Question 1

Suppose Albania increases its saving rate.In the long run

Accepted Answer

A) the growth rates of productivity and real GDP per person increase. 
B) productivity and real GDP per person increase. 
C) the growth rate of productivity increases, and real GDP per person increases. 
D) productivity increases, and the growth rate of real GDP per person increases. 
A) the growth rates of productivity and real GDP per person increase. 
B) productivity and real GDP per person increase. 
C) the growth rate of productivity increases, and real GDP per person increases. 
D) productivity increases, and the growth rate of real GDP per person increases.

Question 2

Although growth rates across countries vary some,rankings of country by income remain pretty much the same over time.

Accepted Answer

A) True 
 B)False

Question 3

It is possible for a country without a lot of domestic natural resources to have a high standard of living.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Senator Smith says that in order to help poor countries develop,the United States should: 1.Prevent U.S.corporations from investing in poor countries because they take profits that the poor countries should have;2.reduce or eliminate subsidizes to U.S.producers when poor countries have a comparative advantage producing those goods the U.S.subsidizes;3.Work to promote political stability in poor countries;and 4.Reduce poor countries reliance on market forces in their economies.How many of these ideas are likely to help poor countries grow?

Accepted Answer

A) 1 
B) 2 
C) 3 
D) 4 
A) 1 
B) 2 
C) 3 
D) 4

Question 6

Once an idea enters society's pool of knowledge,the knowledge becomes a

Accepted Answer

A) societal good. 
B) private good. 
C) public good. 
D) proprietary good. 
A) societal good. 
B) private good. 
C) public good. 
D) proprietary good.

Question 7

If the price of a good has risen over time,

Accepted Answer

A) it must have become more scarce. 
B) it must have become less scarce. 
C) it has become more scarce only if the price adjusted for inflation has risen. 
D) it has become less scarce only if the price adjusted for inflation has risen. 
A) it must have become more scarce. 
B) it must have become less scarce. 
C) it has become more scarce only if the price adjusted for inflation has risen. 
D) it has become less scarce only if the price adjusted for inflation has risen.

Question 8

If one wants to know how the material well-being of the average person has changed over time in a given country,one should look at the

Accepted Answer

A) level of real GDP. 
B) growth rate of nominal GDP. 
C) growth rate of real GDP. 
D) growth rate of real GDP per person. 
A) level of real GDP. 
B) growth rate of nominal GDP. 
C) growth rate of real GDP. 
D) growth rate of real GDP per person.

Question 9

In the past there have been violent protests against the World Bank and the World Trade Organization.The protesters argued that these institutions promote free trade and also encourage corporations in rich countries to invest in poor countries.The protesters contended that these practices make rich countries richer and poor countries poorer.An economist would

Accepted Answer

A) disagree with the protesters because these practices will help make both rich and poor countries richer. 
B) disagree with the protesters about free trade, but would agree with the protesters about corporate investment. 
C) disagree with the protesters about corporate investment, but would agree with the protesters about free trade. 
D) agree with the protesters. 
A) disagree with the protesters because these practices will help make both rich and poor countries richer. 
B) disagree with the protesters about free trade, but would agree with the protesters about corporate investment. 
C) disagree with the protesters about corporate investment, but would agree with the protesters about free trade. 
D) agree with the protesters.

Question 10

Outward-oriented policies

Accepted Answer

A) prevent countries from taking advantage of gains from trade. 
B) have generally led to high growth for the countries that pursued them. 
C) receive little support from economists, despite such polices success. 
D) None of the above is correct. 
A) prevent countries from taking advantage of gains from trade. 
B) have generally led to high growth for the countries that pursued them. 
C) receive little support from economists, despite such polices success. 
D) None of the above is correct.

Question 11

In some East Asian countries,average income,as measured by real GDP per person,has recently grown at an average annual rate that implies output should double about every

Accepted Answer

A) 10 years. 
B) 15 years. 
C) 20 years. 
D) 25 years. 
A) 10 years. 
B) 15 years. 
C) 20 years. 
D) 25 years.

Question 12

Compare and contrast the population theories of Malthus and Kremer.

Accepted Answer

The difference is that Malthus predicted

Question 13

Which of the following World Bank poverty aid programs did the Poverty Action Lab find to have no beneficial effects?

Accepted Answer

A) hiring high-school graduates to tutor groups of lagging students in Bombay slums 
B) adding an extra teacher to classrooms in rural India 
C) giving poor Kenyan students drugs to treat intestinal worms 
D) All of the above programs were shown to have no beneficial effects. 
A) hiring high-school graduates to tutor groups of lagging students in Bombay slums 
B) adding an extra teacher to classrooms in rural India 
C) giving poor Kenyan students drugs to treat intestinal worms 
D) All of the above programs were shown to have no beneficial effects.

Question 14

The behavior of market prices over time show that natural resources

Accepted Answer

A) are a limit to economic growth. 
B) are unrelated to economic growth. 
C) are not a limit to economic growth. 
D) are the major determinant of productivity. 
A) are a limit to economic growth. 
B) are unrelated to economic growth. 
C) are not a limit to economic growth. 
D) are the major determinant of productivity.

Question 15

The President of a developing country proposes that his country needs to help domestic firms by imposing trade restrictions.

Accepted Answer

A) These are outward-oriented policies and most economists believe they would have beneficial effects on growth. 
B) These are outward-oriented policies and most economists believe they would have adverse effects on growth. 
C) These are inward-oriented policies and most economists believe they would have beneficial effects on growth. 
D) These are inward-oriented policies and most economists believe they would have adverse effects on growth. 
A) These are outward-oriented policies and most economists believe they would have beneficial effects on growth. 
B) These are outward-oriented policies and most economists believe they would have adverse effects on growth. 
C) These are inward-oriented policies and most economists believe they would have beneficial effects on growth. 
D) These are inward-oriented policies and most economists believe they would have adverse effects on growth.

Question 16

In the long run,a higher saving rate

Accepted Answer

A) cannot increase the capital stock. 
B) means that people must consume less in the future. 
C) increases productivity. 
D) None of the above is correct. 
A) cannot increase the capital stock. 
B) means that people must consume less in the future. 
C) increases productivity. 
D) None of the above is correct.

Question 17

Which of the following lists contains,in this order,natural resources,human capital,and physical capital?

Accepted Answer

A) For a restaurant: the land the restaurant was built on, the things the Chef learned at Cooking School, the freezers where the chops and steaks are kept. 
B) For a furniture company: wood, the company cafeteria, saws. 
C) For a railroad: fuel, railroad engines, railroad tracks. 
D) None of the above is correct. 
A) For a restaurant: the land the restaurant was built on, the things the Chef learned at Cooking School, the freezers where the chops and steaks are kept. 
B) For a furniture company: wood, the company cafeteria, saws. 
C) For a railroad: fuel, railroad engines, railroad tracks. 
D) None of the above is correct.

Question 18

Which of the following is correct?

Accepted Answer

A) Although levels of real GDP per person vary substantially from country to country, the growth rate of real GDP per person is similar across countries. 
B) Productivity is not closely linked to government policies. 
C) The level of real GDP per person is a good gauge of economic prosperity, and the growth rate of real GDP per person is a good gauge of economic progress. 
D) Productivity may be measured by the growth rate of real GDP per person. 
A) Although levels of real GDP per person vary substantially from country to country, the growth rate of real GDP per person is similar across countries. 
B) Productivity is not closely linked to government policies. 
C) The level of real GDP per person is a good gauge of economic prosperity, and the growth rate of real GDP per person is a good gauge of economic progress. 
D) Productivity may be measured by the growth rate of real GDP per person.

Question 19

Inward-oriented policies

Accepted Answer

A) include imposing tariffs and other trade restrictions. 
B) have generally increased productivity and growth in the countries that pursued them. 
C) promote the production of goods and services the country produce most efficiently. 
D) All of the above are correct. 
A) include imposing tariffs and other trade restrictions. 
B) have generally increased productivity and growth in the countries that pursued them. 
C) promote the production of goods and services the country produce most efficiently. 
D) All of the above are correct.

Question 20

A forest is an example of a nonrenewable resource.

Accepted Answer

A) True 
 B)False

Exam 25: Production and Growth

Suppose Albania increases its saving rate.In the long run

Although growth rates across countries vary some,rankings of country by income remain pretty much the same over time.

It is possible for a country without a lot of domestic natural resources to have a high standard of living.

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

Once an idea enters society's pool of knowledge,the knowledge becomes a

If the price of a good has risen over time,

If one wants to know how the material well-being of the average person has changed over time in a given country,one should look at the

Outward-oriented policies

In some East Asian countries,average income,as measured by real GDP per person,has recently grown at an average annual rate that implies output should double about every

Compare and contrast the population theories of Malthus and Kremer.

Which of the following World Bank poverty aid programs did the Poverty Action Lab find to have no beneficial effects?

The behavior of market prices over time show that natural resources

The President of a developing country proposes that his country needs to help domestic firms by imposing trade restrictions.

In the long run,a higher saving rate

Which of the following lists contains,in this order,natural resources,human capital,and physical capital?

Which of the following is correct?

Inward-oriented policies

A forest is an example of a nonrenewable resource.

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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