Question 1

Other things the same, an increase in population growth

Accepted Answer

A)   increases capital per worker. Further, there is some evidence that a higher population growth rate may increase the pace of technological progress.
B)   increases capital per worker. However, there is some evidence that a higher population growth rate may decrease the pace of technological progress.
C)   decreases capital per worker. Further, there is some evidence that a higher population growth rate may decrease the pace of technological progress.
D)   decreases capital per worker. However, there is some evidence that a higher population growth rate may increase the pace of technological progress.E) A) and D)
F) A) and C)

Question 2

Which of the following is an example of physical capital?

Accepted Answer

A)   the available knowledge on how to make semiconductors
B)   a taxi­cab driver's knowledge of the fastest routes to take
C)   bulldozers, backhoes and other construction equipment
D)   All of the above are correct.E) B) and C)
F) All of the above

Question 3

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

Question 4

If your company opens and operates a branch in a foreign country, your company engages in foreign direct investment.

Accepted Answer

A) True 
 B)False

Question 5

Mexico is

Accepted Answer

A)   a poor country, and over the past century its rate of economic growth has been higher than that of the United States.
B)   a poor country, and over the past century its rate of economic growth has been lower than that of the United States.
C)   a middle-income country, and over the past century its rate of economic growth has been higher than that of the United States.
D)   a middle-income country, and over the past century its rate of economic growth has been lower than that of the United States.E) B) and C)
F) C) and D)

Question 6

A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth. The first is to decrease barriers to trade. The second is to restrict foreign portfolio investment. Which of these policies do most economists say promote growth?

Accepted Answer

A)   both the first and the second
B)   the first but not the second
C)   the second but not the first
D)   neither the first nor the secondE) None of the above
F) A) and C)

Question 7

Because of , an increase in the saving rate leads to higher growth of income and productivity only for a while.

Accepted Answer

The answer of Because of , an increase in the...

Question 8

In addition to investment in physical and human capital, what other public policies might a country adopt to increase productivity?

Accepted Answer

In addition to investment in physical an...

Question 9

In 2009, the imaginary nation of Mainland had a population of 7,000 and real GDP of 210,000. In 2010 the population was 7,300 and real GDP of 223,380. Over the year in question, real GDP per person in Mainland 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 C)
F) A) and B)

Question 10

The behavior of market prices over time indicates that natural resources are

Accepted Answer

A)   a limit to economic growth.
B)   unrelated to economic growth.
C)   not a limit to economic growth.
D)   the major determinant of productivity.E) B) and C)
F) A) and D)

Question 11

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

Question 12

Suppose over the last five years that the price of recycled aluminum increased from $800 a ton to $900 a ton. Over the same time a measure of the overall price level increased from 120 to 138. The real price of recycled aluminum

Accepted Answer

A)   increased, so it became scarcer
B)   increased, so it became less scarce
C)   decreased, so it became scarcer
D)   decreased, so it became less scarceE) B) and C)
F) B) and D)

Question 13

Which country has had a higher growth rate than the US over about the last 120 years?

Accepted Answer

A)   Argentina
B)   Germany
C)   the United Kingdom
D)   None of the above is correct.E) A) and D)
F) All of the above

Question 14

Which of the following is an example of a nonrenewable natural resource?

Accepted Answer

A)   tin
B)   petroleum
C)   gold
D)   All of the above are correct.E) None of the above
F) B) and C)

Question 15

In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 500,000. In 2011 it had a population of 5,100 and real GDP of 520,200. During 2011 real GDP per person in Bovina 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) A) and D)
F) B) and C)

Question 16

The level of real GDP is a good measure of economic prosperity, and the growth of real GDP is a good measure of
__________.

Accepted Answer

The answer of The level of real GDP is a...

Question 17

Which of the following statements is correct?

Accepted Answer

A)   Human capital per worker is a determinant of productivity.
B)   A nation cannot be highly productive in producing goods and services without abundant quantities of natural resources.
C)   Human capital and technological knowledge are the same thing.
D)   All technological knowledge is proprietary.E) A) and B)
F) A) and D)

Question 18

Country A experienced a growth rate of real GDP per person of 2.5 percent per year throughout the 1900's. In view of other countries' experiences during this time country A's growth was

Accepted Answer

A)   exceptionally high.
B)   moderately high.
C)   moderately low.
D)   exceptionally low.E) A) and D)
F) C) and D)

Question 19

In some East Asian countries, average income, as measured by real GDP per person, has recently grown at an average annual rate that implies output will double about every

Accepted Answer

A)   10 years.
B)   15 years.
C)   20 years.
D)   25 years.E) A) and C)
F) B) and C)

Question 20

Consider the production function Y = 4FL,K,H,N). Suppose F10,8,6,5)= 100 and F30,24,18,15)=300. Does the production function have the property of constant returns to scale? Why or why not?

Accepted Answer

Yes, the production function has the pro...

Exam 17: Production and Growth

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

Correct AnswerverifiedShow Answer

If your company opens and operates a branch in a foreign country, your company engages in foreign direct investment.

Correct AnswerverifiedShow Answer

In 2009, the imaginary nation of Mainland had a population of 7,000 and real GDP of 210,000. In 2010 the population was 7,300 and real GDP of 223,380. Over the year in question, real GDP per person in Mainland grew by

Correct AnswerverifiedShow Answer

Which country has had a higher growth rate than the US over about the last 120 years?

Correct AnswerverifiedShow Answer

Because of , an increase in the saving rate leads to higher growth of income and productivity only for a while.

Correct AnswerverifiedShow Answer

In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 500,000. In 2011 it had a population of 5,100 and real GDP of 520,200. During 2011 real GDP per person in Bovina grew by

Correct AnswerverifiedShow Answer

The level of real GDP is a good measure of economic prosperity, and the growth of real GDP is a good measure of __________.

Correct AnswerverifiedShow Answer

Suppose over the last five years that the price of recycled aluminum increased from $800 a ton to $900 a ton. Over the same time a measure of the overall price level increased from 120 to 138. The real price of recycled aluminum

Correct AnswerverifiedShow Answer

Country A experienced a growth rate of real GDP per person of 2.5 percent per year throughout the 1900's. In view of other countries' experiences during this time country A's growth was

Correct AnswerverifiedShow Answer

Which of the following is an example of physical capital?

Correct AnswerverifiedShow Answer

In addition to investment in physical and human capital, what other public policies might a country adopt to increase productivity?

Correct AnswerverifiedIn addition to investment in physical an...View AnswerShow Answer

Which of the following is an example of a nonrenewable natural resource?

Correct AnswerverifiedShow Answer

Mexico is

Correct AnswerverifiedShow Answer

In some East Asian countries, average income, as measured by real GDP per person, has recently grown at an average annual rate that implies output will double about every

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Other things the same, an increase in population growth

Correct AnswerverifiedShow Answer

A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth. The first is to decrease barriers to trade. The second is to restrict foreign portfolio investment. Which of these policies do most economists say promote growth?

Correct AnswerverifiedShow Answer

The behavior of market prices over time indicates that natural resources are

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Consider the production function Y = 4FL,K,H,N). Suppose F10,8,6,5)= 100 and F30,24,18,15)=300. Does the production function have the property of constant returns to scale? Why or why not?

Correct AnswerverifiedYes, the production function has the pro...View AnswerShow 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

Correct Answer
verified
In addition to investment in physical an...
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
Yes, the production function has the pro...
View Answer