Question 1

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units. This year the same country had 1000 workers who worked an average of 8 hours and produced 14,000 units. This country's productivity was

Accepted Answer

A)   higher this year than last year. A possible source of this change in productivity is a change in the size of the capital stock.
B)   higher this year than last year. A change in the size of the capital stock does not affect productivity.
C)   lower this year than last year. A possible source of this change in productivity is a change in the size of the capital stock.
D)   lower this year than last year. A change in the size of the capital stock does not affect productivity.E) B) and C)
F) A) and B)

Question 2

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 3

All else equal, if there are diminishing returns, then what happens to productivity if both capital and labor increase?

Accepted Answer

A)   Productivity will definitely fall.
B)   Productivity will definitely be unchanged.
C)   Productivity will definitely rise.
D)   None of the above are necessarily correct.E) C) and D)
F) None of the above

Question 4

Both Arnold and Will work 10 hours a day. Arnold can produce six baskets of goods per hour while Will can produce four baskets of the same goods per hour. It follows that Arnold's

Accepted Answer

A)   productivity is greater than Will's.
B)   output is greater than Will's.
C)   standard of living is higher than Will's.
D)   All of the above are correct.E) None of the above
F) All of the above

Question 5

Consider three imaginary countries. In Aire, saving amounts to $4,000 and consumption amounts to $12,000; in Bovina, saving amounts to $3,000 and consumption amounts to $24,000; and in Cartar, saving amounts to $10,000 and consumption amounts to $50,000. The saving rate is

Accepted Answer

A)   higher in Aire than in Cartar, and it is higher in Cartar than in Bovina.
B)   higher in Cartar than in Aire, and it is higher in Aire than in Bovina.
C)   higher in Cartar than in Bovina, and it is the same in Bovina and Aire.
D)   higher in Aire than in Bovina, and it is the same in Aire and Cartar.E) All of the above
F) A) and C)

Question 6

Research suggests that taller workers tend to earn more income than shorter workers. What does this suggest about the relationship between workers' height and their productivity?

Accepted Answer

If taller workers' earnings ar...

Question 7

International data on real GDP per person gives us a sense of how standards of living vary across countries.

Accepted Answer

A) True 
 B)False

Question 8

Over the last ten years productivity grew more slowly in Iberia than in Aire while the population and total hours worked remained the same in both countries. It follows that

Accepted Answer

A)   real GDP per person must be lower in Iberia than in Aire.
B)   real GDP per person grew more slowly in Iberia than in Aire.
C)   the standard of living must be higher in Iberia than in Aire.
D)   All of the above are correct.E) B) and C)
F) None of the above

Question 9

In recent decades Americans have increased their purchase of stocks of foreign-based companies. The Americans who have bought these stocks were engaged in

Accepted Answer

A)   foreign portfolio investment.
B)   indirect domestic investment.
C)   foreign direct investment.
D)   foreign indirect investment.E) A) and B)
F) A) and C)

Question 10

Other things the same, a country that increases its savings rate will have

Accepted Answer

A)   higher future capital and higher future real GDP per person.
B)   higher future capital but not higher future real GDP per person.
C)   higher future real GDP per person but not higher future capital.
D)   neither higher future capital nor higher future real GDP per person.E) C) and D)
F) B) and C)

Question 11

Which of the following is considered human capital? Knowledge acquired from

Accepted Answer

A)   early childhood education programs
B)   job training
C)   on-the-job experience
D)   All of the above are correct.E) B) and D)
F) A) and C)

Question 12

In the production function  , which symbol reflects the state of technology?

Accepted Answer

A)   A
B)   K
C)   H
D)   NE) B) and C)
F) C) and D)

Question 13

Figure 25-1.
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 25-1. 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 level of productivity.
B)   In the long run, a higher saving rate leads to a higher level of income.
C)   In the long run, a higher saving rate leads to neither a higher growth rate of productivity nor a higher growth rate of income.
D)   All of the above are correct.E) A) and B)
F) A) and D)

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

Question 15

In one day Madison Laundry washed 4,000 pounds of laundry with 5 workers who each worked 8 hours. What was its productivity?

Accepted Answer

A)   4000 pounds of laundry
B)   500 pounds of laundry per hour
C)   100 pounds of laundry per hour
D)   None of the above is correct.E) A) and D)
F) C) and D)

Question 16

Which of the following statements is not correct?

Accepted Answer

A)   The catch-up effect is based on the assumption of diminishing returns to capital.
B)   Investment in poor countries by citizens of rich countries is one way poor countries can learn new technologies.
C)   Malthus argued that charity and government aid was an effective way to reduce poverty.
D)   Peace and justice are keys to growth.E) A) and D)
F) A) and C)

Question 17

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

Question 18

Educated people may generate ideas that increase production. These ideas

Accepted Answer

A)   produce a return to society from education that is greater than the return to the individual.
B)   could justify government subsides for education.
C)   are external benefits of education.
D)   All of the above are correct.E) None of the above
F) B) and C)

Question 19

Scenario 25-1. An economy's production form takes the form Y = AFL, K, H, N) .
-Refer to Scenario 25-1. 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) C) and D)

Question 20

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 2.65 perce...

Exam 17: Production and Growth

Educated people may generate ideas that increase production. These ideas

Correct AnswerverifiedShow Answer

Which of the following is considered human capital? Knowledge acquired from

Correct AnswerverifiedShow Answer

In one day Madison Laundry washed 4,000 pounds of laundry with 5 workers who each worked 8 hours. What was its productivity?

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 2.65 perce...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Over the last ten years productivity grew more slowly in Iberia than in Aire while the population and total hours worked remained the same in both countries. It follows that

Correct AnswerverifiedShow Answer

Other things the same, a country that increases its savings rate will have

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

Both Arnold and Will work 10 hours a day. Arnold can produce six baskets of goods per hour while Will can produce four baskets of the same goods per hour. It follows that Arnold's

Correct AnswerverifiedShow Answer

Research suggests that taller workers tend to earn more income than shorter workers. What does this suggest about the relationship between workers' height and their productivity?

Correct AnswerverifiedIf taller workers' earnings ar...View AnswerShow Answer

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units. This year the same country had 1000 workers who worked an average of 8 hours and produced 14,000 units. This country's productivity was

Correct AnswerverifiedShow Answer

All else equal, if there are diminishing returns, then what happens to productivity if both capital and labor increase?

Correct AnswerverifiedShow Answer

Scenario 25-1. An economy's production form takes the form Y = AFL, K, H, N) . -Refer to Scenario 25-1. 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

International data on real GDP per person gives us a sense of how standards of living vary across countries.

Correct AnswerverifiedShow Answer

In recent decades Americans have increased their purchase of stocks of foreign-based companies. The Americans who have bought these stocks were engaged in

Correct AnswerverifiedShow Answer

Figure 25-1. 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 25-1. The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

Correct AnswerverifiedShow Answer

In the production function , which symbol reflects the state of technology?

Correct AnswerverifiedShow Answer

Consider three imaginary countries. In Aire, saving amounts to $4,000 and consumption amounts to $12,000; in Bovina, saving amounts to $3,000 and consumption amounts to $24,000; and in Cartar, saving amounts to $10,000 and consumption amounts to $50,000. The saving rate is

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Japan's growth rate 2.65 perce...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
If taller workers' earnings ar...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

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