Question 1

Investment from abroad

Accepted Answer

A)   is a way for poor countries to learn the state-of-the-art technologies developed and used in richer countries.
B)   is viewed by economists as a way to increase growth.
C)   often requires removing restrictions that governments have imposed on foreign ownership of domestic capital.
D)   All of the above are correct.E) A) and D)
F) A) and C)

Question 2

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 3

Both Arnold and Will work 10 hours a day. Arnold can produce six baskets of goods per hour while Will can produce four baskets of the same goods per hour. It follows that Arnold's

Accepted Answer

A)   productivity is greater than Will's.
B)   output is greater than Will's.
C)   standard of living is higher than Will's.
D)   All of the above are correct.E) A) and B)
F) B) and D)

Question 4

Consider the nations of Canada, the United Kingdom, and the United States. Since 1870, which of these nations has progressed, in an economic sense, more slowly than the other two nations?

Accepted Answer

The United Kingdom's growth ra...

Question 5

Hit-It produces 320 baseball bats per day using 2 workers who each work 8 hours per day. What is Hit­It's productivity?

Accepted Answer

A)   320 baseball bats
B)   160 baseball bats per hour
C)   20 baseball bats per hour
D)   None of the above is correct.E) C) and D)
F) B) and D)

Question 6

Other things the same, which of the following could explain an increase in productivity?

Accepted Answer

A)   either an increase in human capital or an increase in physical capital
B)   an increase in human capital but not an increase in physical capital
C)   an increase in physical capital but not an increase in human capital
D)   neither an increase in human capital nor an increase in physical capitalE) C) and D)
F) A) and B)

Question 7

A certain production process requires only two types of inputs - capital and labor. In 2006, 100 units of labor and 50 units of capital were employed, and 100 units of output were produced. In 2013, 112 units of labor and 56 units of capital were employed. If the production process displays constant returns to scale, then how many units of output were produced in 2013?

Accepted Answer

A)   100
B)   112
C)   124
D)   144E) A) and C)
F) A) and B)

Question 8

Figure 25-1 
-Refer to Figure 21-1. "When the amount of capital per worker increases by one unit, a poor country experiences a greater benefit than does a rich country." Does the figure illustrate this notion? Briefly explain.

Accepted Answer

Yes, the bowed-out concave) na...

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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) A) and C)

Question 11

Which country has had a higher growth rate than the U.S. over about the last 120 years?

Accepted Answer

A)   India
B)   Mexico
C)   United Kingdom
D)   PakistanE) All of the above
F) B) and C)

Question 12

Does a country have to be blessed with large quantities of natural resources in order to enjoy a high standard of living? Briefly explain.

Accepted Answer

No. Japan is an example of a c...

Question 13

Inward-oriented policies

Accepted Answer

A)   include imposing tariffs and other trade restrictions.
B)   have generally increased productivity and growth in the countries that pursued them.
C)   promote the production of goods and services that the country produces most efficiently.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 14

In 2012, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its real GDP per person grew by about 1.94%. Which of the following sets of growth rates is consistent with this growth in real GDP per person?

Accepted Answer

A)   3% population growth and 4% real GDP growth
B)   3% population growth and 5% real GDP growth
C)   6% population growth and 4% real GDP growth
D)   6% population growth and 5% real GDP growthE) B) and D)
F) All of the above

Question 15

Which of the following is an example of physical capital?

Accepted Answer

A)   the available knowledge on how to make semiconductors
B)   a taxi­cab driver's knowledge of the fastest routes to take
C)   bulldozers, backhoes and other construction equipment
D)   All of the above are correct.E) None of the above
F) C) and D)

Question 16

An increase in a country's population may contribute to the rate of technological progress because a larger population

Accepted Answer

A)   forces the capital stock to be spread more thinly.
B)   forces natural resources to be spread more thinly.
C)   brings with it more scientists, inventors, and engineers.
D)   brings with it more favorable recognition from other countries.E) A) and B)
F) None of the above

Question 17

Suppose over the last five years that the price of recycled aluminum increased from $800 a ton to $900 a ton. Over the same time a measure of the overall price level increased from 120 to 138. The real price of recycled aluminum

Accepted Answer

A)   increased, so it became scarcer
B)   increased, so it became less scarce
C)   decreased, so it became scarcer
D)   decreased, so it became less scarceE) B) and C)
F) A) and C)

Question 18

When a country eliminates tariffs and other trade restrictions, intending to promote economic growth, it is pursuing_______-oriented policies.

Accepted Answer

The answer of When a country eliminates tariffs and other...

Question 19

Which of the following is correct?

Accepted Answer

A)   Although levels of real GDP per person vary substantially from country to country, the growth rate of real GDP per person is similar across countries.
B)   Productivity is not closely linked to government policies.
C)   The level of real GDP per person is a good gauge of economic prosperity, and the growth rate of real GDP per person is a good gauge of economic progress.
D)   Productivity may be measured by the growth rate of real GDP per person.E) B) and D)
F) A) and B)

Question 20

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) None of the above
F) All of the above

Exam 7: Production and Growth

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

Correct Answer
verified

Other things the same, which of the following could explain an increase in productivity?

Correct Answer
verified

Which country has had a higher growth rate than the U.S. over about the last 120 years?

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

An increase in a country's population may contribute to the rate of technological progress because a larger population

Correct Answer
verified

Consider the nations of Canada, the United Kingdom, and the United States. Since 1870, which of these nations has progressed, in an economic sense, more slowly than the other two nations?

Correct Answer
verified
The United Kingdom's growth ra...
View Answer

When a country eliminates tariffs and other trade restrictions, intending to promote economic growth, it is pursuing_______-oriented policies.

Correct Answer
verified

Inward-oriented policies

Correct Answer
verified

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 Answer
verified

Figure 25-1 -Refer to Figure 21-1. "When the amount of capital per worker increases by one unit, a poor country experiences a greater benefit than does a rich country." Does the figure illustrate this notion? Briefly explain.

Correct Answer
verified
Yes, the bowed-out concave) na...
View Answer

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

Correct Answer
verified

In 2012, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its real GDP per person grew by about 1.94%. Which of the following sets of growth rates is consistent with this growth in real GDP per person?

Correct Answer
verified

Hit-It produces 320 baseball bats per day using 2 workers who each work 8 hours per day. What is HitIt's productivity?

Correct Answer
verified

Correct Answer
verified

Does a country have to be blessed with large quantities of natural resources in order to enjoy a high standard of living? Briefly explain.

Correct Answer
verified
No. Japan is an example of a c...
View Answer

Both Arnold and Will work 10 hours a day. Arnold can produce six baskets of goods per hour while Will can produce four baskets of the same goods per hour. It follows that Arnold's

Correct Answer
verified

Which of the following is correct?

Correct Answer
verified

Investment from abroad

Correct Answer
verified

Suppose over the last five years that the price of recycled aluminum increased from $800 a ton to $900 a ton. Over the same time a measure of the overall price level increased from 120 to 138. The real price of recycled aluminum

Correct Answer
verified

Which of the following is an example of physical capital?

Correct Answer
verified

Exam 7: Production and Growth

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

Correct AnswerverifiedShow Answer

Other things the same, which of the following could explain an increase in productivity?

Correct AnswerverifiedShow Answer

Which country has had a higher growth rate than the U.S. over about the last 120 years?

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

An increase in a country's population may contribute to the rate of technological progress because a larger population

Correct AnswerverifiedShow Answer

Consider the nations of Canada, the United Kingdom, and the United States. Since 1870, which of these nations has progressed, in an economic sense, more slowly than the other two nations?

Correct AnswerverifiedThe United Kingdom's growth ra...View AnswerShow Answer

When a country eliminates tariffs and other trade restrictions, intending to promote economic growth, it is pursuing_______-oriented policies.

Correct AnswerverifiedShow Answer

Inward-oriented policies

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

Figure 25-1 -Refer to Figure 21-1. "When the amount of capital per worker increases by one unit, a poor country experiences a greater benefit than does a rich country." Does the figure illustrate this notion? Briefly explain.

Correct AnswerverifiedYes, the bowed-out concave) na...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

In 2012, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its real GDP per person grew by about 1.94%. Which of the following sets of growth rates is consistent with this growth in real GDP per person?

Correct AnswerverifiedShow Answer

Hit-It produces 320 baseball bats per day using 2 workers who each work 8 hours per day. What is Hit­It's productivity?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Does a country have to be blessed with large quantities of natural resources in order to enjoy a high standard of living? Briefly explain.

Correct AnswerverifiedNo. Japan is an example of a c...View AnswerShow Answer

Both Arnold and Will work 10 hours a day. Arnold can produce six baskets of goods per hour while Will can produce four baskets of the same goods per hour. It follows that Arnold's

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Investment from abroad

Correct AnswerverifiedShow Answer

Suppose over the last five years that the price of recycled aluminum increased from $800 a ton to $900 a ton. Over the same time a measure of the overall price level increased from 120 to 138. The real price of recycled aluminum

Correct AnswerverifiedShow Answer

Which of the following is an example of physical capital?

Correct AnswerverifiedShow Answer

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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Correct Answer
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The United Kingdom's growth ra...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Yes, the bowed-out concave) na...
View Answer

Correct Answer
verified

Correct Answer
verified

Hit-It produces 320 baseball bats per day using 2 workers who each work 8 hours per day. What is HitIt's productivity?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
No. Japan is an example of a c...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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