Question 1

Electronics firms may be able to get patents on their ideas. Doing so makes their ideas

Accepted Answer

A)  private goods rather than public goods. This gives people more incentive to engage in research. 
B)  private goods rather than public goods. This gives people less incentive to engage in research. 
C)  public goods rather than private goods. This gives people more incentive to engage in research. 
D)  public goods rather than private goods. This gives people more incentive to engage in private research. 
A)  private goods rather than public goods. This gives people more incentive to engage in research. 
B)  private goods rather than public goods. This gives people less incentive to engage in research. 
C)  public goods rather than private goods. This gives people more incentive to engage in research. 
D)  public goods rather than private goods. This gives people more incentive to engage in private research.

Question 2

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Accepted Answer

A)  most economists do not regard the availability of natural resources as a determinant of productivity. 
B)  the quantity of natural resources does not enter into any production function. 
C)  inflation-adjusted prices of most natural resources have been stable or fallen over time. 
D)  inflation-adjusted prices of most natural resources have risen over time. 
A)  most economists do not regard the availability of natural resources as a determinant of productivity. 
B)  the quantity of natural resources does not enter into any production function. 
C)  inflation-adjusted prices of most natural resources have been stable or fallen over time. 
D)  inflation-adjusted prices of most natural resources have risen over time.

Question 3

Over the period 1870-2010, the United States experienced an average annual growth rate of real GDP per person of about 4 percent per year.

Accepted Answer

A) True 
 B)False

Question 4

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 5

On a production function, as capital per worker increases, output per worker

Accepted Answer

A)  increases. This increase is larger at larger values of capital per worker. 
B)  increases. This increase is smaller at larger values of capital per worker. 
C)  decreases. This decrease is larger at larger value of capital per worker. 
D)  decreases. This decrease is smaller at larger value of capital per worker. 
A)  increases. This increase is larger at larger values of capital per worker. 
B)  increases. This increase is smaller at larger values of capital per worker. 
C)  decreases. This decrease is larger at larger value of capital per worker. 
D)  decreases. This decrease is smaller at larger value of capital per worker.

Question 6

National defense and knowledge are generally considered to be

Accepted Answer

A)  private goods. 
B)  public goods. 
C)  proprietary goods. 
D)  societal goods. 
A)  private goods. 
B)  public goods. 
C)  proprietary goods. 
D)  societal goods.

Question 7

Economist Robert Fogel focused on which of the following factors as one determinant of long-run economic growth?

Accepted Answer

A)  education 
B)  research and development 
C)  nutrition 
D)  trade restrictions 
A)  education 
B)  research and development 
C)  nutrition 
D)  trade restrictions

Question 8

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 9

Allied Business Consultants employs five researchers that each work 8 hour days. In one day the researchers prepared 10 reports for its 2 largest clients. What was Allied Business Consultants' productivity?

Accepted Answer

A)  10 reports 
B)  5 reports per client 
C)  1.25 reports per hour 
D)  1/4 report per hour 
A)  10 reports 
B)  5 reports per client 
C)  1.25 reports per hour 
D)  1/4 report per hour

Question 10

In the long run, an increase in the saving rate

Accepted Answer

A)  doesn't change the level of productivity or income. 
B)  raises the levels of both productivity and income. 
C)  raises the level of productivity but not the level of income. 
D)  raises the level of income but not the level of productivity. 
A)  doesn't change the level of productivity or income. 
B)  raises the levels of both productivity and income. 
C)  raises the level of productivity but not the level of income. 
D)  raises the level of income but not the level of productivity.

Question 11

The opening of a new American-owned factory in Algeria would tend to increase Algeria's GDP more than it increases Algeria's GNP because

Accepted Answer

A)  some of the income from the factory accrues to people who do not live in Algeria. 
B)  gross domestic product is income earned within a country by both residents and nonresidents, whereas gross national product is the income earned by residents of a country while producing both at home and abroad. 
C)  all of the income from the factory is included in Algeria's GDP. 
D)  All of the above are correct. 
A)  some of the income from the factory accrues to people who do not live in Algeria. 
B)  gross domestic product is income earned within a country by both residents and nonresidents, whereas gross national product is the income earned by residents of a country while producing both at home and abroad. 
C)  all of the income from the factory is included in Algeria's GDP. 
D)  All of the above are correct.

Question 12

One can argue that the average American today is "richer" than the richest American 100 years ago, given that 100 years ago,

Accepted Answer

A)  people's nominal incomes were, on average, much lower than they are today. 
B)  personal fortunes were not accurately measured. 
C)  many of the goods and services that we now take for granted were not available. 
D)  international trade had not yet begun to flourish. 
A)  people's nominal incomes were, on average, much lower than they are today. 
B)  personal fortunes were not accurately measured. 
C)  many of the goods and services that we now take for granted were not available. 
D)  international trade had not yet begun to flourish.

Question 13

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 14

Workland has a population of 10,000, of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods. Laborland has a population of 5,000, of whom 3,000 work 7 hours a day to produce a total of 105,000 final goods.

Accepted Answer

A)  Workland has higher productivity and higher real GDP per person than Laborland. 
B)  Workland has higher productivity but lower real GDP per person than Laborland. 
C)  Workland has lower productivity but higher real GDP per person than Laborland. 
D)  Workland has lower productivity and lower real GDP per person than Laborland. 
A)  Workland has higher productivity and higher real GDP per person than Laborland. 
B)  Workland has higher productivity but lower real GDP per person than Laborland. 
C)  Workland has lower productivity but higher real GDP per person than Laborland. 
D)  Workland has lower productivity and lower real GDP per person than Laborland.

Question 15

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 16

Petroleum is an example of a nonrenewable resource.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following items plays a role in determining productivity?

Accepted Answer

A)  physical capital 
B)  natural resources 
C)  technological knowledge 
D)  All of the above are correct. 
A)  physical capital 
B)  natural resources 
C)  technological knowledge 
D)  All of the above are correct.

Question 18

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

Accepted Answer

A)  Singapore 
B)  Nigeria 
C)  India 
D)  Indonesia 
A)  Singapore 
B)  Nigeria 
C)  India 
D)  Indonesia

Question 19

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 20

If the best educated and most skilled persons leave a country, then in the short term this country's human capital per worker

Accepted Answer

A)  and physical capital per worker will increase. 
B)  and physical capital per worker will decrease. 
C)  will increase but physical capital per worker will decrease. 
D)  will decrease but physical capital per worker will increase. 
A)  and physical capital per worker will increase. 
B)  and physical capital per worker will decrease. 
C)  will increase but physical capital per worker will decrease. 
D)  will decrease but physical capital per worker will increase.

Electronics firms may be able to get patents on their ideas. Doing so makes their ideas

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Over the period 1870-2010, the United States experienced an average annual growth rate of real GDP per person of about 4 percent per year.

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

On a production function, as capital per worker increases, output per worker

National defense and knowledge are generally considered to be

Economist Robert Fogel focused on which of the following factors as one determinant of long-run economic growth?

Japan's status as a rich nation is attributable to

Allied Business Consultants employs five researchers that each work 8 hour days. In one day the researchers prepared 10 reports for its 2 largest clients. What was Allied Business Consultants' productivity?

In the long run, an increase in the saving rate

The opening of a new American-owned factory in Algeria would tend to increase Algeria's GDP more than it increases Algeria's GNP because

One can argue that the average American today is "richer" than the richest American 100 years ago, given that 100 years ago,

Workland has a population of 10,000, of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods. Laborland has a population of 5,000, of whom 3,000 work 7 hours a day to produce a total of 105,000 final goods.

Productivity is the

Petroleum is an example of a nonrenewable resource.

Which of the following items plays a role in determining productivity?

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

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

If the best educated and most skilled persons leave a country, then in the short term this country's human capital per worker

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

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Exam 7: Production and Growth

Electronics firms may be able to get patents on their ideas. Doing so makes their ideas

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Over the period 1870-2010, the United States experienced an average annual growth rate of real GDP per person of about 4 percent per year.

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

On a production function, as capital per worker increases, output per worker

National defense and knowledge are generally considered to be

Economist Robert Fogel focused on which of the following factors as one determinant of long-run economic growth?

Japan's status as a rich nation is attributable to

Allied Business Consultants employs five researchers that each work 8 hour days. In one day the researchers prepared 10 reports for its 2 largest clients. What was Allied Business Consultants' productivity?

In the long run, an increase in the saving rate

The opening of a new American-owned factory in Algeria would tend to increase Algeria's GDP more than it increases Algeria's GNP because

One can argue that the average American today is "richer" than the richest American 100 years ago, given that 100 years ago,

Workland has a population of 10,000, of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods. Laborland has a population of 5,000, of whom 3,000 work 7 hours a day to produce a total of 105,000 final goods.

Productivity is the

Petroleum is an example of a nonrenewable resource.

Which of the following items plays a role in determining productivity?

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

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

If the best educated and most skilled persons leave a country, then in the short term this country's human capital per worker

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