Question 1

In a market economy, the real, or inflation-adjusted, price of a resource measures its

Accepted Answer

A)  contribution to revenue. 
B)  relative scarcity. 
C)  productivity. 
D)  contribution to efficiency. 
A)  contribution to revenue. 
B)  relative scarcity. 
C)  productivity. 
D)  contribution to efficiency.

Question 2

An increase in the saving rate permanently increases the growth rate of real GDP per person.

Accepted Answer

A) True 
 B)False

Question 3

Other things the same, a country that increases its savings rate will have

Accepted Answer

A)  higher future capital and higher future real GDP per person. 
B)  higher future capital but not higher future real GDP per person. 
C)  higher future real GDP per person but not higher future capital. 
D)  neither higher future capital nor higher future real GDP per person. 
A)  higher future capital and higher future real GDP per person. 
B)  higher future capital but not higher future real GDP per person. 
C)  higher future real GDP per person but not higher future capital. 
D)  neither higher future capital nor higher future real GDP per person.

Question 4

All else equal, which of the following would tend to cause real GDP per person to rise?

Accepted Answer

A)  a change from inward-oriented policies to outward-oriented policies 
B)  an increase in investment in human capital 
C)  strengthening of property rights. 
D)  All of the above are correct. 
A)  a change from inward-oriented policies to outward-oriented policies 
B)  an increase in investment in human capital 
C)  strengthening of property rights. 
D)  All of the above are correct.

Question 5

Which well­known economist from the past asserted that "the power of population is infinitely greater than the power in the earth to produce subsistence for man?"

Accepted Answer

The econom

Question 6

Other things the same, when an economy increases its saving rate

Accepted Answer

A)  consumption and production rise now. 
B)  consumption rises now and production rises later 
C)  consumption falls now and production rises later. 
D)  consumption falls now and production falls later. 
A)  consumption and production rise now. 
B)  consumption rises now and production rises later 
C)  consumption falls now and production rises later. 
D)  consumption falls now and production falls later.

Question 7

Consider the nations of China, Japan, and the United States. Over the past century, which of these nations has progressed, in an economic sense, more rapidly than the other two nations?

Accepted Answer

Japan's growth rate 2.65 perce

Question 8

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.

Question 9

In 2010, income per person in the United States was about 14 times that in India.

Accepted Answer

A) True 
 B)False

Question 10

Other things the same, an increase in population growth

Accepted Answer

A)  increases capital per worker. Further, there is some evidence that a higher population growth rate may increase the pace of technological progress. 
B)  increases capital per worker. However, there is some evidence that a higher population growth rate may decrease the pace of technological progress. 
C)  decreases capital per worker. Further, there is some evidence that a higher population growth rate may decrease the pace of technological progress. 
D)  decreases capital per worker. However, there is some evidence that a higher population growth rate may increase the pace of technological progress. 
A)  increases capital per worker. Further, there is some evidence that a higher population growth rate may increase the pace of technological progress. 
B)  increases capital per worker. However, there is some evidence that a higher population growth rate may decrease the pace of technological progress. 
C)  decreases capital per worker. Further, there is some evidence that a higher population growth rate may decrease the pace of technological progress. 
D)  decreases capital per worker. However, there is some evidence that a higher population growth rate may increase the pace of technological progress.

Question 11

If a country has a higher level of productivity than another, then it also has a higher level of real GDP.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is a good gauge of economic progress?

Accepted Answer

A)  the level of real GDP per person, but not the growth rate of real GDP per person 
B)  the level of real GDP per person and the growth rate of real GDP per person 
C)  the growth rate of real GDP per person, but not the level of real GDP per person 
D)  neither the level nor the growth rate of real GDP per person 
A)  the level of real GDP per person, but not the growth rate of real GDP per person 
B)  the level of real GDP per person and the growth rate of real GDP per person 
C)  the growth rate of real GDP per person, but not the level of real GDP per person 
D)  neither the level nor the growth rate of real GDP per person

Question 13

What are the long-run effects on productivity and income of an increase in the saving rate?

Accepted Answer

In the long run, a higher savi

Question 14

Currently a country has real GDP per person of 500. Raising capital per worker by one would increase output per worker by 4. Other things the same, which of the following long-run combinations are consistent with the effects of this country increasing its saving rate?

Accepted Answer

A)  real GDP per person is 520 and raising capital per worker by one would increase output per worker by 3 
B)  real GDP per person is 520 and raising capital per worker by one would increase output per worker by 5 
C)  real GDP per person is 480 and raising capital per worker by one would increase output per worker by 3 
D)  real GDP per person is 480 and raising capital per worker by one would increase output per worker by 5 
A)  real GDP per person is 520 and raising capital per worker by one would increase output per worker by 3 
B)  real GDP per person is 520 and raising capital per worker by one would increase output per worker by 5 
C)  real GDP per person is 480 and raising capital per worker by one would increase output per worker by 3 
D)  real GDP per person is 480 and raising capital per worker by one would increase output per worker by 5

Question 15

The average income in a rich country, such as the United States or Japan, is more than

Accepted Answer

A)  3 times, but less than 5 times, the average income in a poor country, such as Indonesia or Nigeria. 
B)  5 times, but less than 10 times, the average income in a poor country, such as Indonesia or Nigeria. 
C)  10 times, but less than 20 times, the average income in a poor country, such as Indonesia or Nigeria. 
D)  more than 20 times the average income in a poor country, such as Indonesia or Nigeria. 
A)  3 times, but less than 5 times, the average income in a poor country, such as Indonesia or Nigeria. 
B)  5 times, but less than 10 times, the average income in a poor country, such as Indonesia or Nigeria. 
C)  10 times, but less than 20 times, the average income in a poor country, such as Indonesia or Nigeria. 
D)  more than 20 times the average income in a poor country, such as Indonesia or Nigeria.

Question 16

Country A experienced a growth rate of real GDP per person of 2.5 percent per year throughout the 1900's. In view of other countries' experiences during this time country A's growth was

Accepted Answer

A)  exceptionally high. 
B)  moderately high. 
C)  moderately low. 
D)  exceptionally low. 
A)  exceptionally high. 
B)  moderately high. 
C)  moderately low. 
D)  exceptionally low.

Question 17

Which of the following is an observation made by economist Michael Kremer?

Accepted Answer

A)  World growth rates increased as the population increased. 
B)  Technological progress allows for increasing population because of advances in agriculture. 
C)  World population is growing so rapidly that soon it will outstrip natural resources and our standard of living will decline. 
D)  All of the above are observations made by Kremer. 
A)  World growth rates increased as the population increased. 
B)  Technological progress allows for increasing population because of advances in agriculture. 
C)  World population is growing so rapidly that soon it will outstrip natural resources and our standard of living will decline. 
D)  All of the above are observations made by Kremer.

Question 18

A forest is an example of a nonrenewable resource.

Accepted Answer

A) True 
 B)False

Question 19

A nation's standard of living is determined by

Accepted Answer

A)  the percentage of its GDP that is accounted for by government purchases. 
B)  the quantity of natural resources with which it is endowed. 
C)  the productivity of its workers. 
D)  factors and events that are beyond the nation's control. 
A)  the percentage of its GDP that is accounted for by government purchases. 
B)  the quantity of natural resources with which it is endowed. 
C)  the productivity of its workers. 
D)  factors and events that are beyond the nation's control.

Question 20

During the past century the average growth rate of U.S. real GDP per person implies that it doubled, on average, about every

Accepted Answer

A)  100 years. 
B)  70 years. 
C)  35 years. 
D)  25 years. 
A)  100 years. 
B)  70 years. 
C)  35 years. 
D)  25 years.

In a market economy, the real, or inflation-adjusted, price of a resource measures its

An increase in the saving rate permanently increases the growth rate of real GDP per person.

Other things the same, a country that increases its savings rate will have

All else equal, which of the following would tend to cause real GDP per person to rise?

Which wellknown economist from the past asserted that "the power of population is infinitely greater than the power in the earth to produce subsistence for man?"

Other things the same, when an economy increases its saving rate

Consider the nations of China, Japan, and the United States. Over the past century, which of these nations has progressed, in an economic sense, more rapidly than the other two nations?

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

In 2010, income per person in the United States was about 14 times that in India.

Other things the same, an increase in population growth

If a country has a higher level of productivity than another, then it also has a higher level of real GDP.

Which of the following is a good gauge of economic progress?

What are the long-run effects on productivity and income of an increase in the saving rate?

Currently a country has real GDP per person of 500. Raising capital per worker by one would increase output per worker by 4. Other things the same, which of the following long-run combinations are consistent with the effects of this country increasing its saving rate?

The average income in a rich country, such as the United States or Japan, is more than

Country A experienced a growth rate of real GDP per person of 2.5 percent per year throughout the 1900's. In view of other countries' experiences during this time country A's growth was

Which of the following is an observation made by economist Michael Kremer?

A forest is an example of a nonrenewable resource.

A nation's standard of living is determined by

During the past century the average growth rate of U.S. real GDP per person implies that it doubled, on average, about every

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

In a market economy, the real, or inflation-adjusted, price of a resource measures its

An increase in the saving rate permanently increases the growth rate of real GDP per person.

Other things the same, a country that increases its savings rate will have

All else equal, which of the following would tend to cause real GDP per person to rise?

Which well­known economist from the past asserted that "the power of population is infinitely greater than the power in the earth to produce subsistence for man?"

Other things the same, when an economy increases its saving rate

Consider the nations of China, Japan, and the United States. Over the past century, which of these nations has progressed, in an economic sense, more rapidly than the other two nations?

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

In 2010, income per person in the United States was about 14 times that in India.

Other things the same, an increase in population growth

If a country has a higher level of productivity than another, then it also has a higher level of real GDP.

Which of the following is a good gauge of economic progress?

What are the long-run effects on productivity and income of an increase in the saving rate?

Currently a country has real GDP per person of 500. Raising capital per worker by one would increase output per worker by 4. Other things the same, which of the following long-run combinations are consistent with the effects of this country increasing its saving rate?

The average income in a rich country, such as the United States or Japan, is more than

Country A experienced a growth rate of real GDP per person of 2.5 percent per year throughout the 1900's. In view of other countries' experiences during this time country A's growth was

Which of the following is an observation made by economist Michael Kremer?

A forest is an example of a nonrenewable resource.

A nation's standard of living is determined by

During the past century the average growth rate of U.S. real GDP per person implies that it doubled, on average, about every

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

Which wellknown economist from the past asserted that "the power of population is infinitely greater than the power in the earth to produce subsistence for man?"