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

Despite its status as one of the richest countries in the world, Japan

Accepted Answer

A) has a very low level of productivity. 
B) has few natural resources. 
C) has very little human capital. 
D) engages in a relatively small amount of international trade. 
A) has a very low level of productivity. 
B) has few natural resources. 
C) has very little human capital. 
D) engages in a relatively small amount of international trade.

Question 3

Which of the following is human capital?

Accepted Answer

A) a student loan 
B) understanding how to use a company's accounting software 
C) training videos for new corporate employees 
D) All of the above are correct. 
A) a student loan 
B) understanding how to use a company's accounting software 
C) training videos for new corporate employees 
D) All of the above are correct.

Question 4

Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to compute the percentage increase in real GDP per person from 1987 to 2005. $$\begin{array} { | c | c | c | } 
\hline \text { Year } & \text { Real GDP (2000pricas) } & \text { Papulation } \
\hline 1987 & \$ 6,435,000 \text { millian } & 243 \text { millian } \
\hline 2005 & \$ 11,092,000 \text { millian } & 296.6 \text { million } \
\hline
\end{array}$$

Accepted Answer

Real GDP per person in 1987 was $6,435,0

Question 5

Patents turn new ideas into

Accepted Answer

A) public goods, and increase the incentive to engage in research. 
B) public goods, but decrease the incentive to engage in research. 
C) private goods, and increase the incentive to engage in research. 
D) private goods, but decrease the incentive to engage in research. 
A) public goods, and increase the incentive to engage in research. 
B) public goods, but decrease the incentive to engage in research. 
C) private goods, and increase the incentive to engage in research. 
D) private goods, but decrease the incentive to engage in research.

Question 6

Roughly what percentage of growth in real GDP per person in Britain between 1790 and 1980 was accounted for by improved nutrition according to the estimates of Robert Fogel?

Accepted Answer

A) 30 percent 
B) 20 percent 
C) 10 percent 
D) 5 percent 
A) 30 percent 
B) 20 percent 
C) 10 percent 
D) 5 percent

Question 7

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 8

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

Accepted Answer

A) 1 percent per year. 
B) 2 percent per year. 
C) 3 percent per year. 
D) 5 percent per year. 
A) 1 percent per year. 
B) 2 percent per year. 
C) 3 percent per year. 
D) 5 percent per year.

Question 9

In determining living standards, productivity plays a key role

Accepted Answer

A) for individuals, but not for nations. 
B) for nations, but not for individuals. 
C) for both nations and individuals. 
D) for neither nations nor individuals. 
A) for individuals, but not for nations. 
B) for nations, but not for individuals. 
C) for both nations and individuals. 
D) for neither nations nor individuals.

Question 10

In medieval Europe an important technological advance was the use of the padded horse collar for plowing. Once this idea was thought of, other people used it. This illustrates that knowledge is generally a

Accepted Answer

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

Question 11

All else equal, if there are diminishing returns, then what happens to productivity if both capital and labor increase?

Accepted Answer

A) Productivity will definitely fall. 
B) Productivity will definitely be unchanged. 
C) Productivity will definitely rise. 
D) None of the above are necessarily correct. 
A) Productivity will definitely fall. 
B) Productivity will definitely be unchanged. 
C) Productivity will definitely rise. 
D) None of the above are necessarily correct.

Question 12

If Country A produces 7,000 units of goods and services using 700 hours of labor, and if Country B produces 5,500 units of goods and services using 500 units of labor, then productivity is lower in Country A than in Country B.

Accepted Answer

A) True 
 B)False

Question 13

Consider three imaginary countries. In Aziria, saving amounts to $3,000 and consumption amounts to $7,000; in Graniva, saving amounts to $2,000 and consumption amounts to $8,000; and in Tanistan, saving amounts to $4,500 and consumption amounts to $10,500. The saving rate is

Accepted Answer

A) higher in Aziria than in Tanistan, and it is higher in Tanistan than in Graniva. 
B) higher in Graniva than in Tanistan, and it is higher in Tanistan than in Aziria. 
C) higher in Tanistan than in Graniva, and it is the same in Graniva and Aziria. 
D) higher in Aziria than in Graniva, and it is the same in Aziria and Tanistan. 
A) higher in Aziria than in Tanistan, and it is higher in Tanistan than in Graniva. 
B) higher in Graniva than in Tanistan, and it is higher in Tanistan than in Aziria. 
C) higher in Tanistan than in Graniva, and it is the same in Graniva and Aziria. 
D) higher in Aziria than in Graniva, and it is the same in Aziria and Tanistan.

Question 14

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 15

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 are 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 are correct.

Question 16

Nathan owns a bakery that bakes only cakes. All of his bakers work 8 hours per day. In 2009, he employed 5 bakers who produced a total of 200 cakes each day. In 2010, he employed 6 bakers who produced a total of 249 cakes each day. The bakery's productivity

Accepted Answer

A) decreased by 2.33%. 
B) increased by 2.33%. 
C) increased by 3.75%. 
D) increased by 24.50%. 
A) decreased by 2.33%. 
B) increased by 2.33%. 
C) increased by 3.75%. 
D) increased by 24.50%.

Question 17

Figure 12-1. On the horizontal axis, K/L represents capital (K) per worker (L). On the vertical axis, Y/L represents output (Y) per worker (L).  
-Refer to Figure 12-1. The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

Accepted Answer

A) In the long run, a higher saving rate leads to a higher level of productivity. 
B) In the long run, a higher saving rate leads to a higher level of income. 
C) In the long run, a higher saving rate leads to neither a higher growth rate of productivity nor a higher growth rate of income. 
D) All of the above are correct. 
A) In the long run, a higher saving rate leads to a higher level of productivity. 
B) In the long run, a higher saving rate leads to a higher level of income. 
C) In the long run, a higher saving rate leads to neither a higher growth rate of productivity nor a higher growth rate of income. 
D) All of the above are correct.

The level of real GDP person

Despite its status as one of the richest countries in the world, Japan

Which of the following is human capital?

Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to compute the percentage increase in real GDP per person from 1987 to 2005. Year Real GDP (2000pricas) Papulation 1987 \ 6,435,000 millian 243 millian 2005 \ 11,092,000 millian 296.6 million

Patents turn new ideas into

Roughly what percentage of growth in real GDP per person in Britain between 1790 and 1980 was accounted for by improved nutrition according to the estimates of Robert Fogel?

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

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

In determining living standards, productivity plays a key role

In medieval Europe an important technological advance was the use of the padded horse collar for plowing. Once this idea was thought of, other people used it. This illustrates that knowledge is generally a

All else equal, if there are diminishing returns, then what happens to productivity if both capital and labor increase?

If Country A produces 7,000 units of goods and services using 700 hours of labor, and if Country B produces 5,500 units of goods and services using 500 units of labor, then productivity is lower in Country A than in Country B.

Consider three imaginary countries. In Aziria, saving amounts to $3,000 and consumption amounts to $7,000; in Graniva, saving amounts to $2,000 and consumption amounts to $8,000; and in Tanistan, saving amounts to $4,500 and consumption amounts to $10,500. The saving rate is

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

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

Nathan owns a bakery that bakes only cakes. All of his bakers work 8 hours per day. In 2009, he employed 5 bakers who produced a total of 200 cakes each day. In 2010, he employed 6 bakers who produced a total of 249 cakes each day. The bakery's productivity

Figure 12-1. On the horizontal axis, K/L represents capital (K) per worker (L). On the vertical axis, Y/L represents output (Y) per worker (L). -Refer to Figure 12-1. The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

Ten Principles of 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

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 Macroeconomic Models

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

Six Debates Over Macroeconomic Policy

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Exam 12: Production and Growth

The level of real GDP person

Despite its status as one of the richest countries in the world, Japan

Which of the following is human capital?

Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to compute the percentage increase in real GDP per person from 1987 to 2005. Year Real GDP (2000pricas) Papulation 1987 \ 6,435,000 millian 243 millian 2005 \ 11,092,000 millian 296.6 million

Patents turn new ideas into

Roughly what percentage of growth in real GDP per person in Britain between 1790 and 1980 was accounted for by improved nutrition according to the estimates of Robert Fogel?

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

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

In determining living standards, productivity plays a key role

In medieval Europe an important technological advance was the use of the padded horse collar for plowing. Once this idea was thought of, other people used it. This illustrates that knowledge is generally a

All else equal, if there are diminishing returns, then what happens to productivity if both capital and labor increase?

If Country A produces 7,000 units of goods and services using 700 hours of labor, and if Country B produces 5,500 units of goods and services using 500 units of labor, then productivity is lower in Country A than in Country B.

Consider three imaginary countries. In Aziria, saving amounts to $3,000 and consumption amounts to $7,000; in Graniva, saving amounts to $2,000 and consumption amounts to $8,000; and in Tanistan, saving amounts to $4,500 and consumption amounts to $10,500. The saving rate is

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

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

Nathan owns a bakery that bakes only cakes. All of his bakers work 8 hours per day. In 2009, he employed 5 bakers who produced a total of 200 cakes each day. In 2010, he employed 6 bakers who produced a total of 249 cakes each day. The bakery's productivity

Figure 12-1. On the horizontal axis, K/L represents capital (K) per worker (L). On the vertical axis, Y/L represents output (Y) per worker (L). -Refer to Figure 12-1. The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

Ten Principles of 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

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 Macroeconomic Models

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

Six Debates Over Macroeconomic Policy

Filters