Question 1

A country that made its courts less corrupt and its government more stable would likely see its standard of living rise.

Accepted Answer

A) True 
 B)False

Question 2

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) C) and D)
F) A) and C)

Question 3

If a production function has the property called , then doubling all inputs causes the amount of output to double as well.

Accepted Answer

constant r...

Question 4

Japan is

Accepted Answer

A)   an advanced economy, and over the past century its rate of economic growth has been higher than that of the United States.
B)   an advanced economy, and over the past century its rate of economic growth has been lower than that of the United States.
C)   a middle-income country, and over the past century its rate of economic growth has been higher than that of the United States.
D)   a middle-income country, and over the past century its rate of economic growth has been lower than that of the United States.E) B) and C)
F) A) and C)

Question 5

One of the Ten Principles of Economics in Chapter 1 is that people face tradeoffs. The growth that arises from capital accumulation is not a free lunch. It requires that society

Accepted Answer

A)   conserve resources for future generations.
B)   sacrifice consumption goods and services now in order to enjoy more consumption in the future.
C)   recycle resources so that future generations can produce goods and services with the accumulated capital.
D)   None of the above is correct.E) A) and B)
F) C) and D)

Question 6

In 2011 Buckeye Brewing produced 1,000 bottles of ginger ale each day. It employed 10 workers each working 8 hours a day. In 2012 it produced 960 bottles of ginger ale each day employing 8 workers who worked 8 hours each day. Productivity at Buckeye Brewing

Accepted Answer

A)   increased by 20%.
B)   increased by 16.67%.
C)   decreased by 1.67%.
D)   decreased by 40%.E) None of the above
F) C) and D)

Question 7

Which of the following countries had the lowest level of real GDP per person in 2010?

Accepted Answer

A)   Bangladesh
B)   Indonesia
C)   Mexico
D)   ChinaE) A) and B)
F) C) and D)

Question 8

Which of the following countries achieved higher economic growth, in part by mandating a reduction in population growth?

Accepted Answer

A)   Great Britain
B)   China
C)   Australia
D)   FranceE) None of the above
F) A) and C)

Question 9

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 D)
F) C) and D)

Question 10

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

Question 11

In order to assess the level of prosperity in a nation in a given year, should we examine the level of that nation's real GDP per person, or should we examine the growth rate of that nation's real GDP per person?

Accepted Answer

The level of that na...

Question 12

Economist Michael Kremer found that world growth rates fell as population increased.

Accepted Answer

A) True 
 B)False

Question 13

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) All of the above
F) None of the above

Question 14

It is possible for a country without a lot of domestic natural resources to have a high standard of living.

Accepted Answer

A) True 
 B)False

Question 15

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) A) and D)
F) B) and C)

Question 16

The key determinant of the standard of living in a country is

Accepted Answer

A)   the amount of goods and services produced from each hour of a worker's time.
B)   the total amount of goods and services produced within the country.
C)   the total amount of its physical capital.
D)   its growth rate of real GDP.E) A) and B)
F) A) and C)

Question 17

During the past century the average growth rate of U.S. real GDP per person implies that it doubled, on average, about every

Accepted Answer

A)   100 years.
B)   70 years.
C)   35 years.
D)   25 years.E) C) and D)
F) All of the above

Question 18

Since 1870 Canadian and U.S real GDP per person grew from below to above that in the United Kingdom. The explanation for this is likely that productivity grew faster in Canada and the U.S. than in the United Kingdom.

Accepted Answer

A) True 
 B)False

Question 19

If Country A produces 7,000 units of goods and services using 700 hours of labor, and if Country B produces 5,500 units of goods and services using 500 units of labor, then productivity is lower in Country A than in Country B.

Accepted Answer

A) True 
 B)False

Question 20

A nation's standard of living is best measured by its

Accepted Answer

A)   real GDP.
B)   real GDP per person.
C)   nominal GDP.
D)   nominal GDP per person.E) A) and B)
F) All of the above

Exam 17: Production and Growth

In 2011 Buckeye Brewing produced 1,000 bottles of ginger ale each day. It employed 10 workers each working 8 hours a day. In 2012 it produced 960 bottles of ginger ale each day employing 8 workers who worked 8 hours each day. Productivity at Buckeye Brewing

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

Economist Michael Kremer found that world growth rates fell as population increased.

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

Which of the following is a determinant of productivity?

Correct AnswerverifiedShow Answer

A country that made its courts less corrupt and its government more stable would likely see its standard of living rise.

Correct AnswerverifiedShow Answer

The key determinant of the standard of living in a country is

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

It is possible for a country without a lot of domestic natural resources to have a high standard of living.

Correct AnswerverifiedShow Answer

If a production function has the property called , then doubling all inputs causes the amount of output to double as well.

Correct Answerverifiedconstant r...View AnswerShow Answer

In order to assess the level of prosperity in a nation in a given year, should we examine the level of that nation's real GDP per person, or should we examine the growth rate of that nation's real GDP per person?

Correct AnswerverifiedThe level of that na...View AnswerShow 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

Since 1870 Canadian and U.S real GDP per person grew from below to above that in the United Kingdom. The explanation for this is likely that productivity grew faster in Canada and the U.S. than in the United Kingdom.

Correct AnswerverifiedShow Answer

Which of the following countries had the lowest level of real GDP per person in 2010?

Correct AnswerverifiedShow Answer

Which of the following countries achieved higher economic growth, in part by mandating a reduction in population growth?

Correct AnswerverifiedShow Answer

Japan is

Correct AnswerverifiedShow Answer

A nation's standard of living is best measured by its

Correct AnswerverifiedShow Answer

One of the Ten Principles of Economics in Chapter 1 is that people face tradeoffs. The growth that arises from capital accumulation is not a free lunch. It requires that society

Correct AnswerverifiedShow Answer

During the past century the average growth rate of U.S. real GDP per person implies that it doubled, on average, about every

Correct AnswerverifiedShow Answer

If Country A produces 7,000 units of goods and services using 700 hours of labor, and if Country B produces 5,500 units of goods and services using 500 units of labor, then productivity is lower in Country A than in Country B.

Correct AnswerverifiedShow Answer

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constant r...
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The level of that na...
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Hit-It produces 320 baseball bats per day using 2 workers who each work 8 hours per day. What is HitIt's productivity?

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