Question 1

The traditional view of the production process is that capital is subject to

Accepted Answer

A)   diminishing returns,so that other things the same,real GDP in poor countries should grow at a faster rate than in rich countries.
B)   diminishing returns,so that other things the same,real GDP in poor countries should grow at a slower rate than in rich countries.
C)   increasing returns,so that other things the same,real GDP in poor countries should grow at a faster rate than in rich countries.
D)   increasing returns,so that other things the same,real GDP in poor countries should grow at a slower rate than in rich countries.E) None of the above
F) C) and D)

Question 2

Consider the nations of Brazil,Mexico,and Pakistan.Over the past century,which of these three nations has experienced,by far,slower economic growth than the other two nations?

Accepted Answer

Pakistan's growth rate (1.21 p...

Question 3

As of 2008,using real GDP per person as a measure,we would classify

Accepted Answer

A)   the United States and Mexico as advanced economies and Bangladesh as a middle-income country.
B)   Canada as an advanced economy,Mexico as a middle-income country,and Pakistan as a poor country.
C)   Japan and India as advanced economies and Mexico as a poor country.
D)   Japan as an advanced economy,the United Kingdom as a middle-income country,and Argentina as a poor country.E) A) and B)
F) B) and C)

Question 4

Haley discovers a new way to design automobile engines so that they use less gasoline.Haley's finding is an example of

Accepted Answer

A)   physical capital.If Haley's discovery leads to lower gasoline prices,it has made gasoline less scarce.
B)   physical capital.If Haley's discovery leads to lower gasoline prices,it has made gasoline scarcer.
C)   technological knowledge.If Haley's discovery leads to lower gasoline prices,it has made gasoline less scarce.
D)   technological knowledge.If Haley's discovery leads to lower gasoline prices,it has made gasoline scarcer.E) None of the above
F) C) and D)

Question 5

Suppose Japanese-based Toshiba Corporation builds and operates a new computer factory in the United States.Future production from such an investment would

Accepted Answer

A)   increase U.S.GNP more than it would increase U.S.GDP.
B)   increase U.S.GDP more than it would increase U.S.GNP.
C)   not affect U.S.GNP,but would increase U.S.GDP.
D)   have no affect on U.S.GNP or GDP.E) All of the above
F) A) and D)

Question 6

All else equal,by saving more,a country

Accepted Answer

A)   has more resources for capital goods.The increase in capital raises productivity.
B)   has more resources for capital goods.The increase in capital reduces productivity.
C)   has fewer resources for capital goods.The decrease in capital raises productivity.
D)   has fewer resources for capital goods.The decrease in capital reduces productivity.E) A) and B)
F) None of the above

Question 7

If a Brazilian.company opens a new factory in Peru,it makes

Accepted Answer

A)   foreign direct investment.The factory will make a bigger impact on Peru's GDP than on its GNP.
B)   foreign direct investment.The factory will make a bigger impact on Peru's GNP than on its GDP.
C)   foreign portfolio investment.The factory will make a bigger impact on Peru's GDP than on its GNP.
D)   foreign portfolio investment.The factory will make a bigger impact on Peru's GNP than on its GDP.E) B) and C)
F) All of the above

Question 8

Refer to Scenario 12-1.If the production function has the constant-returns-to-scale property,then it is possible that the specific form of the production function is

Accepted Answer

A)   Y = 4L + 2K + 3H + N
B)   Y = (L + K + H + N) /4
C)   Y =2
D)   Y = 4E) A) and B)
F) A) and C)

Question 9

Greg's Ice Cream produces 1120 gallons of ice cream per day.Each employed works seven hours and has productivity of 20 gallons an hour.How many employees does Greg's employ?

Accepted Answer

A)   160
B)   56
C)   8
D)   None of the above is correct.E) A) and B)
F) A) and C)

Question 10

Which of the following best describes the response of output as time passes to an increase in the saving rate?

Accepted Answer

A)   The growth rate of output does not change.
B)   The growth rate of output increases and gets even larger as time passes.
C)   The growth rate of output increases and does not change as time passes.
D)   The growth rate of output increases,but diminishes to its former level as time passes.E) B) and C)
F) None of the above

Question 11

In 2008,the typical Bangladeshi had about

Accepted Answer

A)   1/5 the real income of a typical American a century ago.
B)   1/3 the real income of a typical American a century ago.
C)   2 times as much real income as that of a typical American a century ago.
D)   4 times as much real income as that of a typical American a century ago.E) A) and B)
F) A) and C)

Question 12

When Americans invest in Russia,the income of Russians (that is,Russian GNP)rises by more than production in Russia (that is,Russian GDP).

Accepted Answer

A) True 
 B)False

Question 13

The dictator of Turan has recently begun to arbitrarily seize farms belonging to his political opponents,and he has given the farms to his friends.His friends don't know much about farming.The courts in Turan have ruled that the seizures are illegal,but the dictator has ignored the rulings.Other things equal,we would expect that the growth rate in Turan will

Accepted Answer

A)   fall temporarily,but will return to where it was when the new owners learn how to farm.
B)   increase because the total amount of human capital in the country will increase as the new owners learn how to farm.
C)   fall and remain lower for a long time.
D)   not be affected unless widespread civil disorder or civil war results.E) C) and D)
F) A) and B)

Question 14

A management professor discovers a way for corporate management to operate more efficiently.He publishes his findings in a journal.His findings are

Accepted Answer

A)   proprietary and common knowledge.
B)   neither proprietary nor common knowledge.
C)   proprietary,but not common,knowledge.
D)   common,but not proprietary,knowledge.E) A) and B)
F) B) and C)

Question 15

The logic behind the catch-up effect is that

Accepted Answer

A)   workers in countries with low incomes will work more hours than workers in countries with high incomes.
B)   the capital stock in rich countries deteriorates at a higher rate because it already has a lot of capital.
C)   new capital adds more to production in a country that doesn't have much capital than in a country that already has much capital.
D)   None of the above is correct.E) None of the above
F) All of the above

Question 16

In medieval Europe an important technological advance was the use of the padded horse collar for plowing.Once this idea was thought of,other people used it.This illustrates that knowledge is generally a

Accepted Answer

A)   public good.
B)   societal good.
C)   private good.
D)   normal good.E) C) and D)
F) A) and C)

Question 17

Real GDP per person is $30,000 in Country A,$20,000 in Country B,and $11,000 in Country C.Saving per person is $1,000 in all three countries.Other things equal,we would expect that

Accepted Answer

A)   all three countries will grow at the same rate.
B)   Country A will grow the fastest.
C)   Country B will grow the fastest.
D)   Country C will grow the fastest.E) A) and B)
F) A) and C)

Question 18

If they could increase their growth rates slightly,countries with low income would catch up with rich countries in about ten years.

Accepted Answer

A) True 
 B)False

Question 19

In the U.S. ,each additional year of schooling has historically raised a person's wage on average by about

Accepted Answer

A)   5 percent.In less developed countries the gap between the wages of educated and uneducated workers is smaller.
B)   10 percent.In less developed countries the gap between the wages of educated and uneducated workers is smaller.
C)   5 percent.In less developed countries the gap between the wages of educated and uneducated workers is larger.
D)   10 percent.In less developed countries the gap between the wages of educated and uneducated workers is larger.E) A) and D)
F) None of the above

Question 20

Suppose a country imposes new restrictions on how many hours people can work.If these restrictions reduce the total number of hours worked in the economy,but all other factors that determine output are held fixed,then

Accepted Answer

A)   productivity and output both rise.
B)   productivity rises and output falls.
C)   productivity falls and output rises.
D)   productivity and output fall.E) B) and C)
F) A) and D)

Exam 25: Production and Growth

Consider the nations of Brazil,Mexico,and Pakistan.Over the past century,which of these three nations has experienced,by far,slower economic growth than the other two nations?

Correct Answer
verified
Pakistan's growth rate (1.21 p...
View Answer

The traditional view of the production process is that capital is subject to

Correct Answer
verified

If a Brazilian.company opens a new factory in Peru,it makes

Correct Answer
verified

Refer to Scenario 12-1.If the production function has the constant-returns-to-scale property,then it is possible that the specific form of the production function is

Correct Answer
verified

Greg's Ice Cream produces 1120 gallons of ice cream per day.Each employed works seven hours and has productivity of 20 gallons an hour.How many employees does Greg's employ?

Correct Answer
verified

Suppose a country imposes new restrictions on how many hours people can work.If these restrictions reduce the total number of hours worked in the economy,but all other factors that determine output are held fixed,then

Correct Answer
verified

Which of the following best describes the response of output as time passes to an increase in the saving rate?

Correct Answer
verified

As of 2008,using real GDP per person as a measure,we would classify

Correct Answer
verified

When Americans invest in Russia,the income of Russians (that is,Russian GNP)rises by more than production in Russia (that is,Russian GDP).

Correct Answer
verified

Suppose Japanese-based Toshiba Corporation builds and operates a new computer factory in the United States.Future production from such an investment would

Correct Answer
verified

Real GDP per person is $30,000 in Country A,$20,000 in Country B,and $11,000 in Country C.Saving per person is $1,000 in all three countries.Other things equal,we would expect that

Correct Answer
verified

In medieval Europe an important technological advance was the use of the padded horse collar for plowing.Once this idea was thought of,other people used it.This illustrates that knowledge is generally a

Correct Answer
verified

A management professor discovers a way for corporate management to operate more efficiently.He publishes his findings in a journal.His findings are

Correct Answer
verified

In 2008,the typical Bangladeshi had about

Correct Answer
verified

The logic behind the catch-up effect is that

Correct Answer
verified

Haley discovers a new way to design automobile engines so that they use less gasoline.Haley's finding is an example of

Correct Answer
verified

If they could increase their growth rates slightly,countries with low income would catch up with rich countries in about ten years.

Correct Answer
verified

Correct Answer
verified

In the U.S. ,each additional year of schooling has historically raised a person's wage on average by about

Correct Answer
verified

All else equal,by saving more,a country

Correct Answer
verified

Exam 25: Production and Growth

Consider the nations of Brazil,Mexico,and Pakistan.Over the past century,which of these three nations has experienced,by far,slower economic growth than the other two nations?

Correct AnswerverifiedPakistan's growth rate (1.21 p...View AnswerShow Answer

The traditional view of the production process is that capital is subject to

Correct AnswerverifiedShow Answer

If a Brazilian.company opens a new factory in Peru,it makes

Correct AnswerverifiedShow Answer

Refer to Scenario 12-1.If the production function has the constant-returns-to-scale property,then it is possible that the specific form of the production function is

Correct AnswerverifiedShow Answer

Greg's Ice Cream produces 1120 gallons of ice cream per day.Each employed works seven hours and has productivity of 20 gallons an hour.How many employees does Greg's employ?

Correct AnswerverifiedShow Answer

Suppose a country imposes new restrictions on how many hours people can work.If these restrictions reduce the total number of hours worked in the economy,but all other factors that determine output are held fixed,then

Correct AnswerverifiedShow Answer

Which of the following best describes the response of output as time passes to an increase in the saving rate?

Correct AnswerverifiedShow Answer

As of 2008,using real GDP per person as a measure,we would classify

Correct AnswerverifiedShow Answer

When Americans invest in Russia,the income of Russians (that is,Russian GNP)rises by more than production in Russia (that is,Russian GDP).

Correct AnswerverifiedShow Answer

Suppose Japanese-based Toshiba Corporation builds and operates a new computer factory in the United States.Future production from such an investment would

Correct AnswerverifiedShow Answer

Real GDP per person is $30,000 in Country A,$20,000 in Country B,and $11,000 in Country C.Saving per person is $1,000 in all three countries.Other things equal,we would expect that

Correct AnswerverifiedShow Answer

In medieval Europe an important technological advance was the use of the padded horse collar for plowing.Once this idea was thought of,other people used it.This illustrates that knowledge is generally a

Correct AnswerverifiedShow Answer

A management professor discovers a way for corporate management to operate more efficiently.He publishes his findings in a journal.His findings are

Correct AnswerverifiedShow Answer

In 2008,the typical Bangladeshi had about

Correct AnswerverifiedShow Answer

The logic behind the catch-up effect is that

Correct AnswerverifiedShow Answer

Haley discovers a new way to design automobile engines so that they use less gasoline.Haley's finding is an example of

Correct AnswerverifiedShow Answer

If they could increase their growth rates slightly,countries with low income would catch up with rich countries in about ten years.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In the U.S. ,each additional year of schooling has historically raised a person's wage on average by about

Correct AnswerverifiedShow Answer

All else equal,by saving more,a country

Correct AnswerverifiedShow Answer

Correct Answer
verified
Pakistan's growth rate (1.21 p...
View Answer

Correct Answer
verified

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