Question 1

Janet is a farmer. Which of the following are included in her human capital?

Accepted Answer

A) her tractor and what she's learned from experience 
B) her tractor but not what she's learned from experience 
C) what she's learned from experience but not her tractor 
D) neither her tractor nor what she's learned from experience 
A) her tractor and what she's learned from experience 
B) her tractor but not what she's learned from experience 
C) what she's learned from experience but not her tractor 
D) neither her tractor nor what she's learned from experience

Question 2

The return to schooling for society is higher than the return to schooling for the individual if

Accepted Answer

A) the concept of diminishing returns applies to education. 
B) the concept of constant returns to scale applies to education. 
C) human capital conveys positive externalities. 
D) investment in human capital involves no opportunity costs. 
A) the concept of diminishing returns applies to education. 
B) the concept of constant returns to scale applies to education. 
C) human capital conveys positive externalities. 
D) investment in human capital involves no opportunity costs.

Question 3

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. 
A) productivity and output both rise. 
B) productivity rises and output falls. 
C) productivity falls and output rises. 
D) productivity and output fall.

Question 4

Technological knowledge

Accepted Answer

A) is the same thing as human capital. 
B) can be discovered but it can never be kept secret. 
C) is a determinant of productivity. 
D) does not play a role in the relationship that economists call the production function. 
A) is the same thing as human capital. 
B) can be discovered but it can never be kept secret. 
C) is a determinant of productivity. 
D) does not play a role in the relationship that economists call the production function.

Question 5

Which of the following can be measured by the level of real GDP per person?

Accepted Answer

A) productivity and the standard of living 
B) productivity but not the standard of living 
C) the standard of living but not productivity 
D) neither the standard of living nor productivity 
A) productivity and the standard of living 
B) productivity but not the standard of living 
C) the standard of living but not productivity 
D) neither the standard of living nor productivity

Question 6

Mexico is

Accepted Answer

A) a poor country, and over the past century its rate of economic growth has been higher than that of the United States. 
B) a poor country, 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) a poor country, and over the past century its rate of economic growth has been higher than that of the United States. 
B) a poor country, 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 7

In 2009, the imaginary nation of Mainland had a population of 7,000 and real GDP of 210,000. In 2010 the population was 7,300 and real GDP of 223,380. Over the year in question, real GDP per person in Mainland grew by

Accepted Answer

A) 2 percent, which is high compared to average U.S. growth over the last one-hundred years. 
B) 2 percent, which is about the same as average U.S. growth over the last one-hundred years. 
C) 4 percent, which is high compared to average U.S. growth over the last one-hundred years. 
D) 4 percent, which is about the same as average U.S. growth over the last one-hundred years. 
A) 2 percent, which is high compared to average U.S. growth over the last one-hundred years. 
B) 2 percent, which is about the same as average U.S. growth over the last one-hundred years. 
C) 4 percent, which is high compared to average U.S. growth over the last one-hundred years. 
D) 4 percent, which is about the same as average U.S. growth over the last one-hundred years.

Question 8

Country A has twice as many workers as Country B. Country A also has twice as much physical capital, twice as much human capital, and access to twice as many natural resources as Country B. Assuming constant-returns to scale, which of the following is higher in Country A?

Accepted Answer

A) both output per worker and productivity 
B) output per worker but not productivity 
C) productivity but not output per worker 
D) neither productivity nor output per worker 
A) both output per worker and productivity 
B) output per worker but not productivity 
C) productivity but not output per worker 
D) neither productivity nor output per worker

Question 9

In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 500,000. In 2011 it had a population of 5,100 and real GDP of 520,200. During 2011 real GDP per person in Bovina grew by

Accepted Answer

A) 2 percent, which is high compared to average U.S. growth over the last one-hundred years. 
B) 2 percent, which is about the same as average U.S. growth over the last one-hundred years. 
C) 4 percent, which is high compared to average U.S. growth over the last one-hundred years. 
D) 4 percent, which is about the same as average U.S. growth over the last one-hundred years. 
A) 2 percent, which is high compared to average U.S. growth over the last one-hundred years. 
B) 2 percent, which is about the same as average U.S. growth over the last one-hundred years. 
C) 4 percent, which is high compared to average U.S. growth over the last one-hundred years. 
D) 4 percent, which is about the same as average U.S. growth over the last one-hundred years.

Question 10

Daniel owns a coffee kiosk. All of his employees work 8 hours per day. In 2011, he employed 6 people who produced a total of 912 cups of coffee each day. In 2012, he hired a seventh employee and production increased to 1008 cups of coffee each day. In Daniel's kiosk, productivity

Accepted Answer

A) increased by about 10.5 percent 
B) increased by 9.5 percent 
C) decreased by about 5.6 percent 
D) decreased by about 5.3 percent 
A) increased by about 10.5 percent 
B) increased by 9.5 percent 
C) decreased by about 5.6 percent 
D) decreased by about 5.3 percent

Question 11

Studies confirm that controlling for other variables such as the percentage of GDP devoted to investment, poor countries tend to grow at a faster rate than rich countries.

Accepted Answer

A) True 
 B)False

Question 12

In 2010, the imaginary nation of Mainland had a population of 6,000 and real GDP of 120,000. In 2011 the population was 6,200 and real GDP of 128,960. Over the year in question, real GDP per person in Mainland grew by

Accepted Answer

A) 2 percent, which is high compared to average U.S. growth over the last one-hundred years. 
B) 2 percent, which is about the same as average U.S. growth over the last one-hundred years. 
C) 4 percent, which is high compared to average U.S. growth over the last one-hundred years. 
D) 4 percent, which is about the same as average U.S. growth over the last one-hundred years. 
A) 2 percent, which is high compared to average U.S. growth over the last one-hundred years. 
B) 2 percent, which is about the same as average U.S. growth over the last one-hundred years. 
C) 4 percent, which is high compared to average U.S. growth over the last one-hundred years. 
D) 4 percent, which is about the same as average U.S. growth over the last one-hundred years.

Question 13

Country A had a population of 1,000, of whom 600 worked an average of 8 hours a day and had a productivity of 2.5. Country B had a population of 800, of whom 560 worked 8 hours a day and had productivity of 3.0. Country

Accepted Answer

A) A had the higher level of real GDP and real GDP per person. 
B) A had the higher level of real GDP and Country B had the higher level of real GDP per person 
C) B had the higher level of real GDP and Country A had the higher level of real GDP per person 
D) B had the higher level of real GDP and real GDP per person. 
A) A had the higher level of real GDP and real GDP per person. 
B) A had the higher level of real GDP and Country B had the higher level of real GDP per person 
C) B had the higher level of real GDP and Country A had the higher level of real GDP per person 
D) B had the higher level of real GDP and real GDP per person.

Question 14

Other things the same, another unit of capital will increase output by more in a poor country than in a rich country.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Two countries are the same, except one is poorer. Assuming the traditional assumption about the production function is made there are

Accepted Answer

A) diminishing returns to capital so the poor country grows slower. 
B) increasing returns to capital so the poor country grows slower. 
C) diminishing returns to capital so the poor country grows faster. 
D) increasing returns to capital so the poor country grows faster. 
A) diminishing returns to capital so the poor country grows slower. 
B) increasing returns to capital so the poor country grows slower. 
C) diminishing returns to capital so the poor country grows faster. 
D) increasing returns to capital so the poor country grows faster.

Question 17

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units. This year the same country had 1000 workers who worked an average of 8 hours and produced 14,000 units. This country's productivity was

Accepted Answer

A) higher this year than last year. A possible source of this change in productivity is a change in the size of the capital stock. 
B) higher this year than last year. A change in the size of the capital stock does not affect productivity. 
C) lower this year than last year. A possible source of this change in productivity is a change in the size of the capital stock. 
D) lower this year than last year. A change in the size of the capital stock does not affect productivity. 
A) higher this year than last year. A possible source of this change in productivity is a change in the size of the capital stock. 
B) higher this year than last year. A change in the size of the capital stock does not affect productivity. 
C) lower this year than last year. A possible source of this change in productivity is a change in the size of the capital stock. 
D) lower this year than last year. A change in the size of the capital stock does not affect productivity.

Question 18

Over the period 1900-2014, Brazil's rate of economic growth exceeded that of China.

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

Which of the following statements is true?

Accepted Answer

A) Productivity is calculated as hours worked divided by output produced. 
B) Americans have a higher standard of living than Indonesians because American workers are more productive than Indonesian workers. 
C) Both A and B are correct. 
D) None of the above are correct. 
A) Productivity is calculated as hours worked divided by output produced. 
B) Americans have a higher standard of living than Indonesians because American workers are more productive than Indonesian workers. 
C) Both A and B are correct. 
D) None of the above are correct.

Exam 25: Production and Growth

Janet is a farmer. Which of the following are included in her human capital?

The return to schooling for society is higher than the return to schooling for the individual if

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

Technological knowledge

Which of the following can be measured by the level of real GDP per person?

Mexico is

In 2009, the imaginary nation of Mainland had a population of 7,000 and real GDP of 210,000. In 2010 the population was 7,300 and real GDP of 223,380. Over the year in question, real GDP per person in Mainland grew by

Country A has twice as many workers as Country B. Country A also has twice as much physical capital, twice as much human capital, and access to twice as many natural resources as Country B. Assuming constant-returns to scale, which of the following is higher in Country A?

In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 500,000. In 2011 it had a population of 5,100 and real GDP of 520,200. During 2011 real GDP per person in Bovina grew by

Daniel owns a coffee kiosk. All of his employees work 8 hours per day. In 2011, he employed 6 people who produced a total of 912 cups of coffee each day. In 2012, he hired a seventh employee and production increased to 1008 cups of coffee each day. In Daniel's kiosk, productivity

Studies confirm that controlling for other variables such as the percentage of GDP devoted to investment, poor countries tend to grow at a faster rate than rich countries.

In 2010, the imaginary nation of Mainland had a population of 6,000 and real GDP of 120,000. In 2011 the population was 6,200 and real GDP of 128,960. Over the year in question, real GDP per person in Mainland grew by

Country A had a population of 1,000, of whom 600 worked an average of 8 hours a day and had a productivity of 2.5. Country B had a population of 800, of whom 560 worked 8 hours a day and had productivity of 3.0. Country

Other things the same, another unit of capital will increase output by more in a poor country than in a rich country.

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

Two countries are the same, except one is poorer. Assuming the traditional assumption about the production function is made there are

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units. This year the same country had 1000 workers who worked an average of 8 hours and produced 14,000 units. This country's productivity was

Over the period 1900-2014, Brazil's rate of economic growth exceeded that of China.

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.

Which of the following statements is true?

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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