Question 1

What is the difference between human capital and technology?

Accepted Answer

Technology is society's understanding of

Question 2

Scenario 25-1. An economy's production form takes the form Y = AFL, K, H, N).
-Refer to Scenario 25-1. K represents the quantity of

Accepted Answer

A)  human capital only. 
B)  physical capital only. 
C)  human capital and physical capital combined. 
D)  nonrenewable natural resources. 
A)  human capital only. 
B)  physical capital only. 
C)  human capital and physical capital combined. 
D)  nonrenewable natural resources.

Question 3

In a particular production process, if the quantities of all inputs used are increased by 60%, then the quantity of output increases by 60% as well. This means that

Accepted Answer

A)  the production process cannot be enhanced by technological advances. 
B)  no mathematical representation of the relevant production function can be formulated. 
C)  the relevant production function has the limits-to-growth property. 
D)  the relevant production function has constant-returns-to-scale. 
A)  the production process cannot be enhanced by technological advances. 
B)  no mathematical representation of the relevant production function can be formulated. 
C)  the relevant production function has the limits-to-growth property. 
D)  the relevant production function has constant-returns-to-scale.

Question 4

Which of the following is not correct?

Accepted Answer

A)  Countries that have had higher output growth per person have typically done so without higher productivity growth. 
B)  A country's standard of living and its productivity are closely related. 
C)  Productivity refers to output produced per hour of work. 
D)  Increases in productivity can be used to increase output or leisure. 
A)  Countries that have had higher output growth per person have typically done so without higher productivity growth. 
B)  A country's standard of living and its productivity are closely related. 
C)  Productivity refers to output produced per hour of work. 
D)  Increases in productivity can be used to increase output or leisure.

Question 5

Although growth rates across countries vary some, rankings of countries by income remain pretty much the same over time.

Accepted Answer

A) True 
 B)False

Question 6

The behavior of market prices over time indicates that natural resources are

Accepted Answer

A)  a limit to economic growth. 
B)  unrelated to economic growth. 
C)  not a limit to economic growth. 
D)  the major determinant of productivity. 
A)  a limit to economic growth. 
B)  unrelated to economic growth. 
C)  not a limit to economic growth. 
D)  the major determinant of productivity.

Question 7

Industrial machinery is an example of

Accepted Answer

A)  a factor of production that in the past was an output from the production process. 
B)  physical capital. 
C)  something that influences productivity. 
D)  All of the above are correct. 
A)  a factor of production that in the past was an output from the production process. 
B)  physical capital. 
C)  something that influences productivity. 
D)  All of the above are correct.

Question 8

List the four determinants of an economy's productivity.

Accepted Answer

The four determinants are phys

Question 9

Country A and country B both increase their capital stock by one unit. Output in country A increases by 10 while output in country B increases by 8. Other things the same, diminishing returns implies that country A is

Accepted Answer

A)  richer than Country B. If Country A adds another unit of capital, output will increase by more than 10 units. 
B)  richer than Country B. If Country A adds another unit of capital, output will increase by less than 10 units. 
C)  poorer than Country B. If Country A adds another unit of capital, output will increase by more than 10 units. 
D)  poorer than Country B. If Country A adds another unit of capital, output will increase by less than 10 units. 
A)  richer than Country B. If Country A adds another unit of capital, output will increase by more than 10 units. 
B)  richer than Country B. If Country A adds another unit of capital, output will increase by less than 10 units. 
C)  poorer than Country B. If Country A adds another unit of capital, output will increase by more than 10 units. 
D)  poorer than Country B. If Country A adds another unit of capital, output will increase by less than 10 units.

Question 10

Industrial machinery is an example of

Accepted Answer

A)  a factor of production that in the past was an output from the production process. 
B)  technological knowledge. 
C)  a production function. 
D)  an item which always has the property called constant returns to scale. 
A)  a factor of production that in the past was an output from the production process. 
B)  technological knowledge. 
C)  a production function. 
D)  an item which always has the property called constant returns to scale.

Question 11

What is the distinction between foreign direct investment and foreign portfolio investment?

Accepted Answer

A capital investment that is owned and o

Question 12

Foreign saving is used for domestic investment when foreigners engage in

Accepted Answer

A)  foreign direct investment. 
B)  foreign portfolio investment. 
C)  either foreign direct investment or foreign portfolio investment. 
D)  None of the above is correct. 
A)  foreign direct investment. 
B)  foreign portfolio investment. 
C)  either foreign direct investment or foreign portfolio investment. 
D)  None of the above is correct.

Question 13

According to research by Robert Fogel, what proportion of the British population in 1780 was so malnourished that they could not perform manual labor?

Accepted Answer

A)  5 percent 
B)  10 percent 
C)  20 percent 
D)  25 percent 
A)  5 percent 
B)  10 percent 
C)  20 percent 
D)  25 percent

Question 14

Among the following countries, which one has the highest level of real GDP per person but the lowest growth rate of real GDP per person over a very long period of time?

Accepted Answer

A)  the United Kingdom 
B)  Mexico 
C)  Argentina 
D)  China 
A)  the United Kingdom 
B)  Mexico 
C)  Argentina 
D)  China

Question 15

Which of these countries' growth rates of real GDP per person have exceeded the United States' growth rate of real GDP per person over the last century?

Accepted Answer

A)  Canada and China 
B)  China and India 
C)  Germany and India 
D)  Germany and Pakistan 
A)  Canada and China 
B)  China and India 
C)  Germany and India 
D)  Germany and Pakistan

Question 16

Which of the following would increase productivity?

Accepted Answer

A)  an increase in the physical capital stock per worker 
B)  an increase in human capital per worker 
C)  an increase in natural resources per worker 
D)  All of the above are correct. 
A)  an increase in the physical capital stock per worker 
B)  an increase in human capital per worker 
C)  an increase in natural resources per worker 
D)  All of the above are correct.

Question 17

Increases in both human capital per worker and physical capital per worker increase productivity.

Accepted Answer

A) True 
 B)False

Question 18

Other things the same, an economy's factors of production are likely to be used more effectively if there is an economywide respect for property rights.

Accepted Answer

A) True 
 B)False

Question 19

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 curve becomes flatter as the amount of capital per worker increases because of

Accepted Answer

A)  increasing returns to capital. 
B)  increasing returns to labor. 
C)  diminishing returns to capital. 
D)  diminishing returns to labor. 
A)  increasing returns to capital. 
B)  increasing returns to labor. 
C)  diminishing returns to capital. 
D)  diminishing returns to labor.

Question 20

Country A has real GDP per person of 100,000 while country B has real GDP per person of 200,000. All else constant, country A will eventually have a higher standard of living than country B if

Accepted Answer

A)  the level of saving per person is 10,000 in country A and 10,000 in country B. 
B)  the level of saving per person is 12,000 in country A and 15,000 in country B. 
C)  Both of the above are correct. 
D)  None of the above are correct. 
A)  the level of saving per person is 10,000 in country A and 10,000 in country B. 
B)  the level of saving per person is 12,000 in country A and 15,000 in country B. 
C)  Both of the above are correct. 
D)  None of the above are correct.

What is the difference between human capital and technology?

Scenario 25-1. An economy's production form takes the form Y = AFL, K, H, N). -Refer to Scenario 25-1. K represents the quantity of

In a particular production process, if the quantities of all inputs used are increased by 60%, then the quantity of output increases by 60% as well. This means that

Which of the following is not correct?

Although growth rates across countries vary some, rankings of countries by income remain pretty much the same over time.

The behavior of market prices over time indicates that natural resources are

Industrial machinery is an example of

List the four determinants of an economy's productivity.

Country A and country B both increase their capital stock by one unit. Output in country A increases by 10 while output in country B increases by 8. Other things the same, diminishing returns implies that country A is

Industrial machinery is an example of

What is the distinction between foreign direct investment and foreign portfolio investment?

Foreign saving is used for domestic investment when foreigners engage in

According to research by Robert Fogel, what proportion of the British population in 1780 was so malnourished that they could not perform manual labor?

Among the following countries, which one has the highest level of real GDP per person but the lowest growth rate of real GDP per person over a very long period of time?

Which of these countries' growth rates of real GDP per person have exceeded the United States' growth rate of real GDP per person over the last century?

Which of the following would increase productivity?

Increases in both human capital per worker and physical capital per worker increase productivity.

Other things the same, an economy's factors of production are likely to be used more effectively if there is an economywide respect for property rights.

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 curve becomes flatter as the amount of capital per worker increases because of

Country A has real GDP per person of 100,000 while country B has real GDP per person of 200,000. All else constant, country A will eventually have a higher standard of living than country B if

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

What is the difference between human capital and technology?

Scenario 25-1. An economy's production form takes the form Y = AFL, K, H, N). -Refer to Scenario 25-1. K represents the quantity of

In a particular production process, if the quantities of all inputs used are increased by 60%, then the quantity of output increases by 60% as well. This means that

Which of the following is not correct?

Although growth rates across countries vary some, rankings of countries by income remain pretty much the same over time.

The behavior of market prices over time indicates that natural resources are

Industrial machinery is an example of

List the four determinants of an economy's productivity.

Country A and country B both increase their capital stock by one unit. Output in country A increases by 10 while output in country B increases by 8. Other things the same, diminishing returns implies that country A is

Industrial machinery is an example of

What is the distinction between foreign direct investment and foreign portfolio investment?

Foreign saving is used for domestic investment when foreigners engage in

According to research by Robert Fogel, what proportion of the British population in 1780 was so malnourished that they could not perform manual labor?

Among the following countries, which one has the highest level of real GDP per person but the lowest growth rate of real GDP per person over a very long period of time?

Which of these countries' growth rates of real GDP per person have exceeded the United States' growth rate of real GDP per person over the last century?

Which of the following would increase productivity?

Increases in both human capital per worker and physical capital per worker increase productivity.

Other things the same, an economy's factors of production are likely to be used more effectively if there is an economywide respect for property rights.

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 curve becomes flatter as the amount of capital per worker increases because of

Country A has real GDP per person of 100,000 while country B has real GDP per person of 200,000. All else constant, country A will eventually have a higher standard of living than country B if

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