Exam 7: Production and Growth

Which of the following best describes the relationship between productivity and standard of living?

Over the past century in Canada, by how much has real GDP per person grown?

In the country of Krypton, the price of lead increased from $20 per kilogram to $22 per kilogram during a time when the overall price level increased by 8 percent. During this period, what happened to the real price of lead?

The dictator of Turan has recently begun to arbitrarily seize farms belonging to his political opponents, and he has given the farms to his friends. His friends don't know much about farming. The courts in Turan have ruled that the seizures are illegal, but the dictator has ignored the rulings. Other things equal, what would we expect to happen to the growth rate in Turan?

Suppose an economy uses only two inputs in production, capital and labour. The following table describes a production function, where y stands for output per worker and k is capital per worker. a.Draw approximately this production function with y on the vertical axis. b.Show that this production function exhibits diminishing returns to scale. c.Suppose there are two countries, A and B. The economies of the two countries can be described by this production function. If Country A has initially a capital-labour ratio k = 0.167 and Country B has k = 0.412, show that an equal increase in capital produces more extra output in country A than in Country B.

Which of the following statements best explains the importance of real GDP per person?

Suppose a country were to increase its saving rate. In the long run, which of the following would also increase?

What do property rights refer to?

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

Real GDP per person is $25 000 in Aquilonia, $10 000 in Nemedia, $15 000 in Shem, and $20 000 in Zexa. Saving per person is $2000 in all three countries. Other things equal, what would we expect?

Other things the same, if a country increased its saving rate, in 40 years which of the following would that country likely have?

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

How does income per person in Canada compare with income per person in China and India?

If a production function has constant returns to scale, how can output be doubled?

Which of the following would we expect to happen with prices or quantities of natural resources if they were becoming scarcer?

Which of the following is a correct way to measure productivity?

Investment in both human and physical capital has opportunity costs.

According to an economist, what kind of goods are national defence and knowledge?

How large were the growth rates of Japan and Brazil over the past 100 years?

Which of the following best defines proprietary technology?