Exam 12: Production and Growth

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?

Which of the following is an example of human capital?

Which of the following statements is correct?

In which of the following cases can we be certain that a natural resource has become scarcer?

Human capital

In the equation for the production function Y/L represents

Assuming diminishing returns,

A country's human capital increases

Suppose a U.S. automaker builds and operates a new factory in Italy. Future production from such an investment will

Suppose there are constant returns to scale. Now suppose that over time a country doubles its workers, its natural resources, its physical capital, and its human capital, but its technology is unchanged. Which of the following would double?

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

On a production function, as capital per worker increases, output per worker

Table 25-1. Athens and Troy both produce only ribs and baked potatoes. -Refer to Table 25-1. Which of the following is correct?

In 1870, the richest country in the world was

In some countries in Sub-Saharan Africa real GDP per person has been stagnant for many years.

You bake cookies. One day you double the time you spend, double the number of chocolate chips, flour, eggs, and all your other inputs, and bake twice as many cookies. Your cookie production function has

A country's standard of living depends on its ability to produce goods and services.

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

In the long run, a higher saving rate

Daniel owns a coffee kiosk. All of his employees work 8 hours per day. In 2011, he employed 6 people who produced a total of 912 cups of coffee each day. In 2012, he hired a seventh employee and production increased to 1008 cups of coffee each day. In Daniel's kiosk, productivity