Question 1

Which of the following countries had the lowest level of real GDP per person in 2006?

Accepted Answer

A)  Pakistan 
B)  Indonesia 
C)  Mexico 
D)  China 
A)  Pakistan 
B)  Indonesia 
C)  Mexico 
D)  China

Question 2

Human capital is

Accepted Answer

A)  the same thing as technological knowledge. 
B)  the same thing as labor. 
C)  the tools and equipment operated by humans. 
D)  knowledge and skills that workers have acquired. 
A)  the same thing as technological knowledge. 
B)  the same thing as labor. 
C)  the tools and equipment operated by humans. 
D)  knowledge and skills that workers have acquired.

Question 3

Workland has a population of 10,000,of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods.Laborland has a population of 5,000,of whom 4,000 work 12 hours a day to produce a total of 120,000 final goods.

Accepted Answer

A)  Workland has higher productivity and higher real GDP per person than Laborland. 
B)  Workland has higher productivity but lower real GDP per person than Laborland. 
C)  Workland has lower productivity but higher real GDP per person than Laborland. 
D)  Workland has lower productivity and lower real GDP per person than Laborland. 
A)  Workland has higher productivity and higher real GDP per person than Laborland. 
B)  Workland has higher productivity but lower real GDP per person than Laborland. 
C)  Workland has lower productivity but higher real GDP per person than Laborland. 
D)  Workland has lower productivity and lower real GDP per person than Laborland.

Question 4

Other things the same,another unit of capital will increase output by more in a poor country than in a rich country.

Accepted Answer

A) True 
 B)False

Question 5

Thomas Edison received patents on many of his inventions.While the patents existed,his ideas were

Accepted Answer

A)  public goods and proprietary knowledge. 
B)  public goods but not proprietary knowledge. 
C)  private goods and proprietary knowledge. 
D)  private goods but not proprietary knowledge. 
A)  public goods and proprietary knowledge. 
B)  public goods but not proprietary knowledge. 
C)  private goods and proprietary knowledge. 
D)  private goods but not proprietary knowledge.

Question 6

The inputs used to produce goods and services are also called

Accepted Answer

A)  productivity indicators. 
B)  capitalization producers. 
C)  production functions. 
D)  factors of production. 
A)  productivity indicators. 
B)  capitalization producers. 
C)  production functions. 
D)  factors of production.

Question 7

Which of the following is a part of your economics professor's human capital?

Accepted Answer

A)  the things she learned at some prestigious university 
B)  her copy of Mankiw's text 
C)  her chalk holder 
D)  All of the above are correct. 
A)  the things she learned at some prestigious university 
B)  her copy of Mankiw's text 
C)  her chalk holder 
D)  All of the above are correct.

Question 8

Human capital is the term economists use to refer to the knowledge and skills that workers acquire through education,training,and experience.

Accepted Answer

A) True 
 B)False

Question 9

In some East Asian countries,average income,as measured by real GDP per person,has recently grown at an average annual rate that implies output will double about every

Accepted Answer

A)  10 years. 
B)  15 years. 
C)  20 years. 
D)  25 years. 
A)  10 years. 
B)  15 years. 
C)  20 years. 
D)  25 years.

Question 10

Which of the following countries benefited significantly from the catch-up effect in the last half of the twentieth century?

Accepted Answer

A)  Ethiopia 
B)  the United States 
C)  Canada 
D)  South Korea 
A)  Ethiopia 
B)  the United States 
C)  Canada 
D)  South Korea

Question 11

The traditional view that the production process has diminishing returns implies that

Accepted Answer

A)  the increase in output growth from an increase in the saving rate rises over time,and that,other things the same,rich countries should grow faster than poor ones. 
B)  the increase in output growth from an increase in the saving rate falls over time,and that,other things the same,rich countries should grow faster than poor ones. 
C)  the increase in output growth from an increase in the saving rate rises over time,and that,other things the same,poor countries should grow faster than rich ones. 
D)  the increase in output growth from an increase in the saving rate falls over time,and that,other things the same,poor countries should grow faster than rich ones. 
A)  the increase in output growth from an increase in the saving rate rises over time,and that,other things the same,rich countries should grow faster than poor ones. 
B)  the increase in output growth from an increase in the saving rate falls over time,and that,other things the same,rich countries should grow faster than poor ones. 
C)  the increase in output growth from an increase in the saving rate rises over time,and that,other things the same,poor countries should grow faster than rich ones. 
D)  the increase in output growth from an increase in the saving rate falls over time,and that,other things the same,poor countries should grow faster than rich ones.

Question 12

Historically,the market prices of most natural resources (adjusted for inflation)have

Accepted Answer

A)  increased. 
B)  remained stable. 
C)  remained stable or decreased. 
D)  decreased. 
A)  increased. 
B)  remained stable. 
C)  remained stable or decreased. 
D)  decreased.

Question 13

As of 2006,using real GDP per person as a measure,we would classify

Accepted Answer

A)  the United States and Mexico as advanced economies and Bangladesh as a middle-income country. 
B)  Canada as an advanced economy,Mexico as a middle-income country,and Mali as a poor country. 
C)  Japan and India as advanced economies and Mexico as a poor country. 
D)  Japan as an advanced economy,the United Kingdom as a middle-income country,and Argentina as a poor country. 
A)  the United States and Mexico as advanced economies and Bangladesh as a middle-income country. 
B)  Canada as an advanced economy,Mexico as a middle-income country,and Mali as a poor country. 
C)  Japan and India as advanced economies and Mexico as a poor country. 
D)  Japan as an advanced economy,the United Kingdom as a middle-income country,and Argentina as a poor country.

Question 14

In the U.S. ,each additional year of schooling has historically raised a person's wage on average by about

Accepted Answer

A)  2 percent. 
B)  5 percent. 
C)  10 percent. 
D)  15 percent. 
A)  2 percent. 
B)  5 percent. 
C)  10 percent. 
D)  15 percent.

Question 15

Which of the following statements is true?

Accepted Answer

A)  Productivity is calculated as hours worked divided by output produced. 
B)  Americans have a higher standard of living than Indonesians because American workers are more productive than Indonesian workers. 
C)  Trends in the market prices of most resources indicate that they have become increasingly scarce over time. 
D)  All of the above are correct. 
A)  Productivity is calculated as hours worked divided by output produced. 
B)  Americans have a higher standard of living than Indonesians because American workers are more productive than Indonesian workers. 
C)  Trends in the market prices of most resources indicate that they have become increasingly scarce over time. 
D)  All of the above are correct.

Question 16

Suppose U.S.-based Intel Corporation builds and operates a new computer chip factory in Honduras.Future production from such an investment would

Accepted Answer

A)  increase Honduran GDP more than it would increase Honduran GNP. 
B)  increase Honduran GNP more than it would increase Honduran GDP. 
C)  not affect Honduran GNP,but would increase Honduran GDP. 
D)  have no affect on either Honduran GDP or GNP. 
A)  increase Honduran GDP more than it would increase Honduran GNP. 
B)  increase Honduran GNP more than it would increase Honduran GDP. 
C)  not affect Honduran GNP,but would increase Honduran GDP. 
D)  have no affect on either Honduran GDP or GNP.

Question 17

Like physical capital,human capital is a produced factor of production.

Accepted Answer

A) True 
 B)False

Question 18

Constant returns to scale is the point on a production function where increasing inputs will no longer increase output.

Accepted Answer

A) True 
 B)False

Question 19

Countries that pursued outward-oriented policies in the 20th century

Accepted Answer

A)  experienced lower rates of economic growth than did countries that pursued inward-oriented policies. 
B)  experienced higher levels of political instability than did countries that pursued inward-oriented policies. 
C)  include Singapore,South Korea,and Taiwan. 
D)  All of the above are correct. 
A)  experienced lower rates of economic growth than did countries that pursued inward-oriented policies. 
B)  experienced higher levels of political instability than did countries that pursued inward-oriented policies. 
C)  include Singapore,South Korea,and Taiwan. 
D)  All of the above are correct.

Question 20

It has been suggested that a possible benefit of rapid population growth is the likelihood that when there are more people,then there are more

Accepted Answer

A)  teachers,and so students acquire more knowledge and skills. 
B)  people to discover things,and so technological progress is rapid. 
C)  savers,and so capital per worker tends to increase over time. 
D)  consumers,and so economic growth is more rapid. 
A)  teachers,and so students acquire more knowledge and skills. 
B)  people to discover things,and so technological progress is rapid. 
C)  savers,and so capital per worker tends to increase over time. 
D)  consumers,and so economic growth is more rapid.

Exam 25: Production and Growth

Which of the following countries had the lowest level of real GDP per person in 2006?

Human capital is

Workland has a population of 10,000,of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods.Laborland has a population of 5,000,of whom 4,000 work 12 hours a day to produce a total of 120,000 final goods.

Other things the same,another unit of capital will increase output by more in a poor country than in a rich country.

Thomas Edison received patents on many of his inventions.While the patents existed,his ideas were

The inputs used to produce goods and services are also called

Which of the following is a part of your economics professor's human capital?

Human capital is the term economists use to refer to the knowledge and skills that workers acquire through education,training,and experience.

In some East Asian countries,average income,as measured by real GDP per person,has recently grown at an average annual rate that implies output will double about every

Which of the following countries benefited significantly from the catch-up effect in the last half of the twentieth century?

The traditional view that the production process has diminishing returns implies that

Historically,the market prices of most natural resources (adjusted for inflation)have

As of 2006,using real GDP per person as a measure,we would classify

In the U.S. ,each additional year of schooling has historically raised a person's wage on average by about

Which of the following statements is true?

Suppose U.S.-based Intel Corporation builds and operates a new computer chip factory in Honduras.Future production from such an investment would

Like physical capital,human capital is a produced factor of production.

Constant returns to scale is the point on a production function where increasing inputs will no longer increase output.

Countries that pursued outward-oriented policies in the 20th century

It has been suggested that a possible benefit of rapid population growth is the likelihood that when there are more people,then there are more

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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