Question 1

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

Accepted Answer

A) coal 
B) honey 
C) livestock 
D) All of the above are correct. 
A) coal 
B) honey 
C) livestock 
D) All of the above are correct.

Question 2

An increase in the saving rate would,other things the same,

Accepted Answer

A) increase growth more for a poor country than a rich country, and raise growth permanently. 
B) increase growth more for a poor country than a rich country, but raise growth temporarily. 
C) increase growth more for a rich country than a poor country, and raise growth permanently. 
D) increase growth more for a rich country than a poor country, but raise growth temporarily. 
A) increase growth more for a poor country than a rich country, and raise growth permanently. 
B) increase growth more for a poor country than a rich country, but raise growth temporarily. 
C) increase growth more for a rich country than a poor country, and raise growth permanently. 
D) increase growth more for a rich country than a poor country, but raise growth temporarily.

Question 3

Your company discovers a better way to produce mousetraps,but your better methods are not apparent from the mousetraps themselves.Your knowledge of how to more efficiently produce mousetraps is

Accepted Answer

A) common technological knowledge. 
B) common, but not technological, knowledge. 
C) proprietary technological knowledge. 
D) proprietary, but not technological, knowledge. 
A) common technological knowledge. 
B) common, but not technological, knowledge. 
C) proprietary technological knowledge. 
D) proprietary, but not technological, knowledge.

Question 4

Using the production function and notation in the text,K/L measures

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 5

In 2003 The Presidents of the African countries of Mali and Burkina Faso

Accepted Answer

A) requested that rich countries apply free trade rules to those products where poor countries have a proven competitive advantage. 
B) argued that free trade was not a policy that developing nations would find it wise to follow. 
C) said that at their current stage of development that most of the principles of market economies were not practical. 
D) None of the above is correct. 
A) requested that rich countries apply free trade rules to those products where poor countries have a proven competitive advantage. 
B) argued that free trade was not a policy that developing nations would find it wise to follow. 
C) said that at their current stage of development that most of the principles of market economies were not practical. 
D) None of the above is correct.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

If a country were to increase its saving rate,then in the long run it would also increase its

Accepted Answer

A) level of income. 
B) growth rate of income. 
C) growth rate of productivity. 
D) All of the above are correct. 
A) level of income. 
B) growth rate of income. 
C) growth rate of productivity. 
D) All of the above are correct.

Question 8

Which of the following nations experienced average rates of economic growth of less than 2.0 percent over the last 100 years?

Accepted Answer

A) Bangladesh 
B) Pakistan 
C) United Kingdom 
D) All of the above are correct. 
A) Bangladesh 
B) Pakistan 
C) United Kingdom 
D) All of the above are correct.

Question 9

Which of the following is correct?

Accepted Answer

A) Over the last 100 years Japan had a higher average growth rate than the United States.It follows that the standard of living in Japan is greater than in the United States. 
B) The typical person in Bangladesh today has about the same real income as a typical American 100 years ago. 
C) The typical citizen of China today has about half as much real income as the typical American today. 
D) None of the above is correct. 
A) Over the last 100 years Japan had a higher average growth rate than the United States.It follows that the standard of living in Japan is greater than in the United States. 
B) The typical person in Bangladesh today has about the same real income as a typical American 100 years ago. 
C) The typical citizen of China today has about half as much real income as the typical American today. 
D) None of the above is correct.

Question 10

In the 1800s,Europeans purchased stock in American companies that used the funds to build railroads and factories.The Europeans who did this made

Accepted Answer

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

Question 11

If a country's saving rate declined,then other things the same,in the long run it would have

Accepted Answer

A) lower productivity, but not lower real GDP per person. 
B) lower productivity and lower real GDP per person. 
C) lower real GDP per person, but not lower productivity 
D) neither lower productivity nor lower real GDP per person. 
A) lower productivity, but not lower real GDP per person. 
B) lower productivity and lower real GDP per person. 
C) lower real GDP per person, but not lower productivity 
D) neither lower productivity nor lower real GDP per person.

Question 12

Other things the same,a country that increases its saving rate increases

Accepted Answer

A) its future productivity and future real GDP. 
B) neither its future productivity nor future real GDP. 
C) its future productivity, but not its future real GDP. 
D) its future real GDP, but not its future productivity. 
A) its future productivity and future real GDP. 
B) neither its future productivity nor future real GDP. 
C) its future productivity, but not its future real GDP. 
D) its future real GDP, but not its future productivity.

Question 13

Productivity

Accepted Answer

A) is nearly the same across countries, and so provides no help explaining differences in the standard of living across countries. 
B) explains very little of the differences in the standard of living across countries. 
C) explains some, but not most of the differences in the standard of living across countries. 
D) explains most of the differences in the standard of living across countries. 
A) is nearly the same across countries, and so provides no help explaining differences in the standard of living across countries. 
B) explains very little of the differences in the standard of living across countries. 
C) explains some, but not most of the differences in the standard of living across countries. 
D) explains most of the differences in the standard of living across countries.

Question 14

Which of the following is a part of your Economics professor's human capital?

Accepted Answer

A) the things she learned at some prestigious university 
B) her copy of Mankiw's text 
C) her chalk holder 
D) All of the above are correct. 
A) the things she learned at some prestigious university 
B) her copy of Mankiw's text 
C) her chalk holder 
D) All of the above are correct.

Question 15

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2004.At the start of 2005 the pointy-haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000.These numbers indicate that productivity

Accepted Answer

A) fell by 4%. 
B) fell by 20%. 
C) rose by 12%. 
D) rose by 20%. 
A) fell by 4%. 
B) fell by 20%. 
C) rose by 12%. 
D) rose by 20%.

Question 16

Suppose that real GDP grew more in Country A than in Country B last year.

Accepted Answer

A) Country A must have a higher standard of living than country B. 
B) Country A's productivity must have grown faster than country B's. 
C) Both of the above are correct. 
D) None of the above is correct. 
A) Country A must have a higher standard of living than country B. 
B) Country A's productivity must have grown faster than country B's. 
C) Both of the above are correct. 
D) None of the above is correct.

Question 17

Last year real GDP in Oceania was 561.0 billion and the population was 2.2 million.The year before real GDP was 500.0 billion and the population was 2.0 million.What was the approximate growth rate of real GDP per person?

Accepted Answer

A) 12 percent 
B) 10 percent 
C) 4 percent 
D) 2 percent 
A) 12 percent 
B) 10 percent 
C) 4 percent 
D) 2 percent

Question 18

Which of the following is correct?

Accepted Answer

A) If developing countries limit career and educational opportunities for women, birth rates are likely to be lower. 
B) Growth rates in developed and developing countries are nearly the same. 
C) Historically, in periods where the rate of population growth was high, so was the rate of growth in world real GDP per person. 
D) None of the above is correct. 
A) If developing countries limit career and educational opportunities for women, birth rates are likely to be lower. 
B) Growth rates in developed and developing countries are nearly the same. 
C) Historically, in periods where the rate of population growth was high, so was the rate of growth in world real GDP per person. 
D) None of the above is correct.

Question 19

If an American-based firm opens and operates a new watch factory in Panama,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.

Question 20

Which of the following is considered human capital?

Accepted Answer

A) the comfortable chair in your dorm room where you read economics texts 
B) the amount you get paid each week to work at the library 
C) the things you have learned this semester 
D) any capital goods that require a human to be present to operate 
A) the comfortable chair in your dorm room where you read economics texts 
B) the amount you get paid each week to work at the library 
C) the things you have learned this semester 
D) any capital goods that require a human to be present to operate

Exam 25: Production and Growth

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

An increase in the saving rate would,other things the same,

Your company discovers a better way to produce mousetraps,but your better methods are not apparent from the mousetraps themselves.Your knowledge of how to more efficiently produce mousetraps is

Using the production function and notation in the text,K/L measures

In 2003 The Presidents of the African countries of Mali and Burkina Faso

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

If a country were to increase its saving rate,then in the long run it would also increase its

Which of the following nations experienced average rates of economic growth of less than 2.0 percent over the last 100 years?

Which of the following is correct?

In the 1800s,Europeans purchased stock in American companies that used the funds to build railroads and factories.The Europeans who did this made

If a country's saving rate declined,then other things the same,in the long run it would have

Other things the same,a country that increases its saving rate increases

Productivity

Which of the following is a part of your Economics professor's human capital?

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2004.At the start of 2005 the pointy-haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000.These numbers indicate that productivity

Suppose that real GDP grew more in Country A than in Country B last year.

Last year real GDP in Oceania was 561.0 billion and the population was 2.2 million.The year before real GDP was 500.0 billion and the population was 2.0 million.What was the approximate growth rate of real GDP per person?

Which of the following is correct?

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

Which of the following is considered human capital?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Applications

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

Oligopoly

Monopolistic Competition

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality 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 Basic Tools of Finance

Unemployment

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 Trade Off Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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