Question 1

The president of Improvia,a developing country,proposes that his country needs to help domestic firms by imposing trade restrictions.

Accepted Answer

A)  These are outward-oriented policies and most economists believe they would have beneficial effects on growth in Improvia. 
B)  These are outward-oriented policies and most economists believe they would have adverse effects on growth in Improvia. 
C)  These are inward-oriented policies and most economists believe they would have beneficial effects on growth in Improvia. 
D)  These are inward-oriented policies and most economists believe they would have adverse effects on growth in Improvia. 
A)  These are outward-oriented policies and most economists believe they would have beneficial effects on growth in Improvia. 
B)  These are outward-oriented policies and most economists believe they would have adverse effects on growth in Improvia. 
C)  These are inward-oriented policies and most economists believe they would have beneficial effects on growth in Improvia. 
D)  These are inward-oriented policies and most economists believe they would have adverse effects on growth in Improvia.

Question 2

The average amount of goods and services produced from each hour of a worker's time is called

Accepted Answer

A)  GDP. 
B)  per capita GDP. 
C)  productivity. 
D)  technological knowledge. 
A)  GDP. 
B)  per capita GDP. 
C)  productivity. 
D)  technological knowledge.

Question 3

Although growth rates across countries vary some,rankings of countries by income remain pretty much the same over time.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

Accepted Answer

A)  A country with no or few domestic natural resources is destined to be poor. 
B)  Differences in natural resources have virtually no role in explaining differences in standards of living. 
C)  Some countries can be rich mostly because of their natural resources and countries without natural resources need not be poor,but can never have very high standards of living. 
D)  Abundant domestic natural resources may help make a country rich,but even countries with few natural resources can have high standards of living. 
A)  A country with no or few domestic natural resources is destined to be poor. 
B)  Differences in natural resources have virtually no role in explaining differences in standards of living. 
C)  Some countries can be rich mostly because of their natural resources and countries without natural resources need not be poor,but can never have very high standards of living. 
D)  Abundant domestic natural resources may help make a country rich,but even countries with few natural resources can have high standards of living.

Question 5

Over the last century,U.S.real GDP per person grew at a rate of about

Accepted Answer

A)  2 percent per year,so that it is now 2 times as high as it was a century ago. 
B)  2 percent per year,so that it is now 8 times as high as it was a century ago. 
C)  4 percent per year,so that it is now 2 times as high as it was a century ago. 
D)  4 percent per year,so that it is now 8 times as high as it was a century ago. 
A)  2 percent per year,so that it is now 2 times as high as it was a century ago. 
B)  2 percent per year,so that it is now 8 times as high as it was a century ago. 
C)  4 percent per year,so that it is now 2 times as high as it was a century ago. 
D)  4 percent per year,so that it is now 8 times as high as it was a century ago.

Question 6

By saving more,a country

Accepted Answer

A)  has more resources for capital goods.The increase in capital raises productivity. 
B)  has more resources for capital goods.The increase in capital reduces productivity. 
C)  has fewer resources for capital goods.The decrease in capital raises productivity. 
D)  has fewer resources for capital goods.The decrease in capital reduces productivity. 
A)  has more resources for capital goods.The increase in capital raises productivity. 
B)  has more resources for capital goods.The increase in capital reduces productivity. 
C)  has fewer resources for capital goods.The decrease in capital raises productivity. 
D)  has fewer resources for capital goods.The decrease in capital reduces productivity.

Question 7

In 2007,Modern Electronics,Inc.produced 60,000 calculators,employing 80 workers,each of whom worked 8 hours per day.In 2008,the same firm produced 76,500 calculators,employing 85 workers,each of whom worked 10 hours per day.Between 2007 and 2008,productivity at Modern Electronics

Accepted Answer

A)  decreased by 4.00 percent. 
B)  remained constant. 
C)  increased by 8.33 percent. 
D)  increased by 27.50 percent. 
A)  decreased by 4.00 percent. 
B)  remained constant. 
C)  increased by 8.33 percent. 
D)  increased by 27.50 percent.

Question 8

International data on the history of real GDP growth rates shows that over the last 100 years or so,rich countries got richer and poor countries got poorer.

Accepted Answer

A) True 
 B)False

Question 9

Productivity is the

Accepted Answer

A)  key determinant of living standards,and growth in productivity is the key determinant of growth in living standards. 
B)  key determinant of living standards,but growth in productivity is not the key determinant of growth in living standards. 
C)  not the key determinant of living standards,but growth in productivity is the key determinant of growth in living standards. 
D)  not the key determinant of living standards,and growth in productivity is not the key determinant of growth in living standards. 
A)  key determinant of living standards,and growth in productivity is the key determinant of growth in living standards. 
B)  key determinant of living standards,but growth in productivity is not the key determinant of growth in living standards. 
C)  not the key determinant of living standards,but growth in productivity is the key determinant of growth in living standards. 
D)  not the key determinant of living standards,and growth in productivity is not the key determinant of growth in living standards.

Question 10

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

Accepted Answer

A)  its price rises relative to other prices. 
B)  it is non-renewable and some of it is used. 
C)  people search for substitutes. 
D)  All of the above are correct. 
A)  its price rises relative to other prices. 
B)  it is non-renewable and some of it is used. 
C)  people search for substitutes. 
D)  All of the above are correct.

Question 11

Which of the following is correct?

Accepted Answer

A)  Once adjustment is made for inflation,the prices of most natural resources have been about steady or falling. 
B)  Technological progress has allowed us to substitute renewable resources for some nonrenewable resources. 
C)  Technological progress has made once-crucial natural resources less necessary. 
D)  All of the above are correct. 
A)  Once adjustment is made for inflation,the prices of most natural resources have been about steady or falling. 
B)  Technological progress has allowed us to substitute renewable resources for some nonrenewable resources. 
C)  Technological progress has made once-crucial natural resources less necessary. 
D)  All of the above are correct.

Question 12

Suppose Japanese-based Sony Corporation builds and operates a new digital camera factory in the United States.Future production from such an investment would

Accepted Answer

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

Question 13

In the United States real GDP per person is about $44,000,while in some poor countries real GDP per person is less than $3,000.

Accepted Answer

A) True 
 B)False

Question 14

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units.This year the country had 1000 workers who worked an average of 8 hours and produced 14,000 units.This country's productivity was

Accepted Answer

A)  higher this year than last year.A possible source of this change in productivity is a change in the size of the capital stock. 
B)  higher this year than last year.A change in the size of the capital stock does not affect productivity. 
C)  lower this year than last year.A possible source of this change in productivity is a change in the size of the capital stock. 
D)  lower this year than last year.A change in the size of the capital stock does not affect productivity. 
A)  higher this year than last year.A possible source of this change in productivity is a change in the size of the capital stock. 
B)  higher this year than last year.A change in the size of the capital stock does not affect productivity. 
C)  lower this year than last year.A possible source of this change in productivity is a change in the size of the capital stock. 
D)  lower this year than last year.A change in the size of the capital stock does not affect productivity.

Question 15

Which of the following countries achieved higher economic growth,in part by mandating a reduction in population growth?

Accepted Answer

A)  Great Britain 
B)  China 
C)  Australia 
D)  France 
A)  Great Britain 
B)  China 
C)  Australia 
D)  France

Question 16

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

Accepted Answer

A)  Germany 
B)  United Kingdom 
C)  United States 
D)  Japan 
A)  Germany 
B)  United Kingdom 
C)  United States 
D)  Japan

Question 17

Roughly what percentage of growth in real GDP per person in Britain between 1790 and 1980 was accounted for by improved nutrition according to the estimates of Robert Fogel?

Accepted Answer

A)  30 percent 
B)  20 percent 
C)  10 percent 
D)  5 percent 
A)  30 percent 
B)  20 percent 
C)  10 percent 
D)  5 percent

Question 18

Compare and contrast the population theories of Malthus and Kremer.

Accepted Answer

The difference is that Malthus predicted

Question 19

Suppose that there are diminishing returns to capital.Suppose also that two countries are the same except one has less capital and so less real GDP per person.Suppose that both increase their saving rate from 3 percent to 4 percent.In the long run

Accepted Answer

A)  both countries will have permanently higher growth rates of real GDP per person,and the growth rate will be higher in the country with more capital. 
B)  both countries will have permanently higher growth rates of real GDP per person,and the growth rate will be higher in the country with less capital. 
C)  both countries will have higher levels of real GDP per person,and the temporary increase in growth in the level of real GDP per person will have been greater in the country with more capital. 
D)  both countries will have higher levels of real GDP per person,and the temporary increase in growth in the level of real GDP per person will have been greater in the country with less capital. 
A)  both countries will have permanently higher growth rates of real GDP per person,and the growth rate will be higher in the country with more capital. 
B)  both countries will have permanently higher growth rates of real GDP per person,and the growth rate will be higher in the country with less capital. 
C)  both countries will have higher levels of real GDP per person,and the temporary increase in growth in the level of real GDP per person will have been greater in the country with more capital. 
D)  both countries will have higher levels of real GDP per person,and the temporary increase in growth in the level of real GDP per person will have been greater in the country with less capital.

Question 20

In addition to investment in physical and human capital,what other public policies might a country adopt to increase productivity?

Accepted Answer

In addition to investment in physical an

Exam 25: Production and Growth

The president of Improvia,a developing country,proposes that his country needs to help domestic firms by imposing trade restrictions.

The average amount of goods and services produced from each hour of a worker's time is called

Although growth rates across countries vary some,rankings of countries by income remain pretty much the same over time.

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

Over the last century,U.S.real GDP per person grew at a rate of about

By saving more,a country

In 2007,Modern Electronics,Inc.produced 60,000 calculators,employing 80 workers,each of whom worked 8 hours per day.In 2008,the same firm produced 76,500 calculators,employing 85 workers,each of whom worked 10 hours per day.Between 2007 and 2008,productivity at Modern Electronics

International data on the history of real GDP growth rates shows that over the last 100 years or so,rich countries got richer and poor countries got poorer.

Productivity is the

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

Which of the following is correct?

Suppose Japanese-based Sony Corporation builds and operates a new digital camera factory in the United States.Future production from such an investment would

In the United States real GDP per person is about $44,000,while in some poor countries real GDP per person is less than $3,000.

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units.This year the country had 1000 workers who worked an average of 8 hours and produced 14,000 units.This country's productivity was

Which of the following countries achieved higher economic growth,in part by mandating a reduction in population growth?

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

Roughly what percentage of growth in real GDP per person in Britain between 1790 and 1980 was accounted for by improved nutrition according to the estimates of Robert Fogel?

Compare and contrast the population theories of Malthus and Kremer.

Suppose that there are diminishing returns to capital.Suppose also that two countries are the same except one has less capital and so less real GDP per person.Suppose that both increase their saving rate from 3 percent to 4 percent.In the long run

In addition to investment in physical and human capital,what other public policies might a country adopt to increase productivity?

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