Question 1

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 2

Productivity

Accepted Answer

A)  is nearly the same across countries, and so provides no help explaining differences in the standard of living across countries. 
B)  explains very little of the differences in the standard of living across countries. 
C)  explains some, but not most of the differences in the standard of living across countries. 
D)  explains most of the differences in the standard of living across countries. 
A)  is nearly the same across countries, and so provides no help explaining differences in the standard of living across countries. 
B)  explains very little of the differences in the standard of living across countries. 
C)  explains some, but not most of the differences in the standard of living across countries. 
D)  explains most of the differences in the standard of living across countries.

Question 3

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 4

In the United States in 2010 real GDP per person was about $47,000, while in some poor countries real GDP per person was less than $5,000.

Accepted Answer

A) True 
 B)False

Question 5

In which of the following countries has economic growth been sufficiently high that income would double every ten years?

Accepted Answer

A)  India 
B)  Mexico 
C)  South Korea 
D)  Zimbabwe 
A)  India 
B)  Mexico 
C)  South Korea 
D)  Zimbabwe

Question 6

In 2010, the typical Bangladeshi had about

Accepted Answer

A)  less than half the real income of a typical American a century ago. 
B)  about the same real income of a typical American a century ago. 
C)  2 times as much real income as that of a typical American a century ago. 
D)  4 times as much real income as that of a typical American a century ago. 
A)  less than half the real income of a typical American a century ago. 
B)  about the same real income of a typical American a century ago. 
C)  2 times as much real income as that of a typical American a century ago. 
D)  4 times as much real income as that of a typical American a century ago.

Question 7

All else equal, if there are diminishing returns, then if a country raised its capital by 100 units last year and by 100 units this year,

Accepted Answer

A)  the increase in output was greater for this year than last year. 
B)  the increase in output was greater last year than this year. 
C)  the increase in output is the same in both years. 
D)  None of the above is necessarily correct. 
A)  the increase in output was greater for this year than last year. 
B)  the increase in output was greater last year than this year. 
C)  the increase in output is the same in both years. 
D)  None of the above is necessarily correct.

Question 8

Waldo works eight hours and produces 7 units of goods per hour. Emerson works six hours and produces 10 units of goods per hour.

Accepted Answer

A)  Waldo's productivity and output are greater than Emerson's. 
B)  Waldo's productivity is greater than Emerson's but his output is less. 
C)  Emerson's productivity and output are greater than Waldo's. 
D)  Emerson's productivity is greater than Waldo's but his output is less. 
A)  Waldo's productivity and output are greater than Emerson's. 
B)  Waldo's productivity is greater than Emerson's but his output is less. 
C)  Emerson's productivity and output are greater than Waldo's. 
D)  Emerson's productivity is greater than Waldo's but his output is less.

Question 9

The saws, lathes, and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called

Accepted Answer

A)  human capital. 
B)  physical capital. 
C)  natural resources. 
D)  technological knowledge. 
A)  human capital. 
B)  physical capital. 
C)  natural resources. 
D)  technological knowledge.

Question 10

Productivity is the amount of goods and services

Accepted Answer

A)  an economy produces. It is not linked to a nation's economic policies. 
B)  an economy produces. It is linked to a nation's economic policies. 
C)  produced for each hour of a worker's time. It is not linked to a nation's economic policies. 
D)  produced for each hour of a worker's time. It is linked to a nation's economic policies. 
A)  an economy produces. It is not linked to a nation's economic policies. 
B)  an economy produces. It is linked to a nation's economic policies. 
C)  produced for each hour of a worker's time. It is not linked to a nation's economic policies. 
D)  produced for each hour of a worker's time. It is linked to a nation's economic policies.

Question 11

Other things the same, if a country raises its saving rate, when is growth of real GDP per person higher?

Accepted Answer

A)  as the economy moves toward the long run and in the long run. 
B)  as the economy moves toward the long run, but not in the long run. 
C)  in the long run, but not as the economy moves toward the long run. 
D)  neither as the economy moves toward the long run, nor in the long run. 
A)  as the economy moves toward the long run and in the long run. 
B)  as the economy moves toward the long run, but not in the long run. 
C)  in the long run, but not as the economy moves toward the long run. 
D)  neither as the economy moves toward the long run, nor in the long run.

Question 12

If an inexpensive alternative to oil were found, the price of oil adjusted for inflation

Accepted Answer

A)  would decline as the alternative would reduce the demand for oil. 
B)  would decline as the alternative would reduce the supply of oil. 
C)  would increase as the alternative would increase the demand for oil. 
D)  would increase as the alternative would increase the supply of oil. 
A)  would decline as the alternative would reduce the demand for oil. 
B)  would decline as the alternative would reduce the supply of oil. 
C)  would increase as the alternative would increase the demand for oil. 
D)  would increase as the alternative would increase the supply of oil.

Question 13

If over a short time there is an increase in the number of people retired and a decrease in the number of people working, then productivity

Accepted Answer

A)  and real GDP per person rise. 
B)  rises but real GDP per person falls. 
C)  falls and real GDP per person rises. 
D)  and real GDP per person fall. 
A)  and real GDP per person rise. 
B)  rises but real GDP per person falls. 
C)  falls and real GDP per person rises. 
D)  and real GDP per person fall.

Question 14

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 15

An understanding of the best ways to produce goods and services is called

Accepted Answer

A)  human capital. 
B)  physical capital. 
C)  technology. 
D)  productivity. 
A)  human capital. 
B)  physical capital. 
C)  technology. 
D)  productivity.

Question 16

In a market economy, scarcity of resources is most clearly reflected in

Accepted Answer

A)  supply. 
B)  demand. 
C)  market prices. 
D)  the stock of the resource. 
A)  supply. 
B)  demand. 
C)  market prices. 
D)  the stock of the resource.

Question 17

Scenario 25-1. An economy's production form takes the form Y = AFL, K, H, N).
-Refer to Scenario 25-1. If the production function has the constant-returns-to-scale property, then if we know the values of A, K/L, H/L, and N/L, we also know the value of

Accepted Answer

A)  output. 
B)  labor productivity. 
C)  A. 
D)  All of the above are correct. 
A)  output. 
B)  labor productivity. 
C)  A. 
D)  All of the above are correct.

Question 18

Which of the following is an example of a produced factor of production?

Accepted Answer

A)  a plant in which automobiles are assembled 
B)  skills that people accumulate in high school and college 
C)  skills that people accumulate through experience in the workplace 
D)  All of the above are correct. 
A)  a plant in which automobiles are assembled 
B)  skills that people accumulate in high school and college 
C)  skills that people accumulate through experience in the workplace 
D)  All of the above are correct.

Question 19

Which of the following nations experienced average rates of economic growth of less than 2 percent over the last 100 years or so?

Accepted Answer

A)  Bangladesh 
B)  Pakistan 
C)  United Kingdom 
D)  All of the above are correct. 
A)  Bangladesh 
B)  Pakistan 
C)  United Kingdom 
D)  All of the above are correct.

Question 20

Table 25-1.
Athens and Troy both produce only ribs and baked potatoes.
  
-Refer to Table 25-1. Which of the following is correct?

Accepted Answer

A)  Both real GDP and real GDP per person are higher in Athens than Troy. 
B)  Real GDP is higher in Athens while real GDP per person is higher in Troy 
C)  Real GDP is higher in Troy while real GDP per person is higher in Athens. 
D)  Both real GDP and real GDP per person are higher in Troy than Athens. 
A)  Both real GDP and real GDP per person are higher in Athens than Troy. 
B)  Real GDP is higher in Athens while real GDP per person is higher in Troy 
C)  Real GDP is higher in Troy while real GDP per person is higher in Athens. 
D)  Both real GDP and real GDP per person are higher in Troy than Athens.

Which of the following is a determinant of productivity?

Productivity

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 the United States in 2010 real GDP per person was about $47,000, while in some poor countries real GDP per person was less than $5,000.

In which of the following countries has economic growth been sufficiently high that income would double every ten years?

In 2010, the typical Bangladeshi had about

All else equal, if there are diminishing returns, then if a country raised its capital by 100 units last year and by 100 units this year,

Waldo works eight hours and produces 7 units of goods per hour. Emerson works six hours and produces 10 units of goods per hour.

The saws, lathes, and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called

Productivity is the amount of goods and services

Other things the same, if a country raises its saving rate, when is growth of real GDP per person higher?

If an inexpensive alternative to oil were found, the price of oil adjusted for inflation

If over a short time there is an increase in the number of people retired and a decrease in the number of people working, then productivity

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

An understanding of the best ways to produce goods and services is called

In a market economy, scarcity of resources is most clearly reflected in

Scenario 25-1. An economy's production form takes the form Y = AFL, K, H, N). -Refer to Scenario 25-1. If the production function has the constant-returns-to-scale property, then if we know the values of A, K/L, H/L, and N/L, we also know the value of

Which of the following is an example of a produced factor of production?

Which of the following nations experienced average rates of economic growth of less than 2 percent over the last 100 years or so?

Table 25-1. Athens and Troy both produce only ribs and baked potatoes. -Refer to Table 25-1. Which of the following is correct?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment and Its Natural Rate

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 Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters

Exam 7: Production and Growth

Which of the following is a determinant of productivity?

Productivity

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 the United States in 2010 real GDP per person was about $47,000, while in some poor countries real GDP per person was less than $5,000.

In which of the following countries has economic growth been sufficiently high that income would double every ten years?

In 2010, the typical Bangladeshi had about

All else equal, if there are diminishing returns, then if a country raised its capital by 100 units last year and by 100 units this year,

Waldo works eight hours and produces 7 units of goods per hour. Emerson works six hours and produces 10 units of goods per hour.

The saws, lathes, and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called

Productivity is the amount of goods and services

Other things the same, if a country raises its saving rate, when is growth of real GDP per person higher?

If an inexpensive alternative to oil were found, the price of oil adjusted for inflation

If over a short time there is an increase in the number of people retired and a decrease in the number of people working, then productivity

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

An understanding of the best ways to produce goods and services is called

In a market economy, scarcity of resources is most clearly reflected in

Scenario 25-1. An economy's production form takes the form Y = AFL, K, H, N). -Refer to Scenario 25-1. If the production function has the constant-returns-to-scale property, then if we know the values of A, K/L, H/L, and N/L, we also know the value of

Which of the following is an example of a produced factor of production?

Which of the following nations experienced average rates of economic growth of less than 2 percent over the last 100 years or so?

Table 25-1. Athens and Troy both produce only ribs and baked potatoes. -Refer to Table 25-1. Which of the following is correct?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment and Its Natural Rate

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 Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters