Question 1

As capital per worker rises, output per worker rises. However, this increase in output per worker is smaller at smaller levels of existing capital per worker.

Accepted Answer

A) True 
 B)False

Question 2

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 3

What is the relationship between education and human capital?

Accepted Answer

Education ...

Question 4

Petroleum is an example of a nonrenewable resource.

Accepted Answer

A) True 
 B)False

Question 5

If a country increases its saving rate, which of the following permanently grow at a higher rate?

Accepted Answer

A)  productivity and real GDP per person
B)  productivity but not real GDP per person
C)  real GDP per person but not productivity
D)  neither real GDP per person nor productivityE) B) and C)
F) A) and C)

Question 6

Which of the following is an example of a produced factor of production?

Accepted Answer

A)  corn that is harvested from a field in Iowa
B)  workers who are hired at a coal mine in West Virginia
C)  skills that teachers in Texas acquire through continuing-education classes
D)  All of the above are correct.E) B) and D)
F) A) and D)

Question 7

In the past there have been violent protests against the World Bank and the World Trade Organization. The protesters argued that these institutions promote free trade and also encourage corporations in rich countries to invest in poor countries. The protesters contended that these practices make rich countries richer and poor countries poorer. An economist would

Accepted Answer

A)  disagree with the protesters because these practices will help make both rich and poor countries richer.
B)  disagree with the protesters about free trade, but would agree with the protesters about corporate investment.
C)  disagree with the protesters about corporate investment, but would agree with the protesters about free trade.
D)  agree with the protesters.E) B) and C)
F) A) and B)

Question 8

Journey Motorcycles produced 100 motorcycles using 50 workers who each worked 8 hours a day. Journey's productivity was 1/4.

Accepted Answer

A) True 
 B)False

Question 9

Other things the same, a country that increases its savings rate will have

Accepted Answer

A)  higher future capital and higher future real GDP per person.
B)  higher future capital but not higher future real GDP per person.
C)  higher future real GDP per person but not higher future capital.
D)  neither higher future capital nor higher future real GDP per person.E) C) and D)
F) A) and D)

Question 10

In the United States in 2014 real GDP per person was about $56,000, while in some poor countries real GDP per person was less than $5,000.

Accepted Answer

A) True 
 B)False

Question 11

Among the following countries, which one has the highest level of real GDP per person but the lowest growth rate of real GDP per person over a very long period of time?

Accepted Answer

A)  the United Kingdom
B)  Mexico
C)  Argentina
D)  ChinaE) B) and D)
F) None of the above

Question 12

After adjusting for inflation, over time the prices of most natural resources have been

Accepted Answer

A)  steady or falling, meaning that our ability to conserve them is growing more rapidly than their supplies are dwindling.
B)  steady or falling, meaning that their supplies are dwindling more rapidly than our ability to conserve them is growing.
C)  rising, meaning that our ability to conserve them is growing more rapidly than their supplies are dwindling.
D)  rising, meaning that their supplies are dwindling more rapidly than our ability to conserve them is growing.E) All of the above
F) A) and B)

Question 13

If the number of workers in an economy doubled, all other inputs stayed the same, and there were constant returns to scale, productivity would

Accepted Answer

A)  fall to less than one-half of its former value.
B)  fall, but it would still be greater than one-half of its former value.
C)  stay the same.
D)  rise but less than double.E) B) and C)
F) A) and D)

Question 14

Which of the following would increase productivity?

Accepted Answer

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

Question 15

Which of the following statements is correct?

Accepted Answer

A)  Productivity is a determinant of human capital per worker.
B)  Technological knowledge is a determinant of productivity.
C)  Human capital and technological knowledge are the same thing.
D)  All of the above are correct.E) B) and C)
F) A) and D)

Question 16

Other things the same, if a country raises its saving rate, then in the long run

Accepted Answer

A)  both the level and growth rate of real GDP are unchanged.
B)  the level of real GDP is higher but the growth rate of real GDP is unchanged.
C)  both the level and growth rate of real GDP are higher.
D)  None of the above are correct.E) A) and B)
F) None of the above

Question 17

​In order to promote growth in living standards, policymakers must

Accepted Answer

A)  protect property rights.
B)  maintain political stability.
C)  ​encourage the accumulation of factors of production.
D)  ​All of the aboveE) A) and D)
F) B) and C)

Question 18

The average income in a rich country, such as the United States or Japan, is more than

Accepted Answer

A)  3 times, but less than 5 times, the average income in a poor country, such as Indonesia or Nigeria.
B)  5 times, but less than 10 times, the average income in a poor country, such as Indonesia or Nigeria.
C)  10 times, but less than 20 times, the average income in a poor country, such as Indonesia or Nigeria.
D)  more than 20 times the average income in a poor country, such as Indonesia or Nigeria.E) B) and D)
F) All of the above

Question 19

Which of the following best illustrates the human capital of a survivor stranded on an island?

Accepted Answer

A)  the fishing poles she has produced
B)  the invention of a better fishing lure
C)  the fresh fruit and fish on and around the island
D)  her previous training in a survival courseE) None of the above
F) B) and C)

Question 20

Which of the following is a part of your economics professor's human capital?

Accepted Answer

A)  the things she learned at some prestigious university
B)  her copy of Mankiw's text
C)  her chalk holder
D)  All of the above are correct.E) B) and C)
F) A) and D)

Exam 25: Production and Growth

What is the relationship between education and human capital?

Correct Answer
verified
Education ...
View Answer

If a country increases its saving rate, which of the following permanently grow at a higher rate?

Correct Answer
verified

Other things the same, if a country raises its saving rate, then in the long run

Correct Answer
verified

Among the following countries, which one has the highest level of real GDP per person but the lowest growth rate of real GDP per person over a very long period of time?

Correct Answer
verified

Journey Motorcycles produced 100 motorcycles using 50 workers who each worked 8 hours a day. Journey's productivity was 1/4.

Correct Answer
verified

After adjusting for inflation, over time the prices of most natural resources have been

Correct Answer
verified

Which of the following is an example of a produced factor of production?

Correct Answer
verified

The average income in a rich country, such as the United States or Japan, is more than

Correct Answer
verified

In the United States in 2014 real GDP per person was about $56,000, while in some poor countries real GDP per person was less than $5,000.

Correct Answer
verified

Other things the same, a country that increases its savings rate will have

Correct Answer
verified

Which of the following is a part of your economics professor's human capital?

Correct Answer
verified

Which of the following best illustrates the human capital of a survivor stranded on an island?

Correct Answer
verified

As capital per worker rises, output per worker rises. However, this increase in output per worker is smaller at smaller levels of existing capital per worker.

Correct Answer
verified

Petroleum is an example of a nonrenewable resource.

Correct Answer
verified

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 Answer
verified
Since bearing a child has an opportunity...
View Answer

If the number of workers in an economy doubled, all other inputs stayed the same, and there were constant returns to scale, productivity would

Correct Answer
verified

Which of the following would increase productivity?

Correct Answer
verified

Correct Answer
verified

In order to promote growth in living standards, policymakers must

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

Exam 25: Production and Growth

What is the relationship between education and human capital?

Correct AnswerverifiedEducation ...View AnswerShow Answer

If a country increases its saving rate, which of the following permanently grow at a higher rate?

Correct AnswerverifiedShow Answer

Other things the same, if a country raises its saving rate, then in the long run

Correct AnswerverifiedShow Answer

Among the following countries, which one has the highest level of real GDP per person but the lowest growth rate of real GDP per person over a very long period of time?

Correct AnswerverifiedShow Answer

Journey Motorcycles produced 100 motorcycles using 50 workers who each worked 8 hours a day. Journey's productivity was 1/4.

Correct AnswerverifiedShow Answer

After adjusting for inflation, over time the prices of most natural resources have been

Correct AnswerverifiedShow Answer

Which of the following is an example of a produced factor of production?

Correct AnswerverifiedShow Answer

The average income in a rich country, such as the United States or Japan, is more than

Correct AnswerverifiedShow Answer

In the United States in 2014 real GDP per person was about $56,000, while in some poor countries real GDP per person was less than $5,000.

Correct AnswerverifiedShow Answer

Other things the same, a country that increases its savings rate will have

Correct AnswerverifiedShow Answer

Which of the following is a part of your economics professor's human capital?

Correct AnswerverifiedShow Answer

Which of the following best illustrates the human capital of a survivor stranded on an island?

Correct AnswerverifiedShow Answer

As capital per worker rises, output per worker rises. However, this increase in output per worker is smaller at smaller levels of existing capital per worker.

Correct AnswerverifiedShow Answer

Petroleum is an example of a nonrenewable resource.

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

If the number of workers in an economy doubled, all other inputs stayed the same, and there were constant returns to scale, productivity would

Correct AnswerverifiedShow Answer

Which of the following would increase productivity?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

​In order to promote growth in living standards, policymakers must

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Correct Answer
verified
Education ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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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
Since bearing a child has an opportunity...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

In order to promote growth in living standards, policymakers must

Correct Answer
verified

Correct Answer
verified