster.

Accepted Answer

A) True 
 B)False

Question 11

If your firm's production function has constant returns to scale and you increase all your inputs by 60%, then your firm's output will

Accepted Answer

A)   not change.
B)   increase, but by less than 60%
C)   increase by 60%
D)   increase by more than 60%.E) C) and D)
F) B) and C)

Question 12

In one day Alpha Cabinet Company made 40 cabinets with 320 hours of labor. What was Alpha Cabinet Company's productivity?

Accepted Answer

A)   1/8 cabinet per hour
B)   8 hours per cabinet
C)   40 cabinets
D)   None of the above is correct.E) None of the above
F) C) and D)

Question 13

Which of the following is consistent with the catch-up effect?

Accepted Answer

A)   The United States had a higher growth rate before 1900 than after.
B)   After World War II the United States had lower growth rates than war-ravaged European countries.
C)   Although the United States has a relatively high level of output per person, its growth rate is rather modest compared to some countries.
D)   All of the above are correct.E) All of the above
F) B) and D)

Question 14

In what sense is it likely that geography has an effect on a country's rate of economic growth?

Accepted Answer

Countries with natural seaport...

Question 15

Over the last 140 years or so, on average Canada's real GDP per­person grew faster than that of the U.K.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is true?

Accepted Answer

A)   Natural resources per worker influence productivity only when those natural resources are renewable.
B)   The prices of most natural resources are stable or falling relative to other prices.
C)   Technology requires greater use of natural resources.
D)   The terms human capital and technological knowledge are used interchangeably.E) All of the above
F) C) and D)

Question 17

When a society decides to increase its quantity of physical capital, the society

Accepted Answer

A)   can avoid the usual need to face trade-offs.
B)   is apparently not very concerned about its rate of economic growth in the future.
C)   is in effect deciding to consume fewer goods and services in the present.
D)   is in effect deciding to save less of its current income in the present.E) All of the above
F) C) and D)

Question 18

In countries where women are discriminated against, policies that increase the likelihood of career success and educational opportunities for women are likely to decrease the birth rate.

Accepted Answer

A) True 
 B)False

Question 19

Suppose that an American opens and operates a candy factory in Finland. This is an example of

Accepted Answer

A)   foreign direct investment. American saving is used to finance Finish investment.
B)   foreign direct investment. American saving is used to finance American investment.
C)   foreign portfolio investment. American saving is used to finance Finish investment.
D)   foreign portfolio investment. American saving is used to finance American investment.E) None of the above
F) All of the above

Question 20

In the United States over the past century, real GDP per person has grown by about
percent per year.

Accepted Answer

2 or, more...

Exam 7: Production and Growth

Which of the following is consistent with the catch-up effect?

Correct AnswerverifiedShow Answer

Assuming constant returns to scale, if two countries are otherwise the same, the one that is poorer grows faster.

Correct AnswerverifiedShow Answer

In the United States over the past century, real GDP per person has grown by about percent per year.

Correct Answerverified2 or, more...View AnswerShow Answer

If per capita real income grows by 2 percent per year, then it will double in approximately 20 years.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Over the last 140 years or so, on average Canada's real GDP per­person grew faster than that of the U.K.

Correct AnswerverifiedShow Answer

An important prerequisite for the price system to work is an economy-wide respect for _______ rights.

Correct AnswerverifiedShow Answer

Which of the following is a correct way to measure productivity?

Correct AnswerverifiedShow Answer

When a society decides to increase its quantity of physical capital, the society

Correct AnswerverifiedShow Answer

If your firm's production function has constant returns to scale and you increase all your inputs by 60%, then your firm's output will

Correct AnswerverifiedShow Answer

The level of real GDP person

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Is coal a produced factor of production?

Correct AnswerverifiedNo. Coal is a natural resource...View AnswerShow Answer

The equipment and structures available to produce goods and services are called

Correct AnswerverifiedShow Answer

In what sense is it likely that geography has an effect on a country's rate of economic growth?

Correct AnswerverifiedCountries with natural seaport...View AnswerShow Answer

In countries where women are discriminated against, policies that increase the likelihood of career success and educational opportunities for women are likely to decrease the birth rate.

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

Suppose that an American opens and operates a candy factory in Finland. This is an example of

Correct AnswerverifiedShow Answer

In one day Alpha Cabinet Company made 40 cabinets with 320 hours of labor. What was Alpha Cabinet Company's productivity?

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

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2 or, more...
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Over the last 140 years or so, on average Canada's real GDP perperson grew faster than that of the U.K.

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No. Coal is a natural resource...
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Countries with natural seaport...
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