Question 1

Although technological knowledge and human capital are closely related, there is an important difference.

Accepted Answer

A) Human capital refers to society's understanding about how the world works, while technological knowledge refers to the resources expended transmitting this understanding to the labour force 
B) Human capital refers to society's understanding about how the world works, while technological knowledge refers to the resources expended transmitting this understanding to the production function 
C) Technological knowledge refers to society's understanding about how the world works, while human capital refers to the resources expended transmitting this understanding to the labour force 
D) Technological knowledge refers to society's understanding about how the world works, while human capital refers to the resources expended transmitting this understanding to the production function 
A) Human capital refers to society's understanding about how the world works, while technological knowledge refers to the resources expended transmitting this understanding to the labour force 
B) Human capital refers to society's understanding about how the world works, while technological knowledge refers to the resources expended transmitting this understanding to the production function 
C) Technological knowledge refers to society's understanding about how the world works, while human capital refers to the resources expended transmitting this understanding to the labour force 
D) Technological knowledge refers to society's understanding about how the world works, while human capital refers to the resources expended transmitting this understanding to the production function

Question 2

Which of the following is not a way of increasing research and development?

Accepted Answer

A) a tax credit for research 
B) eliminating patents, copyrights and trademarks 
C) investing in human capital 
D) improving intellectual property laws 
A) a tax credit for research 
B) eliminating patents, copyrights and trademarks 
C) investing in human capital 
D) improving intellectual property laws

Question 3

Reducing the rate of population growth is widely thought to:

Accepted Answer

A) be one way that less developed countries can try to raise their standard of living 
B) not be an effective way for less developed countries to raise their standard of living 
C) reduce the standard of living of less developed countries 
D) cause a reduction in productivity 
A) be one way that less developed countries can try to raise their standard of living 
B) not be an effective way for less developed countries to raise their standard of living 
C) reduce the standard of living of less developed countries 
D) cause a reduction in productivity

Question 4

Consumer spending encourages firms to produce more, and increases economic growth.

Accepted Answer

A) True 
 B)False

Question 5

An externality:

Accepted Answer

A) can only be positive 
B) is the effect of one person's actions on the wellbeing of a bystander 
C) is the external forces that increase the growth of GDP in a country 
D) none of the above 
A) can only be positive 
B) is the effect of one person's actions on the wellbeing of a bystander 
C) is the external forces that increase the growth of GDP in a country 
D) none of the above

Question 6

Population growth can:

Accepted Answer

A) promote economic growth as long as policies based on total GDP growth are in place 
B) promote economic growth as long as policies based on GDP per capita are in place 
C) improve worker productivity 
D) create improved education for the nation 
A) promote economic growth as long as policies based on total GDP growth are in place 
B) promote economic growth as long as policies based on GDP per capita are in place 
C) improve worker productivity 
D) create improved education for the nation

Question 7

Investment in equipment that manufactures goods more productively can create economic growth in an economy.

Accepted Answer

A) True 
 B)False

Question 8

Economic growth can be defined as:

Accepted Answer

A) an increasing rate of savings (and investment) 
B) increasing real GDP per person 
C) increasing inflation 
D) increasing nominal GDP 
A) an increasing rate of savings (and investment) 
B) increasing real GDP per person 
C) increasing inflation 
D) increasing nominal GDP

Question 9

Human capital is:

Accepted Answer

A) the stock of equipment and structures that is used to produce goods and services 
B) land, rivers and mineral deposits 
C) the knowledge and skills that workers acquire through education, training and experience 
D) technological knowledge 
A) the stock of equipment and structures that is used to produce goods and services 
B) land, rivers and mineral deposits 
C) the knowledge and skills that workers acquire through education, training and experience 
D) technological knowledge

Question 10

In the long run, a higher savings rate leads to:

Accepted Answer

A) a higher level and growth of productivity and a lower level and growth of income 
B) a lower level and growth of productivity and income 
C) a higher level of productivity and income, but not higher permanent growth rates in productivity and income 
A) a higher level and growth of productivity and a lower level and growth of income 
B) a lower level and growth of productivity and income 
C) a higher level of productivity and income, but not higher permanent growth rates in productivity and income

Question 11

Productivity measures the quality of goods and services that a worker can produce for each hour of work.

Accepted Answer

A) True 
 B)False

Question 12

Continuing economic growth requires:

Accepted Answer

A) no monetary exchange 
B) no technological progress 
C) investment in plant and equipment 
D) investment in plant, equipment, human capital, and technological progress 
A) no monetary exchange 
B) no technological progress 
C) investment in plant and equipment 
D) investment in plant, equipment, human capital, and technological progress

Question 13

The neo-classical approach to economic growth makes a prediction that poor countries will actually grow faster than ____ ones and will eventually _______ in terms of their GDP per capita.

Accepted Answer

A) big; break down 
B) small; break through 
C) rich; catch up 
D) developed; give up 
A) big; break down 
B) small; break through 
C) rich; catch up 
D) developed; give up

Question 14

Workers' productivity depends on technological knowledge and human capital.

Accepted Answer

A) True 
 B)False

Question 15

A capital investment that is owned and operated by a foreign entity is called:

Accepted Answer

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

Question 16

In the countries of South Asia in 1992, only 56 young women were enrolled in secondary school for every 100 young men.Which of the following would help to increase economic growth in these countries?

Accepted Answer

A) an increase in the career opportunities for women 
B) an increase in the awareness of birth control techniques 
C) granting women easier access to education 
D) all of the above 
A) an increase in the career opportunities for women 
B) an increase in the awareness of birth control techniques 
C) granting women easier access to education 
D) all of the above

Question 17

The level of GDP is a good gauge of economic prosperity, and the growth of GDP is a good gauge of economic progress.

Accepted Answer

A) True 
 B)False

Question 18

Australia's annual growth rate of real GDP per person was 2.08 per cent for the period 1950-2000.Which of the following statements is correct?

Accepted Answer

A) This means that Australia's real GDP per person actually rose exactly 2.08 per cent every year 
B) This means that Australia's real GDP per person actually rose less than 2.08 per cent every year 
C) This means that Australia's real GDP per person actually rose more than 2.08 per cent every year 
D) This does not mean that Australia's real GDP per person actually rose exactly 2.08 per cent every year 
A) This means that Australia's real GDP per person actually rose exactly 2.08 per cent every year 
B) This means that Australia's real GDP per person actually rose less than 2.08 per cent every year 
C) This means that Australia's real GDP per person actually rose more than 2.08 per cent every year 
D) This does not mean that Australia's real GDP per person actually rose exactly 2.08 per cent every year

Question 19

Although technological knowledge and human capital are closely related, there is an important difference.Which of the following statements is correct?

Accepted Answer

A) Human capital is the society's understanding about how the world works, whereas technological knowledge is the resources spent transmitting this understanding to the labour force 
B) Technological knowledge is the bridge that links physical and natural resources with human capital 
C) Technological knowledge is the society's understanding about how the world works, whereas human capital is the resources spent transmitting this understanding to the labour force 
D) Technological knowledge is the society's understanding of human capital 
A) Human capital is the society's understanding about how the world works, whereas technological knowledge is the resources spent transmitting this understanding to the labour force 
B) Technological knowledge is the bridge that links physical and natural resources with human capital 
C) Technological knowledge is the society's understanding about how the world works, whereas human capital is the resources spent transmitting this understanding to the labour force 
D) Technological knowledge is the society's understanding of human capital

Question 20

Japan's growth in average income and rise to economic superpower is due, in part, to improved worker productivity.

Accepted Answer

A) True 
 B)False

Exam 26: Production and Growth

Although technological knowledge and human capital are closely related, there is an important difference.

Which of the following is not a way of increasing research and development?

Reducing the rate of population growth is widely thought to:

Consumer spending encourages firms to produce more, and increases economic growth.

An externality:

Population growth can:

Investment in equipment that manufactures goods more productively can create economic growth in an economy.

Economic growth can be defined as:

Human capital is:

In the long run, a higher savings rate leads to:

Productivity measures the quality of goods and services that a worker can produce for each hour of work.

Continuing economic growth requires:

The neo-classical approach to economic growth makes a prediction that poor countries will actually grow faster than ____ ones and will eventually _______ in terms of their GDP per capita.

Workers' productivity depends on technological knowledge and human capital.

A capital investment that is owned and operated by a foreign entity is called:

In the countries of South Asia in 1992, only 56 young women were enrolled in secondary school for every 100 young men.Which of the following would help to increase economic growth in these countries?

The level of GDP is a good gauge of economic prosperity, and the growth of GDP is a good gauge of economic progress.

Australia's annual growth rate of real GDP per person was 2.08 per cent for the period 1950-2000.Which of the following statements is correct?

Although technological knowledge and human capital are closely related, there is an important difference.Which of the following statements is correct?

Japan's growth in average income and rise to economic superpower is due, in part, to improved worker productivity.

Ten Lessons From 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

Application: 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

Business Strategy and Oligopoly

Competition Policy

The Markets for the Factors of Production

Earnings, Unions and Discrimination

Income Inequity and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

Measuring a Nations Income

Measuring the Cost of Living

Saving, Investment and the Financial System

The Natural Rate of Unemployment

The Monetary System

Inflation: Its Causes and Costs

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 Trade-Off Between Inflation and Unemployment

Global Financial Crisis of 2008 and Beyond

Five Debates Over Macroeconomic Policy

Filters

The neo-classical approach to economic growth makes a prediction that poor countries will actually grow faster than ones and will eventually ___ in terms of their GDP per capita.