Question 1

Why are Canadian workers more productive than the Chinese?

Accepted Answer

A) because Canada is a federal state 
B) because Canadians have more capital to work with 
C) because prices are higher in Canada than in China 
D) because the most productive Chinese workers have emigrated to Canada 
A) because Canada is a federal state 
B) because Canadians have more capital to work with 
C) because prices are higher in Canada than in China 
D) because the most productive Chinese workers have emigrated to Canada

Question 2

Last year, real GDP per person in Olympus was $5500. The year before, it was $4500. What was the growth rate of real GDP per person?

Accepted Answer

A) 18.18 percent 
B) 20 percent 
C) 22.2 percent 
D) 24 percent 
A) 18.18 percent 
B) 20 percent 
C) 22.2 percent 
D) 24 percent

Question 3

Michael Kramer found that world growth rates have increased as population has.

Accepted Answer

A) True 
 B)False

Question 4

In the traditional view, which of the following production processes is considered when studying economic growth?

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

Question 5

Which of the following is the source of most technological progress?

Accepted Answer

A) private research by firms and individual inventors 
B) private research by firms and government 
C) government research 
D) government-sponsored research by universities 
A) private research by firms and individual inventors 
B) private research by firms and government 
C) government research 
D) government-sponsored research by universities

Question 6

If the production function for an economy had constant returns to scale, the labour force doubled, and all other inputs stayed the same, what would happen to real GDP?

Accepted Answer

A) It would stay the same. 
B) It would increase by 50 percent. 
C) It would increase, but by something less than double. 
D) It would double. 
A) It would stay the same. 
B) It would increase by 50 percent. 
C) It would increase, but by something less than double. 
D) It would double.

Question 7

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

Accepted Answer

A) for a restaurant: the land where it stands; the things the chef learned at cooking school; the freezers where the steaks are kept 
B) for a furniture company: wood; the company cafeteria; saws 
C) for a railroad: fuel; railroad engines; railroad tracks 
D) for an oil company: the oil it brings to surface; the rigs; the refineries using its oil 
A) for a restaurant: the land where it stands; the things the chef learned at cooking school; the freezers where the steaks are kept 
B) for a furniture company: wood; the company cafeteria; saws 
C) for a railroad: fuel; railroad engines; railroad tracks 
D) for an oil company: the oil it brings to surface; the rigs; the refineries using its oil

Question 8

Use the data below to find out the growth of income per person (over the entire period, not an annual basis) between the two years listed.

Accepted Answer

Income per person in 1990 was

Question 9

A patent turns a new idea into which of the following goods?

Accepted Answer

A) a public good, which increases the incentive to engage in research 
B) a public good, which decreases the incentive to engage in research 
C) a private good, which increases the incentive to engage in research 
D) a private good, which decreases the incentive to engage in research 
A) a public good, which increases the incentive to engage in research 
B) a public good, which decreases the incentive to engage in research 
C) a private good, which increases the incentive to engage in research 
D) a private good, which decreases the incentive to engage in research

Question 10

The annual population growth rate in developed countries is about 1 percent, while the growth rate in developing countries is about 3 percent.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is an implication of investment from abroad?

Accepted Answer

A) Poor countries become poorer because profits go to the foreign owners. 
B) Foreign investment increases the destination country's stock of capital; therefore, it promotes growth. 
C) Foreign investment increases GDP but not GNP. 
D) Foreign investment is unfair because only foreigners benefit from it. 
A) Poor countries become poorer because profits go to the foreign owners. 
B) Foreign investment increases the destination country's stock of capital; therefore, it promotes growth. 
C) Foreign investment increases GDP but not GNP. 
D) Foreign investment is unfair because only foreigners benefit from it.

Question 12

Compared to the income of the typical Canadian 136 years previously, how much was the income of the typical Pakistani in 2006?

Accepted Answer

A) about 2 times as much 
B) about the same 
C) about 2/3 as much 
D) about 1/2 as much 
E) about 1/4 as much 
A) about 2 times as much 
B) about the same 
C) about 2/3 as much 
D) about 1/2 as much 
E) about 1/4 as much

Question 13

How does productivity explain the differences in standard of living across countries?

Accepted Answer

A) Productivity tends to be lower in countries with high population; therefore in those countries standards of living are lower. 
B) Productivity explains very little of the differences across countries in the standard of living. 
C) Productivity explains some, but not most, of the differences across countries in the standard of living. 
D) Productivity explains most of the differences across countries in the standard of living. 
A) Productivity tends to be lower in countries with high population; therefore in those countries standards of living are lower. 
B) Productivity explains very little of the differences across countries in the standard of living. 
C) Productivity explains some, but not most, of the differences across countries in the standard of living. 
D) Productivity explains most of the differences across countries in the standard of living.

Question 14

Economists differ in their views of the role of the government in promoting economic growth. According to the text, at the very least, what should the government do?

Accepted Answer

A) lend support to the invisible hand by maintaining property rights and political stability 
B) limit foreign investment to industries that don't already exist 
C) impose trade restrictions to protect the interests of domestic producers and consumers 
D) subsidize key industries 
A) lend support to the invisible hand by maintaining property rights and political stability 
B) limit foreign investment to industries that don't already exist 
C) impose trade restrictions to protect the interests of domestic producers and consumers 
D) subsidize key industries

Question 15

What might the African governments do to foster higher economic growth?

Accepted Answer

They could make, perhaps with outside su

Question 16

Recently there have been violent protests against the World Bank and the World Trade Organization. The protesters argue that these institutions promote free trade and also encourage corporations in rich countries to invest in poor countries. The protesters contend that these practices make rich countries richer and poor countries poorer. How would economists feel about these protesters' views?

Accepted Answer

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

Question 17

How do inward-oriented policies affect a nation's growth?

Accepted Answer

Most economists believe that poor nation

Question 18

Which of the following best explains the falling relative prices of most of the natural resources?

Accepted Answer

A) Most are renewable; therefore, the supply of natural resources is increasing. 
B) Our ability to conserve natural resources is increasing faster than their depletion. 
C) The demand for natural resources is diminishing due to the discovery of new substitutes. 
D) Prices of natural resources, adjusted for inflation, are in fact increasing. 
A) Most are renewable; therefore, the supply of natural resources is increasing. 
B) Our ability to conserve natural resources is increasing faster than their depletion. 
C) The demand for natural resources is diminishing due to the discovery of new substitutes. 
D) Prices of natural resources, adjusted for inflation, are in fact increasing.

Question 19

A country that made its courts less corrupt and its government more stable would likely see its standard of living rise.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is considered human capital?

Accepted Answer

A) better working conditions 
B) safety in the workplace 
C) the things you have learned this semester 
D) machinery that requires a human to operate 
A) better working conditions 
B) safety in the workplace 
C) the things you have learned this semester 
D) machinery that requires a human to operate

Why are Canadian workers more productive than the Chinese?

Last year, real GDP per person in Olympus was $5500. The year before, it was $4500. What was the growth rate of real GDP per person?

Michael Kramer found that world growth rates have increased as population has.

In the traditional view, which of the following production processes is considered when studying economic growth?

Which of the following is the source of most technological progress?

If the production function for an economy had constant returns to scale, the labour force doubled, and all other inputs stayed the same, what would happen to real GDP?

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

Use the data below to find out the growth of income per person (over the entire period, not an annual basis) between the two years listed.

A patent turns a new idea into which of the following goods?

The annual population growth rate in developed countries is about 1 percent, while the growth rate in developing countries is about 3 percent.

Which of the following is an implication of investment from abroad?

Compared to the income of the typical Canadian 136 years previously, how much was the income of the typical Pakistani in 2006?

How does productivity explain the differences in standard of living across countries?

Economists differ in their views of the role of the government in promoting economic growth. According to the text, at the very least, what should the government do?

What might the African governments do to foster higher economic growth?

How do inward-oriented policies affect a nation's growth?

Which of the following best explains the falling relative prices of most of the natural resources?

A country that made its courts less corrupt and its government more stable would likely see its standard of living rise.

Which of the following is considered human capital?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

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 Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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Exam 7: Production and Growth

Why are Canadian workers more productive than the Chinese?

Last year, real GDP per person in Olympus was $5500. The year before, it was $4500. What was the growth rate of real GDP per person?

Michael Kramer found that world growth rates have increased as population has.

In the traditional view, which of the following production processes is considered when studying economic growth?

Which of the following is the source of most technological progress?

If the production function for an economy had constant returns to scale, the labour force doubled, and all other inputs stayed the same, what would happen to real GDP?

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

Use the data below to find out the growth of income per person (over the entire period, not an annual basis) between the two years listed.

A patent turns a new idea into which of the following goods?

The annual population growth rate in developed countries is about 1 percent, while the growth rate in developing countries is about 3 percent.

Which of the following is an implication of investment from abroad?

Compared to the income of the typical Canadian 136 years previously, how much was the income of the typical Pakistani in 2006?

How does productivity explain the differences in standard of living across countries?

Economists differ in their views of the role of the government in promoting economic growth. According to the text, at the very least, what should the government do?

What might the African governments do to foster higher economic growth?

How do inward-oriented policies affect a nation's growth?

Which of the following best explains the falling relative prices of most of the natural resources?

A country that made its courts less corrupt and its government more stable would likely see its standard of living rise.

Which of the following is considered human capital?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

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 Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

Filters