Question 1

Countries with high population growth rates tend to have lower levels of educational attainment.

Accepted Answer

A) True 
 B)False

Question 2

Suppose a person receives an education in her home country. Which of the following will tend to make the increase in GDP of the person's home country larger than the increase in this person's income?

Accepted Answer

A)  externalities and brain drain 
B)  externalities but not brain drain 
C)  brain drain but not externalities 
D)  neither externalities nor brain drain 
A)  externalities and brain drain 
B)  externalities but not brain drain 
C)  brain drain but not externalities 
D)  neither externalities nor brain drain

Question 3

International data on real GDP per person gives us a sense of how standards of living vary across countries.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements is not correct?

Accepted Answer

A)  The catch-up effect is based on the assumption of diminishing returns to capital. 
B)  Investment in poor countries by citizens of rich countries is one way poor countries can learn new technologies. 
C)  Malthus argued that charity and government aid was an effective way to reduce poverty. 
D)  Peace and justice are keys to growth. 
A)  The catch-up effect is based on the assumption of diminishing returns to capital. 
B)  Investment in poor countries by citizens of rich countries is one way poor countries can learn new technologies. 
C)  Malthus argued that charity and government aid was an effective way to reduce poverty. 
D)  Peace and justice are keys to growth.

Question 5

A nation's standard of living is best measured by its

Accepted Answer

A)  real GDP. 
B)  real GDP per person. 
C)  nominal GDP. 
D)  nominal GDP per person. 
A)  real GDP. 
B)  real GDP per person. 
C)  nominal GDP. 
D)  nominal GDP per person.

Question 6

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 7

Which of the following statements is correct?

Accepted Answer

A)  In an economy-wide sense, property rights are an important prerequisite for the price system to work. 
B)  Property rights give people the ability to exercise authority over the resources they own. 
C)  Based on the available evidence, the existence of well-established and well-enforced property rights appears to be associated with an enhanced standard of living. 
D)  All of the above are correct. 
A)  In an economy-wide sense, property rights are an important prerequisite for the price system to work. 
B)  Property rights give people the ability to exercise authority over the resources they own. 
C)  Based on the available evidence, the existence of well-established and well-enforced property rights appears to be associated with an enhanced standard of living. 
D)  All of the above are correct.

Question 8

What do we mean when we say that some technological knowledge is not proprietary?

Accepted Answer

Technological knowledge is not

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  both the demand for the resource and the supply of the resource have increased. 
B)  both the demand for the resource and the supply of the resource have decreased. 
C)  the demand for the resource has increased and the supply has decreased. 
D)  the demand for the resource has decreased and the supply has increased. 
A)  both the demand for the resource and the supply of the resource have increased. 
B)  both the demand for the resource and the supply of the resource have decreased. 
C)  the demand for the resource has increased and the supply has decreased. 
D)  the demand for the resource has decreased and the supply has increased.

Question 11

When Chile experiences investment from abroad, it experiences, as a result,

Accepted Answer

A)  an increase in productivity. 
B)  a decrease in Gross National Product GNP). 
C)  lower wages for Chilean workers. 
D)  None of the above is correct. 
A)  an increase in productivity. 
B)  a decrease in Gross National Product GNP). 
C)  lower wages for Chilean workers. 
D)  None of the above is correct.

Question 12

Measured in 2010 dollars, real GDP per person in the United States in 2010 was about

Accepted Answer

A)  $37,000. 
B)  $47,000. 
C)  $57,000. 
D)  $67,000. 
A)  $37,000. 
B)  $47,000. 
C)  $57,000. 
D)  $67,000.

Question 13

Countries that have lower levels of real GDP per person than the United States

Accepted Answer

A)  tend to have growth rates that are higher than that of the United States. 
B)  tend to have growth rates that are about the same as that of the United States. 
C)  tend to have growth rates that are lower than that of the United States. 
D)  in some cases have growth rates that are higher than that of the United States and in other cases lower than that of the United States. 
A)  tend to have growth rates that are higher than that of the United States. 
B)  tend to have growth rates that are about the same as that of the United States. 
C)  tend to have growth rates that are lower than that of the United States. 
D)  in some cases have growth rates that are higher than that of the United States and in other cases lower than that of the United States.

Question 14

Which of the following public policies would be least likely to result in more rapid economic growth for a poor or developing country?

Accepted Answer

A)  policies designed to promote economic development in coastal areas 
B)  policies designed to foster strict enforcement of property rights 
C)  policies designed to foster free trade 
D)  inward-oriented policies 
A)  policies designed to promote economic development in coastal areas 
B)  policies designed to foster strict enforcement of property rights 
C)  policies designed to foster free trade 
D)  inward-oriented policies

Question 15

Productivity is defined as the quantity of

Accepted Answer

A)  labor required to produce a nation's GDP. 
B)  labor required to produce one unit of goods and services. 
C)  goods and services produced from each unit of labor input. 
D)  goods and services produced per unit of time. 
A)  labor required to produce a nation's GDP. 
B)  labor required to produce one unit of goods and services. 
C)  goods and services produced from each unit of labor input. 
D)  goods and services produced per unit of time.

Question 16

Among the following countries, which one has the highest growth rate of real GDP per person over about the last 100 years?

Accepted Answer

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

Question 17

Which of the following countries benefited significantly from the catch-up effect in the last half of the twentieth century?

Accepted Answer

A)  Ethiopia 
B)  the United States 
C)  Canada 
D)  South Korea 
A)  Ethiopia 
B)  the United States 
C)  Canada 
D)  South Korea

Question 18

The long-run effects of an increase in the saving rate include

Accepted Answer

A)  a higher level of productivity. 
B)  a higher growth rate of productivity. 
C)  a higher growth rate of income. 
D)  All of the above are correct. 
A)  a higher level of productivity. 
B)  a higher growth rate of productivity. 
C)  a higher growth rate of income. 
D)  All of the above are correct.

Question 19

Both Arnold and Will work 10 hours a day. Arnold can produce six baskets of goods per hour while Will can produce four baskets of the same goods per hour. It follows that Arnold's

Accepted Answer

A)  productivity is greater than Will's. 
B)  output is greater than Will's. 
C)  standard of living is higher than Will's. 
D)  All of the above are correct. 
A)  productivity is greater than Will's. 
B)  output is greater than Will's. 
C)  standard of living is higher than Will's. 
D)  All of the above are correct.

Question 20

Outward-oriented policies

Accepted Answer

A)  allow countries to take advantage of gains from trade. 
B)  have generally led to high growth for the countries that pursued them. 
C)  receive widespread support from economists. 
D)  All of the above are correct. 
A)  allow countries to take advantage of gains from trade. 
B)  have generally led to high growth for the countries that pursued them. 
C)  receive widespread support from economists. 
D)  All of the above are correct.

Exam 12: Production and Growth

Countries with high population growth rates tend to have lower levels of educational attainment.

Suppose a person receives an education in her home country. Which of the following will tend to make the increase in GDP of the person's home country larger than the increase in this person's income?

International data on real GDP per person gives us a sense of how standards of living vary across countries.

Which of the following statements is not correct?

A nation's standard of living is best measured by its

Which of the following statements is true?

Which of the following statements is correct?

What do we mean when we say that some technological knowledge is not proprietary?

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

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

When Chile experiences investment from abroad, it experiences, as a result,

Measured in 2010 dollars, real GDP per person in the United States in 2010 was about

Countries that have lower levels of real GDP per person than the United States

Which of the following public policies would be least likely to result in more rapid economic growth for a poor or developing country?

Productivity is defined as the quantity of

Among the following countries, which one has the highest growth rate of real GDP per person over about the last 100 years?

Which of the following countries benefited significantly from the catch-up effect in the last half of the twentieth century?

The long-run effects of an increase in the saving rate include

Both Arnold and Will work 10 hours a day. Arnold can produce six baskets of goods per hour while Will can produce four baskets of the same goods per hour. It follows that Arnold's

Outward-oriented policies

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

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

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 Trade-Off Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters