Question 1

Which of the following is a determinant of productivity?

Accepted Answer

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

Question 2

Which of the following are human capital and physical capital, respectively?

Accepted Answer

A)  for a brick layer: her bricks and her tools 
B)  for a gas station: the pumps and the cash register 
C)  for a restaurant: the chefs' knowledge about preparing food and the equipment in the kitchen 
D)  for a medical office: the building and the doctors' knowledge of medicine 
A)  for a brick layer: her bricks and her tools 
B)  for a gas station: the pumps and the cash register 
C)  for a restaurant: the chefs' knowledge about preparing food and the equipment in the kitchen 
D)  for a medical office: the building and the doctors' knowledge of medicine

Question 3

Each day Sue works 8 hours and produces 7 units of goods and services. Mary works 10 hours each day and produces 10 units of goods and services. It follows that

Accepted Answer

A)  Sue's productivity is higher than Mary's. 
B)  Mary's productivity is higher than Sue's. 
C)  Sue's income per hour will be higher than Mary's. 
D)  Sue's income per day will be higher than Mary's. 
A)  Sue's productivity is higher than Mary's. 
B)  Mary's productivity is higher than Sue's. 
C)  Sue's income per hour will be higher than Mary's. 
D)  Sue's income per day will be higher than Mary's.

Question 4

Why do we refer to physical capital as a produced factor of production?

Accepted Answer

Physical capital originates as

Question 5

What word do we use to refer to the amount of goods and services produced for each hour of a worker's time?

Accepted Answer

The word i

Question 6

Which of the following is an example of a nonrenewable resource?

Accepted Answer

A)  corn 
B)  oil 
C)  livestock 
D)  All of the above are correct. 
A)  corn 
B)  oil 
C)  livestock 
D)  All of the above are correct.

Question 7

Of the following countries, which grew most slowly, in terms of real GDP per person, over about the last 120 years?

Accepted Answer

A)  Brazil 
B)  Mexico 
C)  China 
D)  United States 
A)  Brazil 
B)  Mexico 
C)  China 
D)  United States

Question 8

Other things the same, if a country raises its saving rate, when is productivity growth higher?

Accepted Answer

A)  as the economy moves toward the long run and in the long run. 
B)  as the economy moves toward the long run, but not in the long run. 
C)  in the long run, but not as the economy moves toward the long run. 
D)  neither as the economy moves toward the long run, nor in the long run. 
A)  as the economy moves toward the long run and in the long run. 
B)  as the economy moves toward the long run, but not in the long run. 
C)  in the long run, but not as the economy moves toward the long run. 
D)  neither as the economy moves toward the long run, nor in the long run.

Question 9

Which of the following is an example of physical capital?

Accepted Answer

A)  the computer a secretary uses 
B)  rivers on which goods are transported 
C)  the skills and knowledge of a doctor 
D)  All of the above are correct. 
A)  the computer a secretary uses 
B)  rivers on which goods are transported 
C)  the skills and knowledge of a doctor 
D)  All of the above are correct.

Question 10

Over the period 1890-2010, Japan experienced a 2.65 percent average annual growth rate of real GDP per person.

Accepted Answer

A) True 
 B)False

Question 11

A country experiencing a growth rate of 12% per year can go from being one of the poorest to one of the richest in

Accepted Answer

A)  one generation. In the last couple of decades China's growth rate has been higher than 12%. 
B)  one generation. However, in the last couple of decades not even China's growth rate has been this high. 
C)  three generations. In the last couple of decades China's growth rate has been higher than 12%. 
D)  three generations. However, in the last couple of decades not even China's growth rate has been this high. 
A)  one generation. In the last couple of decades China's growth rate has been higher than 12%. 
B)  one generation. However, in the last couple of decades not even China's growth rate has been this high. 
C)  three generations. In the last couple of decades China's growth rate has been higher than 12%. 
D)  three generations. However, in the last couple of decades not even China's growth rate has been this high.

Question 12

In the past there have been violent protests against the World Bank and the World Trade Organization. The protesters argued that these institutions promote free trade and also encourage corporations in rich countries to invest in poor countries. The protesters contended that these practices make rich countries richer and poor countries poorer. An economist would

Accepted Answer

A)  disagree with the protesters because these practices will help make both rich and poor countries richer. 
B)  disagree with the protesters about free trade, but would agree with the protesters about corporate investment. 
C)  disagree with the protesters about corporate investment, but would agree with the protesters about free trade. 
D)  agree with the protesters. 
A)  disagree with the protesters because these practices will help make both rich and poor countries richer. 
B)  disagree with the protesters about free trade, but would agree with the protesters about corporate investment. 
C)  disagree with the protesters about corporate investment, but would agree with the protesters about free trade. 
D)  agree with the protesters.

Question 13

"When workers already have a large quantity of capital to use in producing goods and services, giving them an additional unit of capital increases their productivity only slightly." This statement

Accepted Answer

A)  represents the traditional view of the production process. 
B)  is an assertion that capital is subject to diminishing returns. 
C)  is made under the assumption that the quantities of human capital, natural resources, and technology are being held constant. 
D)  All of the above are correct. 
A)  represents the traditional view of the production process. 
B)  is an assertion that capital is subject to diminishing returns. 
C)  is made under the assumption that the quantities of human capital, natural resources, and technology are being held constant. 
D)  All of the above are correct.

Question 14

Why is productivity related to the standard of living? In your answer be sure to explain what productivity and the standard of living mean. Make a list of things that determine labor productivity.

Accepted Answer

The standard of living is a measure of h

Question 15

Other things the same, when an economy increases its saving rate

Accepted Answer

A)  consumption and production rise now. 
B)  consumption rises now and production rises later 
C)  consumption falls now and production rises later. 
D)  consumption falls now and production falls later. 
A)  consumption and production rise now. 
B)  consumption rises now and production rises later 
C)  consumption falls now and production rises later. 
D)  consumption falls now and production falls later.

Question 16

You and your friend work together for 4 hours to produce a total of 8 bookcases. What is productivity?

Accepted Answer

A)  16 bookcases 
B)  8 bookcases 
C)  2 bookcases per hour 
D)  1 bookcase per hour 
A)  16 bookcases 
B)  8 bookcases 
C)  2 bookcases per hour 
D)  1 bookcase per hour

Question 17

Country A and country B are the same except country A currently has more capital. Assuming diminishing returns, if both countries increase their capital by 100 units and other factors that determine output are unchanged, then

Accepted Answer

A)  output in country A increases by more than in country B. 
B)  output in country A increases by the same amount as in country B. 
C)  output in country A increases by less than in country B. 
D)  None of the above is necessarily correct. 
A)  output in country A increases by more than in country B. 
B)  output in country A increases by the same amount as in country B. 
C)  output in country A increases by less than in country B. 
D)  None of the above is necessarily correct.

Question 18

The population growth rate tends to be higher in developed countries than in developing countries.

Accepted Answer

A) True 
 B)False

Question 19

Over the last century, U.S. real GDP per person grew at a rate of about

Accepted Answer

A)  2 percent per year, so that it is now 2 times as high as it was a century ago. 
B)  2 percent per year, so that it is now 8 times as high as it was a century ago. 
C)  4 percent per year, so that it is now 2 times as high as it was a century ago. 
D)  4 percent per year, so that it is now 8 times as high as it was a century ago. 
A)  2 percent per year, so that it is now 2 times as high as it was a century ago. 
B)  2 percent per year, so that it is now 8 times as high as it was a century ago. 
C)  4 percent per year, so that it is now 2 times as high as it was a century ago. 
D)  4 percent per year, so that it is now 8 times as high as it was a century ago.

Question 20

Other things equal, relatively poor countries tend to grow

Accepted Answer

A)  slower than relatively rich countries; this is called the poverty trap. 
B)  slower than relatively rich countries; this is called the fall-behind effect. 
C)  faster than relatively rich countries; this is called the catch-up effect. 
D)  faster than relatively rich countries; this is called the constant-returns-to-scale effect. 
A)  slower than relatively rich countries; this is called the poverty trap. 
B)  slower than relatively rich countries; this is called the fall-behind effect. 
C)  faster than relatively rich countries; this is called the catch-up effect. 
D)  faster than relatively rich countries; this is called the constant-returns-to-scale effect.

Exam 17: Production and Growth

Which of the following is a determinant of productivity?

Which of the following are human capital and physical capital, respectively?

Each day Sue works 8 hours and produces 7 units of goods and services. Mary works 10 hours each day and produces 10 units of goods and services. It follows that

Why do we refer to physical capital as a produced factor of production?

What word do we use to refer to the amount of goods and services produced for each hour of a worker's time?

Which of the following is an example of a nonrenewable resource?

Of the following countries, which grew most slowly, in terms of real GDP per person, over about the last 120 years?

Other things the same, if a country raises its saving rate, when is productivity growth higher?

Which of the following is an example of physical capital?

Over the period 1890-2010, Japan experienced a 2.65 percent average annual growth rate of real GDP per person.

A country experiencing a growth rate of 12% per year can go from being one of the poorest to one of the richest in

"When workers already have a large quantity of capital to use in producing goods and services, giving them an additional unit of capital increases their productivity only slightly." This statement

Why is productivity related to the standard of living? In your answer be sure to explain what productivity and the standard of living mean. Make a list of things that determine labor productivity.

Other things the same, when an economy increases its saving rate

You and your friend work together for 4 hours to produce a total of 8 bookcases. What is productivity?

Country A and country B are the same except country A currently has more capital. Assuming diminishing returns, if both countries increase their capital by 100 units and other factors that determine output are unchanged, then

The population growth rate tends to be higher in developed countries than in developing countries.

Over the last century, U.S. real GDP per person grew at a rate of about

Other things equal, relatively poor countries tend to grow

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Application: The Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Costs of Production

Firms in Competitive Markets

Monopoly

Measuring a Nations Income

Measuring the Cost of Living

Saving, Investment, and the Financial System

The Basic Tools of Finance

Unemployment

The Monetary System

Money Growth and Inflation

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

Filters