Question 1

Journey Motorcycles produced 100 motorcycles using 50 workers who each worked 8 hours a day. Journey's productivity was 1/4.

Accepted Answer

A) True 
 B)False

Question 2

The majority of economists believe that future innovations will not be transformational enough to sustain high economic growth rates in the U.S. and western Europe.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

All else equal, if there are diminishing returns, then which of the following is true if a country increases its capital by one unit?

Accepted Answer

A) Output will rise by more than it did when the previous unit was added. 
B) Output will fall by more than it did when the previous unit was added. 
C) Output will rise but by less than it did when the previous unit was added. 
D) Output will fall but by less then it did when the previous unit was added. 
A) Output will rise by more than it did when the previous unit was added. 
B) Output will fall by more than it did when the previous unit was added. 
C) Output will rise but by less than it did when the previous unit was added. 
D) Output will fall but by less then it did when the previous unit was added.

Question 5

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 6

A country that made its courts less corrupt and its government more stable would likely see its standard of living rise.

Accepted Answer

A) True 
 B)False

Question 7

According to some estimates, over the last two decades China has had an annual average growth rate of about 12 percent.

Accepted Answer

A) True 
 B)False

Question 8

Compare and contrast the population theories of Malthus and Kremer.

Accepted Answer

The difference is that Malthus predicted

Question 9

If over a short time there is an increase in the number of people retired and a decrease in the number of people working, then productivity

Accepted Answer

A) and real GDP per person rise. 
B) rises but real GDP per person falls. 
C) falls and real GDP per person rises. 
D) and real GDP per person fall. 
A) and real GDP per person rise. 
B) rises but real GDP per person falls. 
C) falls and real GDP per person rises. 
D) and real GDP per person fall.

Question 10

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 11

As capital per worker rises, output per worker rises. However, this increase in output per worker is smaller at smaller levels of existing capital per worker.

Accepted Answer

A) True 
 B)False

Question 12

Figure 25-2
​   ​
-Refer to Figure 25-2. Does the figure represent the idea that the amount of capital per worker influences the amount of output per worker, or does the figure represent the idea that the amount of output per worker influences the amount of capital per worker?

Accepted Answer

The figure represents the idea

Question 13

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

Accepted Answer

A) Her seed drill and what she's learned from experience 
B) Her seed drill but not what she's learned from experience 
C) What she's learned from experience but not her seed drill 
D) Neither her seed drill nor what she's learned from experience 
A) Her seed drill and what she's learned from experience 
B) Her seed drill but not what she's learned from experience 
C) What she's learned from experience but not her seed drill 
D) Neither her seed drill nor what she's learned from experience

Question 14

The same size decrease in the amount of capital stock per worker will cause output per worker to fall by more in a country with a relatively high level of capital per worker than in a country with a relatively low level of capital per worker.

Accepted Answer

A) True 
 B)False

Question 15

Assuming constant returns to scale, if two countries are otherwise the same, the one that is poorer grows faster.

Accepted Answer

A) True 
 B)False

Question 16

Figure 25-2
​   ​
-Refer to Figure 25-2. In order for the figure to make sense, do we have to assume that capital is the only determinant of output? Briefly explain.

Accepted Answer

No, we do not have to assume that capita

Question 17

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

How do outward-oriented policies affect a nation's productivity?

Accepted Answer

Most economists believe that poor nation

Question 20

Human capital is the

Accepted Answer

A) stock of equipment and structures that is used to produce goods and services. 
B) total number of hours worked in an economy. 
C) knowledge and skills that workers acquire through education, training, and experience. 
D) same thing as technological knowledge. 
A) stock of equipment and structures that is used to produce goods and services. 
B) total number of hours worked in an economy. 
C) knowledge and skills that workers acquire through education, training, and experience. 
D) same thing as technological knowledge.

Exam 25: Production and Growth

Journey Motorcycles produced 100 motorcycles using 50 workers who each worked 8 hours a day. Journey's productivity was 1/4.

The majority of economists believe that future innovations will not be transformational enough to sustain high economic growth rates in the U.S. and western Europe.

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

All else equal, if there are diminishing returns, then which of the following is true if a country increases its capital by one unit?

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

A country that made its courts less corrupt and its government more stable would likely see its standard of living rise.

According to some estimates, over the last two decades China has had an annual average growth rate of about 12 percent.

Compare and contrast the population theories of Malthus and Kremer.

If over a short time there is an increase in the number of people retired and a decrease in the number of people working, then productivity

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

As capital per worker rises, output per worker rises. However, this increase in output per worker is smaller at smaller levels of existing capital per worker.

Figure 25-2 ​ ​ -Refer to Figure 25-2. Does the figure represent the idea that the amount of capital per worker influences the amount of output per worker, or does the figure represent the idea that the amount of output per worker influences the amount of capital per worker?

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

The same size decrease in the amount of capital stock per worker will cause output per worker to fall by more in a country with a relatively high level of capital per worker than in a country with a relatively low level of capital per worker.

Assuming constant returns to scale, if two countries are otherwise the same, the one that is poorer grows faster.

Figure 25-2 ​ ​ -Refer to Figure 25-2. In order for the figure to make sense, do we have to assume that capital is the only determinant of output? Briefly explain.

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

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

How do outward-oriented policies affect a nation's productivity?

Human capital is the

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

Filters

Figure 25-2 -Refer to Figure 25-2. Does the figure represent the idea that the amount of capital per worker influences the amount of output per worker, or does the figure represent the idea that the amount of output per worker influences the amount of capital per worker?

Figure 25-2 -Refer to Figure 25-2. In order for the figure to make sense, do we have to assume that capital is the only determinant of output? Briefly explain.