Question 1

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 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 real GDP per person in the U.S. 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

Investment in human capital has opportunity costs, but investment in physical capital does not.

Accepted Answer

A) True 
 B)False

Question 4

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 5

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 6

According to research by Robert Fogel, what proportion of the British population in 1780 was so malnourished that they could not perform manual labor?

Accepted Answer

A) 40 percent 
B) 20 percent 
C) 10 percent 
D) 5 percent 
A) 40 percent 
B) 20 percent 
C) 10 percent 
D) 5 percent

Question 7

If your firm's production function has constant returns to scale, then if you double all your inputs, your firm's output will

Accepted Answer

A) double and productivity will rise. 
B) double but productivity will not change. 
C) more than double and productivity will rise. 
D) more then double but productivity will not change. 
A) double and productivity will rise. 
B) double but productivity will not change. 
C) more than double and productivity will rise. 
D) more then double but productivity will not change.

Question 8

If an inexpensive alternative to oil were found, the price of oil adjusted for inflation

Accepted Answer

A) would decline as the alternative would reduce the demand for oil. 
B) would decline as the alternative would reduce the supply of oil. 
C) would increase as the alternative would increase the demand for oil. 
D) would increase as the alternative would increase the supply of oil. 
A) would decline as the alternative would reduce the demand for oil. 
B) would decline as the alternative would reduce the supply of oil. 
C) would increase as the alternative would increase the demand for oil. 
D) would increase as the alternative would increase the supply of oil.

Question 9

Suppose that an American opens and operates a candy factory in Finland. This is an example of

Accepted Answer

A) foreign direct investment. American saving is used to finance Finish investment. 
B) foreign direct investment. American saving is used to finance American investment. 
C) foreign portfolio investment. American saving is used to finance Finish investment. 
D) foreign portfolio investment. American saving is used to finance American investment. 
A) foreign direct investment. American saving is used to finance Finish investment. 
B) foreign direct investment. American saving is used to finance American investment. 
C) foreign portfolio investment. American saving is used to finance Finish investment. 
D) foreign portfolio investment. American saving is used to finance American investment.

Question 10

Which of the following is a good gauge of economic progress?

Accepted Answer

A) the level of real GDP per person, but not the growth rate of real GDP per person 
B) the level of real GDP per person and the growth rate of real GDP per person 
C) the growth rate of real GDP per person, but not the level of real GDP per person 
D) neither the level nor the growth rate of real GDP per person 
A) the level of real GDP per person, but not the growth rate of real GDP per person 
B) the level of real GDP per person and the growth rate of real GDP per person 
C) the growth rate of real GDP per person, but not the level of real GDP per person 
D) neither the level nor the growth rate of real GDP per person

Question 11

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

Accepted Answer

A) For a shoe factory: leather, hand tools, the managers' knowledge of shoe making. 
B) For a steel mill: the blast furnaces, the workers, iron ore. 
C) For an airline: oil used to make jet fuel, the pilots' knowledge of flying, jets. 
D) None of the above is correct. 
A) For a shoe factory: leather, hand tools, the managers' knowledge of shoe making. 
B) For a steel mill: the blast furnaces, the workers, iron ore. 
C) For an airline: oil used to make jet fuel, the pilots' knowledge of flying, jets. 
D) None of the above is correct.

Question 12

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, today, the standard of living in Japan is higher than in the United States. 
B) The typical person in Bangladesh today has about twice the real income of a typical American 100 years ago. 
C) The typical citizen of China today has about one-half as much real income as the typical citizen of America 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, today, the standard of living in Japan is higher than in the United States. 
B) The typical person in Bangladesh today has about twice the real income of a typical American 100 years ago. 
C) The typical citizen of China today has about one-half as much real income as the typical citizen of America today. 
D) None of the above is correct.

Question 13

Which of the following statements is true?

Accepted Answer

A) The quantity of natural resources per worker can influence productivity. 
B) Technological knowledge and human capital are closely related. 
C) Over long periods of time, the prices of most natural resources are stable or falling, relative to other prices. 
D) All of the above are correct. 
A) The quantity of natural resources per worker can influence productivity. 
B) Technological knowledge and human capital are closely related. 
C) Over long periods of time, the prices of most natural resources are stable or falling, relative to other prices. 
D) All of the above are correct.

Question 14

Which of the following statements is correct?

Accepted Answer

A) By definition, all natural resources are nonrenewable. 
B) Market prices give us reason to believe that natural resources are a limit to economic growth. 
C) An economy must be blessed with ample quantities of natural resources if it is to be a highly productive economy. 
D) Differences in natural resources can explain some of the differences in standards of living around the world. 
A) By definition, all natural resources are nonrenewable. 
B) Market prices give us reason to believe that natural resources are a limit to economic growth. 
C) An economy must be blessed with ample quantities of natural resources if it is to be a highly productive economy. 
D) Differences in natural resources can explain some of the differences in standards of living around the world.

Question 15

Which of the following is an example of the "brain drain?"

Accepted Answer

A) A country's most highly educated workers emigrate to rich countries. 
B) A country has such a poor educational system that human capital falls over time. 
C) The population of a country grows so fast that the educational system can't keep up. 
D) A country steals patented technology from another country. 
A) A country's most highly educated workers emigrate to rich countries. 
B) A country has such a poor educational system that human capital falls over time. 
C) The population of a country grows so fast that the educational system can't keep up. 
D) A country steals patented technology from another country.

Question 16

If your company opens and operates a branch in a foreign country, your company engages in foreign direct investment.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements is correct? In 2008,

Accepted Answer

A) real income per person in the U.S. was about 8 times that in China. 
B) real income per person in China was about 2 times that in India in 2008. 
C) the typical resident of India had less real income than the typical resident of England in 1870. 
D) All of the above are correct. 
A) real income per person in the U.S. was about 8 times that in China. 
B) real income per person in China was about 2 times that in India in 2008. 
C) the typical resident of India had less real income than the typical resident of England in 1870. 
D) All of the above are correct.

Question 18

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Accepted Answer

A) most economists do not regard the availability of natural resources as a determinant of productivity. 
B) the quantity of natural resources does not enter into any production function. 
C) inflation-adjusted prices of most natural resources have been stable or fallen over time. 
D) inflation-adjusted prices of most natural resources have risen over time. 
A) most economists do not regard the availability of natural resources as a determinant of productivity. 
B) the quantity of natural resources does not enter into any production function. 
C) inflation-adjusted prices of most natural resources have been stable or fallen over time. 
D) inflation-adjusted prices of most natural resources have risen over time.

Question 19

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 20

Other things the same, which of the following would increase productivity?

Accepted Answer

A) an increase in either human or physical capital 
B) an increase in human capital but not an increase in physical capital 
C) an increase in physical capital but not an increase in human capital 
D) neither an increase in human capital nor an increase in physical capital 
A) an increase in either human or physical capital 
B) an increase in human capital but not an increase in physical capital 
C) an increase in physical capital but not an increase in human capital 
D) neither an increase in human capital nor an increase in physical capital

Exam 12: Production and Growth

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

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 real GDP per person in the U.S. over the last 100 years?

Investment in human capital has opportunity costs, but investment in physical capital does not.

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

Which of the following is correct?

According to research by Robert Fogel, what proportion of the British population in 1780 was so malnourished that they could not perform manual labor?

If your firm's production function has constant returns to scale, then if you double all your inputs, your firm's output will

If an inexpensive alternative to oil were found, the price of oil adjusted for inflation

Suppose that an American opens and operates a candy factory in Finland. This is an example of

Which of the following is a good gauge of economic progress?

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

Which of the following is correct?

Which of the following statements is true?

Which of the following statements is correct?

Which of the following is an example of the "brain drain?"

If your company opens and operates a branch in a foreign country, your company engages in foreign direct investment.

Which of the following statements is correct? In 2008,

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Other things the same, which of the following would increase productivity?

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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