Question 1

Countries that pursued outward-oriented policies in the 20th century

Accepted Answer

A)  experienced lower rates of economic growth than did countries that pursued inward-oriented policies. 
B)  experienced higher levels of political instability than did countries that pursued inward-oriented policies. 
C)  include Singapore, South Korea, and Taiwan. 
D)  All of the above are correct. 
A)  experienced lower rates of economic growth than did countries that pursued inward-oriented policies. 
B)  experienced higher levels of political instability than did countries that pursued inward-oriented policies. 
C)  include Singapore, South Korea, and Taiwan. 
D)  All of the above are correct.

Question 2

Real GDP per person in rich countries, such as Germany, is sometimes more than 10 times that of poor countries like India.

Accepted Answer

A) True 
 B)False

Question 3

Amy discovers a way to produce water heaters so they are less expensive and use less natural gas. Amy's discovery is

Accepted Answer

A)  physical capital. If Amy's discovery leads to lower natural gas prices, it has made natural gas less scarce. 
B)  physical capital. If Amy's discovery leads to lower natural gas prices, it has made natural gas scarcer. 
C)  technological knowledge. If Amy's discovery leads to lower natural gas prices, it has made natural gas less scarce. 
D)  technological knowledge. If Amy's discovery leads to lower natural gas prices, it has made natural gas scarcer. 
A)  physical capital. If Amy's discovery leads to lower natural gas prices, it has made natural gas less scarce. 
B)  physical capital. If Amy's discovery leads to lower natural gas prices, it has made natural gas scarcer. 
C)  technological knowledge. If Amy's discovery leads to lower natural gas prices, it has made natural gas less scarce. 
D)  technological knowledge. If Amy's discovery leads to lower natural gas prices, it has made natural gas scarcer.

Question 4

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 5

Investment from abroad

Accepted Answer

A)  is a way for poor countries to learn the state-of-the-art technologies developed and used in richer countries. 
B)  is viewed by economists as a way to increase growth. 
C)  often requires removing restrictions that governments have imposed on foreign ownership of domestic capital. 
D)  All of the above are correct. 
A)  is a way for poor countries to learn the state-of-the-art technologies developed and used in richer countries. 
B)  is viewed by economists as a way to increase growth. 
C)  often requires removing restrictions that governments have imposed on foreign ownership of domestic capital. 
D)  All of the above are correct.

Question 6

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 7

Which of the following is an example of a produced factor of production?

Accepted Answer

A)  a plant in which automobiles are assembled 
B)  skills that people accumulate in high school and college 
C)  skills that people accumulate through experience in the workplace 
D)  All of the above are correct. 
A)  a plant in which automobiles are assembled 
B)  skills that people accumulate in high school and college 
C)  skills that people accumulate through experience in the workplace 
D)  All of the above are correct.

Question 8

Which of the following is an example of human capital?

Accepted Answer

A)  the comfortable chair in your dorm room where you read economics texts 
B)  the amount you get paid each week to work at the library 
C)  the things you have learned this semester 
D)  any capital goods that require a human to be present to operate 
A)  the comfortable chair in your dorm room where you read economics texts 
B)  the amount you get paid each week to work at the library 
C)  the things you have learned this semester 
D)  any capital goods that require a human to be present to operate

Question 9

Which of the following statements is correct?

Accepted Answer

A)  In 1870, real income per person was higher in the United States than in any other country at that time. 
B)  Over about the last 100 years India experienced significantly higher growth of real income per person than did the United States. 
C)  Over about the last 100 years the United States experienced significantly higher growth of real income per person than did Japan. 
D)  None of the above are correct. 
A)  In 1870, real income per person was higher in the United States than in any other country at that time. 
B)  Over about the last 100 years India experienced significantly higher growth of real income per person than did the United States. 
C)  Over about the last 100 years the United States experienced significantly higher growth of real income per person than did Japan. 
D)  None of the above are correct.

Question 10

Which of the following statements about inputs is correct?

Accepted Answer

A)  A forest is an example of a natural resource; it is also an example of a renewable resource. 
B)  There is no distinction between human capital and technological knowledge. 
C)  Human capital is a non-produced factor of production. 
D)  Physical capital is a non-produced factor of production. 
A)  A forest is an example of a natural resource; it is also an example of a renewable resource. 
B)  There is no distinction between human capital and technological knowledge. 
C)  Human capital is a non-produced factor of production. 
D)  Physical capital is a non-produced factor of production.

Question 11

Which of the following measures how the level of well-being in a country has changed over time?

Accepted Answer

A)  level of nominal GDP per person. 
B)  growth rate of nominal GDP. 
C)  growth rate of real GDP. 
D)  growth rate of real GDP per person. 
A)  level of nominal GDP per person. 
B)  growth rate of nominal GDP. 
C)  growth rate of real GDP. 
D)  growth rate of real GDP per person.

Question 12

In the U.S., each additional year of schooling has historically raised a person's wage on average by about

Accepted Answer

A)  5 percent. In less developed countries the gap between the wages of educated and uneducated workers is smaller. 
B)  10 percent. In less developed countries the gap between the wages of educated and uneducated workers is smaller. 
C)  5 percent. In less developed countries the gap between the wages of educated and uneducated workers is larger. 
D)  10 percent. In less developed countries the gap between the wages of educated and uneducated workers is larger. 
A)  5 percent. In less developed countries the gap between the wages of educated and uneducated workers is smaller. 
B)  10 percent. In less developed countries the gap between the wages of educated and uneducated workers is smaller. 
C)  5 percent. In less developed countries the gap between the wages of educated and uneducated workers is larger. 
D)  10 percent. In less developed countries the gap between the wages of educated and uneducated workers is larger.

Question 13

A rapid increase in the number of workers, other things the same, is likely in the short term to

Accepted Answer

A)  raise real GDP per person, but decrease real GDP. 
B)  decrease both real GDP and real GDP per person. 
C)  raise both real GDP and real GDP per person. 
D)  raise real GDP, but decrease real GDP per person. 
A)  raise real GDP per person, but decrease real GDP. 
B)  decrease both real GDP and real GDP per person. 
C)  raise both real GDP and real GDP per person. 
D)  raise real GDP, but decrease real GDP per person.

Question 14

Other things equal, the likelihood that a country will experience a relatively-high level of income is greater if the country

Accepted Answer

A)  pursues inward-oriented policies. 
B)  has natural seaports. 
C)  minimizes the role of the courts in its economy. 
D)  enacts policies to encourage consumption and discourage saving. 
A)  pursues inward-oriented policies. 
B)  has natural seaports. 
C)  minimizes the role of the courts in its economy. 
D)  enacts policies to encourage consumption and discourage saving.

Question 15

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 16

Mary looks over reports on four of her workers. Jack made 30 baskets in 5 hours. Rudy made 32 baskets in 8 hours. Sam made 40 baskets in 12 hours. Walter made 22 baskets in four hours. Who has the greatest productivity?

Accepted Answer

A)  Jack 
B)  Rudy 
C)  Sam 
D)  Walter 
A)  Jack 
B)  Rudy 
C)  Sam 
D)  Walter

Question 17

Compare and contrast the population theories of Malthus and Kremer.

Accepted Answer

The difference is that Malthus predicted

Question 18

The Karmic Deed Restaurant uses all of the following to produce vegetarian meals. Which of them is an example of physical capital?

Accepted Answer

A)  the owner's knowledge of how to prepare vegetarian entrees 
B)  the money in the owner's account at the bank from which she borrowed money 
C)  the tables and chairs in the restaurant 
D)  the fresh fruits, vegetables, and grains the restaurant uses to prepare its meals 
A)  the owner's knowledge of how to prepare vegetarian entrees 
B)  the money in the owner's account at the bank from which she borrowed money 
C)  the tables and chairs in the restaurant 
D)  the fresh fruits, vegetables, and grains the restaurant uses to prepare its meals

Question 19

Natural resources

Accepted Answer

A)  are inputs provided by nature. 
B)  include land, rivers, and mineral deposits. 
C)  take two forms: renewable and nonrenewable. 
D)  All of the above are correct. 
A)  are inputs provided by nature. 
B)  include land, rivers, and mineral deposits. 
C)  take two forms: renewable and nonrenewable. 
D)  All of the above are correct.

Question 20

Suppose that a country increased its saving rate. In the long run it would have

Accepted Answer

A)  higher productivity, and another unit of capital would increase output by more than before. 
B)  higher productivity, but another unit of capital would increase output by less than before. 
C)  lower productivity, and another unit of capital would increase output by more than before. 
D)  lower productivity, but another unit of capital would increase output by less than before. 
A)  higher productivity, and another unit of capital would increase output by more than before. 
B)  higher productivity, but another unit of capital would increase output by less than before. 
C)  lower productivity, and another unit of capital would increase output by more than before. 
D)  lower productivity, but another unit of capital would increase output by less than before.

Exam 17: Production and Growth

Countries that pursued outward-oriented policies in the 20th century

Real GDP per person in rich countries, such as Germany, is sometimes more than 10 times that of poor countries like India.

Amy discovers a way to produce water heaters so they are less expensive and use less natural gas. Amy's discovery is

A country's human capital increases

Investment from abroad

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

Which of the following is an example of a produced factor of production?

Which of the following is an example of human capital?

Which of the following statements is correct?

Which of the following statements about inputs is correct?

Which of the following measures how the level of well-being in a country has changed over time?

In the U.S., each additional year of schooling has historically raised a person's wage on average by about

A rapid increase in the number of workers, other things the same, is likely in the short term to

Other things equal, the likelihood that a country will experience a relatively-high level of income is greater if the country

In determining living standards, productivity plays a key role

Mary looks over reports on four of her workers. Jack made 30 baskets in 5 hours. Rudy made 32 baskets in 8 hours. Sam made 40 baskets in 12 hours. Walter made 22 baskets in four hours. Who has the greatest productivity?

Compare and contrast the population theories of Malthus and Kremer.

The Karmic Deed Restaurant uses all of the following to produce vegetarian meals. Which of them is an example of physical capital?

Natural resources

Suppose that a country increased its saving rate. In the long run it would have

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

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