Question 1

Despite its status as one of the richest countries in the world,Japan

Accepted Answer

A)  has a very low level of productivity. 
B)  has few natural resources. 
C)  has very little human capital. 
D)  engages in a relatively small amount of international trade. 
A)  has a very low level of productivity. 
B)  has few natural resources. 
C)  has very little human capital. 
D)  engages in a relatively small amount of international trade.

Question 2

Which list contains,in this order,a country whose real GDP per person grew faster and one whose real GDP per person grew slower than real GDP per person in the U.S.over the last 100 years?

Accepted Answer

A)  China,Pakistan 
B)  United Kingdom,China 
C)  Pakistan,Argentina 
D)  Argentina,Japan 
A)  China,Pakistan 
B)  United Kingdom,China 
C)  Pakistan,Argentina 
D)  Argentina,Japan

Question 3

Inventors often obtain patents on new products and processes,thereby turning new ideas into

Accepted Answer

A)  private goods and increasing the incentive to engage in research. 
B)  private goods but decreasing the incentive to engage in research. 
C)  public goods and increasing the incentive to engage in research. 
D)  public goods but decreasing the incentive to engage in research. 
A)  private goods and increasing the incentive to engage in research. 
B)  private goods but decreasing the incentive to engage in research. 
C)  public goods and increasing the incentive to engage in research. 
D)  public goods but decreasing the incentive to engage in research.

Question 4

Which of the following nations experienced average rates of economic growth of less than 2 percent over the last 100 years?

Accepted Answer

A)  Bangladesh 
B)  Pakistan 
C)  United Kingdom 
D)  All of the above are correct. 
A)  Bangladesh 
B)  Pakistan 
C)  United Kingdom 
D)  All of the above are correct.

Question 5

The catch-up effect refers to the idea that poor countries,despite their best efforts,are not likely ever to experience the economic growth rates of wealthier countries.

Accepted Answer

A) True 
 B)False

Question 6

Of the following countries,which grew most slowly,in terms of real GDP per person,over the last 100 years?

Accepted Answer

A)  Brazil 
B)  Mexico 
C)  China 
D)  United States 
A)  Brazil 
B)  Mexico 
C)  China 
D)  United States

Question 7

One of the Ten Principles of Economics in Chapter 1 is that people face tradeoffs.The growth that arises from capital accumulation is not a free lunch.It requires that society

Accepted Answer

A)  conserve resources for future generations. 
B)  sacrifice consumption goods and services now in order to enjoy more consumption in the future. 
C)  recycle resources so that future generations can produce goods and services with the accumulated capital. 
D)  None of the above is correct. 
A)  conserve resources for future generations. 
B)  sacrifice consumption goods and services now in order to enjoy more consumption in the future. 
C)  recycle resources so that future generations can produce goods and services with the accumulated capital. 
D)  None of the above is correct.

Question 8

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

Accepted Answer

A)  1 percent per year. 
B)  2 percent per year. 
C)  3 percent per year. 
D)  5 percent per year. 
A)  1 percent per year. 
B)  2 percent per year. 
C)  3 percent per year. 
D)  5 percent per year.

Question 9

An increase in the saving rate does not permanently increase the growth rate of real GDP per person.

Accepted Answer

A) True 
 B)False

Question 10

Some data that at first might seem puzzling: The share of GDP devoted to investment was similar for the United States and South Korea from 1960-1991.However,during these same years South Korea had a 6 percent growth rate of average annual income per person,while the United States had only a 2 percent growth rate.If the saving rates were the same,why were the growth rates so different?

Accepted Answer

The explanation is based on the concept

Question 11

What term do economists use to describe the relationship between the quantity of inputs used and the quantity of output produced?

Accepted Answer

A)  production function 
B)  input function 
C)  capital function 
D)  returns to scale 
A)  production function 
B)  input function 
C)  capital function 
D)  returns to scale

Question 12

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 13

Waldo works eight hours and produces 7 units of goods per hour.Emerson works six hours and produces 10 units of goods per hour.

Accepted Answer

A)  Waldo's productivity and output are greater than Emerson's. 
B)  Waldo's productivity is greater than Emerson's but his output is less. 
C)  Emerson's productivity and output are greater than Waldo's. 
D)  Emerson's productivity is greater than Waldo's but his output is less. 
A)  Waldo's productivity and output are greater than Emerson's. 
B)  Waldo's productivity is greater than Emerson's but his output is less. 
C)  Emerson's productivity and output are greater than Waldo's. 
D)  Emerson's productivity is greater than Waldo's but his output is less.

Question 14

An organization that tries to encourage the flow of investment to poor countries is the

Accepted Answer

A)  World Bank. 
B)  Organization of Less Developed Countries. 
C)  Alliance of Developing Countries. 
D)  International Development Alliance. 
A)  World Bank. 
B)  Organization of Less Developed Countries. 
C)  Alliance of Developing Countries. 
D)  International Development Alliance.

Question 15

If a country has a higher level of productivity than another,then it also has a higher level of real GDP.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is correct?

Accepted Answer

A)  Countries with the highest growth rates over the last 100 years are the ones that had the highest level of real GDP 100 years ago. 
B)  Most countries have had little fluctuation around their average growth rates during the past 100 years. 
C)  The ranking of countries by income changes substantially over time. 
D)  Over the last 100 years,Japan had the highest real GDP growth rate,and now has the highest real GDP per person. 
A)  Countries with the highest growth rates over the last 100 years are the ones that had the highest level of real GDP 100 years ago. 
B)  Most countries have had little fluctuation around their average growth rates during the past 100 years. 
C)  The ranking of countries by income changes substantially over time. 
D)  Over the last 100 years,Japan had the highest real GDP growth rate,and now has the highest real GDP per person.

Question 17

Suppose that there are diminishing returns to capital.Suppose also that two countries are the same except one has more capital per worker and so it has more real GDP per worker than the other.Finally,suppose that the saving rate in both countries increases from 4 percent to 7 percent.Over the next ten years we would expect that

Accepted Answer

A)  the growth rate will not change in either country. 
B)  the country that started with less capital per worker will grow faster. 
C)  the country that started with more capital per worker will grow faster. 
D)  both countries will grow and at the same rate. 
A)  the growth rate will not change in either country. 
B)  the country that started with less capital per worker will grow faster. 
C)  the country that started with more capital per worker will grow faster. 
D)  both countries will grow and at the same rate.

Question 18

If your firm's production function has constant returns to scale,and if you doubled all your inputs,then your firm's output would

Accepted Answer

A)  not change. 
B)  increase,but by less than double. 
C)  double. 
D)  more than double. 
A)  not change. 
B)  increase,but by less than double. 
C)  double. 
D)  more than double.

Question 19

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Accepted Answer

A)  most economists do not regard the availability of natural resources as a determinant of productivity. 
B)  the quantity of natural resources does not enter into any production function. 
C)  inflation-adjusted prices of natural resources are stable or falling over time. 
D)  inflation-adjusted prices of natural resources are rising over time. 
A)  most economists do not regard the availability of natural resources as a determinant of productivity. 
B)  the quantity of natural resources does not enter into any production function. 
C)  inflation-adjusted prices of natural resources are stable or falling over time. 
D)  inflation-adjusted prices of natural resources are rising over time.

Question 20

The slope of the production function with capital per worker on the horizontal axis and output per worker on the vertical axis

Accepted Answer

A)  is positive and gets steeper as capital per worker rises. 
B)  is positive and gets flatter as capital per worker rises. 
C)  is negative and gets steeper as capital per worker rises. 
D)  is negative and gets flatter as capital per worker rises. 
A)  is positive and gets steeper as capital per worker rises. 
B)  is positive and gets flatter as capital per worker rises. 
C)  is negative and gets steeper as capital per worker rises. 
D)  is negative and gets flatter as capital per worker rises.

Exam 25: Production and Growth

Despite its status as one of the richest countries in the world,Japan

Which list contains,in this order,a country whose real GDP per person grew faster and one whose real GDP per person grew slower than real GDP per person in the U.S.over the last 100 years?

Inventors often obtain patents on new products and processes,thereby turning new ideas into

Which of the following nations experienced average rates of economic growth of less than 2 percent over the last 100 years?

The catch-up effect refers to the idea that poor countries,despite their best efforts,are not likely ever to experience the economic growth rates of wealthier countries.

Of the following countries,which grew most slowly,in terms of real GDP per person,over the last 100 years?

One of the Ten Principles of Economics in Chapter 1 is that people face tradeoffs.The growth that arises from capital accumulation is not a free lunch.It requires that society

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

An increase in the saving rate does not permanently increase the growth rate of real GDP per person.

What term do economists use to describe the relationship between the quantity of inputs used and the quantity of output produced?

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

Waldo works eight hours and produces 7 units of goods per hour.Emerson works six hours and produces 10 units of goods per hour.

An organization that tries to encourage the flow of investment to poor countries is the

If a country has a higher level of productivity than another,then it also has a higher level of real GDP.

Which of the following is correct?

If your firm's production function has constant returns to scale,and if you doubled all your inputs,then your firm's output would

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

The slope of the production function with capital per worker on the horizontal axis and output per worker on the vertical axis

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