Question 1

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 2

Suppose that over the last year the price of copper increased from $1.70 a pound to $1.79 per pound. Over the same time a measure of the overall price level increased from 300 to 309. The price of copper increased by

Accepted Answer

A)  less than inflation, and this means it became relatively less scarce.
B)  less than inflation, and this means it became scarcer.
C)  more than inflation, and this means it became scarcer.
D)  more than inflation, but this doesn't necessarily mean that it become scarcer.E) B) and C)
F) None of the above

Question 3

In which of the following cases can we be certain that a natural resource has become scarcer?

Accepted Answer

A)  both the demand for the resource and the supply of the resource have increased.
B)  both the demand for the resource and the supply of the resource have decreased.
C)  the demand for the resource has increased and the supply has decreased.
D)  the demand for the resource has decreased and the supply has increased.E) None of the above
F) B) and D)

Question 4

Which of the following is an observation made by economist Michael Kremer?

Accepted Answer

A)  World growth rates increased as the population increased.
B)  Technological progress allows for increasing population because of advances in agriculture.
C)  World population is growing so rapidly that soon it will outstrip natural resources and our standard of living will decline.
D)  All of the above are observations made by Kremer.E) All of the above
F) A) and D)

Question 5

Which of the following is a determinant of productivity?

Accepted Answer

A)  human capital per worker
B)  physical capital per worker
C)  natural resources per worker
D)  All of the above are correct.E) B) and C)
F) A) and D)

Question 6

An increase in capital will increase real GDP per person

Accepted Answer

A)  more in a poor country than a rich country. The increase in real GDP per person will be larger if the addition to capital is from domestic rather than foreign investment.
B)  more in a poor country than a rich country. The increase in real GDP per person will be the same whether the addition to capital is from domestic or foreign investment.
C)  less in a poor country than a rich country. The increase in real GDP per person will be larger if the addition to capital is from domestic rather than foreign investment.
D)  less in a poor country than a rich country. The increase in real GDP per person will be the same whether the addition to capital is from domestic or foreign investment.E) C) and D)
F) B) and D)

Question 7

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

Question 8

Allied Business Consultants employs five researchers that each work 8 hour days. In one day the researchers prepared 10 reports for its 2 largest clients. What was Allied Business Consultants' productivity?

Accepted Answer

A)  10 reports
B)  5 reports per client
C)  1.25 reports per hour
D)  1/4 report per hourE) B) and C)
F) All of the above

Question 9

Each day Sue works 8 hours and produces 7 units of goods and services. Mary works 10 hours each day and produces 10 units of goods and services. It follows that

Accepted Answer

A)  Sue's productivity is higher than Mary's.
B)  Mary's productivity is higher than Sue's.
C)  Sue's income per hour will be higher than Mary's.
D)  Sue's income per day will be higher than Mary's.E) A) and D)
F) A) and C)

Question 10

Historical trends in the prices of most natural resources compared to prices of other goods indicate that most natural resources have become scarcer over time.

Accepted Answer

A) True 
 B)False

Question 11

The population growth rate tends to be higher in developed countries than in developing countries.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not correct?

Accepted Answer

A)  China allows only one child per family and couples that violate this rule are subject to substantial fines.
B)  In developed countries, population growth is consistently about 3 percent per year; in developing countries it is consistently about 5 percent per year.
C)  Educational attainment tends to be lowest in countries with the highest population growth.
D)  Economists generally believe that a country that decreases a high population growth rate can increase its economic growth rate.E) None of the above
F) C) and D)

Question 13

An increase in the saving rate permanently increases the growth rate of real GDP per person.

Accepted Answer

A) True 
 B)False

Question 14

Why do we refer to physical capital as a produced factor of production?

Accepted Answer

Physical capital originates as...

Question 15

​Some poor countries appear to be falling behind rather than catching up with rich countries. Which of the following could explain the failure of a poor country to catch up?

Accepted Answer

A)  The poor country has a health epidemic such as the Zika virus
B)  ​The poor country imposes heavy tariffs to protect infant industries
C)  ​The poor country has many corrupt officials
D)  ​All of the aboveE) C) and D)
F) A) and C)

Question 16

What particularly important role do courts play in a market economy?

Accepted Answer

Courts enforce prope...

Question 17

Scenario 25-1. An economy's production form takes the form Y = AF(L, K, H, N) .
-Refer to Scenario 25-1. If the production function has the constant-returns-to-scale property, then if we know the values of A, K/L, H/L, and N/L, we also know the value of

Accepted Answer

A)  output.
B)  labor productivity.
C)  A.
D)  All of the above are correct.E) A) and C)
F) B) and C)

Question 18

National defense and knowledge are generally considered to be

Accepted Answer

A)  private goods.
B)  public goods.
C)  proprietary goods.
D)  societal goods.E) B) and C)
F) A) and D)

Question 19

If over a short time there is an increase in the number of people retired and a decrease in the number of people working, then productivity

Accepted Answer

A)  and real GDP per person rise.
B)  rises but real GDP per person falls.
C)  falls and real GDP per person rises.
D)  and real GDP per person fall.E) C) and D)
F) B) and C)

Question 20

What are inward-oriented policies? Do most economists recommend these types of policies to poor countries?

Accepted Answer

Inward-oriented policies are i...

Exam 25: Production and Growth

Each day Sue works 8 hours and produces 7 units of goods and services. Mary works 10 hours each day and produces 10 units of goods and services. It follows that

Correct AnswerverifiedShow Answer

What are inward-oriented policies? Do most economists recommend these types of policies to poor countries?

Correct AnswerverifiedInward-oriented policies are i...View AnswerShow Answer

If over a short time there is an increase in the number of people retired and a decrease in the number of people working, then productivity

Correct AnswerverifiedShow Answer

Why do we refer to physical capital as a produced factor of production?

Correct AnswerverifiedPhysical capital originates as...View AnswerShow Answer

Which of the following is a determinant of productivity?

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. If the production function has the constant-returns-to-scale property, then if we know the values of A, K/L, H/L, and N/L, we also know the value of

Correct AnswerverifiedShow Answer

An increase in capital will increase real GDP per person

Correct AnswerverifiedShow Answer

Historical trends in the prices of most natural resources compared to prices of other goods indicate that most natural resources have become scarcer over time.

Correct AnswerverifiedShow Answer

The population growth rate tends to be higher in developed countries than in developing countries.

Correct AnswerverifiedShow Answer

​Some poor countries appear to be falling behind rather than catching up with rich countries. Which of the following could explain the failure of a poor country to catch up?

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Which of the following is an observation made by economist Michael Kremer?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What particularly important role do courts play in a market economy?

Correct AnswerverifiedCourts enforce prope...View AnswerShow Answer

In which of the following cases can we be certain that a natural resource has become scarcer?

Correct AnswerverifiedShow Answer

An increase in the saving rate permanently increases the growth rate of real GDP per person.

Correct AnswerverifiedShow Answer

Suppose that over the last year the price of copper increased from $1.70 a pound to $1.79 per pound. Over the same time a measure of the overall price level increased from 300 to 309. The price of copper increased by

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

National defense and knowledge are generally considered to be

Correct AnswerverifiedShow Answer

Allied Business Consultants employs five researchers that each work 8 hour days. In one day the researchers prepared 10 reports for its 2 largest clients. What was Allied Business Consultants' productivity?

Correct AnswerverifiedShow Answer

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Inward-oriented policies are i...
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Physical capital originates as...
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Correct Answer
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Some poor countries appear to be falling behind rather than catching up with rich countries. Which of the following could explain the failure of a poor country to catch up?

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Courts enforce prope...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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