Question 1

In one day Madison Laundry washed 4,000 pounds of laundry with 5 workers who each worked 8 hours. What was its productivity?

Accepted Answer

A) 4000 pounds of laundry 
B) 500 pounds of laundry per hour 
C) 100 pounds of laundry per hour 
D) None of the above is correct. 
A) 4000 pounds of laundry 
B) 500 pounds of laundry per hour 
C) 100 pounds of laundry per hour 
D) None of the above is correct.

Question 2

The production function for Country A exhibits constant returns to scale. Suppose that physical capital per worker, human capital per worker, and natural resources per worker all triple. At the same time, Country A's technological knowledge doubles. Productivity

Accepted Answer

A) does not change. 
B) ​is now two times larger. 
C) ​is now three times larger. 
D) ​is now six ties larger. 
A) does not change. 
B) ​is now two times larger. 
C) ​is now three times larger. 
D) ​is now six ties larger.

Question 3

In 2012, the imaginary nation of Kanmiw had a population of 8,044 and real GDP of 36,198,000. In 2013 it had a population of 7,800 and real GDP of 35,880,000. What was the growth rate of real GDP per person in Kanmiw between 2012 and 2013?

Accepted Answer

A) -2.2 percent 
B) -0.7 percent 
C) 2.2 percent 
D) 4.5 percent 
A) -2.2 percent 
B) -0.7 percent 
C) 2.2 percent 
D) 4.5 percent

Question 4

If a country has a higher level of productivity than another, then it also has a higher level of real GDP.

Accepted Answer

A) True 
 B)False

Question 5

Countries that pursued outward-oriented policies in the 20th century

Accepted Answer

A) experienced lower rates of economic growth than did countries that pursued inward-oriented policies. 
B) experienced higher levels of political instability than did countries that pursued inward-oriented policies. 
C) include Singapore, South Korea, and Taiwan. 
D) All of the above are correct. 
A) experienced lower rates of economic growth than did countries that pursued inward-oriented policies. 
B) experienced higher levels of political instability than did countries that pursued inward-oriented policies. 
C) include Singapore, South Korea, and Taiwan. 
D) All of the above are correct.

Question 6

A country's standard of living depends on its ability to produce goods and services.

Accepted Answer

A) True 
 B)False

Question 7

Suppose that an American company opens and operates a restaurant in Ireland. This is an example of

Accepted Answer

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

Question 8

The behavior of market prices over time indicates that natural resources are

Accepted Answer

A) a limit to economic growth. 
B) unrelated to economic growth. 
C) not a limit to economic growth. 
D) the major determinant of productivity. 
A) a limit to economic growth. 
B) unrelated to economic growth. 
C) not a limit to economic growth. 
D) the major determinant of productivity.

Question 9

Country A had a population of 2,000, of whom 1,300 worked an average of 8 hours a day and had a productivity of 5. Country B had a population of 2,500, of whom 1,700 worked 8 hours a day and had productivity of 4. 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 10

In the equation for the production function H/L represents

Accepted Answer

A) natural resources per worker. 
B) human capital per worker. 
C) output per worker. 
D) physical capital per worker. 
A) natural resources per worker. 
B) human capital per worker. 
C) output per worker. 
D) physical capital per worker.

Question 11

An understanding of the best ways to produce goods and services is called

Accepted Answer

A) human capital. 
B) physical capital. 
C) technology. 
D) productivity. 
A) human capital. 
B) physical capital. 
C) technology. 
D) productivity.

Question 12

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

Accepted Answer

A) tin 
B) petroleum 
C) gold 
D) All of the above are correct. 
A) tin 
B) petroleum 
C) gold 
D) All of the above are correct.

Question 13

Real Foods produced 400,000 cans of diced tomatoes last year and 460,000 cans of diced tomatoes this year. It employed the same number of labor hours each year. Real Foods' productivity

Accepted Answer

A) decreased 13%. 
B) was unchanged. 
C) increased 13%. 
D) increased 15%. 
A) decreased 13%. 
B) was unchanged. 
C) increased 13%. 
D) increased 15%.

Question 14

On the basis of theory and empirical evidence, economists have reached several conclusions about economic growth. Which of the following is not one of these conclusions?

Accepted Answer

A) A relatively simple way to increase growth rates permanently is to increase a country's saving rate. 
B) Growth is generally inhibited rather than promoted by policies like protective tariffs. 
C) Well-established property rights that are enforced by fair and efficient courts are important to economic growth. 
D) Countries with few domestic natural resources still have opportunities for economic growth. 
A) A relatively simple way to increase growth rates permanently is to increase a country's saving rate. 
B) Growth is generally inhibited rather than promoted by policies like protective tariffs. 
C) Well-established property rights that are enforced by fair and efficient courts are important to economic growth. 
D) Countries with few domestic natural resources still have opportunities for economic growth.

Question 15

When a country eliminates tariffs and other trade restrictions, intending to promote economic growth, it is pursuing _______-oriented policies.

Accepted Answer

The answer of When a country eliminates tariffs and other...

Question 16

Suppose a U.S. automaker builds and operates a new factory in Italy. Future production from such an investment will

Accepted Answer

A) increase Italian GDP more than it increases Italian GNP. 
B) increase Italian GNP more than it increases Italian GDP. 
C) have no affect on Italian GNP, but will increase Italian GDP. 
D) have no affect on either Italian GDP or GNP. 
A) increase Italian GDP more than it increases Italian GNP. 
B) increase Italian GNP more than it increases Italian GDP. 
C) have no affect on Italian GNP, but will increase Italian GDP. 
D) have no affect on either Italian GDP or GNP.

Question 17

Which of the following statements about inputs is correct?

Accepted Answer

A) A forest is an example of a natural resource; it is also an example of a renewable resource. 
B) There is no distinction between human capital and technological knowledge. 
C) Human capital is a non-produced factor of production. 
D) Physical capital is a non-produced factor of production. 
A) A forest is an example of a natural resource; it is also an example of a renewable resource. 
B) There is no distinction between human capital and technological knowledge. 
C) Human capital is a non-produced factor of production. 
D) Physical capital is a non-produced factor of production.

Question 18

Other things the same, if a country increased its saving rate, in 40 years or so it would likely have

Accepted Answer

A) higher productivity, and a higher growth rate of real GDP. 
B) higher productivity, but not a higher growth rate of real GDP. 
C) the same productivity and growth of real GDP it began with. 
D) None of the above is correct. 
A) higher productivity, and a higher growth rate of real GDP. 
B) higher productivity, but not a higher growth rate of real GDP. 
C) the same productivity and growth of real GDP it began with. 
D) None of the above is correct.

Question 19

Two countries with the same saving rates must have the same growth rate of real GDP per person.

Accepted Answer

A) True 
 B)False

Question 20

If an American-based firm opens and operates a new clothing factory in Honduras, then it is engaging in

Accepted Answer

A) foreign portfolio investment. 
B) foreign financial investment. 
C) foreign direct investment. 
D) indirect foreign investment. 
A) foreign portfolio investment. 
B) foreign financial investment. 
C) foreign direct investment. 
D) indirect foreign investment.

Exam 25: Production and Growth

In one day Madison Laundry washed 4,000 pounds of laundry with 5 workers who each worked 8 hours. What was its productivity?

The production function for Country A exhibits constant returns to scale. Suppose that physical capital per worker, human capital per worker, and natural resources per worker all triple. At the same time, Country A's technological knowledge doubles. Productivity

In 2012, the imaginary nation of Kanmiw had a population of 8,044 and real GDP of 36,198,000. In 2013 it had a population of 7,800 and real GDP of 35,880,000. What was the growth rate of real GDP per person in Kanmiw between 2012 and 2013?

If a country has a higher level of productivity than another, then it also has a higher level of real GDP.

Countries that pursued outward-oriented policies in the 20th century

A country's standard of living depends on its ability to produce goods and services.

Suppose that an American company opens and operates a restaurant in Ireland. This is an example of

The behavior of market prices over time indicates that natural resources are

Country A had a population of 2,000, of whom 1,300 worked an average of 8 hours a day and had a productivity of 5. Country B had a population of 2,500, of whom 1,700 worked 8 hours a day and had productivity of 4. Country

In the equation for the production function H/L represents

An understanding of the best ways to produce goods and services is called

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

Real Foods produced 400,000 cans of diced tomatoes last year and 460,000 cans of diced tomatoes this year. It employed the same number of labor hours each year. Real Foods' productivity

On the basis of theory and empirical evidence, economists have reached several conclusions about economic growth. Which of the following is not one of these conclusions?

When a country eliminates tariffs and other trade restrictions, intending to promote economic growth, it is pursuing _______-oriented policies.

Suppose a U.S. automaker builds and operates a new factory in Italy. Future production from such an investment will

Which of the following statements about inputs is correct?

Other things the same, if a country increased its saving rate, in 40 years or so it would likely have

Two countries with the same saving rates must have the same growth rate of real GDP per person.

If an American-based firm opens and operates a new clothing factory in Honduras, then it is engaging in

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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