Question 1

What is the difference between human capital and technology?

Accepted Answer

Technology is society's understanding of

Question 2

The level of real GDP is a good measure of economic prosperity, and the growth of real GDP is a good measure of __________.

Accepted Answer

The answer of The level of real GDP is a...

Question 3

An increase in the saving rate permanently increases the growth rate of real GDP per person.

Accepted Answer

A) True 
 B)False

Question 4

How would an economist typically assess the extent of economic progress in a nation?

Accepted Answer

An economist typical

Question 5

In recent decades, Americans have increased their purchase of stocks of foreign-based companies. The Americans who have bought these stocks were engaged in

Accepted Answer

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

Question 6

Economists differ in their views of the role of the government in promoting economic growth. At the very least, the government should

Accepted Answer

A) lend support to the invisible hand by maintaining property rights and political stability. 
B) limit foreign investment to industries that don't already exist in the country. 
C) impose trade restrictions to protect the interests of domestic producers and consumers. 
D) subsidize key industries. 
A) lend support to the invisible hand by maintaining property rights and political stability. 
B) limit foreign investment to industries that don't already exist in the country. 
C) impose trade restrictions to protect the interests of domestic producers and consumers. 
D) subsidize key industries.

Question 7

In what sense is capital accumulation costly to a society?

Accepted Answer

Capital accumulation requires

Question 8

The level of real GDP per person

Accepted Answer

A) differs widely across countries, but the growth rate of real GDP per person is similar across countries. 
B) is very similar across countries, but the growth rate of real GDP per person differs widely across countries. 
C) and the growth rate of real GDP per person are similar across countries. 
D) and the growth rate of real GDP per person vary widely across countries. 
A) differs widely across countries, but the growth rate of real GDP per person is similar across countries. 
B) is very similar across countries, but the growth rate of real GDP per person differs widely across countries. 
C) and the growth rate of real GDP per person are similar across countries. 
D) and the growth rate of real GDP per person vary widely across countries.

Question 9

Susan and Calvin paint houses. Susan consistently paints about 400 square feet of a house's exterior per hour, while Calvin consistently paints about 300 square feet per hour. Susan's __________ exceeds that of Calvin.

Accepted Answer

The answer of Susan and Calvin paint houses. Susan consistently...

Question 10

Countries with high population growth rates tend to have lower levels of educational attainment.

Accepted Answer

A) True 
 B)False

Question 11

Over the period 1870-2014, the United States experienced an average annual growth rate of real GDP per person of about 1.8 percent per year.

Accepted Answer

A) True 
 B)False

Question 12

Consider the production function Y=4F(L,K,H,N). Suppose F(10, 8, 6, 5) = 100 and F(30, 24, 18, 15) = 300. Does the production function have the property of constant returns to scale? Why or why not?

Accepted Answer

Yes, the production function has the pro

Question 13

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 14

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 N represents the quantity of natural resources. What does H represent?

Accepted Answer

H represen

Question 15

What are inward-oriented policies? Do most economists recommend these types of policies to poor countries?

Accepted Answer

Inward-oriented policies are i

Question 16

Economist Michael Kremer found that world growth rates fell as population increased.

Accepted Answer

A) True 
 B)False

Question 17

From 1960 to 1990, in which of the following countries has investment resulted in economic growth sufficiently higher than that in the United States?

Accepted Answer

A) India 
B) Mexico 
C) South Korea 
D) Zimbabwe 
A) India 
B) Mexico 
C) South Korea 
D) Zimbabwe

Question 18

Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to compute the percentage increase in real GDP per person from 1993 to 2012.
 $$\begin{array} { | l | l | l | } 
\hline \text { Year } & \text { Real GDP (2009 prices) } & \text { Population } \
\hline 1993 & \$ 9,510,800 \text { million } & 257.8 \text { million } \
\hline 2012 & \$ 15,470,700 \text { million } & 313.85 \text { million } \
\hline
\end{array}$$

Accepted Answer

Real GDP per person in 1993 wa

Question 19

Japan's status as a rich nation is attributable to

Accepted Answer

A) Japan's quantities of natural resources, but not to international trade. 
B) international trade, but not to Japan's domestic quantities of natural resources. 
C) the fact that Japanese productivity has remained nearly constant for more than 100 years. 
D) the fact that the Japanese have downplayed the role of human capital in economic growth. 
A) Japan's quantities of natural resources, but not to international trade. 
B) international trade, but not to Japan's domestic quantities of natural resources. 
C) the fact that Japanese productivity has remained nearly constant for more than 100 years. 
D) the fact that the Japanese have downplayed the role of human capital in economic growth.

Question 20

Each day Lea works 7 hours and produces 9 units of goods and services. Clara works 11 hours each day and produces 10 units of goods and services. It follows that

Accepted Answer

A) Lea's productivity is higher than Clara's. 
B) Clara's productivity is higher than Lea's. 
C) Lea's income per hour will be higher than Clara's. 
D) Lea's income per day will be higher than Clara's. 
A) Lea's productivity is higher than Clara's. 
B) Clara's productivity is higher than Lea's. 
C) Lea's income per hour will be higher than Clara's. 
D) Lea's income per day will be higher than Clara's.

Exam 25: Production and Growth

What is the difference between human capital and technology?

The level of real GDP is a good measure of economic prosperity, and the growth of real GDP is a good measure of __________.

An increase in the saving rate permanently increases the growth rate of real GDP per person.

How would an economist typically assess the extent of economic progress in a nation?

In recent decades, Americans have increased their purchase of stocks of foreign-based companies. The Americans who have bought these stocks were engaged in

Economists differ in their views of the role of the government in promoting economic growth. At the very least, the government should

In what sense is capital accumulation costly to a society?

The level of real GDP per person

Susan and Calvin paint houses. Susan consistently paints about 400 square feet of a house's exterior per hour, while Calvin consistently paints about 300 square feet per hour. Susan's __________ exceeds that of Calvin.

Countries with high population growth rates tend to have lower levels of educational attainment.

Over the period 1870-2014, the United States experienced an average annual growth rate of real GDP per person of about 1.8 percent per year.

Consider the production function Y=4F(L,K,H,N). Suppose F(10, 8, 6, 5) = 100 and F(30, 24, 18, 15) = 300. Does the production function have the property of constant returns to scale? Why or why not?

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

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 N represents the quantity of natural resources. What does H represent?

What are inward-oriented policies? Do most economists recommend these types of policies to poor countries?

Economist Michael Kremer found that world growth rates fell as population increased.

From 1960 to 1990, in which of the following countries has investment resulted in economic growth sufficiently higher than that in the United States?

Japan's status as a rich nation is attributable to

Each day Lea works 7 hours and produces 9 units of goods and services. Clara works 11 hours each day and produces 10 units of goods and services. It follows that

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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