Question 1

In which of the following countries did real GDP per person fall by about 13% from 2000 to 2014?

Accepted Answer

A) India 
B) Singapore 
C) Zimbabwe 
D) None of the above are correct. 
A) India 
B) Singapore 
C) Zimbabwe 
D) None of the above are correct.

Question 2

The traditional view of the production process is that capital is subject to

Accepted Answer

A) constant returns. 
B) increasing returns. 
C) diminishing returns. 
D) diminishing returns for low levels of capital, and increasing returns for high levels of capital. 
A) constant returns. 
B) increasing returns. 
C) diminishing returns. 
D) diminishing returns for low levels of capital, and increasing returns for high levels of capital.

Question 3

On a production function, as capital per worker increases, output per worker

Accepted Answer

A) increases. This increase is larger at larger values of capital per worker. 
B) increases. This increase is smaller at larger values of capital per worker. 
C) decreases. This decrease is larger at larger value of capital per worker. 
D) decreases. This decrease is smaller at larger value of capital per worker. 
A) increases. This increase is larger at larger values of capital per worker. 
B) increases. This increase is smaller at larger values of capital per worker. 
C) decreases. This decrease is larger at larger value of capital per worker. 
D) decreases. This decrease is smaller at larger value of capital per worker.

Question 4

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 5

​Income rises after a charity gives poor families free livestock. The harvest that year was also particularly bountiful. The charity should take full credit for the observed increase in the standard of living.

Accepted Answer

A) True 
 B)False

Question 6

The dictator of Turan has recently begun to arbitrarily seize farms belonging to his political opponents, and he has given the farms to his friends. His friends don't know much about farming. The courts in Turan have ruled that the seizures are illegal, but the dictator has ignored the rulings. Other things equal, we would expect that the growth rate in Turan will

Accepted Answer

A) fall temporarily, but will return to where it was when the new owners learn how to farm. 
B) increase because the total amount of human capital in the country will increase as the new owners learn how to farm. 
C) fall and remain lower for a long time. 
D) not be affected unless widespread civil disorder or civil war results. 
A) fall temporarily, but will return to where it was when the new owners learn how to farm. 
B) increase because the total amount of human capital in the country will increase as the new owners learn how to farm. 
C) fall and remain lower for a long time. 
D) not be affected unless widespread civil disorder or civil war results.

Question 7

Which of the following can explain faster growth of real GDP in country A than in Country B?

Accepted Answer

A) both greater population growth and greater productivity growth in Country A 
B) greater population growth in Country A, but not greater productivity growth in Country A 
C) greater productivity growth in Country A, but not greater population growth in Country A 
D) neither greater population growth nor greater productivity growth in Country A 
A) both greater population growth and greater productivity growth in Country A 
B) greater population growth in Country A, but not greater productivity growth in Country A 
C) greater productivity growth in Country A, but not greater population growth in Country A 
D) neither greater population growth nor greater productivity growth in Country A

Question 8

Human capital is

Accepted Answer

A) the same thing as technological knowledge. 
B) the same thing as labor. 
C) the tools and equipment operated by humans. 
D) knowledge and skills that workers have acquired. 
A) the same thing as technological knowledge. 
B) the same thing as labor. 
C) the tools and equipment operated by humans. 
D) knowledge and skills that workers have acquired.

Question 9

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

Accepted Answer

A) one 
B) two 
C) three 
D) four 
A) one 
B) two 
C) three 
D) four

Question 10

Inventors often obtain patents on new products and processes, thereby turning new ideas into

Accepted Answer

A) private goods and increasing the incentive to engage in research. 
B) private goods but decreasing the incentive to engage in research. 
C) public goods and increasing the incentive to engage in research. 
D) public goods but decreasing the incentive to engage in research. 
A) private goods and increasing the incentive to engage in research. 
B) private goods but decreasing the incentive to engage in research. 
C) public goods and increasing the incentive to engage in research. 
D) public goods but decreasing the incentive to engage in research.

Question 11

Last year real GDP in the imaginary nation of Oceania was 561.0 billion and the population was 2.2 million. The year before, real GDP was 500.0 billion and the population was 2.0 million. What was the growth rate of real GDP per person during the year?

Accepted Answer

A) 12 percent 
B) 10 percent 
C) 4 percent 
D) 2 percent 
A) 12 percent 
B) 10 percent 
C) 4 percent 
D) 2 percent

Question 12

An economy's production function has the constant-returns-to-scale property. If the economy's labor force doubled and all other inputs stayed the same, then real GDP would

Accepted Answer

A) stay the same. 
B) increase by exactly 50 percent. 
C) increase by exactly 100 percent. 
D) increase, but not necessarily by either 50 percent or 100 percent. 
A) stay the same. 
B) increase by exactly 50 percent. 
C) increase by exactly 100 percent. 
D) increase, but not necessarily by either 50 percent or 100 percent.

Question 13

Which of the following public policies would be least likely to result in more rapid economic growth for a poor or developing country?

Accepted Answer

A) policies designed to promote economic development in coastal areas 
B) policies designed to foster strict enforcement of property rights 
C) policies designed to foster free trade 
D) inward-oriented policies 
A) policies designed to promote economic development in coastal areas 
B) policies designed to foster strict enforcement of property rights 
C) policies designed to foster free trade 
D) inward-oriented policies

Question 14

Suppose that an American opens and operates a candy factory in Finland. This is an example of

Accepted Answer

A) foreign direct investment. American saving is used to finance Finish investment. 
B) foreign direct investment. American saving is used to finance American investment. 
C) foreign portfolio investment. American saving is used to finance Finish investment. 
D) foreign portfolio investment. American saving is used to finance American investment. 
A) foreign direct investment. American saving is used to finance Finish investment. 
B) foreign direct investment. American saving is used to finance American investment. 
C) foreign portfolio investment. American saving is used to finance Finish investment. 
D) foreign portfolio investment. American saving is used to finance American investment.

Question 15

Studies have found that there is a relationship between height and productivity. Briefly explain.

Accepted Answer

Studies show that taller worke

Question 16

Over the last 140 years or so, on average Canada's real GDP per-person grew faster than that of the U.K.

Accepted Answer

A) True 
 B)False

Question 17

In which of the following countries has economic growth been sufficiently high that income would double every ten years?

Accepted Answer

A) Singapore 
B) Nigeria 
C) India 
D) Indonesia 
A) Singapore 
B) Nigeria 
C) India 
D) Indonesia

Question 18

Country A and country B both increase their capital stock by one unit. Output in country A increases by 10 while output in country B increases by 8. Other things the same, diminishing returns implies that country A is

Accepted Answer

A) richer than Country B. If Country A adds another unit of capital, output will increase by more than 10 units. 
B) richer than Country B. If Country A adds another unit of capital, output will increase by less than 10 units. 
C) poorer than Country B. If Country A adds another unit of capital, output will increase by more than 10 units. 
D) poorer than Country B. If Country A adds another unit of capital, output will increase by less than 10 units. 
A) richer than Country B. If Country A adds another unit of capital, output will increase by more than 10 units. 
B) richer than Country B. If Country A adds another unit of capital, output will increase by less than 10 units. 
C) poorer than Country B. If Country A adds another unit of capital, output will increase by more than 10 units. 
D) poorer than Country B. If Country A adds another unit of capital, output will increase by less than 10 units.

Question 19

Other things the same, a country that increases its saving rate increases

Accepted Answer

A) its future productivity and future real GDP. 
B) neither its future productivity nor future real GDP. 
C) its future productivity, but not its future real GDP. 
D) its future real GDP, but not its future productivity. 
A) its future productivity and future real GDP. 
B) neither its future productivity nor future real GDP. 
C) its future productivity, but not its future real GDP. 
D) its future real GDP, but not its future productivity.

Question 20

If a country's saving rate declined, then other things the same, in the long run the country would have

Accepted Answer

A) lower productivity, but not lower real GDP per person. 
B) lower productivity and lower real GDP per person. 
C) lower real GDP per person, but not lower productivity 
D) neither lower productivity nor lower real GDP per person. 
A) lower productivity, but not lower real GDP per person. 
B) lower productivity and lower real GDP per person. 
C) lower real GDP per person, but not lower productivity 
D) neither lower productivity nor lower real GDP per person.

Exam 25: Production and Growth

In which of the following countries did real GDP per person fall by about 13% from 2000 to 2014?

The traditional view of the production process is that capital is subject to

On a production function, as capital per worker increases, output per worker

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?

​Income rises after a charity gives poor families free livestock. The harvest that year was also particularly bountiful. The charity should take full credit for the observed increase in the standard of living.

Which of the following can explain faster growth of real GDP in country A than in Country B?

Human capital is

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

Inventors often obtain patents on new products and processes, thereby turning new ideas into

Last year real GDP in the imaginary nation of Oceania was 561.0 billion and the population was 2.2 million. The year before, real GDP was 500.0 billion and the population was 2.0 million. What was the growth rate of real GDP per person during the year?

An economy's production function has the constant-returns-to-scale property. If the economy's labor force doubled and all other inputs stayed the same, then real GDP would

Which of the following public policies would be least likely to result in more rapid economic growth for a poor or developing country?

Suppose that an American opens and operates a candy factory in Finland. This is an example of

Studies have found that there is a relationship between height and productivity. Briefly explain.

Over the last 140 years or so, on average Canada's real GDP per-person grew faster than that of the U.K.

In which of the following countries has economic growth been sufficiently high that income would double every ten years?

Country A and country B both increase their capital stock by one unit. Output in country A increases by 10 while output in country B increases by 8. Other things the same, diminishing returns implies that country A is

Other things the same, a country that increases its saving rate increases

If a country's saving rate declined, then other things the same, in the long run the country would have

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

Filters

Income rises after a charity gives poor families free livestock. The harvest that year was also particularly bountiful. The charity should take full credit for the observed increase in the standard of living.