Question 1

Human capital is the

Accepted Answer

A)  knowledge and skills that workers acquire through education, training, and experience. 
B)  stock of equipment and structures that is used to produce goods and services. 
C)  total number of hours worked in an economy. 
D)  same thing as technological knowledge. 
A)  knowledge and skills that workers acquire through education, training, and experience. 
B)  stock of equipment and structures that is used to produce goods and services. 
C)  total number of hours worked in an economy. 
D)  same thing as technological knowledge.

Question 2

Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over about the last 120 years?

Accepted Answer

A)  Germany and Japan 
B)  Indonesia and Bangladesh 
C)  the United States and Argentina 
D)  Mexico and Pakistan 
A)  Germany and Japan 
B)  Indonesia and Bangladesh 
C)  the United States and Argentina 
D)  Mexico and Pakistan

Question 3

Historically, the market prices of most natural resources adjusted for inflation) have

Accepted Answer

A)  increased. 
B)  remained stable. 
C)  remained stable or decreased. 
D)  decreased. 
A)  increased. 
B)  remained stable. 
C)  remained stable or decreased. 
D)  decreased.

Question 4

Which of the following is an example of a renewable natural resource?

Accepted Answer

A)  fish 
B)  soybeans 
C)  wood 
D)  All of the above are correct. 
A)  fish 
B)  soybeans 
C)  wood 
D)  All of the above are correct.

Question 5

Which of the following is an example of human capital?

Accepted Answer

A)  textbooks 
B)  hand held power tools 
C)  knowing how to repair cars 
D)  All of the above are correct. 
A)  textbooks 
B)  hand held power tools 
C)  knowing how to repair cars 
D)  All of the above are correct.

Question 6

Productivity can be computed as the number of hours worked divided by output.

Accepted Answer

A) True 
 B)False

Question 7

Suppose Japanese-based Toshiba Corporation builds and operates a new computer factory in the United States.
Future production from such an investment will

Accepted Answer

A)  increase U.S. GNP more than it increases U.S. GDP. 
B)  increase U.S. GDP more than it increases U.S. GNP. 
C)  have no affect on U.S. GNP, but will increase U.S. GDP. 
D)  have no affect on U.S. GNP or GDP. 
A)  increase U.S. GNP more than it increases U.S. GDP. 
B)  increase U.S. GDP more than it increases U.S. GNP. 
C)  have no affect on U.S. GNP, but will increase U.S. GDP. 
D)  have no affect on U.S. GNP or GDP.

Question 8

Which of the following statements is not correct?

Accepted Answer

A)  The catch-up effect is based on the assumption of diminishing returns to capital. 
B)  Investment in poor countries by citizens of rich countries is one way poor countries can learn new technologies. 
C)  Malthus argued that charity and government aid was an effective way to reduce poverty. 
D)  Peace and justice are keys to growth. 
A)  The catch-up effect is based on the assumption of diminishing returns to capital. 
B)  Investment in poor countries by citizens of rich countries is one way poor countries can learn new technologies. 
C)  Malthus argued that charity and government aid was an effective way to reduce poverty. 
D)  Peace and justice are keys to growth.

Question 9

Because of , an increase in the saving rate leads to higher growth of income and productivity only for a while.

Accepted Answer

The answer of Because of , an increase in the...

Question 10

Investment in

Accepted Answer

A)  physical capital, unlike investment in human capital, has an opportunity cost. 
B)  physical capital, like investment in human capital, has an opportunity cost. 
C)  human capital is particularly attractive because it involves no externalities. 
D)  human capital has been shown to be relatively unimportant, relative to investment in physical capital, for a country's long­run economic success. 
A)  physical capital, unlike investment in human capital, has an opportunity cost. 
B)  physical capital, like investment in human capital, has an opportunity cost. 
C)  human capital is particularly attractive because it involves no externalities. 
D)  human capital has been shown to be relatively unimportant, relative to investment in physical capital, for a country's long­run economic success.

Question 11

In recent decades, economic growth has been much more rapid in South Korea than in the United States. What is the likely explanation for this fact?

Accepted Answer

The likely explanati

Question 12

The catch-up effect refers to the idea that poor countries, despite their best efforts, are not likely ever to experience the economic growth rates of wealthier countries.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following can be measured by the level of real GDP per person?

Accepted Answer

A)  productivity and the standard of living 
B)  productivity but not the standard of living 
C)  the standard of living but not productivity 
D)  neither the standard of living nor productivity 
A)  productivity and the standard of living 
B)  productivity but not the standard of living 
C)  the standard of living but not productivity 
D)  neither the standard of living nor productivity

Question 14

In 2011, Modern Electronics, Inc. produced 60,000 calculators, employing 80 workers, each of whom worked 8 hours per day. In 2012, the same firm produced 76,500 calculators, employing 85 workers, each of whom worked 10 hours per day. Productivity at Modern Electronics

Accepted Answer

A)  decreased by 4% 
B)  remained constant. 
C)  increased by 8.33% 
D)  increased by 27.50% 
A)  decreased by 4% 
B)  remained constant. 
C)  increased by 8.33% 
D)  increased by 27.50%

Question 15

As capital per worker rises, output per worker rises. However, this increase in output per worker is smaller at smaller levels of existing capital per worker.

Accepted Answer

A) True 
 B)False

Question 16

The short-run effects of an increase in the saving rate include

Accepted Answer

A)  a higher level of productivity. 
B)  a higher growth rate of productivity. 
C)  a higher growth rate of income. 
D)  All of the above are correct. 
A)  a higher level of productivity. 
B)  a higher growth rate of productivity. 
C)  a higher growth rate of income. 
D)  All of the above are correct.

Question 17

Which of the following statements about inputs is correct?

Accepted Answer

A)  A forest is an example of a natural resource; it is also an example of a renewable resource. 
B)  There is no distinction between human capital and technological knowledge. 
C)  Human capital is a non-produced factor of production. 
D)  Physical capital is a non-produced factor of production. 
A)  A forest is an example of a natural resource; it is also an example of a renewable resource. 
B)  There is no distinction between human capital and technological knowledge. 
C)  Human capital is a non-produced factor of production. 
D)  Physical capital is a non-produced factor of production.

Question 18

If a country's saving rate declined, then other things the same, in the long run the country would have

Accepted Answer

A)  lower productivity, but not lower real GDP per person. 
B)  lower productivity and lower real GDP per person. 
C)  lower real GDP per person, but not lower productivity 
D)  neither lower productivity nor lower real GDP per person. 
A)  lower productivity, but not lower real GDP per person. 
B)  lower productivity and lower real GDP per person. 
C)  lower real GDP per person, but not lower productivity 
D)  neither lower productivity nor lower real GDP per person.

Question 19

The long-run effects of an increase in the saving rate include

Accepted Answer

A)  a higher level of productivity. 
B)  a higher growth rate of productivity. 
C)  a higher growth rate of income. 
D)  All of the above are correct. 
A)  a higher level of productivity. 
B)  a higher growth rate of productivity. 
C)  a higher growth rate of income. 
D)  All of the above are correct.

Question 20

Two countries with the same saving rates must have the same growth rate of real GDP per person.

Accepted Answer

A) True 
 B)False

Human capital is the

Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over about the last 120 years?

Historically, the market prices of most natural resources adjusted for inflation) have

Which of the following is an example of a renewable natural resource?

Which of the following is an example of human capital?

Productivity can be computed as the number of hours worked divided by output.

Suppose Japanese-based Toshiba Corporation builds and operates a new computer factory in the United States. Future production from such an investment will

Which of the following statements is not correct?

Because of , an increase in the saving rate leads to higher growth of income and productivity only for a while.

Investment in

In recent decades, economic growth has been much more rapid in South Korea than in the United States. What is the likely explanation for this fact?

The catch-up effect refers to the idea that poor countries, despite their best efforts, are not likely ever to experience the economic growth rates of wealthier countries.

Which of the following can be measured by the level of real GDP per person?

In 2011, Modern Electronics, Inc. produced 60,000 calculators, employing 80 workers, each of whom worked 8 hours per day. In 2012, the same firm produced 76,500 calculators, employing 85 workers, each of whom worked 10 hours per day. Productivity at Modern Electronics

As capital per worker rises, output per worker rises. However, this increase in output per worker is smaller at smaller levels of existing capital per worker.

The short-run effects of an increase in the saving rate include

Which of the following statements about inputs is correct?

If a country's saving rate declined, then other things the same, in the long run the country would have

The long-run effects of an increase in the saving rate include

Two countries with the same saving rates must have the same growth rate of real GDP per person.

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

Human capital is the

Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over about the last 120 years?

Historically, the market prices of most natural resources adjusted for inflation) have

Which of the following is an example of a renewable natural resource?

Which of the following is an example of human capital?

Productivity can be computed as the number of hours worked divided by output.

Suppose Japanese-based Toshiba Corporation builds and operates a new computer factory in the United States. Future production from such an investment will

Which of the following statements is not correct?

Because of , an increase in the saving rate leads to higher growth of income and productivity only for a while.

Investment in

In recent decades, economic growth has been much more rapid in South Korea than in the United States. What is the likely explanation for this fact?

The catch-up effect refers to the idea that poor countries, despite their best efforts, are not likely ever to experience the economic growth rates of wealthier countries.

Which of the following can be measured by the level of real GDP per person?

In 2011, Modern Electronics, Inc. produced 60,000 calculators, employing 80 workers, each of whom worked 8 hours per day. In 2012, the same firm produced 76,500 calculators, employing 85 workers, each of whom worked 10 hours per day. Productivity at Modern Electronics

As capital per worker rises, output per worker rises. However, this increase in output per worker is smaller at smaller levels of existing capital per worker.

The short-run effects of an increase in the saving rate include

Which of the following statements about inputs is correct?

If a country's saving rate declined, then other things the same, in the long run the country would have

The long-run effects of an increase in the saving rate include

Two countries with the same saving rates must have the same growth rate of real GDP per person.

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