Question 1

When Chile experiences investment from abroad,it experiences,as a result,

Accepted Answer

A) an increase in productivity. 
B) a decrease in Gross National Product (GNP). 
C) lower wages for Chilean workers. 
D) None of the above is correct. 
A) an increase in productivity. 
B) a decrease in Gross National Product (GNP). 
C) lower wages for Chilean workers. 
D) None of the above is correct.

Question 2

Which of the following provide benefits to society at large and not just to the person(s)who pursues it?

Accepted Answer

A) both technological knowledge that is a public good and education 
B) technological knowledge that is a public good,but not education 
C) education,but not technological knowledge that is a public good 
D) neither education,nor technological knowledge that is a public good 
A) both technological knowledge that is a public good and education 
B) technological knowledge that is a public good,but not education 
C) education,but not technological knowledge that is a public good 
D) neither education,nor technological knowledge that is a public good

Question 3

Over the period 1960-1990,

Accepted Answer

A) South Korea had a higher growth rate than the United States because it had a higher ratio of investment to GDP. 
B) the United States had a higher growth rate than South Korea because it had a higher ratio of investment to GDP. 
C) South Korea had a higher growth rate than the United States even though it had a similar ratio of investment to GDP. 
D) the United States had a higher growth rate than South Korea even though it had a similar ratio of investment to real GDP. 
A) South Korea had a higher growth rate than the United States because it had a higher ratio of investment to GDP. 
B) the United States had a higher growth rate than South Korea because it had a higher ratio of investment to GDP. 
C) South Korea had a higher growth rate than the United States even though it had a similar ratio of investment to GDP. 
D) the United States had a higher growth rate than South Korea even though it had a similar ratio of investment to real GDP.

Question 4

Which of the following terms is used to refer to the ability of people to exercise authority over the resources they own?

Accepted Answer

A) natural rights 
B) property rights 
C) input control 
D) collective control 
A) natural rights 
B) property rights 
C) input control 
D) collective control

Question 5

The return to schooling for society is higher than the return to schooling for the individual if

Accepted Answer

A) the concept of diminishing returns applies to education. 
B) the concept of constant returns to scale applies to education. 
C) human capital conveys positive externalities. 
D) investment in human capital involves no opportunity costs. 
A) the concept of diminishing returns applies to education. 
B) the concept of constant returns to scale applies to education. 
C) human capital conveys positive externalities. 
D) investment in human capital involves no opportunity costs.

Question 6

The BRAC anti-poverty program in Bangladesh gave poor families training on how to raise livestock,a savings account,and help with their physical and mental health.These policies can potentially improve economic growth by increasing

Accepted Answer

A) education,savings,and human capital,respectively. 
B) ​physical capital,savings,and natural resources,respectively. 
C) ​property rights,research and development,and human capital,respectively. 
D) ​education,research and development,and natural resources,respectively. 
A) education,savings,and human capital,respectively. 
B) ​physical capital,savings,and natural resources,respectively. 
C) ​property rights,research and development,and human capital,respectively. 
D) ​education,research and development,and natural resources,respectively.

Question 7

In the past there have been violent protests against the World Bank and the World Trade Organization.The protesters argued that these institutions promote free trade and also encourage corporations in rich countries to invest in poor countries.The protesters contended that these practices make rich countries richer and poor countries poorer.An economist would

Accepted Answer

A) disagree with the protesters because these practices will help make both rich and poor countries richer. 
B) disagree with the protesters about free trade,but would agree with the protesters about corporate investment. 
C) disagree with the protesters about corporate investment,but would agree with the protesters about free trade. 
D) agree with the protesters. 
A) disagree with the protesters because these practices will help make both rich and poor countries richer. 
B) disagree with the protesters about free trade,but would agree with the protesters about corporate investment. 
C) disagree with the protesters about corporate investment,but would agree with the protesters about free trade. 
D) agree with the protesters.

Question 8

Figure 25-1.On the horizontal axis,K/L represents capital (K)per worker (L).On the vertical axis,Y/L represents output (Y)per worker (L).  
-Refer to Figure 25-1.Choose a point anywhere on the curve and call it point A.If the economy is at point A in 2011,then it will definitely remain at point A in 2012 if,between 2011 and 2012,

Accepted Answer

A) the quantity of physical capital remains constant;the number of workers doubles;and human capital,natural resources,and technology all double as well. 
B) the quantity of physical capital doubles;human capital,natural resources,and technology all double as well;and the number of workers remains constant. 
C) the quantity of physical capital doubles;the number of workers doubles;and human capital,natural resources,and technology all double as well. 
D) the quantity of physical capital doubles;the number of workers doubles;and human capital,natural resources,and technology remain constant. 
A) the quantity of physical capital remains constant;the number of workers doubles;and human capital,natural resources,and technology all double as well. 
B) the quantity of physical capital doubles;human capital,natural resources,and technology all double as well;and the number of workers remains constant. 
C) the quantity of physical capital doubles;the number of workers doubles;and human capital,natural resources,and technology all double as well. 
D) the quantity of physical capital doubles;the number of workers doubles;and human capital,natural resources,and technology remain constant.

Question 9

Suppose Japanese-based Toshiba Corporation builds and operates a new computer factory in the United States.Future production from such an investment will

Accepted Answer

A) increase U.S.GNP more than it increases U.S.GDP. 
B) increase U.S.GDP more than it increases U.S.GNP. 
C) have no affect on U.S.GNP,but will increase U.S.GDP. 
D) have no affect on U.S.GNP or GDP. 
A) increase U.S.GNP more than it increases U.S.GDP. 
B) increase U.S.GDP more than it increases U.S.GNP. 
C) have no affect on U.S.GNP,but will increase U.S.GDP. 
D) have no affect on U.S.GNP or GDP.

Question 10

Other things the same,a country that increases its saving rate increases

Accepted Answer

A) its future productivity and future real GDP. 
B) neither its future productivity nor future real GDP. 
C) its future productivity,but not its future real GDP. 
D) its future real GDP,but not its future productivity. 
A) its future productivity and future real GDP. 
B) neither its future productivity nor future real GDP. 
C) its future productivity,but not its future real GDP. 
D) its future real GDP,but not its future productivity.

Question 11

Country A has real GDP per person of 250,000 while Country B has real GDP per person of 500,000.All else constant,Country A will eventually have a higher standard of living than Country B if

Accepted Answer

A) the level of saving per person is 5.000 in Country A and 7,500 in Country B. 
B) the level of saving per person is 3,000 in Country A and 6,000 in Country B. 
C) Both of the above are correct. 
D) None of the above are correct. 
A) the level of saving per person is 5.000 in Country A and 7,500 in Country B. 
B) the level of saving per person is 3,000 in Country A and 6,000 in Country B. 
C) Both of the above are correct. 
D) None of the above are correct.

Question 12

According to research by Robert Fogel,what proportion of the increase in the standard of living in Britain between 1790 and 1980 can be accounted for by greater caloric intake?

Accepted Answer

A) 10 percent 
B) 20 percent 
C) 30 percent 
D) 40 percent 
A) 10 percent 
B) 20 percent 
C) 30 percent 
D) 40 percent

Question 13

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 14

Which of the following was $\bold{NOT}$ a result of the BRAC anti-poverty program in Bangladesh?

Accepted Answer

A) Improved mental health 
B) Higher income levels a year after the program ended 
C) ​Improved female empowerment 
D) Large increases in income of over 10 percent 
A) Improved mental health 
B) Higher income levels a year after the program ended 
C) ​Improved female empowerment 
D) Large increases in income of over 10 percent

Question 15

All else equal,if there are diminishing returns and constant returns to scale,then what happens to productivity if capital and labor both increase but capital increases by more?

Accepted Answer

A) Productivity will definitely fall. 
B) Productivity will definitely be unchanged. 
C) Productivity will definitely rise. 
D) None of the above are necessarily correct. 
A) Productivity will definitely fall. 
B) Productivity will definitely be unchanged. 
C) Productivity will definitely rise. 
D) None of the above are necessarily correct.

Question 16

An increase in the saving rate would,other things the same,

Accepted Answer

A) increase growth more for a poor country than for a rich country,and raise growth permanently. 
B) increase growth more for a poor country than for a rich country,but raise growth temporarily. 
C) increase growth more for a rich country than for a poor country,and raise growth permanently. 
D) increase growth more for a rich country than for a poor country,but raise growth temporarily. 
A) increase growth more for a poor country than for a rich country,and raise growth permanently. 
B) increase growth more for a poor country than for a rich country,but raise growth temporarily. 
C) increase growth more for a rich country than for a poor country,and raise growth permanently. 
D) increase growth more for a rich country than for a poor country,but raise growth temporarily.

Question 17

In the long run,a higher saving rate

Accepted Answer

A) cannot increase the capital stock. 
B) means that people must consume less in the future. 
C) increases the level of productivity. 
D) None of the above is correct. 
A) cannot increase the capital stock. 
B) means that people must consume less in the future. 
C) increases the level of productivity. 
D) None of the above is correct.

Question 18

The short-run effects of an increase in the saving rate include

Accepted Answer

A) a higher level of productivity. 
B) a higher growth rate of productivity. 
C) a higher growth rate of income. 
D) All of the above are correct. 
A) a higher level of productivity. 
B) a higher growth rate of productivity. 
C) a higher growth rate of income. 
D) All of the above are correct.

Question 19

Country A and country B both increase their capital stock by one unit.Output in country A increases by 10 while output in country B increases by 8.Other things the same,diminishing returns implies that country A is

Accepted Answer

A) richer than Country B.If Country A adds another unit of capital,output will increase by more than 10 units. 
B) richer than Country B.If Country A adds another unit of capital,output will increase by less than 10 units. 
C) poorer than Country B.If Country A adds another unit of capital,output will increase by more than 10 units. 
D) poorer than Country B.If Country A adds another unit of capital,output will increase by less than 10 units. 
A) richer than Country B.If Country A adds another unit of capital,output will increase by more than 10 units. 
B) richer than Country B.If Country A adds another unit of capital,output will increase by less than 10 units. 
C) poorer than Country B.If Country A adds another unit of capital,output will increase by more than 10 units. 
D) poorer than Country B.If Country A adds another unit of capital,output will increase by less than 10 units.

Question 20

Consider three imaginary countries.In Aziria,saving amounts to $3,000 and consumption amounts to $7,000;in Graniva,saving amounts to $2,000 and consumption amounts to $8,000;and in Tanistan,saving amounts to $4,500 and consumption amounts to $10,500.The saving rate is

Accepted Answer

A) higher in Aziria than in Tanistan,and it is higher in Tanistan than in Graniva. 
B) higher in Graniva than in Tanistan,and it is higher in Tanistan than in Aziria. 
C) higher in Tanistan than in Graniva,and it is the same in Graniva and Aziria. 
D) higher in Aziria than in Graniva,and it is the same in Aziria and Tanistan. 
A) higher in Aziria than in Tanistan,and it is higher in Tanistan than in Graniva. 
B) higher in Graniva than in Tanistan,and it is higher in Tanistan than in Aziria. 
C) higher in Tanistan than in Graniva,and it is the same in Graniva and Aziria. 
D) higher in Aziria than in Graniva,and it is the same in Aziria and Tanistan.

Exam 12: Production and Growth: Economic Growth and Public Policy

When Chile experiences investment from abroad,it experiences,as a result,

Which of the following provide benefits to society at large and not just to the person(s)who pursues it?

Over the period 1960-1990,

Which of the following terms is used to refer to the ability of people to exercise authority over the resources they own?

The return to schooling for society is higher than the return to schooling for the individual if

The BRAC anti-poverty program in Bangladesh gave poor families training on how to raise livestock,a savings account,and help with their physical and mental health.These policies can potentially improve economic growth by increasing

Suppose Japanese-based Toshiba Corporation builds and operates a new computer factory in the United States.Future production from such an investment will

Other things the same,a country that increases its saving rate increases

Country A has real GDP per person of 250,000 while Country B has real GDP per person of 500,000.All else constant,Country A will eventually have a higher standard of living than Country B if

According to research by Robert Fogel,what proportion of the increase in the standard of living in Britain between 1790 and 1980 can be accounted for by greater caloric intake?

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

Which of the following was NOT\bold{NOT}NOT a result of the BRAC anti-poverty program in Bangladesh?

All else equal,if there are diminishing returns and constant returns to scale,then what happens to productivity if capital and labor both increase but capital increases by more?

An increase in the saving rate would,other things the same,

In the long run,a higher saving rate

The short-run effects of an increase in the saving rate include

Country A and country B both increase their capital stock by one unit.Output in country A increases by 10 while output in country B increases by 8.Other things the same,diminishing returns implies that country A is

Consider three imaginary countries.In Aziria,saving amounts to $3,000 and consumption amounts to $7,000;in Graniva,saving amounts to $2,000 and consumption amounts to $8,000;and in Tanistan,saving amounts to $4,500 and consumption amounts to $10,500.The saving rate is

Ten Principles of Economics

Ten Principles of Economics: How People Make Decisions

Ten Principles of Economics: How People Interact

Ten Principles of Economics: How the Economy As a Whole Works

Ten Principles of Economics: Part A

Ten Principles of Economics: Part B

Thinking Like an Economist

Thinking Like an Economist: The Economist As Scientist

Thinking Like an Economist: The Economist As Policy Adviser

Thinking Like an Economist: Why Economists Disagree

Thinking Like an Economist: Lets Get Going

Thinking Like an Economist: Graphing a Brief Review

Thinking Like an Economist: Part A

Thinking Like an Economist: Part B

Interdependence and the Gains From Trade

Interdependence and the Gains From Trade: A Parable for the Modern Economy

Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

Interdependence and the Gains From Trade: Applications of Comparative Advantage

Interdependence and the Gains From Trade: Conclusion

Interdependence and the Gains From Trade: Part A

Interdependence and the Gains From Trade: Part B

The Market Forces of Supply and Demand

The Market Forces of Supply and Demand:Markets and Competition

The Market Forces of Supply and Demand: Demand

The Market Forces of Supply and Demand: Supply

The Market Forces of Supply and Demand: Supply and Demand Together

The Market Forces of Supply and DemandConclusion How Prices Allocate Resources

The Market Forces of Supply and Demand: Part A

The Market Forces of Supply and Demand: Part B

Elasticity and Its Applications

Elasticity and Its Applications: The Elasticity of Demand

Elasticity and Its Applications: The Elasticity of Supply

Elasticity and Its Applications: Three Applications of Supply,demand,and Elasticity

Elasticity and Its Applications: Part A

Elasticity and Its Applications: Part B

Supply Demand and Government Policies

Supply Demand and Government Policies: Controls on Prices

Supply Demand and Government Policies: Taxes

Supply Demand and Government Policies: Part A

Supply Demand and Government Policies: Part B

Consumers Producers and the Efficiency of Markets

Consumers Producers and the Efficiency of Markets: Consumer Surplus

Consumers Producers and the Efficiency of Markets: Producer Surplus

Consumers Producers and the Efficiency of Markets: Market Efficiency

Consumers Producers and the Efficiency of Markets: Conclusion Market Efficiency and Market Failure

Consumers Producers and the Efficiency of Markets: Part A

Consumers Producers and the Efficiency of Markets: Part B

Application the Cost of Taxation

Application the Cost of Taxation: The Deadweight Loss of Taxation

Application the Cost of Taxation: The Determinants of the Deadweight Loss

Application the Cost of Taxation: Deadweight Loss and Tax Revenue As Taxes Vary

Application the Cost of Taxation: Conclusion

Application the Cost of Taxation: Part A

Application the Cost of Taxation: Part B

Application International Trade

Application International Trade: The Determinants of Trade

Application International Trade: The Winners and Losers From Trade

Application International Trade: The Arguments for Restricting Trade

Application International Trade: Conclusion

Application International Trade: Part A

Application International Trade: Part B

Which of the following was $\bold{NOT}$ a result of the BRAC anti-poverty program in Bangladesh?