Question 1

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 2

Which of the following can explain faster growth of real GDP in country A than in Country B?

Accepted Answer

A) both greater population growth and greater productivity growth in Country A 
B) greater population growth in Country A,but not greater productivity growth in Country A 
C) greater productivity growth in Country A,but not greater population growth in Country A 
D) neither greater population growth nor greater productivity growth in Country A 
A) both greater population growth and greater productivity growth in Country A 
B) greater population growth in Country A,but not greater productivity growth in Country A 
C) greater productivity growth in Country A,but not greater population growth in Country A 
D) neither greater population growth nor greater productivity growth in Country A

Question 3

The behavior of market prices over time indicates that natural resources are

Accepted Answer

A) a limit to economic growth. 
B) unrelated to economic growth. 
C) not a limit to economic growth. 
D) the major determinant of productivity. 
A) a limit to economic growth. 
B) unrelated to economic growth. 
C) not a limit to economic growth. 
D) the major determinant of productivity.

Question 4

Proprietary technology is knowledge that is

Accepted Answer

A) known but no longer used much. 
B) known,but only recently discovered. 
C) known mostly by only those in a certain profession. 
D) known only by the company that discovered it. 
A) known but no longer used much. 
B) known,but only recently discovered. 
C) known mostly by only those in a certain profession. 
D) known only by the company that discovered it.

Question 5

In 2010,Acme Foods produced 300,000 bags of pretzels,employing 12,000 hours of labor.In 2011,it produced 322,000 bags of pretzels,employing 14,000 hours of labor.Acme Foods productivity

Accepted Answer

A) decreased by 8%. 
B) was unchanged. 
C) increased by 6.8%. 
D) increased by 7.3%. 
A) decreased by 8%. 
B) was unchanged. 
C) increased by 6.8%. 
D) increased by 7.3%.

Question 6

Which of the following is a determinant of productivity?

Accepted Answer

A) human capital per worker 
B) physical capital per worker 
C) natural resources per worker 
D) All of the above are correct. 
A) human capital per worker 
B) physical capital per worker 
C) natural resources per worker 
D) All of the above are correct.

Question 7

The one variable that stands out as the most significant explanation of large variations in living standards around the world is

Accepted Answer

A) productivity. 
B) population. 
C) preferences. 
D) prices. 
A) productivity. 
B) population. 
C) preferences. 
D) prices.

Question 8

Which of the following is an example of human capital?

Accepted Answer

A) the comfortable chair in your dorm room where you read economics texts 
B) the amount you get paid each week to work at the library 
C) the things you have learned this semester 
D) any capital goods that require a human to be present to operate 
A) the comfortable chair in your dorm room where you read economics texts 
B) the amount you get paid each week to work at the library 
C) the things you have learned this semester 
D) any capital goods that require a human to be present to operate

Question 9

Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,275 a ton.Over the same time a measure of the overall price level increased from 150 to 156.The price of iron ore increased by

Accepted Answer

A) less than inflation,so it became less scarce. 
B) less than inflation,so it became more scarce. 
C) more than inflation,so it became more scarce. 
D) more than inflation,so it became less scarce. 
A) less than inflation,so it became less scarce. 
B) less than inflation,so it became more scarce. 
C) more than inflation,so it became more scarce. 
D) more than inflation,so it became less scarce.

Question 10

Apple founder Steve Jobs received patents on many of his ideas.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 11

Mary looks over reports on four of her workers.Jack made 30 baskets in 5 hours.Rudy made 32 baskets in 8 hours.Sam made 40 baskets in 12 hours.Walter made 22 baskets in four hours.Who has the greatest productivity?

Accepted Answer

A) Jack 
B) Rudy 
C) Sam 
D) Walter 
A) Jack 
B) Rudy 
C) Sam 
D) Walter

Question 12

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) Both A and B are correct. 
D) None 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) Both A and B are correct. 
D) None of the above are correct.

Question 13

Suppose a country imposes new restrictions on how many hours people can work.If these restrictions reduce the total number of hours worked in the economy,but all other factors that determine output are held fixed,then

Accepted Answer

A) productivity and output both rise. 
B) productivity rises and output falls. 
C) productivity falls and output rises. 
D) productivity and output fall. 
A) productivity and output both rise. 
B) productivity rises and output falls. 
C) productivity falls and output rises. 
D) productivity and output fall.

Question 14

In the equation for the production function H/L represents

Accepted Answer

A) natural resources per worker. 
B) human capital per worker. 
C) output per worker. 
D) physical capital per worker. 
A) natural resources per worker. 
B) human capital per worker. 
C) output per worker. 
D) physical capital per worker.

Question 15

Each day Sue works 8 hours and produces 7 units of goods and services.Mary works 10 hours each day and produces 10 units of goods and services.It follows that

Accepted Answer

A) Sue's productivity is higher than Mary's. 
B) Mary's productivity is higher than Sue's. 
C) Sue's income per hour will be higher than Mary's. 
D) Sue's income per day will be higher than Mary's. 
A) Sue's productivity is higher than Mary's. 
B) Mary's productivity is higher than Sue's. 
C) Sue's income per hour will be higher than Mary's. 
D) Sue's income per day will be higher than Mary's.

Question 16

Which of the following would increase productivity?

Accepted Answer

A) an increase in the physical capital stock per worker 
B) an increase in human capital per worker 
C) an increase in natural resources per worker 
D) All of the above are correct. 
A) an increase in the physical capital stock per worker 
B) an increase in human capital per worker 
C) an increase in natural resources per worker 
D) All of the above are correct.

Question 17

Matt is going to college to become a pharmacist.What he learns about existing information increases

Accepted Answer

A) both technological knowledge and human capital. 
B) technological knowledge but not human capital. 
C) human capital but not technological knowledge. 
D) neither technological knowledge nor human capital. 
A) both technological knowledge and human capital. 
B) technological knowledge but not human capital. 
C) human capital but not technological knowledge. 
D) neither technological knowledge nor human capital.

Question 18

In the equation for the production function Y/L represents

Accepted Answer

A) productivity. 
B) output. 
C) the availability of natural resources. 
D) the amount of human capital. 
A) productivity. 
B) output. 
C) the availability of natural resources. 
D) the amount of human capital.

Question 19

Which of the following is an example of physical capital?

Accepted Answer

A) the computer a secretary uses 
B) rivers on which goods are transported 
C) the skills and knowledge of a doctor 
D) All of the above are correct. 
A) the computer a secretary uses 
B) rivers on which goods are transported 
C) the skills and knowledge of a doctor 
D) All of the above are correct.

Question 20

Scenario 25-1.An economy's production form takes the form Y = AF(L,K,H,N).
-Refer to Scenario 25-1.If the production function has the constant-returns-to-scale property,then it can be rewritten as

Accepted Answer

A) Y/L = AF(1,K/L,H/L,N/L) 
B) Y/L = AF(L,1,H/L,N/L) 
C) Y/L = AF(L,K/L,1,N/L) 
D) Y/L = AF(L,K/L,H/L,1) 
A) Y/L = AF(1,K/L,H/L,N/L) 
B) Y/L = AF(L,1,H/L,N/L) 
C) Y/L = AF(L,K/L,1,N/L) 
D) Y/L = AF(L,K/L,H/L,1)

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

Human capital is

Which of the following can explain faster growth of real GDP in country A than in Country B?

The behavior of market prices over time indicates that natural resources are

Proprietary technology is knowledge that is

In 2010,Acme Foods produced 300,000 bags of pretzels,employing 12,000 hours of labor.In 2011,it produced 322,000 bags of pretzels,employing 14,000 hours of labor.Acme Foods productivity

Which of the following is a determinant of productivity?

The one variable that stands out as the most significant explanation of large variations in living standards around the world is

Which of the following is an example of human capital?

Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,275 a ton.Over the same time a measure of the overall price level increased from 150 to 156.The price of iron ore increased by

Apple founder Steve Jobs received patents on many of his ideas.While the patents existed,his ideas were

Mary looks over reports on four of her workers.Jack made 30 baskets in 5 hours.Rudy made 32 baskets in 8 hours.Sam made 40 baskets in 12 hours.Walter made 22 baskets in four hours.Who has the greatest productivity?

Which of the following statements is true?

Suppose a country imposes new restrictions on how many hours people can work.If these restrictions reduce the total number of hours worked in the economy,but all other factors that determine output are held fixed,then

In the equation for the production function H/L represents

Each day Sue works 8 hours and produces 7 units of goods and services.Mary works 10 hours each day and produces 10 units of goods and services.It follows that

Which of the following would increase productivity?

Matt is going to college to become a pharmacist.What he learns about existing information increases

In the equation for the production function Y/L represents

Which of the following is an example of physical capital?

Scenario 25-1.An economy's production form takes the form Y = AF(L,K,H,N). -Refer to Scenario 25-1.If the production function has the constant-returns-to-scale property,then it can be rewritten as

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