Question 1

Measured in 2010 dollars, real GDP per person in the United States in 2010 was about

Accepted Answer

A)  $37,000. 
B)  $47,000. 
C)  $57,000. 
D)  $67,000. 
A)  $37,000. 
B)  $47,000. 
C)  $57,000. 
D)  $67,000.

Question 2

The United Kingdom is

Accepted Answer

A)  an advanced economy, and over the past century its rate of economic growth has been higher than that of the United States. 
B)  an advanced economy, and over the past century its rate of economic growth has been lower than that of the United States. 
C)  a middle-income country, and over the past century its rate of economic growth has been higher than that of the United States. 
D)  a middle-income country, and over the past century its rate of economic growth has been lower than that of the United States. 
A)  an advanced economy, and over the past century its rate of economic growth has been higher than that of the United States. 
B)  an advanced economy, and over the past century its rate of economic growth has been lower than that of the United States. 
C)  a middle-income country, and over the past century its rate of economic growth has been higher than that of the United States. 
D)  a middle-income country, and over the past century its rate of economic growth has been lower than that of the United States.

Question 3

Explain the distinction between technological knowledge and human capital.

Accepted Answer

Technological knowledge refers

Question 4

Inventors often obtain patents on new products and processes, thereby turning new ideas into

Accepted Answer

A)  private goods and increasing the incentive to engage in research. 
B)  private goods but decreasing the incentive to engage in research. 
C)  public goods and increasing the incentive to engage in research. 
D)  public goods but decreasing the incentive to engage in research. 
A)  private goods and increasing the incentive to engage in research. 
B)  private goods but decreasing the incentive to engage in research. 
C)  public goods and increasing the incentive to engage in research. 
D)  public goods but decreasing the incentive to engage in research.

Question 5

Countries that have lower levels of real GDP per person than the United States

Accepted Answer

A)  tend to have growth rates that are higher than that of the United States. 
B)  tend to have growth rates that are about the same as that of the United States. 
C)  tend to have growth rates that are lower than that of the United States. 
D)  in some cases have growth rates that are higher than that of the United States and in other cases lower than that of the United States. 
A)  tend to have growth rates that are higher than that of the United States. 
B)  tend to have growth rates that are about the same as that of the United States. 
C)  tend to have growth rates that are lower than that of the United States. 
D)  in some cases have growth rates that are higher than that of the United States and in other cases lower than that of the United States.

Question 6

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. The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

Accepted Answer

A)  In the long run, a higher saving rate leads to a higher growth rate of productivity. 
B)  In the long run, a higher saving rate leads to a higher growth rate of income. 
C)  Returns to capital become increasingly smaller as the amount of capital per worker increases. 
D)  All of the above are correct. 
A)  In the long run, a higher saving rate leads to a higher growth rate of productivity. 
B)  In the long run, a higher saving rate leads to a higher growth rate of income. 
C)  Returns to capital become increasingly smaller as the amount of capital per worker increases. 
D)  All of the above are correct.

Question 7

In the production function   , which symbol reflects the state of technology?

Accepted Answer

A)  A 
B)  K 
C)  H 
D)  N 
A)  A 
B)  K 
C)  H 
D)  N

Question 8

Which of the following countries had the highest level of real GDP per person in 2010?

Accepted Answer

A)  Germany 
B)  Canada 
C)  United States 
D)  Japan 
A)  Germany 
B)  Canada 
C)  United States 
D)  Japan

Question 9

Which of the following public policies would be least likely to result in more rapid economic growth for a poor or developing country?

Accepted Answer

A)  policies designed to promote economic development in coastal areas 
B)  policies designed to foster strict enforcement of property rights 
C)  policies designed to foster free trade 
D)  inward-oriented policies 
A)  policies designed to promote economic development in coastal areas 
B)  policies designed to foster strict enforcement of property rights 
C)  policies designed to foster free trade 
D)  inward-oriented policies

Question 10

The average income in a rich country

Accepted Answer

A)  is about 5 times that in a poor country. Further, people in rich countries have longer life expectancy. 
B)  is about 5 times that in a poor country. However, people in rich countries have about the same life expectancy as those in poor countries. 
C)  is more than ten times that in a poor country. Further, people in rich countries have longer life expectancy. 
D)  is more than ten times that in poor country. However, people in rich countries have about the same life expectancy as those in poor countries. 
A)  is about 5 times that in a poor country. Further, people in rich countries have longer life expectancy. 
B)  is about 5 times that in a poor country. However, people in rich countries have about the same life expectancy as those in poor countries. 
C)  is more than ten times that in a poor country. Further, people in rich countries have longer life expectancy. 
D)  is more than ten times that in poor country. However, people in rich countries have about the same life expectancy as those in poor countries.

Question 11

The key determinant of the standard of living in a country is

Accepted Answer

A)  the amount of goods and services produced from each hour of a worker's time. 
B)  the total amount of goods and services produced within the country. 
C)  the total amount of its physical capital. 
D)  its growth rate of real GDP. 
A)  the amount of goods and services produced from each hour of a worker's time. 
B)  the total amount of goods and services produced within the country. 
C)  the total amount of its physical capital. 
D)  its growth rate of real GDP.

Question 12

All else equal, if there are diminishing returns, then what happens to productivity if both capital and labor increase?

Accepted Answer

A)  Productivity will definitely fall. 
B)  Productivity will definitely be unchanged. 
C)  Productivity will definitely rise. 
D)  None of the above are necessarily correct. 
A)  Productivity will definitely fall. 
B)  Productivity will definitely be unchanged. 
C)  Productivity will definitely rise. 
D)  None of the above are necessarily correct.

Question 13

Economists differ in their views of the role of the government in promoting economic growth. A controversial idea is that government should

Accepted Answer

A)  lend support to the invisible hand by maintaining property rights and political stability. 
B)  lower barriers and impediments to free trade. 
C)  encourage capital formation. 
D)  target and subsidize specific industries important for technological progress. 
A)  lend support to the invisible hand by maintaining property rights and political stability. 
B)  lower barriers and impediments to free trade. 
C)  encourage capital formation. 
D)  target and subsidize specific industries important for technological progress.

Question 14

Measured in 2010 dollars, real GDP per person in the United States in 2010 was about 14 times that in

Accepted Answer

A)  China. 
B)  India. 
C)  Indonesia. 
D)  Pakistan. 
A)  China. 
B)  India. 
C)  Indonesia. 
D)  Pakistan.

Question 15

It is possible for a country without a lot of domestic natural resources to have a high standard of living.

Accepted Answer

A) True 
 B)False

Question 16

An organization that tries to encourage the flow of investment to poor countries is the

Accepted Answer

A)  World Bank. 
B)  Organization of Less Developed Countries. 
C)  Alliance of Developing Countries. 
D)  International Development Alliance. 
A)  World Bank. 
B)  Organization of Less Developed Countries. 
C)  Alliance of Developing Countries. 
D)  International Development Alliance.

Question 17

In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 500,000. In 2011 it had a population of 5,100 and real GDP of 520,200. During 2011 real GDP per person in Bovina grew by

Accepted Answer

A)  2 percent, which is high compared to average U.S. growth over the last one-hundred years. 
B)  2 percent, which is about the same as average U.S. growth over the last one-hundred years. 
C)  4 percent, which is high compared to average U.S. growth over the last one-hundred years. 
D)  4 percent, which is about the same as average U.S. growth over the last one-hundred years. 
A)  2 percent, which is high compared to average U.S. growth over the last one-hundred years. 
B)  2 percent, which is about the same as average U.S. growth over the last one-hundred years. 
C)  4 percent, which is high compared to average U.S. growth over the last one-hundred years. 
D)  4 percent, which is about the same as average U.S. growth over the last one-hundred years.

Question 18

Technological knowledge refers to

Accepted Answer

A)  human capital. 
B)  available information on how to produce things. 
C)  resources expended transmitting society's understanding to the labor force. 
D)  All of the above are technological knowledge. 
A)  human capital. 
B)  available information on how to produce things. 
C)  resources expended transmitting society's understanding to the labor force. 
D)  All of the above are technological knowledge.

Question 19

How would an economist typically assess the extent of economic progress in a nation?

Accepted Answer

An economist typical

Question 20

Ralph is a plumber. Which of the following are included in his human capital?

Accepted Answer

A)  the knowledge he learned on the job, and the tools he uses 
B)  the knowledge he learned on the job, but not the tools he uses 
C)  the tools he uses, but not the knowledge he learned on the job 
D)  neither the knowledge he learned on the job nor the tools he uses 
A)  the knowledge he learned on the job, and the tools he uses 
B)  the knowledge he learned on the job, but not the tools he uses 
C)  the tools he uses, but not the knowledge he learned on the job 
D)  neither the knowledge he learned on the job nor the tools he uses

Measured in 2010 dollars, real GDP per person in the United States in 2010 was about

The United Kingdom is

Explain the distinction between technological knowledge and human capital.

Inventors often obtain patents on new products and processes, thereby turning new ideas into

Countries that have lower levels of real GDP per person than the United States

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. The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

In the production function , which symbol reflects the state of technology?

Which of the following countries had the highest level of real GDP per person in 2010?

Which of the following public policies would be least likely to result in more rapid economic growth for a poor or developing country?

The average income in a rich country

The key determinant of the standard of living in a country is

All else equal, if there are diminishing returns, then what happens to productivity if both capital and labor increase?

Economists differ in their views of the role of the government in promoting economic growth. A controversial idea is that government should

Measured in 2010 dollars, real GDP per person in the United States in 2010 was about 14 times that in

It is possible for a country without a lot of domestic natural resources to have a high standard of living.

An organization that tries to encourage the flow of investment to poor countries is the

In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 500,000. In 2011 it had a population of 5,100 and real GDP of 520,200. During 2011 real GDP per person in Bovina grew by

Technological knowledge refers to

How would an economist typically assess the extent of economic progress in a nation?

Ralph is a plumber. Which of the following are included in his human capital?

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

Measured in 2010 dollars, real GDP per person in the United States in 2010 was about

The United Kingdom is

Explain the distinction between technological knowledge and human capital.

Inventors often obtain patents on new products and processes, thereby turning new ideas into

Countries that have lower levels of real GDP per person than the United States

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. The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

In the production function , which symbol reflects the state of technology?

Which of the following countries had the highest level of real GDP per person in 2010?

Which of the following public policies would be least likely to result in more rapid economic growth for a poor or developing country?

The average income in a rich country

The key determinant of the standard of living in a country is

All else equal, if there are diminishing returns, then what happens to productivity if both capital and labor increase?

Economists differ in their views of the role of the government in promoting economic growth. A controversial idea is that government should

Measured in 2010 dollars, real GDP per person in the United States in 2010 was about 14 times that in

It is possible for a country without a lot of domestic natural resources to have a high standard of living.

An organization that tries to encourage the flow of investment to poor countries is the

In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 500,000. In 2011 it had a population of 5,100 and real GDP of 520,200. During 2011 real GDP per person in Bovina grew by

Technological knowledge refers to

How would an economist typically assess the extent of economic progress in a nation?

Ralph is a plumber. Which of the following are included in his human capital?

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