Question 1

Inward-oriented policies

Accepted Answer

A)  are generally supported by economists. 
B)  are primarily concerned with the development of human capital. 
C)  in some ways are like prohibiting the use of certain technologies. 
D)  All of the above are correct. 
A)  are generally supported by economists. 
B)  are primarily concerned with the development of human capital. 
C)  in some ways are like prohibiting the use of certain technologies. 
D)  All of the above are correct.

Question 2

In determining living standards, productivity plays a key role

Accepted Answer

A)  for individuals, but not for nations. 
B)  for nations, but not for individuals. 
C)  for both nations and individuals. 
D)  for neither nations nor individuals. 
A)  for individuals, but not for nations. 
B)  for nations, but not for individuals. 
C)  for both nations and individuals. 
D)  for neither nations nor individuals.

Question 3

A basic principle of economics is that a country's standard of living depends on its

Accepted Answer

A)  quantity of physical capital. 
B)  abundance of natural resources. 
C)  ability to produce goods and services. 
D)  ability to thrive economically without having to interact with other countries. 
A)  quantity of physical capital. 
B)  abundance of natural resources. 
C)  ability to produce goods and services. 
D)  ability to thrive economically without having to interact with other countries.

Question 4

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

Accepted Answer

A)  Bangladesh 
B)  Indonesia 
C)  Mexico 
D)  China 
A)  Bangladesh 
B)  Indonesia 
C)  Mexico 
D)  China

Question 5

Greg's Ice Cream produces 1120 gallons of ice cream per day. Each employed works seven hours and has productivity of 20 gallons an hour. How many employees does Greg's employ?

Accepted Answer

A)  160 
B)  56 
C)  8 
D)  None of the above is correct. 
A)  160 
B)  56 
C)  8 
D)  None of the above is correct.

Question 6

Why does a nation's standard of living depend on property rights?

Accepted Answer

Property rights are an important prerequ

Question 7

When a country removes trade barriers and imports appliances and exports engineering services,

Accepted Answer

A)  its growth slows. 
B)  its productivity decreases. 
C)  it is essentially transforming engineering services into appliances. 
D)  its economic well-being decreases while that of the country that sells appliances increases. 
A)  its growth slows. 
B)  its productivity decreases. 
C)  it is essentially transforming engineering services into appliances. 
D)  its economic well-being decreases while that of the country that sells appliances increases.

Question 8

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2010. At the start of 2011 the pointy­ haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000. These numbers indicate that productivity

Accepted Answer

A)  fell by 4%. 
B)  fell by 20%. 
C)  rose by 12%. 
D)  rose by 20%. 
A)  fell by 4%. 
B)  fell by 20%. 
C)  rose by 12%. 
D)  rose by 20%.

Question 9

Nathan owns a bakery that bakes only cakes. All of his bakers work 8 hours per day. In 2011, he employed 5 bakers who produced a total of 200 cakes each day. In 2012, he employed 6 bakers who produced a total of 249 cakes each day. The bakery's productivity

Accepted Answer

A)  decreased by 2.33%. 
B)  increased by 2.33%. 
C)  increased by 3.75%. 
D)  increased by 24.50%. 
A)  decreased by 2.33%. 
B)  increased by 2.33%. 
C)  increased by 3.75%. 
D)  increased by 24.50%.

Question 10

Which of the following is correct?

Accepted Answer

A)  There is no debate about the effects of higher population growth on economic growth. 
B)  Natural resources clearly place limits on growth; there is simply no way to reduce either the amount or type of natural resources needed to produce goods. 
C)  How much an increase in capital increases a country's output is independent of that country's current level of capital. 
D)  Economists argue that outward rather than inward policies are likely to promote economic growth. 
A)  There is no debate about the effects of higher population growth on economic growth. 
B)  Natural resources clearly place limits on growth; there is simply no way to reduce either the amount or type of natural resources needed to produce goods. 
C)  How much an increase in capital increases a country's output is independent of that country's current level of capital. 
D)  Economists argue that outward rather than inward policies are likely to promote economic growth.

Question 11

Economists differ in their views of the role of the government in promoting economic growth. At the very least, the government should

Accepted Answer

A)  lend support to the invisible hand by maintaining property rights and political stability. 
B)  limit foreign investment to industries that don't already exist in the country. 
C)  impose trade restrictions to protect the interests of domestic producers and consumers. 
D)  subsidize key industries. 
A)  lend support to the invisible hand by maintaining property rights and political stability. 
B)  limit foreign investment to industries that don't already exist in the country. 
C)  impose trade restrictions to protect the interests of domestic producers and consumers. 
D)  subsidize key industries.

Question 12

Consider the nations of India, Indonesia, and Japan. Over the past century, which of these three nations has experienced, by far, more rapid economic growth than the other two nations?

Accepted Answer

Japan's growth rate 2.65 perce

Question 13

Which of the following provide benefits to society at large and not just to the persons) who pursues it?

Accepted Answer

A)  both technological knowledge that is a public good and education 
B)  technological knowledge that is a public good, but not education 
C)  education, but not technological knowledge that is a public good 
D)  neither education, nor technological knowledge that is a public good 
A)  both technological knowledge that is a public good and education 
B)  technological knowledge that is a public good, but not education 
C)  education, but not technological knowledge that is a public good 
D)  neither education, nor technological knowledge that is a public good

Question 14

Over the last ten years productivity grew more slowly in Iberia than in Aire while the population and total hours worked remained the same in both countries. It follows that

Accepted Answer

A)  real GDP per person must be lower in Iberia than in Aire. 
B)  real GDP per person grew more slowly in Iberia than in Aire. 
C)  the standard of living must be higher in Iberia than in Aire. 
D)  All of the above are correct. 
A)  real GDP per person must be lower in Iberia than in Aire. 
B)  real GDP per person grew more slowly in Iberia than in Aire. 
C)  the standard of living must be higher in Iberia than in Aire. 
D)  All of the above are correct.

Question 15

Consider the production function Y = 4FL,K,H,N). Suppose F10,8,6,5)= 100 and F30,24,18,15)=300. Does the production function have the property of constant returns to scale? Why or why not?

Accepted Answer

Yes, the production function has the pro

Question 16

Malthus predicted that the power of population

Accepted Answer

A)  was greater than the power of the earth to produce subsistence. His forecast was on the mark. 
B)  was greater than the power of the earth to produce subsistence. His forecast was off the mark. 
C)  was less than the power of the earth to produce subsistence. His forecast was on the mark. 
D)  was less than the power of the earth to produce subsistence. His forecast was off the mark. 
A)  was greater than the power of the earth to produce subsistence. His forecast was on the mark. 
B)  was greater than the power of the earth to produce subsistence. His forecast was off the mark. 
C)  was less than the power of the earth to produce subsistence. His forecast was on the mark. 
D)  was less than the power of the earth to produce subsistence. His forecast was off the mark.

Question 17

Phoenix furniture uses 12 workers, each working eight hours, to produce 192 rocking chairs. What is Phoenix's productivity?

Accepted Answer

A)  192 rocking chairs 
B)  24 rocking chairs per hour 
C)  2 rocking chairs per hour 
D)  2 hours per rocking chair 
A)  192 rocking chairs 
B)  24 rocking chairs per hour 
C)  2 rocking chairs per hour 
D)  2 hours per rocking chair

Question 18

If your company opens and operates a branch in a foreign country, your company engages in foreign direct investment.

Accepted Answer

A) True 
 B)False

Question 19

A country's human capital increases

Accepted Answer

A)  if its workers become better educated or healthier. 
B)  only if its workers become better educated. 
C)  only if its workers become healthier. 
D)  None of the above is correct. 
A)  if its workers become better educated or healthier. 
B)  only if its workers become better educated. 
C)  only if its workers become healthier. 
D)  None of the above is correct.

Question 20

In some East Asian countries, average income, as measured by real GDP per person, has recently grown at an average annual rate that implies output will double about every

Accepted Answer

A)  10 years. 
B)  15 years. 
C)  20 years. 
D)  25 years. 
A)  10 years. 
B)  15 years. 
C)  20 years. 
D)  25 years.

Inward-oriented policies

In determining living standards, productivity plays a key role

A basic principle of economics is that a country's standard of living depends on its

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

Greg's Ice Cream produces 1120 gallons of ice cream per day. Each employed works seven hours and has productivity of 20 gallons an hour. How many employees does Greg's employ?

Why does a nation's standard of living depend on property rights?

When a country removes trade barriers and imports appliances and exports engineering services,

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2010. At the start of 2011 the pointy haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000. These numbers indicate that productivity

Nathan owns a bakery that bakes only cakes. All of his bakers work 8 hours per day. In 2011, he employed 5 bakers who produced a total of 200 cakes each day. In 2012, he employed 6 bakers who produced a total of 249 cakes each day. The bakery's productivity

Which of the following is correct?

Economists differ in their views of the role of the government in promoting economic growth. At the very least, the government should

Consider the nations of India, Indonesia, and Japan. Over the past century, which of these three nations has experienced, by far, more rapid economic growth than the other two nations?

Which of the following provide benefits to society at large and not just to the persons) who pursues it?

Over the last ten years productivity grew more slowly in Iberia than in Aire while the population and total hours worked remained the same in both countries. It follows that

Consider the production function Y = 4FL,K,H,N). Suppose F10,8,6,5)= 100 and F30,24,18,15)=300. Does the production function have the property of constant returns to scale? Why or why not?

Malthus predicted that the power of population

Phoenix furniture uses 12 workers, each working eight hours, to produce 192 rocking chairs. What is Phoenix's productivity?

If your company opens and operates a branch in a foreign country, your company engages in foreign direct investment.

A country's human capital increases

In some East Asian countries, average income, as measured by real GDP per person, has recently grown at an average annual rate that implies output will double about every

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

Inward-oriented policies

In determining living standards, productivity plays a key role

A basic principle of economics is that a country's standard of living depends on its

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

Greg's Ice Cream produces 1120 gallons of ice cream per day. Each employed works seven hours and has productivity of 20 gallons an hour. How many employees does Greg's employ?

Why does a nation's standard of living depend on property rights?

When a country removes trade barriers and imports appliances and exports engineering services,

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2010. At the start of 2011 the pointy­ haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000. These numbers indicate that productivity

Nathan owns a bakery that bakes only cakes. All of his bakers work 8 hours per day. In 2011, he employed 5 bakers who produced a total of 200 cakes each day. In 2012, he employed 6 bakers who produced a total of 249 cakes each day. The bakery's productivity

Which of the following is correct?

Economists differ in their views of the role of the government in promoting economic growth. At the very least, the government should

Consider the nations of India, Indonesia, and Japan. Over the past century, which of these three nations has experienced, by far, more rapid economic growth than the other two nations?

Which of the following provide benefits to society at large and not just to the persons) who pursues it?

Over the last ten years productivity grew more slowly in Iberia than in Aire while the population and total hours worked remained the same in both countries. It follows that

Consider the production function Y = 4FL,K,H,N). Suppose F10,8,6,5)= 100 and F30,24,18,15)=300. Does the production function have the property of constant returns to scale? Why or why not?

Malthus predicted that the power of population

Phoenix furniture uses 12 workers, each working eight hours, to produce 192 rocking chairs. What is Phoenix's productivity?

If your company opens and operates a branch in a foreign country, your company engages in foreign direct investment.

A country's human capital increases

In some East Asian countries, average income, as measured by real GDP per person, has recently grown at an average annual rate that implies output will double about every

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

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2010. At the start of 2011 the pointy haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000. These numbers indicate that productivity