Question 1

When Americans invest in Russia, the income of Russians that is, Russian GNP) rises by more than production in Russia that is, Russian GDP).

Accepted Answer

A) True 
 B)False

Question 2

Human capital is

Accepted Answer

A)  the same thing as technological knowledge. 
B)  the same thing as labor. 
C)  the tools and equipment operated by humans. 
D)  knowledge and skills that workers have acquired. 
A)  the same thing as technological knowledge. 
B)  the same thing as labor. 
C)  the tools and equipment operated by humans. 
D)  knowledge and skills that workers have acquired.

Question 3

Real GDP per person is $10,000 in Country A, $20,000 in Country B, and $30,000 in Country C. The saving rate increases by the same rate in all three countries. Other things equal, we would expect that

Accepted Answer

A)  all three countries will grow at the same rate. 
B)  Country A will grow the fastest. 
C)  Country B will grow the fastest. 
D)  Country C will grow the fastest. 
A)  all three countries will grow at the same rate. 
B)  Country A will grow the fastest. 
C)  Country B will grow the fastest. 
D)  Country C will grow the fastest.

Question 4

The return to schooling for society is higher than the return to schooling for the individual if

Accepted Answer

A)  the concept of diminishing returns applies to education. 
B)  the concept of constant returns to scale applies to education. 
C)  human capital conveys positive externalities. 
D)  investment in human capital involves no opportunity costs. 
A)  the concept of diminishing returns applies to education. 
B)  the concept of constant returns to scale applies to education. 
C)  human capital conveys positive externalities. 
D)  investment in human capital involves no opportunity costs.

Question 5

In the equation for the production function Y/L represents

Accepted Answer

A)  productivity. 
B)  output. 
C)  the availability of natural resources. 
D)  the amount of human capital. 
A)  productivity. 
B)  output. 
C)  the availability of natural resources. 
D)  the amount of human capital.

Question 6

If a country's saving rate increases, then in the long run

Accepted Answer

A)  productivity is higher but real GDP per person is not higher. 
B)  real GDP per person is higher but productivity is not higher. 
C)  productivity and real GDP per person are both higher. 
D)  neither productivity nor real GDP per person is higher. 
A)  productivity is higher but real GDP per person is not higher. 
B)  real GDP per person is higher but productivity is not higher. 
C)  productivity and real GDP per person are both higher. 
D)  neither productivity nor real GDP per person is higher.

Question 7

Senator Smith says that in order to help poor countries develop, the United States should: 1. Prevent U.S. corporations from investing in poor countries because they take profits that the poor countries should have; 2. Not import goods from poor countries that use child labor; 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?

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  4 
A)  1 
B)  2 
C)  3 
D)  4

When Americans invest in Russia, the income of Russians that is, Russian GNP) rises by more than production in Russia that is, Russian GDP).

Human capital is

Real GDP per person is $10,000 in Country A, $20,000 in Country B, and $30,000 in Country C. The saving rate increases by the same rate in all three countries. Other things equal, we would expect that

The return to schooling for society is higher than the return to schooling for the individual if

In the equation for the production function Y/L represents

If a country's saving rate increases, then in the long run

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

When Americans invest in Russia, the income of Russians that is, Russian GNP) rises by more than production in Russia that is, Russian GDP).

Human capital is

Real GDP per person is $10,000 in Country A, $20,000 in Country B, and $30,000 in Country C. The saving rate increases by the same rate in all three countries. Other things equal, we would expect that

The return to schooling for society is higher than the return to schooling for the individual if

In the equation for the production function Y/L represents

If a country's saving rate increases, then in the long run

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