Question 1

The level of real GDP 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 2

Which list contains,in this order,a country whose real GDP per person grew faster and one whose real GDP per person grew slower than the US over the last 100 years?

Accepted Answer

A) China, Pakistan 
B) United Kingdom, China 
C) Pakistan, Argentina 
D) Argentina, Japan 
A) China, Pakistan 
B) United Kingdom, China 
C) Pakistan, Argentina 
D) Argentina, Japan

Question 3

In 1870,the richest country in the world was

Accepted Answer

A) the United States. 
B) Spain. 
C) the United Kingdom. 
D) Germany. 
A) the United States. 
B) Spain. 
C) the United Kingdom. 
D) Germany.

Question 4

In 2004,Freedonia had a population of 2,700 and real GDP of about 11,610,000.In 2005 it had a population of 2,500 and real GDP of about 10,000,000.What was the approximate growth rate of real GDP per person in Freedonia between 2004 and 2005?

Accepted Answer

A) 7.5 percent 
B) 12.5 percent 
C) 20.5 percent 
D) 35.5 percent 
A) 7.5 percent 
B) 12.5 percent 
C) 20.5 percent 
D) 35.5 percent

Question 5

If the number of workers in an economy doubled,all other inputs stayed the same,and there were constant returns to scale,productivity would

Accepted Answer

A) fall to less than half its former value. 
B) fall but by less than half. 
C) stay the same. 
D) rise but less than double. 
A) fall to less than half its former value. 
B) fall but by less than half. 
C) stay the same. 
D) rise but less than double.

Question 6

Which of the following is not correct?

Accepted Answer

A) China allows only one child per family and couples that violate this rule are subject to substantial fines. 
B) In developed countries, population growth is 3 percent; in many developing countries it is 5 percent. 
C) Educational attainment tends to be lowest in countries with the highest population growth. 
D) Economists generally believe that a country that decreases a high population growth rate can increase its economic growth rate. 
A) China allows only one child per family and couples that violate this rule are subject to substantial fines. 
B) In developed countries, population growth is 3 percent; in many developing countries it is 5 percent. 
C) Educational attainment tends to be lowest in countries with the highest population growth. 
D) Economists generally believe that a country that decreases a high population growth rate can increase its economic growth rate.

Question 7

If your company opens and operates a branch in a foreign country,you will be engaging in foreign direct investment.

Accepted Answer

A) True 
 B)False

Question 8

Human capital is the

Accepted Answer

A) knowledge and skills that workers acquire through education, training, and experience. 
B) stock of equipment and structures that is used to produce goods and services. 
C) total number of hours worked in an economy. 
D) same thing as technological knowledge. 
A) knowledge and skills that workers acquire through education, training, and experience. 
B) stock of equipment and structures that is used to produce goods and services. 
C) total number of hours worked in an economy. 
D) same thing as technological knowledge.

Question 9

Over the past century in the United States,average income as measured by real GDP per person has grown about

Accepted Answer

A) 3.5 percent per year, which implies a doubling about every 20 years. 
B) 2 percent per year, which implies a doubling about every 35 years. 
C) 4 percent per year, which implies a doubling about every 17.5 years. 
D) None of the above is correct. 
A) 3.5 percent per year, which implies a doubling about every 20 years. 
B) 2 percent per year, which implies a doubling about every 35 years. 
C) 4 percent per year, which implies a doubling about every 17.5 years. 
D) None of the above is correct.

Question 10

Over the last century,US real GDP per person grew at a rate of about

Accepted Answer

A) 2% per year, so that it is now 2 times as high as it was a century ago. 
B) 2% per year, so that it is now 8 times as high as it was a century ago. 
C) 4% per year, so that it is now 2 times as high as it was a century ago. 
D) 4% per year, so that it is now 8 times as high as it was a century ago. 
A) 2% per year, so that it is now 2 times as high as it was a century ago. 
B) 2% per year, so that it is now 8 times as high as it was a century ago. 
C) 4% per year, so that it is now 2 times as high as it was a century ago. 
D) 4% per year, so that it is now 8 times as high as it was a century ago.

Question 11

Two countries with the same saving rates must have the same growth rate of real GDP per person.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following would not be considered physical capital?

Accepted Answer

A) a new factory building 
B) a computer used to help Mercury Delivery Service keep track of its orders 
C) on-the-job training 
D) a desk used in an accountant's office 
A) a new factory building 
B) a computer used to help Mercury Delivery Service keep track of its orders 
C) on-the-job training 
D) a desk used in an accountant's office

Question 13

In 2004 Empira had a population of 5,000 and real GDP of 500,000.In 2005 it had a population of 5,100 and real GDP of about 520,200.So,real GDP per person in Empira grew at about

Accepted Answer

A) 2%, which is high compared to average US growth over the last one-hundred years. 
B) 2%, which is about the same as average US growth over the last one-hundred years. 
C) 4% which is high compared to average US growth over the last one-hundred years. 
D) 4% which is about the same as average US growth over the last one-hundred years. 
A) 2%, which is high compared to average US growth over the last one-hundred years. 
B) 2%, which is about the same as average US growth over the last one-hundred years. 
C) 4% which is high compared to average US growth over the last one-hundred years. 
D) 4% which is about the same as average US growth over the last one-hundred years.

Question 14

If there are constant returns to scale,the production function can be written as

Accepted Answer

A) xY = 2xAF(L, K, H, N). 
B) Y/L = A F(xL, xK, xH, xN). 
C) Y/L = A F( 1, K/L, H/L, N/L). 
D) L = AF(Y, K, H, N). 
A) xY = 2xAF(L, K, H, N). 
B) Y/L = A F(xL, xK, xH, xN). 
C) Y/L = A F( 1, K/L, H/L, N/L). 
D) L = AF(Y, K, H, N).

Question 15

Proprietary technology is technology that is

Accepted Answer

A) widely used because it is easy to learn. 
B) widely used because the government subsidizes its use. 
C) not widely used because people could, but have not, taken the time to learn how to apply it. 
D) not widely used because it is known or controlled only by the company that discovered it. 
A) widely used because it is easy to learn. 
B) widely used because the government subsidizes its use. 
C) not widely used because people could, but have not, taken the time to learn how to apply it. 
D) not widely used because it is known or controlled only by the company that discovered it.

Question 16

Why is productivity related to the standard of living? In your answer be sure to explain what productivity and standard of living mean.Make a list of things that determine labor productivity.

Accepted Answer

The standard of living is a measure of h

Question 17

Which of the following is an observation made by Kremer?

Accepted Answer

A) World growth rates increased as the population increased. 
B) Technological progress allows for increasing population because of advances in agriculture. 
C) World population is growing so rapidly that soon it will outstrip natural resources and our standard of living will decline. 
D) All of the above are observations made by Kermer. 
A) World growth rates increased as the population increased. 
B) Technological progress allows for increasing population because of advances in agriculture. 
C) World population is growing so rapidly that soon it will outstrip natural resources and our standard of living will decline. 
D) All of the above are observations made by Kermer.

Question 18

Which of the following statements is not correct?

Accepted Answer

A) The catch-up effect is based on the assumption of diminishing returns to capital. 
B) Investment in poor countries by citizens of rich countries is one way poor countries can learn new technologies. 
C) Malthus argued that charity and government aid was an effective way to reduce poverty. 
D) Peace and justice are keys to growth. 
A) The catch-up effect is based on the assumption of diminishing returns to capital. 
B) Investment in poor countries by citizens of rich countries is one way poor countries can learn new technologies. 
C) Malthus argued that charity and government aid was an effective way to reduce poverty. 
D) Peace and justice are keys to growth.

Question 19

The inputs into production of goods and services that are provided by nature,such as land,rivers,and mineral deposits are called

Accepted Answer

A) physical capital. 
B) natural resources. 
C) human capital. 
D) technological knowledge. 
A) physical capital. 
B) natural resources. 
C) human capital. 
D) technological knowledge.

Question 20

Suppose that over the last ten years productivity grew faster in Oceania than in Freedonia and the population of both countries was unchanged.

Accepted Answer

A) It follows that real GDP per person must be higher in Oceania than in Freedonia. 
B) It follows that real GDP per person grew faster in Oceania than in Freedonia. 
C) It follows that the standard of living must be higher in Oceania than in Freedonia. 
D) All of the above are correct. 
A) It follows that real GDP per person must be higher in Oceania than in Freedonia. 
B) It follows that real GDP per person grew faster in Oceania than in Freedonia. 
C) It follows that the standard of living must be higher in Oceania than in Freedonia. 
D) All of the above are correct.

Exam 25: Production and Growth

The level of real GDP person

Which list contains,in this order,a country whose real GDP per person grew faster and one whose real GDP per person grew slower than the US over the last 100 years?

In 1870,the richest country in the world was

In 2004,Freedonia had a population of 2,700 and real GDP of about 11,610,000.In 2005 it had a population of 2,500 and real GDP of about 10,000,000.What was the approximate growth rate of real GDP per person in Freedonia between 2004 and 2005?

If the number of workers in an economy doubled,all other inputs stayed the same,and there were constant returns to scale,productivity would

Which of the following is not correct?

If your company opens and operates a branch in a foreign country,you will be engaging in foreign direct investment.

Human capital is the

Over the past century in the United States,average income as measured by real GDP per person has grown about

Over the last century,US real GDP per person grew at a rate of about

Two countries with the same saving rates must have the same growth rate of real GDP per person.

Which of the following would not be considered physical capital?

In 2004 Empira had a population of 5,000 and real GDP of 500,000.In 2005 it had a population of 5,100 and real GDP of about 520,200.So,real GDP per person in Empira grew at about

If there are constant returns to scale,the production function can be written as

Proprietary technology is technology that is

Why is productivity related to the standard of living? In your answer be sure to explain what productivity and standard of living mean.Make a list of things that determine labor productivity.

Which of the following is an observation made by Kremer?

Which of the following statements is not correct?

The inputs into production of goods and services that are provided by nature,such as land,rivers,and mineral deposits are called

Suppose that over the last ten years productivity grew faster in Oceania than in Freedonia and the population of both countries was unchanged.

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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