Question 1

Like physical capital, human capital is a produced factor of production.

Accepted Answer

A) True 
 B)False

Question 2

Consider the nations of Canada, the United Kingdom, and the United States. Since 1870, which of these nations has progressed, in an economic sense, more slowly than the other two nations?

Accepted Answer

The United Kingdom's growth ra...

Question 3

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 4

Compare and contrast the population theories of Malthus and Kremer.

Accepted Answer

The difference is that Malthus predicted...

Question 5

Mary looks over reports on four of her workers. Jack made 30 baskets in 5 hours. Rudy made 32 baskets in 8 hours. Sam made 40 baskets in 12 hours. Walter made 22 baskets in four hours. Who has the greatest productivity?

Accepted Answer

A)   Jack
B)   Rudy
C)   Sam
D)   WalterE) C) and D)
F) A) and C)

Question 6

Other things the same, which of the following could explain an increase in productivity?

Accepted Answer

A)   either an increase in human capital or an increase in physical capital
B)   an increase in human capital but not an increase in physical capital
C)   an increase in physical capital but not an increase in human capital
D)   neither an increase in human capital nor an increase in physical capitalE) B) and C)
F) All of the above

Question 7

The same size decrease in the amount of capital stock per worker will cause output per worker to fall by more in a country with a relatively high level of capital per worker than in a country with a relatively low level of capital per worker.

Accepted Answer

A) True 
 B)False

Question 8

What term do we use to refer to the understanding of the best ways to produce goods and services?

Accepted Answer

The term i...

Question 9

If WarmWear, a U.S.manufacturer of winter clothing, opens a new factory in Austria, then

Accepted Answer

A)   Austrian GNP increases by more than Austrian GDP, because GDP includes income earned by foreigners working in Austria.
B)   Austrian GNP increases by more than Austrian GDP, because GDP excludes income earned by foreigners working in Austria.
C)   Austrian GNP increases by less than Austrian GDP, because GDP includes income earned by foreigners working in Austria.
D)   Austrian GNP increases by less than Austrian GDP, because GDP excludes income earned by foreigners working in Austria.E) A) and B)
F) A) and C)

Question 10

Which of the following is indicated by the data on real income per person for various countries over the past 100 or so years?

Accepted Answer

A)   If, in a relatively poor country, real income per person had grown by 3.5 percent per year for the last 100 years, it would be a relatively rich country today.
B)   Rich countries became richer and poor countries became poorer.
C)   In the United States, real income per person today is about four times as high as it was 120 years ago.
D)   All of the above are correct.E) B) and C)
F) A) and B)

Question 11

Table 25-1.
Athens and Troy both produce only ribs and baked potatoes. 
-Refer to Table 25-1. Which of the following is correct?

Accepted Answer

A)   Both productivity and the standard of living are higher in Athens than Troy.
B)   Productivity is higher in Athens while the standard of living is higher in Troy
C)   Productivity is higher in Troy while the standard of living is higher in Athens.
D)   Both productivity and the standard of living are higher in Troy than Athens.E) A) and B)
F) A) and C)

Question 12

At first patents might seem like a deterrent to growth because in effect they restrict the use of new technology. Yet many economists believe that patents generate growth. Explain why.

Accepted Answer

Once someone comes up with an idea it is...

Question 13

In a particular production process, if the quantities of all inputs used are increased by 60%, then the quantity of output increases by 60% as well. This means that

Accepted Answer

A)   the production process cannot be enhanced by technological advances.
B)   no mathematical representation of the relevant production function can be formulated.
C)   the relevant production function has the limits-to-growth property.
D)   the relevant production function has constant-returns-to-scale.E) A) and B)
F) A) and D)

Question 14

Economists generally believe that inward-oriented policies are more likely to foster growth than outward-oriented policies.

Accepted Answer

A) True 
 B)False

Question 15

Senator Smith says that in order to help poor countries develop, the United States should: 1. Prevent U.S. corporations from investing in poor countries because they take profits that the poor countries should have; 2. Not import goods from poor countries that use child labor; 3. Work to promote political stability in poor countries; and 4. Reduce poor countries' reliance on market forces in their economies. How many of these ideas are likely to help poor countries grow?

Accepted Answer

A)   1
B)   2
C)   3
D)   4E) A) and B)
F) A) and C)

Question 16

Country A had a population of 1,000, of whom 600 worked an average of 8 hours a day and had a productivity of 2.5. Country B had a population of 800, of whom 560 worked 8 hours a day and had productivity of 3.0. Country

Accepted Answer

A)   A had the higher level of real GDP and real GDP per person.
B)   A had the higher level of real GDP and Country B had the higher level of real GDP per person
C)   B had the higher level of real GDP and Country A had the higher level of real GDP per person
D)   B had the higher level of real GDP and real GDP per person.E) B) and D)
F) B) and C)

Question 17

Which of the following nations experienced average rates of economic growth of less than 2 percent over the last 100 years or so?

Accepted Answer

A)   Bangladesh
B)   Pakistan
C)   United Kingdom
D)   All of the above are correct.E) B) and C)
F) A) and B)

Question 18

In order for the standard of living within a country to be enhanced over time, which of the following is essential?

Accepted Answer

A)   The role of the country's government in the economy must become larger.
B)   The population of the country must increase.
C)   More domestic natural resources must be discovered and used.
D)   The level of productivity must increase.E) None of the above
F) B) and C)

Question 19

Consider the nations of India, Indonesia, and Japan. Over the past century, which of these three nations has experienced, by far, more rapid economic growth than the other two nations?

Accepted Answer

Japan's growth rate (2.65 perc...

Question 20

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

Exam 25: Production and Growth

If WarmWear, a U.S.manufacturer of winter clothing, opens a new factory in Austria, then

Correct Answer
verified

Like physical capital, human capital is a produced factor of production.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Compare and contrast the population theories of Malthus and Kremer.

Correct Answer
verified
The difference is that Malthus predicted...
View Answer

In order for the standard of living within a country to be enhanced over time, which of the following is essential?

Correct Answer
verified

At first patents might seem like a deterrent to growth because in effect they restrict the use of new technology. Yet many economists believe that patents generate growth. Explain why.

Correct Answer
verified
Once someone comes up with an idea it is...
View Answer

The same size decrease in the amount of capital stock per worker will cause output per worker to fall by more in a country with a relatively high level of capital per worker than in a country with a relatively low level of capital per worker.

Correct Answer
verified

Consider the nations of Canada, the United Kingdom, and the United States. Since 1870, which of these nations has progressed, in an economic sense, more slowly than the other two nations?

Correct Answer
verified
The United Kingdom's growth ra...
View Answer

In a particular production process, if the quantities of all inputs used are increased by 60%, then the quantity of output increases by 60% as well. This means that

Correct Answer
verified

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

Correct Answer
verified

Other things the same, which of the following could explain an increase in productivity?

Correct Answer
verified

Mary looks over reports on four of her workers. Jack made 30 baskets in 5 hours. Rudy made 32 baskets in 8 hours. Sam made 40 baskets in 12 hours. Walter made 22 baskets in four hours. Who has the greatest productivity?

Correct Answer
verified

Which of the following nations experienced average rates of economic growth of less than 2 percent over the last 100 years or so?

Correct Answer
verified

Table 25-1. Athens and Troy both produce only ribs and baked potatoes. -Refer to Table 25-1. Which of the following is correct?

Correct Answer
verified

Economists generally believe that inward-oriented policies are more likely to foster growth than outward-oriented policies.

Correct Answer
verified

Country A had a population of 1,000, of whom 600 worked an average of 8 hours a day and had a productivity of 2.5. Country B had a population of 800, of whom 560 worked 8 hours a day and had productivity of 3.0. Country

Correct Answer
verified

Consider the nations of India, Indonesia, and Japan. Over the past century, which of these three nations has experienced, by far, more rapid economic growth than the other two nations?

Correct Answer
verified
Japan's growth rate (2.65 perc...
View Answer

Which of the following is indicated by the data on real income per person for various countries over the past 100 or so years?

Correct Answer
verified

What term do we use to refer to the understanding of the best ways to produce goods and services?

Correct Answer
verified
The term i...
View Answer

Exam 25: Production and Growth

If WarmWear, a U.S.manufacturer of winter clothing, opens a new factory in Austria, then

Correct AnswerverifiedShow Answer

Like physical capital, human capital is a produced factor of production.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Compare and contrast the population theories of Malthus and Kremer.

Correct AnswerverifiedThe difference is that Malthus predicted...View AnswerShow Answer

In order for the standard of living within a country to be enhanced over time, which of the following is essential?

Correct AnswerverifiedShow Answer

At first patents might seem like a deterrent to growth because in effect they restrict the use of new technology. Yet many economists believe that patents generate growth. Explain why.

Correct AnswerverifiedOnce someone comes up with an idea it is...View AnswerShow Answer

The same size decrease in the amount of capital stock per worker will cause output per worker to fall by more in a country with a relatively high level of capital per worker than in a country with a relatively low level of capital per worker.

Correct AnswerverifiedShow Answer

Consider the nations of Canada, the United Kingdom, and the United States. Since 1870, which of these nations has progressed, in an economic sense, more slowly than the other two nations?

Correct AnswerverifiedThe United Kingdom's growth ra...View AnswerShow Answer

In a particular production process, if the quantities of all inputs used are increased by 60%, then the quantity of output increases by 60% as well. This means that

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

Other things the same, which of the following could explain an increase in productivity?

Correct AnswerverifiedShow Answer

Mary looks over reports on four of her workers. Jack made 30 baskets in 5 hours. Rudy made 32 baskets in 8 hours. Sam made 40 baskets in 12 hours. Walter made 22 baskets in four hours. Who has the greatest productivity?

Correct AnswerverifiedShow Answer

Which of the following nations experienced average rates of economic growth of less than 2 percent over the last 100 years or so?

Correct AnswerverifiedShow Answer

Table 25-1. Athens and Troy both produce only ribs and baked potatoes. -Refer to Table 25-1. Which of the following is correct?

Correct AnswerverifiedShow Answer

Economists generally believe that inward-oriented policies are more likely to foster growth than outward-oriented policies.

Correct AnswerverifiedShow Answer

Country A had a population of 1,000, of whom 600 worked an average of 8 hours a day and had a productivity of 2.5. Country B had a population of 800, of whom 560 worked 8 hours a day and had productivity of 3.0. Country

Correct AnswerverifiedShow Answer

Consider the nations of India, Indonesia, and Japan. Over the past century, which of these three nations has experienced, by far, more rapid economic growth than the other two nations?

Correct AnswerverifiedJapan's growth rate (2.65 perc...View AnswerShow Answer

Which of the following is indicated by the data on real income per person for various countries over the past 100 or so years?

Correct AnswerverifiedShow Answer

What term do we use to refer to the understanding of the best ways to produce goods and services?

Correct AnswerverifiedThe term i...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The difference is that Malthus predicted...
View Answer

Correct Answer
verified

Correct Answer
verified
Once someone comes up with an idea it is...
View Answer

Correct Answer
verified

Correct Answer
verified
The United Kingdom's growth ra...
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
Japan's growth rate (2.65 perc...
View Answer

Correct Answer
verified

Correct Answer
verified
The term i...
View Answer