Exam 7: Production and Growth

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 it is possible that the specific form of the production function is

In a particular production process, if the quantities of all inputs used double, then the quantity of output doubles as well. This means that

In which of the following cases can we be certain that a natural resource has become scarcer?

Which of the following best illustrates the human capital of a survivor stranded on an island?

A rapid increase in the number of workers, other things the same, is likely in the short term to

Some data that at first might seem puzzling: The share of GDP devoted to investment was similar for the United States and South Korea from 1960-1991. However, during these same years South Korea had a 6 percent growth rate of average annual income per person, while the United States had only a 2 percent growth rate. If the saving rates were the same, why were the growth rates so different?

You and your friend work together for 4 hours to produce a total of 8 bookcases. What is productivity?

Technological knowledge

Like physical capital, human capital is a produced factor of production.

After adjusting for inflation, over time the prices of most natural resources have been

The catch-up effect says that countries with low income can grow faster than countries with higher income. However, in statistical studies that include many diverse countries we do not observe the catch-up-effect unless we control for other variables that affect productivity. Considering the determinants of productivity, list and explain some things that would tend to prohibit or limit a poor country's ability to catch up with the rich ones.

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

In order for the standard of living within a country to be enhanced over time, which of the following is essential?

Which of the following is correct?

Which of the following are residents of rich countries likely to have in greater quantities, or better quality, than residents of poor countries?

Senator Noitall says that in order to help poor countries develop, the United States should: 1. Encourage poor countries to allow U.S. and other foreign firms to build and operate businesses in their country; 2. Reduce or eliminate subsidizes to U.S. producers when poor countries have a comparative advantage producing those goods the U.S. subsidizes; 3. Work to promote political stability in poor countries; and 4. Reduce poor countries reliance on market forces in their economies. How many of these ideas are likely to help poor countries grow?

Other things the same, if a country increased its saving rate, in 40 years or so it would likely have

Which one of the factors of production originates as an output from the production process, and is subsequently used as an input into the production process?

"When workers already have a large quantity of capital to use in producing goods and services, giving them an additional unit of capital increases their productivity only slightly." This statement

According to studies using international data, an increase in the saving rate