Question 1

In a market economy, we know that a resource has become scarcer when

Accepted Answer

A) its price rises relative to other prices. 
B) it is non-renewable and some of it is used. 
C) people search for substitutes. 
D) All of the above are correct. 
A) its price rises relative to other prices. 
B) it is non-renewable and some of it is used. 
C) people search for substitutes. 
D) All of the above are correct.

Question 2

The catch-up effect says that countries with low income can grow faster than countries with higher income. However, in statistical studies that include many diverse countries we do not observe the catch-up-effect unless we control for other variables that affect productivity. Considering the determinants of productivity, list and explain some things that would tend to prohibit or limit a poor country's ability to catch up with the rich ones.

Accepted Answer

The argument that poor countries will te

Question 3

Which of the following is an example of human capital?

Accepted Answer

A) textbooks 
B) hand held power tools 
C) knowing how to repair cars 
D) All of the above are correct. 
A) textbooks 
B) hand held power tools 
C) knowing how to repair cars 
D) All of the above are correct.

Question 4

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Accepted Answer

A) most economists do not regard the availability of natural resources as a determinant of productivity. 
B) the quantity of natural resources does not enter into any production function. 
C) inflation-adjusted prices of most natural resources have been stable or fallen over time. 
D) inflation-adjusted prices of most natural resources have risen over time. 
A) most economists do not regard the availability of natural resources as a determinant of productivity. 
B) the quantity of natural resources does not enter into any production function. 
C) inflation-adjusted prices of most natural resources have been stable or fallen over time. 
D) inflation-adjusted prices of most natural resources have risen over time.

Question 5

Real GDP per person in rich countries, such as Germany, is sometimes more than 10 times that of poor countries like India.

Accepted Answer

A) True 
 B)False

Question 6

Explain the distinction between technological knowledge and human capital.

Accepted Answer

Technological knowledge refers

Question 7

An increase in capital increases productivity only if it is purchased and operated by domestic residents.

Accepted Answer

A) True 
 B)False

Question 8

Suppose a country increases trade restrictions. This country would be pursing an

Accepted Answer

A) inward policy, which most economists believe has beneficial effects on the economy. 
B) inward policy, which most economists believe has adverse effects on the economy. 
C) outward policy, which most economists believe has beneficial effects on the economy. 
D) outward policy, which most economists believe has adverse effects on the economy. 
A) inward policy, which most economists believe has beneficial effects on the economy. 
B) inward policy, which most economists believe has adverse effects on the economy. 
C) outward policy, which most economists believe has beneficial effects on the economy. 
D) outward policy, which most economists believe has adverse effects on the economy.

Question 9

Which of the following statements is true?

Accepted Answer

A) Natural resources per worker influence productivity only when those natural resources are renewable. 
B) The prices of most natural resources are stable or falling relative to other prices. 
C) Technology requires greater use of natural resources. 
D) The terms human capital and technological knowledge are used interchangeably. 
A) Natural resources per worker influence productivity only when those natural resources are renewable. 
B) The prices of most natural resources are stable or falling relative to other prices. 
C) Technology requires greater use of natural resources. 
D) The terms human capital and technological knowledge are used interchangeably.

Question 10

Which of the following is not correct?

Accepted Answer

A) Countries that have had higher output growth per person have typically done so without higher productivity growth. 
B) A country's standard of living and its productivity are closely related. 
C) Productivity refers to output produced per hour of work. 
D) Increases in productivity can be used to increase output or leisure. 
A) Countries that have had higher output growth per person have typically done so without higher productivity growth. 
B) A country's standard of living and its productivity are closely related. 
C) Productivity refers to output produced per hour of work. 
D) Increases in productivity can be used to increase output or leisure.

Question 11

If natural resources had become scarcer, then we would expect their

Accepted Answer

A) prices to have risen more than inflation as they have. 
B) prices to have risen more than inflation, but they have not. 
C) known quantities to have fallen as they have. 
D) known quantities to have fallen but they have not. 
A) prices to have risen more than inflation as they have. 
B) prices to have risen more than inflation, but they have not. 
C) known quantities to have fallen as they have. 
D) known quantities to have fallen but they have not.

Question 12

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

Accepted Answer

A) A country with no or few domestic natural resources is destined to be poor. 
B) Differences in natural resources have virtually no role in explaining differences in standards of living. 
C) Some countries can be rich mostly because of their natural resources and countries without natural resources need not be poor, but can never have very high standards of living. 
D) Abundant domestic natural resources may help make a country rich, but even countries with few natural resources can have high standards of living. 
A) A country with no or few domestic natural resources is destined to be poor. 
B) Differences in natural resources have virtually no role in explaining differences in standards of living. 
C) Some countries can be rich mostly because of their natural resources and countries without natural resources need not be poor, but can never have very high standards of living. 
D) Abundant domestic natural resources may help make a country rich, but even countries with few natural resources can have high standards of living.

Question 13

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. 
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.

Question 14

The equipment and structures available to produce goods and services are called

Accepted Answer

A) physical capital. 
B) human capital. 
C) the production function. 
D) technology. 
A) physical capital. 
B) human capital. 
C) the production function. 
D) technology.

Question 15

Compare and contrast the population theories of Malthus and Kremer.

Accepted Answer

The difference is that Malthus predicted

Question 16

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. 
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.

Question 17

In the production function   , which symbol reflects the state of technology?

Accepted Answer

A) A 
B) K 
C) H 
D) N 
A) A 
B) K 
C) H 
D) N

Question 18

In the fourteenth century it is estimated that deaths resulting from the bubonic plague reduced the population by about a third. Assuming diminishing returns, the decrease in population should have

Accepted Answer

A) increased productivity and real GDP per person. 
B) increased productivity but decreased real GDP per person. 
C) increased real GDP per person, but decreased productivity. 
D) decreased productivity and real GDP per person. 
A) increased productivity and real GDP per person. 
B) increased productivity but decreased real GDP per person. 
C) increased real GDP per person, but decreased productivity. 
D) decreased productivity and real GDP per person.

Question 19

Consider the nations of India, Indonesia, and Japan. Over the past century, which of these three nations has experienced, by far, more rapid economic growth than the other two nations?

Accepted Answer

Japan's growth rate (2.65 perc

Question 20

According to research by Robert Fogel, people in Britain grew taller because of

Accepted Answer

A) genetics. However this increase in height had no effect on productivity. 
B) genetics. This increase in height is associated with higher productivity. 
C) higher caloric intake. However, this increase in height had no effect on productivity. 
D) higher caloric intake. This increase in height is associated with higher productivity. 
A) genetics. However this increase in height had no effect on productivity. 
B) genetics. This increase in height is associated with higher productivity. 
C) higher caloric intake. However, this increase in height had no effect on productivity. 
D) higher caloric intake. This increase in height is associated with higher productivity.

Exam 25: Production and Growth

In a market economy, we know that a resource has become scarcer when

Which of the following is an example of human capital?

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Real GDP per person in rich countries, such as Germany, is sometimes more than 10 times that of poor countries like India.

Explain the distinction between technological knowledge and human capital.

An increase in capital increases productivity only if it is purchased and operated by domestic residents.

Suppose a country increases trade restrictions. This country would be pursing an

Which of the following statements is true?

Which of the following is not correct?

If natural resources had become scarcer, then we would expect their

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

Japan is

The equipment and structures available to produce goods and services are called

Compare and contrast the population theories of Malthus and Kremer.

Which of the following is correct?

In the production function , which symbol reflects the state of technology?

In the fourteenth century it is estimated that deaths resulting from the bubonic plague reduced the population by about a third. Assuming diminishing returns, the decrease in population should have

Consider the nations of India, Indonesia, and Japan. Over the past century, which of these three nations has experienced, by far, more rapid economic growth than the other two nations?

According to research by Robert Fogel, people in Britain grew taller because of

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Applications: the Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

Measuring a Nation S Income

Measuring the Cost of Living

Saving, Investment, and the Financial System

Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

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