Question 1

What is the difference between human capital and technology?

Accepted Answer

Technology is society's understanding of

Question 2

How do outward-oriented policies affect a nation's productivity?

Accepted Answer

Most economists believe that poor nation

Question 3

If a country has a higher level of productivity than another, then it also has a higher level of real GDP.

Accepted Answer

A) True 
 B)False

Question 4

When a country imposes tariffs, intending to protect domestic firms from foreign competition, it is pursuing_______-oriented policies.

Accepted Answer

The answer of When a country imposes tariffs, intending to...

Question 5

Country A had a population of 1,000, of whom 600 worked an average of 8 hours a day and had a productivity of 2.5. Country B had a population of 800, of whom 560 worked 8 hours a day and had productivity of 3.0. Country

Accepted Answer

A)  A had the higher level of real GDP and real GDP per person. 
B)  A had the higher level of real GDP and Country B had the higher level of real GDP per person 
C)  B had the higher level of real GDP and Country A had the higher level of real GDP per person 
D)  B had the higher level of real GDP and real GDP per person. 
A)  A had the higher level of real GDP and real GDP per person. 
B)  A had the higher level of real GDP and Country B had the higher level of real GDP per person 
C)  B had the higher level of real GDP and Country A had the higher level of real GDP per person 
D)  B had the higher level of real GDP and real GDP per person.

Question 6

Which of the following nations experienced average rates of economic growth of less than 2 percent over the last 100 years or so?

Accepted Answer

A)  Bangladesh 
B)  Pakistan 
C)  United Kingdom 
D)  All of the above are correct. 
A)  Bangladesh 
B)  Pakistan 
C)  United Kingdom 
D)  All of the above are correct.

Question 7

An important prerequisite for the price system to work is an economy-wide respect for _______ rights.

Accepted Answer

The answer of An important prerequisite for the price system...

Question 8

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

Question 9

Which of the following best describes the response of output as time passes to an increase in the saving rate?

Accepted Answer

A)  The growth rate of output does not change. 
B)  The growth rate of output increases and gets even larger as time passes. 
C)  The growth rate of output increases and does not change as time passes. 
D)  The growth rate of output increases, but diminishes to its former level as time passes. 
A)  The growth rate of output does not change. 
B)  The growth rate of output increases and gets even larger as time passes. 
C)  The growth rate of output increases and does not change as time passes. 
D)  The growth rate of output increases, but diminishes to its former level as time passes.

Question 10

Over the last 140 years or so, on average Canada's real GDP per­person grew faster than that of the U.K.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is true?

Accepted Answer

A)  The quantity of natural resources per worker can influence productivity. 
B)  Technological knowledge and human capital are closely related. 
C)  Over long periods of time, the prices of most natural resources are stable or falling, relative to other prices. 
D)  All of the above are correct. 
A)  The quantity of natural resources per worker can influence productivity. 
B)  Technological knowledge and human capital are closely related. 
C)  Over long periods of time, the prices of most natural resources are stable or falling, relative to other prices. 
D)  All of the above are correct.

Question 12

Journey Motorcycles produced 100 motorcycles using 50 workers who each worked 8 hours a day. Journey's productivity was 1/4.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is correct?

Accepted Answer

A)  Countries with the highest growth rates over the last 120 years are the ones that had the highest level of real GDP 120 years ago. 
B)  Most countries have had little fluctuation around their average growth rates during the past 120 years. 
C)  The ranking of countries by income changes little over time. 
D)  Even though Japan had a higher growth rate of real GDP per person than the U.S. over the last 120 years, it's level of real GDP per person is less than that of the U.S. 
A)  Countries with the highest growth rates over the last 120 years are the ones that had the highest level of real GDP 120 years ago. 
B)  Most countries have had little fluctuation around their average growth rates during the past 120 years. 
C)  The ranking of countries by income changes little over time. 
D)  Even though Japan had a higher growth rate of real GDP per person than the U.S. over the last 120 years, it's level of real GDP per person is less than that of the U.S.

Question 14

If natural resources had become scarcer, then we would expect their

Accepted Answer

A)  prices to have risen more than inflation as they have. 
B)  prices to have risen more than inflation, but they have not. 
C)  known quantities to have fallen as they have. 
D)  known quantities to have fallen but they have not. 
A)  prices to have risen more than inflation as they have. 
B)  prices to have risen more than inflation, but they have not. 
C)  known quantities to have fallen as they have. 
D)  known quantities to have fallen but they have not.

Question 15

On the basis of theory and empirical evidence, economists have reached several conclusions about economic growth. Which of the following is not one of these conclusions?

Accepted Answer

A)  A relatively simple way to increase growth rates permanently is to increase a country's saving rate. 
B)  Growth is generally inhibited rather than promoted by policies like protective tariffs. 
C)  Well-established property rights that are enforced by fair and efficient courts are important to economic growth. 
D)  Countries with few domestic natural resources still have opportunities for economic growth. 
A)  A relatively simple way to increase growth rates permanently is to increase a country's saving rate. 
B)  Growth is generally inhibited rather than promoted by policies like protective tariffs. 
C)  Well-established property rights that are enforced by fair and efficient courts are important to economic growth. 
D)  Countries with few domestic natural resources still have opportunities for economic growth.

Question 16

Miller's Dairy produces 960 gallons of milk per day. Each milker at the dairy works 8 hours per day and produces the same number of gallons of milk per hour. If the Dairy's productivity is 12 gallons of milk per hour of labor, then how many milkers does the shop employ?

Accepted Answer

A)  8 
B)  10 
C)  80 
D)  120 
A)  8 
B)  10 
C)  80 
D)  120

Question 17

In 2010, real GDP per person in Bangladesh was

Accepted Answer

A)  about 3 times as high as it was in the U.S. in 1870. 
B)  about twice as high as it was in the U.S. in 1870. 
C)  about the same as it was in the U.S. in 1870. 
D)  less than it was in the U.S. in 1870. 
A)  about 3 times as high as it was in the U.S. in 1870. 
B)  about twice as high as it was in the U.S. in 1870. 
C)  about the same as it was in the U.S. in 1870. 
D)  less than it was in the U.S. in 1870.

Question 18

Adam and Doug both build birdhouses. Adam works 30 hours a week and produces 15 bird houses. Doug works 20 hours a week and produces 12 bird houses. Which of the following is correct?

Accepted Answer

A)  Adam's production and productivity are higher than Doug's. 
B)  Adam's production is higher than Doug's, but Doug's productivity is higher than Adam's. 
C)  Doug's production is higher than Adam's, but Adam's productivity is higher than Doug's. 
D)  Doug's production and productivity are higher than Adam's. 
A)  Adam's production and productivity are higher than Doug's. 
B)  Adam's production is higher than Doug's, but Doug's productivity is higher than Adam's. 
C)  Doug's production is higher than Adam's, but Adam's productivity is higher than Doug's. 
D)  Doug's production and productivity are higher than Adam's.

Question 19

All else equal, which of the following would tend to cause real GDP per person to rise?

Accepted Answer

A)  a change from inward-oriented policies to outward-oriented policies 
B)  an increase in investment in human capital 
C)  strengthening of property rights. 
D)  All of the above are correct. 
A)  a change from inward-oriented policies to outward-oriented policies 
B)  an increase in investment in human capital 
C)  strengthening of property rights. 
D)  All of the above are correct.

Question 20

If WarmWear, a U.S.manufacturer of winter clothing, opens a new factory in Austria, then

Accepted Answer

A)  Austrian GNP increases by more than Austrian GDP, because GDP includes income earned by foreigners working in Austria. 
B)  Austrian GNP increases by more than Austrian GDP, because GDP excludes income earned by foreigners working in Austria. 
C)  Austrian GNP increases by less than Austrian GDP, because GDP includes income earned by foreigners working in Austria. 
D)  Austrian GNP increases by less than Austrian GDP, because GDP excludes income earned by foreigners working in Austria. 
A)  Austrian GNP increases by more than Austrian GDP, because GDP includes income earned by foreigners working in Austria. 
B)  Austrian GNP increases by more than Austrian GDP, because GDP excludes income earned by foreigners working in Austria. 
C)  Austrian GNP increases by less than Austrian GDP, because GDP includes income earned by foreigners working in Austria. 
D)  Austrian GNP increases by less than Austrian GDP, because GDP excludes income earned by foreigners working in Austria.

Exam 17: Production and Growth

What is the difference between human capital and technology?

How do outward-oriented policies affect a nation's productivity?

If a country has a higher level of productivity than another, then it also has a higher level of real GDP.

When a country imposes tariffs, intending to protect domestic firms from foreign competition, it is pursuing_______-oriented policies.

Country A had a population of 1,000, of whom 600 worked an average of 8 hours a day and had a productivity of 2.5. Country B had a population of 800, of whom 560 worked 8 hours a day and had productivity of 3.0. Country

Which of the following nations experienced average rates of economic growth of less than 2 percent over the last 100 years or so?

An important prerequisite for the price system to work is an economy-wide respect for _______ rights.

Which of the following best describes the response of output as time passes to an increase in the saving rate?

Over the last 140 years or so, on average Canada's real GDP per­person grew faster than that of the U.K.

Which of the following statements is true?

Journey Motorcycles produced 100 motorcycles using 50 workers who each worked 8 hours a day. Journey's productivity was 1/4.

Which of the following is correct?

If natural resources had become scarcer, then we would expect their

On the basis of theory and empirical evidence, economists have reached several conclusions about economic growth. Which of the following is not one of these conclusions?

Miller's Dairy produces 960 gallons of milk per day. Each milker at the dairy works 8 hours per day and produces the same number of gallons of milk per hour. If the Dairy's productivity is 12 gallons of milk per hour of labor, then how many milkers does the shop employ?

In 2010, real GDP per person in Bangladesh was

Adam and Doug both build birdhouses. Adam works 30 hours a week and produces 15 bird houses. Doug works 20 hours a week and produces 12 bird houses. Which of the following is correct?

All else equal, which of the following would tend to cause real GDP per person to rise?

If WarmWear, a U.S.manufacturer of winter clothing, opens a new factory in Austria, then

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

Over the last 140 years or so, on average Canada's real GDP perperson grew faster than that of the U.K.