Question 1

The key determinant of the standard of living in a country is

Accepted Answer

A) the amount of goods and services produced from each hour of a worker's time. 
B) the total amount of goods and services produced within the country. 
C) the total amount of its physical capital. 
D) its growth rate of real GDP. 
A) the amount of goods and services produced from each hour of a worker's time. 
B) the total amount of goods and services produced within the country. 
C) the total amount of its physical capital. 
D) its growth rate of real GDP.

Question 2

The Karmic Deed Restaurant uses all of the following to produce vegetarian meals.Which of them is an example of physical capital?

Accepted Answer

A) the owner's knowledge of how to prepare vegetarian entrees 
B) the money in the owner's account at the bank from which she borrowed money 
C) the tables and chairs in the restaurant 
D) the fresh fruits,vegetables,and grains the restaurant uses to prepare its meals 
A) the owner's knowledge of how to prepare vegetarian entrees 
B) the money in the owner's account at the bank from which she borrowed money 
C) the tables and chairs in the restaurant 
D) the fresh fruits,vegetables,and grains the restaurant uses to prepare its meals

Question 3

Suppose over the last five years that the price of recycled aluminum increased from $800 a ton to $900 a ton.Over the same time a measure of the overall price level increased from 120 to 138.The real price of recycled aluminum

Accepted Answer

A) increased,so it became scarcer 
B) increased,so it became less scarce 
C) decreased,so it became scarcer 
D) decreased,so it became less scarce 
A) increased,so it became scarcer 
B) increased,so it became less scarce 
C) decreased,so it became scarcer 
D) decreased,so it became less scarce

Question 4

Which of the following is correct?

Accepted Answer

A) Although levels of real GDP per person vary substantially from country to country,the growth rate of real GDP per person is similar across countries. 
B) Productivity is not closely linked to government policies. 
C) The level of real GDP per person is a good gauge of economic prosperity,and the growth rate of real GDP per person is a good gauge of economic progress. 
D) Productivity may be measured by the growth rate of real GDP per person. 
A) Although levels of real GDP per person vary substantially from country to country,the growth rate of real GDP per person is similar across countries. 
B) Productivity is not closely linked to government policies. 
C) The level of real GDP per person is a good gauge of economic prosperity,and the growth rate of real GDP per person is a good gauge of economic progress. 
D) Productivity may be measured by the growth rate of real GDP per person.

Question 5

Megan is a landscaper.Which of the following are included in her physical capital?

Accepted Answer

A) her knowledge of landscaping learned in college and her landscaping equipment 
B) her knowledge of landscaping learned in college,but not her landscaping equipment 
C) her landscaping equipment,but not her knowledge of landscaping learned in college 
D) neither her knowledge of landscaping learned in college nor her landscaping equipment 
A) her knowledge of landscaping learned in college and her landscaping equipment 
B) her knowledge of landscaping learned in college,but not her landscaping equipment 
C) her landscaping equipment,but not her knowledge of landscaping learned in college 
D) neither her knowledge of landscaping learned in college nor her landscaping equipment

Question 6

Which of the following statements is correct?

Accepted Answer

A) Productivity is a determinant of human capital per worker. 
B) Technological knowledge is a determinant of productivity. 
C) Human capital and technological knowledge are the same thing. 
D) All of the above are correct. 
A) Productivity is a determinant of human capital per worker. 
B) Technological knowledge is a determinant of productivity. 
C) Human capital and technological knowledge are the same thing. 
D) All of the above are correct.

Question 7

Japan's status as a rich nation is attributable to

Accepted Answer

A) Japan's quantities of natural resources,but not to international trade. 
B) international trade,but not to Japan's domestic quantities of natural resources. 
C) the fact that Japanese productivity has remained nearly constant for more than 100 years. 
D) the fact that the Japanese have downplayed the role of human capital in economic growth. 
A) Japan's quantities of natural resources,but not to international trade. 
B) international trade,but not to Japan's domestic quantities of natural resources. 
C) the fact that Japanese productivity has remained nearly constant for more than 100 years. 
D) the fact that the Japanese have downplayed the role of human capital in economic growth.

Question 8

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 9

If the price of a good has risen over time,

Accepted Answer

A) it must have become more scarce. 
B) it must have become less scarce. 
C) it has become more scarce only if the price adjusted for inflation has risen. 
D) it has become less scarce only if the price adjusted for inflation has risen. 
A) it must have become more scarce. 
B) it must have become less scarce. 
C) it has become more scarce only if the price adjusted for inflation has risen. 
D) it has become less scarce only if the price adjusted for inflation has risen.

Question 10

Phoenix furniture uses 12 workers,each working eight hours,to produce 192 rocking chairs.What is Phoenix's productivity?

Accepted Answer

A) 192 rocking chairs 
B) 24 rocking chairs per hour 
C) 2 rocking chairs per hour 
D) 2 hours per rocking chair 
A) 192 rocking chairs 
B) 24 rocking chairs per hour 
C) 2 rocking chairs per hour 
D) 2 hours per rocking chair

Question 11

A certain production process requires only two types of inputs - capital and labor.In 2006,100 units of labor and 50 units of capital were employed,and 100 units of output were produced.In 2013,112 units of labor and 56 units of capital were employed.If the production process displays constant returns to scale,then how many units of output were produced in 2013?

Accepted Answer

A) 100 
B) 112 
C) 124 
D) 144 
A) 100 
B) 112 
C) 124 
D) 144

Question 12

Which of the following is an example of human capital?

Accepted Answer

A) textbooks 
B) hand held power tools 
C) knowing how to repair cars 
D) All of the above are correct. 
A) textbooks 
B) hand held power tools 
C) knowing how to repair cars 
D) All of the above are correct.

Question 13

Technological knowledge refers to

Accepted Answer

A) human capital. 
B) available information on how to produce things. 
C) resources expended transmitting society's understanding to the labor force. 
D) All of the above are technological knowledge. 
A) human capital. 
B) available information on how to produce things. 
C) resources expended transmitting society's understanding to the labor force. 
D) All of the above are technological knowledge.

Question 14

In one day Alpha Cabinet Company made 40 cabinets with 320 hours of labor.What was Alpha Cabinet Company's productivity?

Accepted Answer

A) 1/8 cabinet per hour 
B) 8 hours per cabinet 
C) 40 cabinets 
D) None of the above is correct. 
A) 1/8 cabinet per hour 
B) 8 hours per cabinet 
C) 40 cabinets 
D) None of the above is correct.

Question 15

Which of the following is an example of a renewable natural resource?

Accepted Answer

A) fish 
B) soybeans 
C) wood 
D) All of the above are correct. 
A) fish 
B) soybeans 
C) wood 
D) All of the above are correct.

Question 16

If your firm's production function has constant returns to scale,and if you double all your inputs,then your firm's productivity will

Accepted Answer

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

Question 17

If an economy with constant returns to scale were to double its physical capital stock,its available natural resources,and its human capital,but leave the size of the labor force the same,

Accepted Answer

A) its output would stay the same and so would its productivity. 
B) its output and productivity would increase,but less than double. 
C) its output and productivity would increase by more than double. 
D) None of the above is correct. 
A) its output would stay the same and so would its productivity. 
B) its output and productivity would increase,but less than double. 
C) its output and productivity would increase by more than double. 
D) None of the above is correct.

Question 18

For a given year,productivity in a particular country is most closely matched with that country's

Accepted Answer

A) level of real GDP over that year. 
B) level of real GDP divided by hours worked over that year. 
C) growth rate of real GDP divided by hours worked over that year. 
D) growth rate of real GDP per person over that year. 
A) level of real GDP over that year. 
B) level of real GDP divided by hours worked over that year. 
C) growth rate of real GDP divided by hours worked over that year. 
D) growth rate of real GDP per person over that year.

Question 19

Other things the same,which of the following could explain an increase in productivity?

Accepted Answer

A) either an increase in human capital or an increase in physical capital 
B) an increase in human capital but not an increase in physical capital 
C) an increase in physical capital but not an increase in human capital 
D) neither an increase in human capital nor an increase in physical capital 
A) either an increase in human capital or an increase in physical capital 
B) an increase in human capital but not an increase in physical capital 
C) an increase in physical capital but not an increase in human capital 
D) neither an increase in human capital nor an increase in physical capital

Question 20

Which of the following is an example of a nonrenewable resource?

Accepted Answer

A) corn 
B) oil 
C) livestock 
D) All of the above are correct. 
A) corn 
B) oil 
C) livestock 
D) All of the above are correct.

Exam 12: Production and Growth: Productivity Its Role and Determinants

The key determinant of the standard of living in a country is

The Karmic Deed Restaurant uses all of the following to produce vegetarian meals.Which of them is an example of physical capital?

Suppose over the last five years that the price of recycled aluminum increased from $800 a ton to $900 a ton.Over the same time a measure of the overall price level increased from 120 to 138.The real price of recycled aluminum

Which of the following is correct?

Megan is a landscaper.Which of the following are included in her physical capital?

Which of the following statements is correct?

Japan's status as a rich nation is attributable to

Productivity is the

If the price of a good has risen over time,

Phoenix furniture uses 12 workers,each working eight hours,to produce 192 rocking chairs.What is Phoenix's productivity?

Which of the following is an example of human capital?

Technological knowledge refers to

In one day Alpha Cabinet Company made 40 cabinets with 320 hours of labor.What was Alpha Cabinet Company's productivity?

Which of the following is an example of a renewable natural resource?

If your firm's production function has constant returns to scale,and if you double all your inputs,then your firm's productivity will

If an economy with constant returns to scale were to double its physical capital stock,its available natural resources,and its human capital,but leave the size of the labor force the same,

For a given year,productivity in a particular country is most closely matched with that country's

Other things the same,which of the following could explain an increase in productivity?

Which of the following is an example of a nonrenewable resource?

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