Question 1

Which of the following statements about inputs is correct?

Accepted Answer

A)  A forest is an example of a natural resource;it is also an example of a renewable resource. 
B)  There is no distinction between human capital and technological knowledge. 
C)  Human capital is a non-produced factor of production. 
D)  Physical capital is a non-produced factor of production. 
A)  A forest is an example of a natural resource;it is also an example of a renewable resource. 
B)  There is no distinction between human capital and technological knowledge. 
C)  Human capital is a non-produced factor of production. 
D)  Physical capital is a non-produced factor of production.

Question 2

Indonesians,for example,have a lower standard of living than Americans because they have a lower level of productivity.

Accepted Answer

A) True 
 B)False

Question 3

If natural resources had become scarcer,then we would expect their

Accepted Answer

A)  prices to have risen more than inflation as they have. 
B)  prices to have risen more than inflation,but they have not. 
C)  known quantities to have fallen as they have. 
D)  known quantities to have fallen but they have not. 
A)  prices to have risen more than inflation as they have. 
B)  prices to have risen more than inflation,but they have not. 
C)  known quantities to have fallen as they have. 
D)  known quantities to have fallen but they have not.

Question 4

How do outward-oriented policies affect a nation's productivity?

Accepted Answer

Most economists believe that poor nation

Question 5

Average income has been stagnant for many years in

Accepted Answer

A)  Argentina. 
B)  Singapore. 
C)  Nigeria. 
D)  All of the above are correct. 
A)  Argentina. 
B)  Singapore. 
C)  Nigeria. 
D)  All of the above are correct.

Question 6

If a country's saving rate increases,then in the long run

Accepted Answer

A)  productivity is higher but real GDP per person is not higher. 
B)  real GDP per person is higher but productivity is not higher. 
C)  productivity and real GDP per person are both higher. 
D)  neither productivity nor real GDP per person is higher. 
A)  productivity is higher but real GDP per person is not higher. 
B)  real GDP per person is higher but productivity is not higher. 
C)  productivity and real GDP per person are both higher. 
D)  neither productivity nor real GDP per person is higher.

Question 7

In the country of Suchnott,the price of silver increased from $30 per ounce to $32 per ounce during a time when the overall price level increased by 5 percent.During this period,the real price of silver

Accepted Answer

A)  increased. 
B)  decreased. 
C)  stayed the same. 
D)  might have increased,decreased or stayed the same;more information is needed to be sure. 
A)  increased. 
B)  decreased. 
C)  stayed the same. 
D)  might have increased,decreased or stayed the same;more information is needed to be sure.

Question 8

Over the past century in the United States,average income as measured by real GDP per person has grown about

Accepted Answer

A)  4 percent per year,which implies a doubling about every 18 years. 
B)  4 percent per year,which implies a doubling about every 8 years. 
C)  2 percent per year,which implies a doubling about every 35 years. 
D)  2 percent per year,which implies a doubling about every 18 years. 
A)  4 percent per year,which implies a doubling about every 18 years. 
B)  4 percent per year,which implies a doubling about every 8 years. 
C)  2 percent per year,which implies a doubling about every 35 years. 
D)  2 percent per year,which implies a doubling about every 18 years.

Question 9

Over extended periods of time,population growth

Accepted Answer

A)  has no effect on the standard of living. 
B)  has uncertain effects on the standard of living. 
C)  clearly raises the standard of living. 
D)  clearly lowers the standard of living. 
A)  has no effect on the standard of living. 
B)  has uncertain effects on the standard of living. 
C)  clearly raises the standard of living. 
D)  clearly lowers the standard of living.

Question 10

Historical trends in the prices of most natural resources compared to prices of other goods indicate that natural resources have become scarcer over time.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is correct?

Accepted Answer

A)  In 1870,real income per person was higher in the United Kingdom than in any other country at that time. 
B)  Between 1870 and 2006,India experienced significantly stronger growth of real income per person than did the United States. 
C)  Between 1870 and 2006,the United States experienced significantly stronger growth of real income per person than did Canada. 
D)  All of the above are correct. 
A)  In 1870,real income per person was higher in the United Kingdom than in any other country at that time. 
B)  Between 1870 and 2006,India experienced significantly stronger growth of real income per person than did the United States. 
C)  Between 1870 and 2006,the United States experienced significantly stronger growth of real income per person than did Canada. 
D)  All of the above are correct.

Question 12

Which of the following is considered human capital?

Accepted Answer

A)  the comfortable chair in your dorm room where you read economics texts 
B)  the amount you get paid each week to work at the library 
C)  the things you have learned this semester 
D)  any capital goods that require a human to be present to operate 
A)  the comfortable chair in your dorm room where you read economics texts 
B)  the amount you get paid each week to work at the library 
C)  the things you have learned this semester 
D)  any capital goods that require a human to be present to operate

Question 13

The inputs into production of goods and services that are provided by nature,such as land,rivers,and mineral deposits are called

Accepted Answer

A)  physical capital. 
B)  natural resources. 
C)  human capital. 
D)  technological knowledge. 
A)  physical capital. 
B)  natural resources. 
C)  human capital. 
D)  technological knowledge.

Question 14

Other things the same,if a country raises its saving rate,then in the long run

Accepted Answer

A)  both the level and growth rate of real GDP are unchanged. 
B)  the level of real GDP is higher but the growth rate of real GDP is unchanged. 
C)  both the level and growth rate of real GDP are higher. 
D)  None of the above are correct. 
A)  both the level and growth rate of real GDP are unchanged. 
B)  the level of real GDP is higher but the growth rate of real GDP is unchanged. 
C)  both the level and growth rate of real GDP are higher. 
D)  None of the above are correct.

Question 15

Suppose that a country increased its saving rate.In the long run it would have

Accepted Answer

A)  higher productivity,and another unit of capital would increase output by more than before. 
B)  higher productivity,but another unit of capital would increase output by less than before. 
C)  lower productivity,and another unit of capital would increase output by more than before. 
D)  lower productivity,but another unit of capital would increase output by less than before. 
A)  higher productivity,and another unit of capital would increase output by more than before. 
B)  higher productivity,but another unit of capital would increase output by less than before. 
C)  lower productivity,and another unit of capital would increase output by more than before. 
D)  lower productivity,but another unit of capital would increase output by less than before.

Question 16

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.Your cookie production function has

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 17

Scenario 25-1.An economy's production form takes the form Y = AF(L,K,H,N).
-Refer to Scenario 25-1.In the production function,which variable would increase in value as technology improved?

Accepted Answer

A)  A 
B)  K 
C)  H 
D)  N 
A)  A 
B)  K 
C)  H 
D)  N

Question 18

In a market economy,we know that a resource has become scarcer when

Accepted Answer

A)  both the demand for the good and the supply of the good have increased. 
B)  both the demand for the good and the supply of the good have decreased. 
C)  the demand for the good has increased and the supply has decreased. 
D)  the demand for the good has decreased and the supply has remained constant. 
A)  both the demand for the good and the supply of the good have increased. 
B)  both the demand for the good and the supply of the good have decreased. 
C)  the demand for the good has increased and the supply has decreased. 
D)  the demand for the good has decreased and the supply has remained constant.

Question 19

If a rich country reduced subsidies to domestic producers who produce goods for which poor countries have a comparative advantage,the standard of living in these poor countries would likely rise.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following does the level of real GDP measure?

Accepted Answer

A)  total real income 
B)  productivity 
C)  the standard of living 
D)  All of the above are correct. 
A)  total real income 
B)  productivity 
C)  the standard of living 
D)  All of the above are correct.

Exam 25: Production and Growth

Which of the following statements about inputs is correct?

Indonesians,for example,have a lower standard of living than Americans because they have a lower level of productivity.

If natural resources had become scarcer,then we would expect their

How do outward-oriented policies affect a nation's productivity?

Average income has been stagnant for many years in

If a country's saving rate increases,then in the long run

In the country of Suchnott,the price of silver increased from $30 per ounce to $32 per ounce during a time when the overall price level increased by 5 percent.During this period,the real price of silver

Over the past century in the United States,average income as measured by real GDP per person has grown about

Over extended periods of time,population growth

Historical trends in the prices of most natural resources compared to prices of other goods indicate that natural resources have become scarcer over time.

Which of the following statements is correct?

Which of the following is considered human capital?

The inputs into production of goods and services that are provided by nature,such as land,rivers,and mineral deposits are called

Other things the same,if a country raises its saving rate,then in the long run

Suppose that a country increased its saving rate.In the long run it would have

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.Your cookie production function has

Scenario 25-1.An economy's production form takes the form Y = AF(L,K,H,N). -Refer to Scenario 25-1.In the production function,which variable would increase in value as technology improved?

In a market economy,we know that a resource has become scarcer when

If a rich country reduced subsidies to domestic producers who produce goods for which poor countries have a comparative advantage,the standard of living in these poor countries would likely rise.

Which of the following does the level of real GDP measure?

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

Filters