Question 1

Productivity can be found as number of hours worked divided by output.

Accepted Answer

A) True 
 B)False

Question 2

In the US each additional year of schooling has historically raised a person's wage on average by about

Accepted Answer

A) 5%.In less developed countries the gap between the wages of educated and uneducated workers is smaller. 
B) 10%.In less developed countries the gap between the wages of educated and uneducated workers is smaller. 
C) 5%.In less developed countries the gap between the wages of educated and uneducated workers is larger. 
D) 10%.In less developed countries the gap between the wages of educated and uneducated workers is larger. 
A) 5%.In less developed countries the gap between the wages of educated and uneducated workers is smaller. 
B) 10%.In less developed countries the gap between the wages of educated and uneducated workers is smaller. 
C) 5%.In less developed countries the gap between the wages of educated and uneducated workers is larger. 
D) 10%.In less developed countries the gap between the wages of educated and uneducated workers is larger.

Question 3

Which of the following is a renewable natural resource?

Accepted Answer

A) timber 
B) coal 
C) gold 
D) All of the above are correct. 
A) timber 
B) coal 
C) gold 
D) All of the above are correct.

Question 4

Inward-oriented policies

Accepted Answer

A) are generally supported by economists. 
B) are primarily concerned with the development of human capital. 
C) in some ways are like prohibiting the use of certain technologies. 
D) All of the above are correct. 
A) are generally supported by economists. 
B) are primarily concerned with the development of human capital. 
C) in some ways are like prohibiting the use of certain technologies. 
D) All of the above are correct.

Question 5

Economists generally believe that inward-oriented policies are more likely to foster growth than outward oriented policies.

Accepted Answer

A) True 
 B)False

Question 6

The Economic Development Minister of a country has a list of things she thinks may explain her country's low growth of real GDP per person relative to other countries.She asks you to pick the one you think most likely explains her country's low growth.Which of the following contributes to low growth?

Accepted Answer

A) poorly enforced property rights. 
B) outward oriented trade policies. 
C) policies that permit foreign investment. 
D) All of the above are correct. 
A) poorly enforced property rights. 
B) outward oriented trade policies. 
C) policies that permit foreign investment. 
D) All of the above are correct.

Question 7

In the United States,as measured by real GDP per person,average income is about how many times as high as average income a century ago?

Accepted Answer

A) 2 
B) 4 
C) 6 
D) 8 
A) 2 
B) 4 
C) 6 
D) 8

Question 8

If a country made it easier for people to establish and prove the ownership of their property,real GDP per person would likely rise.

Accepted Answer

A) True 
 B)False

Question 9

Some poor countries appear to be falling behind rather than catching up with rich countries.Which of the following could explain the failure of a poor county to catch up?

Accepted Answer

A) The poor country has outward-oriented trade policies. 
B) The poor country allows foreign direct investment. 
C) The poor country has poorly developed property rights. 
D) All of the above are correct. 
A) The poor country has outward-oriented trade policies. 
B) The poor country allows foreign direct investment. 
C) The poor country has poorly developed property rights. 
D) All of the above are correct.

Question 10

Which of the following would increase productivity?

Accepted Answer

A) an increase in the physical capital stock per worker 
B) an increase in human capital per worker 
C) an increase in natural resources per worker 
D) All of the above are correct. 
A) an increase in the physical capital stock per worker 
B) an increase in human capital per worker 
C) an increase in natural resources per worker 
D) All of the above are correct.

Question 11

In a market economy,we know that a resource has become scarcer when

Accepted Answer

A) its price rises relative to other prices. 
B) it is non-renewable and some of it is used. 
C) people search for substitutes. 
D) All of the above are correct. 
A) its price rises relative to other prices. 
B) it is non-renewable and some of it is used. 
C) people search for substitutes. 
D) All of the above are correct.

Question 12

In countries where women are discriminated against,policies that increase their career and educational opportunities are likely to decrease the birth rate.

Accepted Answer

A) True 
 B)False

Question 13

A nation's standard of living is measured by its

Accepted Answer

A) real GDP. 
B) real GDP per person. 
C) nominal GDP. 
D) nominal GDP per person. 
A) real GDP. 
B) real GDP per person. 
C) nominal GDP. 
D) nominal GDP per person.

Question 14

Foreign saving is used for domestic investment when foreigners engage in

Accepted Answer

A) foreign direct investment. 
B) foreign portfolio investment. 
C) either foreign direct investment or foreign portfolio investment. 
D) None of the above is correct. 
A) foreign direct investment. 
B) foreign portfolio investment. 
C) either foreign direct investment or foreign portfolio investment. 
D) None of the above is correct.

Question 15

Real GDP per person

Accepted Answer

A) minus real GDP per person from the previous period equals the growth rate of real GDP per person. 
B) provides more meaningful comparisons across time and countries than real GDP. 
C) provides a less useful measure of the standard of living than nominal GDP per person. 
D) All of the above are correct. 
A) minus real GDP per person from the previous period equals the growth rate of real GDP per person. 
B) provides more meaningful comparisons across time and countries than real GDP. 
C) provides a less useful measure of the standard of living than nominal GDP per person. 
D) All of the above are correct.

Question 16

The slope of the production function with capital per worker on the horizontal axis and output per worker on the vertical axis

Accepted Answer

A) is positive and gets steeper as capital per worker rises. 
B) is positive and gets flatter as capital per worker rises. 
C) is negative and gets steeper as capital per worker rises. 
D) is negative and gets flatter as capital per worker rises. 
A) is positive and gets steeper as capital per worker rises. 
B) is positive and gets flatter as capital per worker rises. 
C) is negative and gets steeper as capital per worker rises. 
D) is negative and gets flatter as capital per worker rises.

Question 17

If they could increase their growth rates slightly,countries with low income would catch up with rich countries in about ten years.

Accepted Answer

A) True 
 B)False

Question 18

The traditional view of the production process is that capital is subject to

Accepted Answer

A) diminishing returns, so that other things the same real GDP in poor countries should grow at a faster rate than in rich countries. 
B) diminishing returns, so that other things the same real GDP in poor countries should grow at a slower rate than in rich countries. 
C) increasing returns, so that other things the same real GDP in poor countries should grow at a faster rate than in rich countries. 
D) increasing returns, so that other things the same real GDP in poor countries should grow at a slower rate than in rich countries. 
A) diminishing returns, so that other things the same real GDP in poor countries should grow at a faster rate than in rich countries. 
B) diminishing returns, so that other things the same real GDP in poor countries should grow at a slower rate than in rich countries. 
C) increasing returns, so that other things the same real GDP in poor countries should grow at a faster rate than in rich countries. 
D) increasing returns, so that other things the same real GDP in poor countries should grow at a slower rate than in rich countries.

Question 19

Real GDP per person is $20,000 in Meridian,$15,000 in Articland,and $5,000 in Equitorial.Saving per person is $1,000 in all three countries.Other things equal,we would expect that

Accepted Answer

A) all three countries will grow at the same rate. 
B) Meridian will grow the fastest. 
C) Articland will grow the fastest. 
D) Equitorial will grow the fastest. 
A) all three countries will grow at the same rate. 
B) Meridian will grow the fastest. 
C) Articland will grow the fastest. 
D) Equitorial will grow the fastest.

Question 20

The traditional view of the production process is that capital is subject to

Accepted Answer

A) constant returns. 
B) increasing returns. 
C) diminishing returns. 
D) diminishing returns for low levels of capital, and increasing returns for high levels of capital. 
A) constant returns. 
B) increasing returns. 
C) diminishing returns. 
D) diminishing returns for low levels of capital, and increasing returns for high levels of capital.

Exam 25: Production and Growth

Productivity can be found as number of hours worked divided by output.

In the US each additional year of schooling has historically raised a person's wage on average by about

Which of the following is a renewable natural resource?

Inward-oriented policies

Economists generally believe that inward-oriented policies are more likely to foster growth than outward oriented policies.

In the United States,as measured by real GDP per person,average income is about how many times as high as average income a century ago?

If a country made it easier for people to establish and prove the ownership of their property,real GDP per person would likely rise.

Some poor countries appear to be falling behind rather than catching up with rich countries.Which of the following could explain the failure of a poor county to catch up?

Which of the following would increase productivity?

In a market economy,we know that a resource has become scarcer when

In countries where women are discriminated against,policies that increase their career and educational opportunities are likely to decrease the birth rate.

A nation's standard of living is measured by its

Foreign saving is used for domestic investment when foreigners engage in

Real GDP per person

The slope of the production function with capital per worker on the horizontal axis and output per worker on the vertical axis

If they could increase their growth rates slightly,countries with low income would catch up with rich countries in about ten years.

The traditional view of the production process is that capital is subject to

Real GDP per person is $20,000 in Meridian,$15,000 in Articland,and $5,000 in Equitorial.Saving per person is $1,000 in all three countries.Other things equal,we would expect that

The traditional view of the production process is that capital is subject to

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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