Question 1

Which of the following countries achieved higher economic growth, in part by mandating a reduction in population growth?

Accepted Answer

A) Great Britain 
B) China 
C) Australia 
D) France 
A) Great Britain 
B) China 
C) Australia 
D) France

Question 2

In the production function Y=AF(L,K,H,N), Y represents the quantity of output; L represents the quantity of labor; K represents the quantity of physical capital; and H represents the quantity of human capital. What does N represent?

Accepted Answer

N represen

Question 3

Both the standard of living and the growth of real GDP per person vary widely across countries.

Accepted Answer

A) True 
 B)False

Question 4

If a production function has constant returns to scale, then if all inputs double so does production.

Accepted Answer

A) True 
 B)False

Question 5

At first patents might seem like a deterrent to growth because in effect they restrict the use of new technology. Yet many economists believe that patents generate growth. Explain why.

Accepted Answer

Once someone comes up with an idea it is

Question 6

Which of the following statements accurately describes catch-up growth?

Accepted Answer

A) In one generation, China will be one of the richest countries in the world, if China's GDP per person continues to grow 9% per year. 
B) In one generation, Zimbabwe will be one of middle-income countries, since Zimbabwe's per person GDP fell by 27% in the last couple of decades. 
C) In one generation, even if China's GDP per person will decline 9% per year, China will remain one of richest countries in the world. 
D) In one generation, Zimbabwe will be the world richest country, since Zimbabwe's per person GDP grew 9% in the last couple of decades. 
A) In one generation, China will be one of the richest countries in the world, if China's GDP per person continues to grow 9% per year. 
B) In one generation, Zimbabwe will be one of middle-income countries, since Zimbabwe's per person GDP fell by 27% in the last couple of decades. 
C) In one generation, even if China's GDP per person will decline 9% per year, China will remain one of richest countries in the world. 
D) In one generation, Zimbabwe will be the world richest country, since Zimbabwe's per person GDP grew 9% in the last couple of decades.

Question 7

Educational attainment tends to be

Accepted Answer

A) low in countries with high population growth. 
B) low in countries with low population growth. 
C) high in countries with high population growth. 
D) unrelated to population growth. 
A) low in countries with high population growth. 
B) low in countries with low population growth. 
C) high in countries with high population growth. 
D) unrelated to population growth.

Question 8

The key determinant of the standard of living in a country is

Accepted Answer

A) the amount of goods and services produced from each hour of a worker's time. 
B) the total amount of goods and services produced within the country. 
C) the total amount of its physical capital. 
D) its growth rate of real GDP. 
A) the amount of goods and services produced from each hour of a worker's time. 
B) the total amount of goods and services produced within the country. 
C) the total amount of its physical capital. 
D) its growth rate of real GDP.

Question 9

One reason that governments may find it useful to sponsor universities and basic research is that to a large extent knowledge is generally a private good.

Accepted Answer

A) True 
 B)False

Question 10

An increase in a country's saving rate permanently raises its productivity.

Accepted Answer

A) True 
 B)False

Question 11

Other things the same, an economy's factors of production are likely to be used more effectively if there is an economywide respect for property rights.

Accepted Answer

A) True 
 B)False

Question 12

The United Kingdom 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 13

Educated people may generate ideas that increase production. These ideas

Accepted Answer

A) produce a return to society from education that is greater than the return to the individual. 
B) never justify government subsides for education. 
C) are the source of personal benefits of education. 
D) are generally irrelevant for economic growth. 
A) produce a return to society from education that is greater than the return to the individual. 
B) never justify government subsides for education. 
C) are the source of personal benefits of education. 
D) are generally irrelevant for economic growth.

Question 14

Other things the same, which of the following would increase productivity?

Accepted Answer

A) An increase in either human or physical capital 
B) An increase in human capital but not an increase in physical capital 
C) An increase in physical capital but not an increase in human capital 
D) Neither an increase in human capital nor an increase in physical capital 
A) An increase in either human or physical capital 
B) An increase in human capital but not an increase in physical capital 
C) An increase in physical capital but not an increase in human capital 
D) Neither an increase in human capital nor an increase in physical capital

Question 15

When a country imposes tariffs, intending to protect domestic firms from foreign competition, it is pursuing _______-oriented policies.

Accepted Answer

The answer of When a country imposes tariffs, intending to...

Question 16

Which of the following countries has had the greatest growth rate of real GDP per person within the last 10 years?

Accepted Answer

A) Germany 
B) Bangladesh 
C) Argentina 
D) India 
A) Germany 
B) Bangladesh 
C) Argentina 
D) India

Question 17

Randomized control trials can help economists evaluate the impact of global aid programs in the same way that doctors test drugs.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The rate of real economic growth is

Accepted Answer

A) underestimated using measures of income growth. 
B) overestimated using measures of income growth. 
C) underestimated using measures of technological growth. 
D) overestimated using measures of technological growth. 
A) underestimated using measures of income growth. 
B) overestimated using measures of income growth. 
C) underestimated using measures of technological growth. 
D) overestimated using measures of technological growth.

Question 20

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.

Exam 25: Production and Growth

Which of the following countries achieved higher economic growth, in part by mandating a reduction in population growth?

In the production function Y=AF(L,K,H,N), Y represents the quantity of output; L represents the quantity of labor; K represents the quantity of physical capital; and H represents the quantity of human capital. What does N represent?

Both the standard of living and the growth of real GDP per person vary widely across countries.

If a production function has constant returns to scale, then if all inputs double so does production.

At first patents might seem like a deterrent to growth because in effect they restrict the use of new technology. Yet many economists believe that patents generate growth. Explain why.

Which of the following statements accurately describes catch-up growth?

Educational attainment tends to be

The key determinant of the standard of living in a country is

One reason that governments may find it useful to sponsor universities and basic research is that to a large extent knowledge is generally a private good.

An increase in a country's saving rate permanently raises its productivity.

Other things the same, an economy's factors of production are likely to be used more effectively if there is an economywide respect for property rights.

The United Kingdom is

Educated people may generate ideas that increase production. These ideas

Other things the same, which of the following would increase productivity?

When a country imposes tariffs, intending to protect domestic firms from foreign competition, it is pursuing _______-oriented policies.

Which of the following countries has had the greatest growth rate of real GDP per person within the last 10 years?

Randomized control trials can help economists evaluate the impact of global aid programs in the same way that doctors test drugs.

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

The rate of real economic growth is

Japan is

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 Nations 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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