Question 1

Other things the same, if a country raises its saving rate, when is productivity growth higher?

Accepted Answer

A)   as the economy moves toward the long run and in the long run.
B)   as the economy moves toward the long run, but not in the long run.
C)   in the long run, but not as the economy moves toward the long run.
D)   neither as the economy moves toward the long run, nor in the long run.E) A) and C)
F) A) and B)

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

You and your friend work together for 4 hours to produce a total of 8 bookcases. What is productivity?

Accepted Answer

A)   16 bookcases
B)   8 bookcases
C)   2 bookcases per hour
D)   1 bookcase per hourE) A) and B)
F) All of the above

Question 4

Country A and country B are the same except country A currently has more capital. Assuming diminishing returns, if both countries increase their capital by 100 units and other factors that determine output are unchanged, then

Accepted Answer

A)   output in country A increases by more than in country B.
B)   output in country A increases by the same amount as in country B.
C)   output in country A increases by less than in country B.
D)   None of the above is necessarily correct.E) B) and C)
F) None of the above

Question 5

Over the period 1890-2010, Japan experienced a 2.65 percent average annual growth rate of real GDP per person.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following are human capital and physical capital, respectively?

Accepted Answer

A)   for a brick layer: her bricks and her tools
B)   for a gas station: the pumps and the cash register
C)   for a restaurant: the chefs' knowledge about preparing food and the equipment in the kitchen
D)   for a medical office: the building and the doctors' knowledge of medicineE) A) and B)
F) B) and C)

Question 7

Other things the same, when an economy increases its saving rate

Accepted Answer

A)   consumption and production rise now.
B)   consumption rises now and production rises later
C)   consumption falls now and production rises later.
D)   consumption falls now and production falls later.E) C) and D)
F) A) and B)

Question 8

A country experiencing a growth rate of 12% per year can go from being one of the poorest to one of the richest in

Accepted Answer

A)   one generation. In the last couple of decades China's growth rate has been higher than 12%.
B)   one generation. However, in the last couple of decades not even China's growth rate has been this high.
C)   three generations. In the last couple of decades China's growth rate has been higher than 12%.
D)   three generations. However, in the last couple of decades not even China's growth rate has been this high.E) C) and D)
F) B) and C)

Question 9

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) None of the above
F) A) and B)

Question 10

Why is productivity related to the standard of living? In your answer be sure to explain what productivity and the standard of living mean. Make a list of things that determine labor productivity.

Accepted Answer

The standard of living is a measure of h...

Question 11

Which of the following is an example of physical capital?

Accepted Answer

A)   the computer a secretary uses
B)   rivers on which goods are transported
C)   the skills and knowledge of a doctor
D)   All of the above are correct.E) A) and D)
F) A) and C)

Question 12

"When workers already have a large quantity of capital to use in producing goods and services, giving them an additional unit of capital increases their productivity only slightly." This statement

Accepted Answer

A)   represents the traditional view of the production process.
B)   is an assertion that capital is subject to diminishing returns.
C)   is made under the assumption that the quantities of human capital, natural resources, and technology are being held constant.
D)   All of the above are correct.E) None of the above
F) C) and D)

Question 13

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

Question 14

Other things equal, relatively poor countries tend to grow

Accepted Answer

A)   slower than relatively rich countries; this is called the poverty trap.
B)   slower than relatively rich countries; this is called the fall-behind effect.
C)   faster than relatively rich countries; this is called the catch-up effect.
D)   faster than relatively rich countries; this is called the constant-returns-to-scale effect.E) A) and C)
F) All of the above

Question 15

What word do we use to refer to the amount of goods and services produced for each hour of a worker's time?

Accepted Answer

The word i...

Question 16

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

Question 17

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

Accepted Answer

Physical capital originates as...

Question 18

Over the last century, U.S. real GDP per person grew at a rate of about

Accepted Answer

A)   2 percent per year, so that it is now 2 times as high as it was a century ago.
B)   2 percent per year, so that it is now 8 times as high as it was a century ago.
C)   4 percent per year, so that it is now 2 times as high as it was a century ago.
D)   4 percent per year, so that it is now 8 times as high as it was a century ago.E) B) and C)
F) A) and B)

Question 19

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 B)
F) B) and D)

Question 20

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 B)
F) A) and C)

Exam 17: Production and Growth

You and your friend work together for 4 hours to produce a total of 8 bookcases. What is productivity?

Correct Answer
verified

Other things the same, if a country raises its saving rate, when is productivity growth higher?

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

What word do we use to refer to the amount of goods and services produced for each hour of a worker's time?

Correct Answer
verified
The word i...
View Answer

Other things equal, relatively poor countries tend to grow

Correct Answer
verified

Other things the same, when an economy increases its saving rate

Correct Answer
verified

A country experiencing a growth rate of 12% per year can go from being one of the poorest to one of the richest in

Correct Answer
verified

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

Correct Answer
verified
Physical capital originates as...
View Answer

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 Answer
verified

Which of the following is a determinant of productivity?

Correct Answer
verified

"When workers already have a large quantity of capital to use in producing goods and services, giving them an additional unit of capital increases their productivity only slightly." This statement

Correct Answer
verified

Correct Answer
verified

Which of the following are human capital and physical capital, respectively?

Correct Answer
verified

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

Correct Answer
verified

Why is productivity related to the standard of living? In your answer be sure to explain what productivity and the standard of living mean. Make a list of things that determine labor productivity.

Correct Answer
verified
The standard of living is a measure of h...
View Answer

Which of the following is an example of physical capital?

Correct Answer
verified

Country A and country B are the same except country A currently has more capital. Assuming diminishing returns, if both countries increase their capital by 100 units and other factors that determine output are unchanged, then

Correct Answer
verified

Over the last century, U.S. real GDP per person grew at a rate of about

Correct Answer
verified

Over the period 1890-2010, Japan experienced a 2.65 percent average annual growth rate of real GDP per person.

Correct Answer
verified

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

Correct Answer
verified

Exam 17: Production and Growth

You and your friend work together for 4 hours to produce a total of 8 bookcases. What is productivity?

Correct AnswerverifiedShow Answer

Other things the same, if a country raises its saving rate, when is productivity growth higher?

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

What word do we use to refer to the amount of goods and services produced for each hour of a worker's time?

Correct AnswerverifiedThe word i...View AnswerShow Answer

Other things equal, relatively poor countries tend to grow

Correct AnswerverifiedShow Answer

Other things the same, when an economy increases its saving rate

Correct AnswerverifiedShow Answer

A country experiencing a growth rate of 12% per year can go from being one of the poorest to one of the richest in

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedPhysical capital originates as...View AnswerShow Answer

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

Which of the following is a determinant of productivity?

Correct AnswerverifiedShow Answer

"When workers already have a large quantity of capital to use in producing goods and services, giving them an additional unit of capital increases their productivity only slightly." This statement

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following are human capital and physical capital, respectively?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Why is productivity related to the standard of living? In your answer be sure to explain what productivity and the standard of living mean. Make a list of things that determine labor productivity.

Correct AnswerverifiedThe standard of living is a measure of h...View AnswerShow Answer

Which of the following is an example of physical capital?

Correct AnswerverifiedShow Answer

Country A and country B are the same except country A currently has more capital. Assuming diminishing returns, if both countries increase their capital by 100 units and other factors that determine output are unchanged, then

Correct AnswerverifiedShow Answer

Over the last century, U.S. real GDP per person grew at a rate of about

Correct AnswerverifiedShow Answer

Over the period 1890-2010, Japan experienced a 2.65 percent average annual growth rate of real GDP per person.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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The word i...
View Answer

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Correct Answer
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Correct Answer
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Physical capital originates as...
View 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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Correct Answer
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The standard of living is a measure of h...
View 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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