Question 1

Scenario 25-1. An economy's production form takes the form Y = AF(L, K, H, N) .
-Refer to Scenario 25-1. K represents the quantity of

Accepted Answer

A)  human capital only.
B)  physical capital only.
C)  human capital and physical capital combined.
D)  nonrenewable natural resources.E) B) and C)
F) A) and D)

Question 2

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 B)
F) C) and D)

Question 3

Educated people may generate ideas that increase production. These ideas

Accepted Answer

A)  produce a return to society from education that is greater than the return to the individual.
B)  could justify government subsides for education.
C)  are external benefits of education.
D)  All of the above are correct.E) A) and B)
F) A) and C)

Question 4

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

Accepted Answer

A)  corn
B)  oil
C)  livestock
D)  All of the above are correct.E) A) and B)
F) B) and C)

Question 5

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) All of the above
F) C) and D)

Question 6

Figure 25-1. 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 25-1. 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 growth rate of productivity.
B)  In the long run, a higher saving rate leads to a higher growth rate of income.
C)  Returns to capital become increasingly smaller as the amount of capital per worker increases.
D)  All of the above are correct.E) B) and D)
F) B) and C)

Question 7

Which of the following is true?

Accepted Answer

A)  Kremer argued that with greater population, society would generate more ideas so that growth of real GDP per person could continue. Malthus argued that increasing population would outstrip agricultural production.
B)  Kremer argued that increases in population would reduce the amount of human and physical capital per worker so that eventually the standard of living would decline. Malthus argued that increases in technology would allow increased output growth so that even with population growth, society would enjoy a higher standard of living.
C)  Malthus argued that with greater population, society would generate more ideas so that growth of real GDP per person could continue. Kremer argued that increasing population would outstrip agricultural production.
D)  Malthus argued that increases in population would reduce the amount of human and physical capital per worker so that eventually the standard of living would decline. Kremer argued that increases in technology would allow increased output growth so that even with population growth, society would enjoy a higher standard of living.E) B) and D)
F) None of the above

Question 8

For a given year, productivity in a particular country is most closely matched with that country's

Accepted Answer

A)  level of real GDP over that year.
B)  level of real GDP divided by hours worked over that year.
C)  growth rate of real GDP divided by hours worked over that year.
D)  growth rate of real GDP per person over that year.E) A) and D)
F) None of the above

Question 9

What are the long-run effects on productivity and income of an increase in the saving rate?

Accepted Answer

In the long run, a higher savi...

Question 10

Which of the following is a good gauge of economic progress?

Accepted Answer

A)  the level of real GDP per person, but not the growth rate of real GDP per person
B)  the level of real GDP per person and the growth rate of real GDP per person
C)  the growth rate of real GDP per person, but not the level of real GDP per person
D)  neither the level nor the growth rate of real GDP per personE) None of the above
F) B) and C)

Question 11

The short-run effects of an increase in the saving rate include

Accepted Answer

A)  a higher level of productivity.
B)  a higher growth rate of productivity.
C)  a higher growth rate of income.
D)  All of the above are correct.E) All of the above
F) B) and D)

Question 12

In some countries in Sub-Saharan Africa real GDP per person has been stagnant for many years.

Accepted Answer

A) True 
 B)False

Question 13

Patents turn new ideas into

Accepted Answer

A)  public goods, and increase the incentive to engage in research.
B)  public goods, but decrease the incentive to engage in research.
C)  private goods, and increase the incentive to engage in research.
D)  private goods, but decrease the incentive to engage in research.E) A) and D)
F) All of the above

Question 14

Thomas Malthus's predictions turned out to be wrong due to

Accepted Answer

A)  technological advances such as those during the Industrial Revolution.
B)  smaller populations now than in the time of Malthus.
C)  the effects of brain-drain.
D)  unlimited natural resources.E) A) and B)
F) None of the above

Question 15

Which of the following is correct?

Accepted Answer

A)  Over the last 100 years Japan had a higher average growth rate than the United States. It follows that, today, the standard of living in Japan is higher than in the United States.
B)  The typical person in Bangladesh today has about twice the real income of a typical American 100 years ago.
C)  The typical citizen of China today has about one-half as much real income as the typical citizen of America today.
D)  None of the above is correct.E) B) and D)
F) B) and C)

Question 16

Adam and Doug both build birdhouses. Adam works 30 hours a week and produces 15 bird houses. Doug works 20 hours a week and produces 12 bird houses. Which of the following is correct?

Accepted Answer

A)  Adam's production and productivity are higher than Doug's.
B)  Adam's production is higher than Doug's, but Doug's productivity is higher than Adam's.
C)  Doug's production is higher than Adam's, but Adam's productivity is higher than Doug's.
D)  Doug's production and productivity are higher than Adam's.E) B) and D)
F) A) and D)

Question 17

Given that a country's real output has increased, in which of the following cases can we be sure that its productivity also has increased?

Accepted Answer

A)  The total number of hours worked rose.
B)  The total number of hours worked stayed the same.
C)  The total number of hours worked fell.
D)  Both b and c are correct.E) None of the above
F) All of the above

Question 18

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) All of the above
F) A) and B)

Question 19

Which of the following lists contains, in this order, natural resources, human capital, and physical capital?

Accepted Answer

A)  For a restaurant: the land the restaurant was built on, the money it borrowed to buy supplies, the freezers where the chops and steaks are kept.
B)  For a furniture company: wood, the skills and knowledge of its workers, saws.
C)  For a railroad: fuel, railroad engines, railroad tracks.
D)  None of the above is correct.E) A) and B)
F) C) and D)

Question 20

Of the following countries, which grew most slowly, in terms of real GDP per person, over about the last 120 years?

Accepted Answer

A)  Brazil
B)  Mexico
C)  China
D)  United StatesE) All of the above
F) B) and C)

Exam 25: Production and Growth

Which of the following is true?

Correct Answer
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Which of the following is correct?

Correct Answer
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Which of the following is a good gauge of economic progress?

Correct Answer
verified

For a given year, productivity in a particular country is most closely matched with that country's

Correct Answer
verified

Patents turn new ideas into

Correct Answer
verified

Of the following countries, which grew most slowly, in terms of real GDP per person, over about the last 120 years?

Correct Answer
verified

The short-run effects of an increase in the saving rate include

Correct Answer
verified

Scenario 25-1. An economy's production form takes the form Y = AF(L, K, H, N) . -Refer to Scenario 25-1. K represents the quantity of

Correct Answer
verified

Educated people may generate ideas that increase production. These ideas

Correct Answer
verified

Which of the following lists contains, in this order, natural resources, human capital, and physical capital?

Correct Answer
verified

Figure 25-1. 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 25-1. The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

Correct Answer
verified

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

Correct Answer
verified

What are the long-run effects on productivity and income of an increase in the saving rate?

Correct Answer
verified
In the long run, a higher savi...
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

Adam and Doug both build birdhouses. Adam works 30 hours a week and produces 15 bird houses. Doug works 20 hours a week and produces 12 bird houses. Which of the following is correct?

Correct Answer
verified

In some countries in Sub-Saharan Africa real GDP per person has been stagnant for many years.

Correct Answer
verified

Correct Answer
verified

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 Answer
verified

Given that a country's real output has increased, in which of the following cases can we be sure that its productivity also has increased?

Correct Answer
verified

Thomas Malthus's predictions turned out to be wrong due to

Correct Answer
verified

Exam 25: Production and Growth

Which of the following is true?

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Which of the following is a good gauge of economic progress?

Correct AnswerverifiedShow Answer

For a given year, productivity in a particular country is most closely matched with that country's

Correct AnswerverifiedShow Answer

Patents turn new ideas into

Correct AnswerverifiedShow Answer

Of the following countries, which grew most slowly, in terms of real GDP per person, over about the last 120 years?

Correct AnswerverifiedShow Answer

The short-run effects of an increase in the saving rate include

Correct AnswerverifiedShow Answer

Scenario 25-1. An economy's production form takes the form Y = AF(L, K, H, N) . -Refer to Scenario 25-1. K represents the quantity of

Correct AnswerverifiedShow Answer

Educated people may generate ideas that increase production. These ideas

Correct AnswerverifiedShow Answer

Which of the following lists contains, in this order, natural resources, human capital, and physical capital?

Correct AnswerverifiedShow Answer

Figure 25-1. 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 25-1. The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What are the long-run effects on productivity and income of an increase in the saving rate?

Correct AnswerverifiedIn the long run, a higher savi...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

Adam and Doug both build birdhouses. Adam works 30 hours a week and produces 15 bird houses. Doug works 20 hours a week and produces 12 bird houses. Which of the following is correct?

Correct AnswerverifiedShow Answer

In some countries in Sub-Saharan Africa real GDP per person has been stagnant for many years.

Correct AnswerverifiedShow Answer

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

Given that a country's real output has increased, in which of the following cases can we be sure that its productivity also has increased?

Correct AnswerverifiedShow Answer

Thomas Malthus's predictions turned out to be wrong due to

Correct AnswerverifiedShow Answer

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In the long run, a higher savi...
View Answer

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