Question 1

Other things the same,domestic investment will increase a country's real GDP by more than foreign investment.

Accepted Answer

A) True 
 B)False

Question 2

Table 12-1.
Athens and Troy both produce only ribs and baked potatoes.
 
-Refer to Table 12-1.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) None of the above

Question 3

When Chile experiences investment from abroad,it experiences,as a result,

Accepted Answer

A)   an increase in productivity.
B)   a decrease in Gross National Product (GNP) .
C)   lower wages for Chilean workers.
D)   None of the above is correct.E) B) and D)
F) All of the above

Question 4

In 2009,the imaginary nation of Mainland had a population of 6,000 and real GDP of 120,000.In 2010 the population was 6,200 and real GDP of 128,960.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) None of the above
F) A) and C)

Question 5

A country that made its courts less corrupt and its government more stable would likely see its standard of living rise.

Accepted Answer

A) True 
 B)False

Question 6

Consider three imaginary countries.In Aziria,saving amounts to $3,000 and consumption amounts to $7,000;in Graniva,saving amounts to $2,000 and consumption amounts to $8,000;and in Tanistan,saving amounts to $4,500 and consumption amounts to $10,500.The saving rate is

Accepted Answer

A)   higher in Aziria than in Tanistan,and it is higher in Tanistan than in Graniva.
B)   higher in Graniva than in Tanistan,and it is higher in Tanistan than in Aziria.
C)   higher in Tanistan than in Graniva,and it is the same in Graniva and Aziria.
D)   higher in Aziria than in Graniva,and it is the same in Aziria and Tanistan.E) B) and C)
F) A) and B)

Question 7

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 8

Some economists argue that it is possible to raise the standard of living by reducing population growth.As an economist interested in incentives rather than coercion,what kind of policy would you recommend to slow population growth?

Accepted Answer

Since bearing a child has an opportunity...

Question 9

Over the period 1900-2008,which of the following countries experienced the highest average annual growth rate of real GDP per person?

Accepted Answer

A)   Indonesia
B)   India
C)   Pakistan
D)   BrazilE) All of the above
F) A) and B)

Question 10

Over the last century,U.S.real GDP per person grew at a rate of about

Accepted Answer

A)   2 percent per year,so that it is now 2 times as high as it was a century ago.
B)   2 percent per year,so that it is now 8 times as high as it was a century ago.
C)   4 percent per year,so that it is now 2 times as high as it was a century ago.
D)   4 percent per year,so that it is now 8 times as high as it was a century ago.E) B) and D)
F) A) and B)

Question 11

Despite its status as one of the richest countries in the world,Japan

Accepted Answer

A)   has a very low level of productivity.
B)   has few natural resources.
C)   has very little human capital.
D)   engages in a relatively small amount of international trade.E) B) and C)
F) All of the above

Question 12

Suppose a country increases trade restrictions.This country would be pursing an

Accepted Answer

A)   inward policy,which most economists believe has beneficial effects on the economy.
B)   inward policy,which most economists believe has adverse effects on the economy.
C)   outward policy,which most economists believe has beneficial effects on the economy.
D)   outward policy,which most economists believe has adverse effects on the economy.E) B) and C)
F) None of the above

Question 13

Figure 12-1.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 12-1.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) None of the above
F) All of the above

Question 14

One of the Ten Principles of Economics in Chapter 1 is that people face tradeoffs.The growth that arises from capital accumulation is not a free lunch.It requires that society

Accepted Answer

A)   conserve resources for future generations.
B)   sacrifice consumption goods and services now in order to enjoy more consumption in the future.
C)   recycle resources so that future generations can produce goods and services with the accumulated capital.
D)   None of the above is correct.E) A) and C)
F) None of the above

Question 15

"When workers already have a large quantity of capital to use in producing goods and services,giving them an additional unit of capital increases their productivity only slightly." This statement

Accepted Answer

A)   represents an unconventional view of the production process.
B)   is an assertion that capital is subject to increasing returns.
C)   is made under the assumption that the quantities of human capital,natural resources,and technology are being held constant.
D)   All of the above are correct.E) B) and C)
F) B) and D)

Question 16

Economist Robert Fogel focused on which of the following factors as one determinant of long-run economic growth?

Accepted Answer

A)   education
B)   research and development
C)   nutrition
D)   trade restrictionsE) B) and C)
F) None of the above

Question 17

An understanding of the best ways to produce goods and services is called

Accepted Answer

A)   human capital.
B)   physical capital.
C)   technology.
D)   productivity.E) A) and C)
F) A) and B)

Question 18

A forest is an example of a nonrenewable resource.

Accepted Answer

A) True 
 B)False

Question 19

Figure 12-1.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 12-1.The curve becomes flatter as the amount of capital per worker increases because of

Accepted Answer

A)   increasing returns to capital.
B)   increasing returns to labor.
C)   diminishing returns to capital.
D)   diminishing returns to labor.E) A) and C)
F) A) and D)

Question 20

What is the distinction between foreign direct investment and foreign portfolio investment?

Accepted Answer

A capital investment that is owned and o...

Exam 25: Production and Growth

Other things the same,domestic investment will increase a country's real GDP by more than foreign investment.

Correct AnswerverifiedShow Answer

Some economists argue that it is possible to raise the standard of living by reducing population growth.As an economist interested in incentives rather than coercion,what kind of policy would you recommend to slow population growth?

Correct AnswerverifiedSince bearing a child has an opportunity...View AnswerShow Answer

Table 12-1. Athens and Troy both produce only ribs and baked potatoes. -Refer to Table 12-1.Which of the following is correct?

Correct AnswerverifiedShow Answer

One of the Ten Principles of Economics in Chapter 1 is that people face tradeoffs.The growth that arises from capital accumulation is not a free lunch.It requires that society

Correct AnswerverifiedShow Answer

Economist Robert Fogel focused on which of the following factors as one determinant of long-run economic growth?

Correct AnswerverifiedShow Answer

Figure 12-1.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 12-1.The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

Correct AnswerverifiedShow Answer

Figure 12-1.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 12-1.The curve becomes flatter as the amount of capital per worker increases because of

Correct AnswerverifiedShow Answer

Over the last century,U.S.real GDP per person grew at a rate of about

Correct AnswerverifiedShow Answer

When Chile experiences investment from abroad,it experiences,as a result,

Correct AnswerverifiedShow Answer

An understanding of the best ways to produce goods and services is called

Correct AnswerverifiedShow Answer

In 2009,the imaginary nation of Mainland had a population of 6,000 and real GDP of 120,000.In 2010 the population was 6,200 and real GDP of 128,960.Over the year in question,real GDP per person in Mainland grew by

Correct AnswerverifiedShow Answer

Consider three imaginary countries.In Aziria,saving amounts to $3,000 and consumption amounts to $7,000;in Graniva,saving amounts to $2,000 and consumption amounts to $8,000;and in Tanistan,saving amounts to $4,500 and consumption amounts to $10,500.The saving rate is

Correct AnswerverifiedShow Answer

Despite its status as one of the richest countries in the world,Japan

Correct AnswerverifiedShow Answer

A country that made its courts less corrupt and its government more stable would likely see its standard of living rise.

Correct AnswerverifiedShow Answer

Over the period 1900-2008,which of the following countries experienced the highest average annual growth rate of real GDP per person?

Correct AnswerverifiedShow Answer

Suppose a country increases trade restrictions.This country would be pursing an

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

What is the distinction between foreign direct investment and foreign portfolio investment?

Correct AnswerverifiedA capital investment that is owned and o...View AnswerShow Answer

A forest is an example of a nonrenewable resource.

Correct AnswerverifiedShow Answer

"When workers already have a large quantity of capital to use in producing goods and services,giving them an additional unit of capital increases their productivity only slightly." This statement

Correct AnswerverifiedShow Answer

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Since bearing a child has an opportunity...
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A capital investment that is owned and o...
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