Question 1

What is the effect of a higher saving rate in the long run?

Accepted Answer

A) It decreases the capital stock. 
B) People must consume less in the future. 
C) It increases productivity. 
D) It leads to higher growth in real GDP. 
A) It decreases the capital stock. 
B) People must consume less in the future. 
C) It increases productivity. 
D) It leads to higher growth in real GDP.

Question 2

What is the difference between human capital and technology?

Accepted Answer

Technology is society's understanding of

Question 3

Which of the following is a direct determinant of productivity?

Accepted Answer

A) human capital 
B) wage 
C) price of output 
D) unemployment rate 
A) human capital 
B) wage 
C) price of output 
D) unemployment rate

Question 4

According to the traditional view of the production process, how does output per worker change when capital per worker increases?

Accepted Answer

A) It increases. This increase is larger at larger values of capital per worker. 
B) It increases. This increase is smaller at larger values of capital per worker. 
C) It increases. This increase is the same at all values of capital per worker. 
D) It decreases. This decrease is larger at larger values of capital per worker. 
A) It increases. This increase is larger at larger values of capital per worker. 
B) It increases. This increase is smaller at larger values of capital per worker. 
C) It increases. This increase is the same at all values of capital per worker. 
D) It decreases. This decrease is larger at larger values of capital per worker.

Question 5

Suppose that real GDP grew more in Country A than in Country B last year. Which of the following does this imply concerning productivity or standard of living?

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) Country A must have a higher real GDP than Country B. 
D) Country A's productivity must have been higher only if the population in the two countries grew at the same rate. 
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) Country A must have a higher real GDP than Country B. 
D) Country A's productivity must have been higher only if the population in the two countries grew at the same rate.

Question 6

Suppose you bake cookies. One day, you double the time you spend; double the number of chocolate chips, flour, eggs, and all your other inputs; and bake twice as many cookies. What kind of production function is this?

Accepted Answer

A) decreasing returns to scale 
B) zero returns to scale 
C) constant returns to scale 
D) increasing returns to scale 
A) decreasing returns to scale 
B) zero returns to scale 
C) constant returns to scale 
D) increasing returns to scale

Question 7

From 1966 to 1973, at what rate did Canadian productivity grow?

Accepted Answer

A) 2.3 percent 
B) 2.5 percent 
C) 1.8 percent 
D) 1.3 percent 
A) 2.3 percent 
B) 2.5 percent 
C) 1.8 percent 
D) 1.3 percent

Question 8

Dawn looks over reports on five of her workers. Carol made 25 baskets in 5 hours. Peter made 36 baskets in 6 hours. Rob made 40 baskets in 10 hours. Jack made 55 baskets in 10 hours. Darby made 22 baskets in 3 hours. Who has the greatest productivity?

Accepted Answer

A) Darby 
B) Peter 
C) Rob 
D) Jack 
A) Darby 
B) Peter 
C) Rob 
D) Jack

Question 9

The average person in a rich country, such as Germany, has income about ten times that of an average person in a poor country, such as Nigeria.

Accepted Answer

A) True 
 B)False

Question 10

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) strong private property rights 
B) tariffs and quotas 
C) encouraging foreign investment 
D) low population growth 
A) strong private property rights 
B) tariffs and quotas 
C) encouraging foreign investment 
D) low population growth

Question 11

Based on historical data on the prices of natural resources, which of the following best describes how natural resources limit economic growth?

Accepted Answer

A) Prices have been increasing, which shows that natural resources become scarcer and this impedes growth. 
B) Prices of natural resources have been fluctuating, which shows that there is no correlation between growth and natural resources. 
C) Prices of natural resources have been decreasing in constant dollars, which shows that natural resources are not scarcer than they were in the past, thus economic growth is not limited by natural resources. 
D) Prices do not show whether resources limit growth because the natural resources that economies use are not the same today as those in the past. 
A) Prices have been increasing, which shows that natural resources become scarcer and this impedes growth. 
B) Prices of natural resources have been fluctuating, which shows that there is no correlation between growth and natural resources. 
C) Prices of natural resources have been decreasing in constant dollars, which shows that natural resources are not scarcer than they were in the past, thus economic growth is not limited by natural resources. 
D) Prices do not show whether resources limit growth because the natural resources that economies use are not the same today as those in the past.

Question 12

What is a production function? Write an equation for a typical production function, and explain what each of the terms represents.

Accepted Answer

A production function is a mathematical

Question 13

Last year, real GDP in Oceania was $620 billion and the population was 2.3 million. The year before, real GDP was $502.0 billion and the population was 2.0 million. What was the approximate growth rate of real GDP per person?

Accepted Answer

A) 16 percent 
B) 13 percent 
C) 10 percent 
D) 7 percent 
A) 16 percent 
B) 13 percent 
C) 10 percent 
D) 7 percent

Question 14

Which of the following nations experienced average rates of economic growth of less than 2.0 percent between 1900 and 2006?

Accepted Answer

A) Brazil 
B) Mexico 
C) China 
D) Argentina 
A) Brazil 
B) Mexico 
C) China 
D) Argentina

Question 15

International data on the history of real GDP growth rates show that the rich countries get richer and the poor countries get poorer.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

Accepted Answer

A) A country with no or few domestic natural resources is destined to be poor. 
B) Differences in natural resources have virtually no role in explaining differences in standards of living. 
C) Some countries can be rich mostly because of their natural resources, and countries without natural resources need not be poor, but can never have very high standards of living. 
D) Abundant domestic natural resources may help make a country rich, but even countries with few natural resources can have high standards of living. 
A) A country with no or few domestic natural resources is destined to be poor. 
B) Differences in natural resources have virtually no role in explaining differences in standards of living. 
C) Some countries can be rich mostly because of their natural resources, and countries without natural resources need not be poor, but can never have very high standards of living. 
D) Abundant domestic natural resources may help make a country rich, but even countries with few natural resources can have high standards of living.

Question 17

In 2010 real GDP in Latania was $750 billion and the population was 3 million. In 2011 real GDP was $990 billion and the population was 3.3 million. What was the approximate growth rate of real GDP per person?

Accepted Answer

A) 11 percent 
B) 14 percent 
C) 17 percent 
D) 20 percent 
A) 11 percent 
B) 14 percent 
C) 17 percent 
D) 20 percent

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Tom works 6 hours a day and Jerry works 8 hours. Tom can produce 6 baskets of goods while Jerry can produce 7 baskets. Which of the following can we conclude?

Accepted Answer

A) Tom's productivity is greater than Jerry's. 
B) Tom's and Jerry's productivities are equal because they both work one day. 
C) Tom's and Jerry's productivities cannot be compared. 
D) Tom's productivity is lower than Jerry's. 
A) Tom's productivity is greater than Jerry's. 
B) Tom's and Jerry's productivities are equal because they both work one day. 
C) Tom's and Jerry's productivities cannot be compared. 
D) Tom's productivity is lower than Jerry's.

Question 20

What is the average amount of goods and services produced from each hour of a worker's time called?

Accepted Answer

A) per capita GDP 
B) per capita GNP 
C) productivity 
D) human capital 
A) per capita GDP 
B) per capita GNP 
C) productivity 
D) human capital

What is the effect of a higher saving rate in the long run?

What is the difference between human capital and technology?

Which of the following is a direct determinant of productivity?

According to the traditional view of the production process, how does output per worker change when capital per worker increases?

Suppose that real GDP grew more in Country A than in Country B last year. Which of the following does this imply concerning productivity or standard of living?

Suppose you bake cookies. One day, you double the time you spend; double the number of chocolate chips, flour, eggs, and all your other inputs; and bake twice as many cookies. What kind of production function is this?

From 1966 to 1973, at what rate did Canadian productivity grow?

Dawn looks over reports on five of her workers. Carol made 25 baskets in 5 hours. Peter made 36 baskets in 6 hours. Rob made 40 baskets in 10 hours. Jack made 55 baskets in 10 hours. Darby made 22 baskets in 3 hours. Who has the greatest productivity?

The average person in a rich country, such as Germany, has income about ten times that of an average person in a poor country, such as Nigeria.

Based on historical data on the prices of natural resources, which of the following best describes how natural resources limit economic growth?

What is a production function? Write an equation for a typical production function, and explain what each of the terms represents.

Last year, real GDP in Oceania was $620 billion and the population was 2.3 million. The year before, real GDP was $502.0 billion and the population was 2.0 million. What was the approximate growth rate of real GDP per person?

Which of the following nations experienced average rates of economic growth of less than 2.0 percent between 1900 and 2006?

International data on the history of real GDP growth rates show that the rich countries get richer and the poor countries get poorer.

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

In 2010 real GDP in Latania was $750 billion and the population was 3 million. In 2011 real GDP was $990 billion and the population was 3.3 million. What was the approximate growth rate of real GDP per person?

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

Tom works 6 hours a day and Jerry works 8 hours. Tom can produce 6 baskets of goods while Jerry can produce 7 baskets. Which of the following can we conclude?

What is the average amount of goods and services produced from each hour of a worker's time called?

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

What is the effect of a higher saving rate in the long run?

What is the difference between human capital and technology?

Which of the following is a direct determinant of productivity?

According to the traditional view of the production process, how does output per worker change when capital per worker increases?

Suppose that real GDP grew more in Country A than in Country B last year. Which of the following does this imply concerning productivity or standard of living?

Suppose you bake cookies. One day, you double the time you spend; double the number of chocolate chips, flour, eggs, and all your other inputs; and bake twice as many cookies. What kind of production function is this?

From 1966 to 1973, at what rate did Canadian productivity grow?

Dawn looks over reports on five of her workers. Carol made 25 baskets in 5 hours. Peter made 36 baskets in 6 hours. Rob made 40 baskets in 10 hours. Jack made 55 baskets in 10 hours. Darby made 22 baskets in 3 hours. Who has the greatest productivity?

The average person in a rich country, such as Germany, has income about ten times that of an average person in a poor country, such as Nigeria.

Based on historical data on the prices of natural resources, which of the following best describes how natural resources limit economic growth?

What is a production function? Write an equation for a typical production function, and explain what each of the terms represents.

Last year, real GDP in Oceania was $620 billion and the population was 2.3 million. The year before, real GDP was $502.0 billion and the population was 2.0 million. What was the approximate growth rate of real GDP per person?

Which of the following nations experienced average rates of economic growth of less than 2.0 percent between 1900 and 2006?

International data on the history of real GDP growth rates show that the rich countries get richer and the poor countries get poorer.

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

In 2010 real GDP in Latania was $750 billion and the population was 3 million. In 2011 real GDP was $990 billion and the population was 3.3 million. What was the approximate growth rate of real GDP per person?

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

Tom works 6 hours a day and Jerry works 8 hours. Tom can produce 6 baskets of goods while Jerry can produce 7 baskets. Which of the following can we conclude?

What is the average amount of goods and services produced from each hour of a worker's time called?

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