Question 1

Economist Robert Fogel focused on which of the following factors as one determinant of long-run economic growth?

Accepted Answer

A)  education 
B)  research and development 
C)  nutrition 
D)  trade restrictions 
A)  education 
B)  research and development 
C)  nutrition 
D)  trade restrictions

Question 2

Both the standard of living and the growth of real GDP per person vary widely across countries.

Accepted Answer

A) True 
 B)False

Question 3

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 4

Inward-oriented policies

Accepted Answer

A)  include imposing tariffs and other trade restrictions. 
B)  have generally increased productivity and growth in the countries that pursued them. 
C)  promote the production of goods and services that the country produces most efficiently. 
D)  All of the above are correct. 
A)  include imposing tariffs and other trade restrictions. 
B)  have generally increased productivity and growth in the countries that pursued them. 
C)  promote the production of goods and services that the country produces most efficiently. 
D)  All of the above are correct.

Question 5

What is the difference between human capital and technology?

Accepted Answer

Technology is society's understanding of

Question 6

Suppose over the last year that the price of recycled aluminum increased from $800 a ton to $900 a ton.Over the same time a measure of the overall price level increased from 120 to 130.The price of recycled aluminum increased by

Accepted Answer

A)  less than inflation,but this doesn't necessarily mean it became scarcer. 
B)  less than inflation,and this means it became scarcer. 
C)  more than inflation,and this means it became scarcer. 
D)  more than inflation,but this doesn't necessarily mean that it become scarcer. 
A)  less than inflation,but this doesn't necessarily mean it became scarcer. 
B)  less than inflation,and this means it became scarcer. 
C)  more than inflation,and this means it became scarcer. 
D)  more than inflation,but this doesn't necessarily mean that it become scarcer.

Question 7

If a country made it easier for people to establish and prove the ownership of their property,real GDP per person would likely rise.

Accepted Answer

A) True 
 B)False

Question 8

A nation's standard of living is best measured by its

Accepted Answer

A)  real GDP. 
B)  real GDP per person. 
C)  nominal GDP. 
D)  nominal GDP per person. 
A)  real GDP. 
B)  real GDP per person. 
C)  nominal GDP. 
D)  nominal GDP per person.

Question 9

Which of the following would be human capital and physical capital,respectively?

Accepted Answer

A)  for an accounting firm,the accountants' knowledge of tax laws and the number of hours worked by those accountants 
B)  for a grocery store,grocery carts and cash registers. 
C)  for a restaurant,the chefs' knowledge about preparing food and equipment in the kitchen 
D)  for a library,the building and the reference librarians' knowledge of the Internet 
A)  for an accounting firm,the accountants' knowledge of tax laws and the number of hours worked by those accountants 
B)  for a grocery store,grocery carts and cash registers. 
C)  for a restaurant,the chefs' knowledge about preparing food and equipment in the kitchen 
D)  for a library,the building and the reference librarians' knowledge of the Internet

Question 10

If an American-based firm opens and operates a new watch factory in Panama,then it is engaging in

Accepted Answer

A)  foreign portfolio investment. 
B)  foreign financial investment. 
C)  foreign direct investment. 
D)  indirect foreign investment. 
A)  foreign portfolio investment. 
B)  foreign financial investment. 
C)  foreign direct investment. 
D)  indirect foreign investment.

Question 11

Other things the same,which of the following could explain an increase in productivity?

Accepted Answer

A)  either an increase in human capital or an increase in 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)  either an increase in human capital or an increase in 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

Question 12

Suppose a country reduces trade restrictions.This country would be pursing an

Accepted Answer

A)  inward policy,which most economists believe has beneficial effects on the economy. 
B)  inward policy,which most economists believe has adverse effects on the economy. 
C)  outward policy,which most economists believe has beneficial effects on the economy. 
D)  outward policy,which most economists believe has adverse effects on the economy. 
A)  inward policy,which most economists believe has beneficial effects on the economy. 
B)  inward policy,which most economists believe has adverse effects on the economy. 
C)  outward policy,which most economists believe has beneficial effects on the economy. 
D)  outward policy,which most economists believe has adverse effects on the economy.

Question 13

Once an idea enters society's pool of knowledge,the knowledge becomes a

Accepted Answer

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

Question 14

The president of a poor country has announced that he will implement the following measures which he claims are designed to increase growth: 1.Reduce corruption in the legal system;2.Reduce reliance on market forces because they allocate goods and services in an unfair manner;3.Restrict investment in domestic industries by foreigners because they take some of the profits out of the country;4.Encourage trade with neighboring countries;and 5.Increase the fraction of GDP devoted to consumption.How many of these measures will have a positive effect on growth?

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  4 
A)  1 
B)  2 
C)  3 
D)  4

Question 15

The catch-up effect says that countries with low income can grow faster than countries with higher income.However,in statistical studies that include many diverse countries we do not observe the catch-up-effect unless we control for other variables that affect productivity.Considering the determinants of productivity,list and explain some things that would tend to prohibit or limit a poor country's ability to catch up with the rich ones.

Accepted Answer

The argument that poor countries will te

Question 16

Which of the following best illustrates the human capital of a survivor stranded on an island?

Accepted Answer

A)  the fishing poles she has produced 
B)  the invention of a better fishing lure 
C)  the fresh fruit and fish on and around the island 
D)  her previous training in a survival course 
A)  the fishing poles she has produced 
B)  the invention of a better fishing lure 
C)  the fresh fruit and fish on and around the island 
D)  her previous training in a survival course

Question 17

During the past century the average growth rate of U.S.real GDP per person implies that it doubled,on average,about every

Accepted Answer

A)  100 years. 
B)  70 years. 
C)  35 years. 
D)  25 years. 
A)  100 years. 
B)  70 years. 
C)  35 years. 
D)  25 years.

Question 18

Which of the following statements is true?

Accepted Answer

A)  Natural resources per worker influence productivity only when those natural resources are renewable. 
B)  The prices of most natural resources are stable or falling relative to other prices. 
C)  Technology requires greater use of natural resources. 
D)  The terms human capital and technological knowledge are used interchangeably. 
A)  Natural resources per worker influence productivity only when those natural resources are renewable. 
B)  The prices of most natural resources are stable or falling relative to other prices. 
C)  Technology requires greater use of natural resources. 
D)  The terms human capital and technological knowledge are used interchangeably.

Question 19

A leading environmental group recently published a report contending that humans are running a "resource deficit" because we are using natural resources faster than they can be regenerated.The group claims that this means that economic growth will eventually stop,and will even be reversed.An economist would

Accepted Answer

A)  agree with the report,and would point to rising natural resource prices as evidence. 
B)  agree with the report,but wouldn't think it was important because growth will not slow down for several centuries. 
C)  disagree with the report,in part because it ignores the mitigating effects of technological change. 
D)  disagree with the report because labor and capital are the primary determinants of growth,and since they are plentiful,growth will not slow down. 
A)  agree with the report,and would point to rising natural resource prices as evidence. 
B)  agree with the report,but wouldn't think it was important because growth will not slow down for several centuries. 
C)  disagree with the report,in part because it ignores the mitigating effects of technological change. 
D)  disagree with the report because labor and capital are the primary determinants of growth,and since they are plentiful,growth will not slow down.

Question 20

Which of the following is not correct?

Accepted Answer

A)  Countries that have had higher output growth per person have typically done so without higher productivity growth. 
B)  A country's standard of living and its productivity are closely related. 
C)  Productivity refers to output produced per hour of work. 
D)  Increases in productivity can be used to increase output or leisure. 
A)  Countries that have had higher output growth per person have typically done so without higher productivity growth. 
B)  A country's standard of living and its productivity are closely related. 
C)  Productivity refers to output produced per hour of work. 
D)  Increases in productivity can be used to increase output or leisure.

Exam 25: Production and Growth

Economist Robert Fogel focused on which of the following factors as one determinant of long-run economic growth?

Both the standard of living and the growth of real GDP per person vary widely across countries.

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

Inward-oriented policies

What is the difference between human capital and technology?

Suppose over the last year that the price of recycled aluminum increased from $800 a ton to $900 a ton.Over the same time a measure of the overall price level increased from 120 to 130.The price of recycled aluminum increased by

If a country made it easier for people to establish and prove the ownership of their property,real GDP per person would likely rise.

A nation's standard of living is best measured by its

Which of the following would be human capital and physical capital,respectively?

If an American-based firm opens and operates a new watch factory in Panama,then it is engaging in

Other things the same,which of the following could explain an increase in productivity?

Suppose a country reduces trade restrictions.This country would be pursing an

Once an idea enters society's pool of knowledge,the knowledge becomes a

Which of the following best illustrates the human capital of a survivor stranded on an island?

During the past century the average growth rate of U.S.real GDP per person implies that it doubled,on average,about every

Which of the following statements is true?

Which of the following is not correct?

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

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

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 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 Trade-Off Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

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