Question 1

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) A) and C)

Question 2

According to research by Robert Fogel, what proportion of the increase in the standard of living in Britain between 1790 and 1980 can be accounted for by greater caloric intake?

Accepted Answer

A)   10 percent
B)   20 percent
C)   30 percent
D)   40 percentE) B) and D)
F) A) and B)

Question 3

Does a country have to be blessed with large quantities of natural resources in order to enjoy a high standard of living? Briefly explain.

Accepted Answer

No. Japan is an example of a c...

Question 4

Inward-oriented policies

Accepted Answer

A)   include imposing tariffs and other trade restrictions.
B)   have generally increased productivity and growth in the countries that pursued them.
C)   promote the production of goods and services that the country produces most efficiently.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 5

Human capital is the term economists use to refer to the knowledge and skills that workers acquire through education, training, and experience.

Accepted Answer

A) True 
 B)False

Question 6

One can argue that the average American today is "richer" than the richest American 100 years ago, given that 100 years ago,

Accepted Answer

A)   people's nominal incomes were, on average, much lower than they are today.
B)   personal fortunes were not accurately measured.
C)   many of the goods and services that we now take for granted were not available.
D)   international trade had not yet begun to flourish.E) A) and B)
F) B) and C)

Question 7

Which of the following statements is correct?

Accepted Answer

A)   In an economy-wide sense, property rights are an important prerequisite for the price system to work.
B)   Property rights give people the ability to exercise authority over the resources they own.
C)   Based on the available evidence, the existence of well-established and well-enforced property rights appears to be associated with an enhanced standard of living.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 8

Two countries are the same, except one is poorer. Assuming the traditional assumption about the production function is made there are

Accepted Answer

A)   diminishing returns to capital so the poor country grows slower.
B)   increasing returns to capital so the poor country grows slower.
C)   diminishing returns to capital so the poor country grows faster.
D)   increasing returns to capital so the poor country grows faster.E) A) and B)
F) A) and C)

Question 9

Daniel owns a coffee kiosk. All of his employees work 8 hours per day. In 2011, he employed 6 people who produced a total of 912 cups of coffee each day. In 2012, he hired a seventh employee and production increased to 1008 cups of coffee each day. In Daniel's kiosk, productivity

Accepted Answer

A)   increased by about 10.5 percent
B)   increased by 9.5 percent
C)   decreased by about 5.6 percent
D)   decreased by about 5.3 percentE) A) and B)
F) None of the above

Question 10

In the equation for the production function Y/L represents

Accepted Answer

A)   productivity.
B)   output.
C)   the availability of natural resources.
D)   the amount of human capital.E) B) and D)
F) B) and C)

Question 11

If over a short time a large number of teenagers become old enough to find employment and a much smaller number of people retire, then productivity

Accepted Answer

A)   and real GDP per person rise.
B)   rises but real GDP per person falls.
C)   falls but real GDP per person rises.
D)   and real GDP per person fall.E) A) and B)
F) None of the above

Question 12

The catch-up effect refers to the idea that

Accepted Answer

A)   saving will always catch-up with investment spending.
B)   it is easier for a country to grow fast and so catch-up if it starts out relatively poor.
C)   population eventually catches-up with increased output.
D)   if investment spending is low, increased saving will help investment to "catch-up."E) All of the above
F) C) and D)

Question 13

Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over about the last 120 years?

Accepted Answer

A)   Germany and Japan
B)   Indonesia and Bangladesh
C)   the United States and Argentina
D)   Mexico and PakistanE) A) and B)
F) All of the above

Question 14

Which of the following will increase a country's real GDP per person?

Accepted Answer

A)   imposing restrictions on foreign trade and foreign investment
B)   imposing restrictions on foreign trade and reducing restrictions on foreign investment
C)   reducing restrictions on foreign trade and imposing restrictions on foreign investment
D)   reducing restrictions on foreign trade and foreign investmentE) A) and B)
F) A) and C)

Question 15

Greater scarcity of a natural resource is indicated

Accepted Answer

A)   by an increase in the price of the resource, whether the price increase is less than or greater than the rate of inflation.
B)   only by an increase in the price of the resource that is less than the rate of inflation.
C)   only by an increase in the price of the resource that is greater than the rate of inflation.
D)   only by an increase in the price of the resource that is caused by a decrease in supply and is greater than the rate of inflation.E) B) and D)
F) All of the above

Question 16

In one day Portal Computer Company made 400 laptops with 1200 hours of labor. What was its productivity?

Accepted Answer

A)   1/3 laptop per hour
B)   3 hours per laptop
C)   1200 laptops
D)   400 laptopsE) All of the above
F) B) and C)

Question 17

Countries with high population growth rates tend to have lower levels of educational attainment.

Accepted Answer

A) True 
 B)False

Question 18

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

Question 19

In the 1800s, Europeans purchased stock in American companies that used the funds to build railroads and factories. The Europeans who did this engaged in

Accepted Answer

A)   foreign portfolio investment.
B)   indirect domestic investment.
C)   foreign direct investment.
D)   foreign indirect investment.E) A) and C)
F) All of the above

Question 20

If a newly elected government takes actions that makes its country's courts more efficient and less corrupt, then

Accepted Answer

A)   producers will have greater confidence that they will benefit from their efforts.
B)   producers are likely to be more specialized.
C)   buyers and sellers will be more likely to honor contracts.
D)   All of the above are correct.E) All of the above
F) B) and C)

Exam 17: Production and Growth

Which of the following will increase a country's real GDP per person?

Correct AnswerverifiedShow Answer

Inward-oriented policies

Correct AnswerverifiedShow Answer

Daniel owns a coffee kiosk. All of his employees work 8 hours per day. In 2011, he employed 6 people who produced a total of 912 cups of coffee each day. In 2012, he hired a seventh employee and production increased to 1008 cups of coffee each day. In Daniel's kiosk, productivity

Correct AnswerverifiedShow Answer

Countries with high population growth rates tend to have lower levels of educational attainment.

Correct AnswerverifiedShow Answer

One can argue that the average American today is "richer" than the richest American 100 years ago, given that 100 years ago,

Correct AnswerverifiedShow Answer

Greater scarcity of a natural resource is indicated

Correct AnswerverifiedShow Answer

In the equation for the production function Y/L represents

Correct AnswerverifiedShow Answer

Human capital is the term economists use to refer to the knowledge and skills that workers acquire through education, training, and experience.

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

If over a short time a large number of teenagers become old enough to find employment and a much smaller number of people retire, then productivity

Correct AnswerverifiedShow Answer

In the 1800s, Europeans purchased stock in American companies that used the funds to build railroads and factories. The Europeans who did this engaged in

Correct AnswerverifiedShow Answer

Does a country have to be blessed with large quantities of natural resources in order to enjoy a high standard of living? Briefly explain.

Correct AnswerverifiedNo. Japan is an example of a c...View AnswerShow Answer

Two countries are the same, except one is poorer. Assuming the traditional assumption about the production function is made there are

Correct AnswerverifiedShow Answer

Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over about the last 120 years?

Correct AnswerverifiedShow Answer

In one day Portal Computer Company made 400 laptops with 1200 hours of labor. What was its productivity?

Correct AnswerverifiedShow Answer

The catch-up effect refers to the idea that

Correct AnswerverifiedShow Answer

If a newly elected government takes actions that makes its country's courts more efficient and less corrupt, then

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Proprietary technology is technology that is

Correct AnswerverifiedShow Answer

According to research by Robert Fogel, what proportion of the increase in the standard of living in Britain between 1790 and 1980 can be accounted for by greater caloric intake?

Correct AnswerverifiedShow Answer

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No. Japan is an example of a c...
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