Question 1

Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over about the last 120 years?

Accepted Answer

A)  Germany and Japan 
B)  Indonesia and Bangladesh 
C)  the United States and Argentina 
D)  Mexico and Pakistan 
A)  Germany and Japan 
B)  Indonesia and Bangladesh 
C)  the United States and Argentina 
D)  Mexico and Pakistan

Question 2

Over the period 1900­2010, Brazil's rate of economic growth exceeded that of China.

Accepted Answer

A) True 
 B)False

Question 3

In 2012, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its real GDP per person grew by about 1.94%. Which of the following sets of growth rates is consistent with this growth in real GDP per person?

Accepted Answer

A)  3% population growth and 4% real GDP growth 
B)  3% population growth and 5% real GDP growth 
C)  6% population growth and 4% real GDP growth 
D)  6% population growth and 5% real GDP growth 
A)  3% population growth and 4% real GDP growth 
B)  3% population growth and 5% real GDP growth 
C)  6% population growth and 4% real GDP growth 
D)  6% population growth and 5% real GDP growth

Question 4

Which of the following is correct?

Accepted Answer

A)  There is no debate about the effects of higher population growth on economic growth. 
B)  Natural resources clearly place limits on growth; there is simply no way to reduce either the amount or type of natural resources needed to produce goods. 
C)  How much an increase in capital increases a country's output is independent of that country's current level of capital. 
D)  Economists argue that outward rather than inward policies are likely to promote economic growth. 
A)  There is no debate about the effects of higher population growth on economic growth. 
B)  Natural resources clearly place limits on growth; there is simply no way to reduce either the amount or type of natural resources needed to produce goods. 
C)  How much an increase in capital increases a country's output is independent of that country's current level of capital. 
D)  Economists argue that outward rather than inward policies are likely to promote economic growth.

Question 5

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

Accepted Answer

A)  corn that is harvested from a field in Iowa 
B)  workers who are hired at a coal mine in West Virginia 
C)  skills that teachers in Texas acquire through continuing-education classes 
D)  All of the above are correct. 
A)  corn that is harvested from a field in Iowa 
B)  workers who are hired at a coal mine in West Virginia 
C)  skills that teachers in Texas acquire through continuing-education classes 
D)  All of the above are correct.

Question 6

Other things the same, if a country raises its saving rate, then in the long run

Accepted Answer

A)  both the level and growth rate of real GDP are unchanged. 
B)  the level of real GDP is higher but the growth rate of real GDP is unchanged. 
C)  both the level and growth rate of real GDP are higher. 
D)  None of the above are correct. 
A)  both the level and growth rate of real GDP are unchanged. 
B)  the level of real GDP is higher but the growth rate of real GDP is unchanged. 
C)  both the level and growth rate of real GDP are higher. 
D)  None of the above are correct.

Question 7

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 8

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 9

Apple founder Steve Jobs received patents on many of his ideas. While the patents existed, his ideas were

Accepted Answer

A)  public goods and proprietary knowledge. 
B)  public goods but not proprietary knowledge. 
C)  private goods and proprietary knowledge. 
D)  private goods but not proprietary knowledge. 
A)  public goods and proprietary knowledge. 
B)  public goods but not proprietary knowledge. 
C)  private goods and proprietary knowledge. 
D)  private goods but not proprietary knowledge.

Question 10

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 11

Inward-oriented policies

Accepted Answer

A)  are generally supported by economists. 
B)  are primarily concerned with the development of human capital. 
C)  in some ways are like prohibiting the use of certain technologies. 
D)  All of the above are correct. 
A)  are generally supported by economists. 
B)  are primarily concerned with the development of human capital. 
C)  in some ways are like prohibiting the use of certain technologies. 
D)  All of the above are correct.

Question 12

Country A had a population of 2,000, of whom 1,300 worked an average of 8 hours a day and had a productivity of 5.Country B had a population of 2,500, of whom 1,700 worked 8 hours a day and had productivity of 4. 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 13

Patents turn new ideas into

Accepted Answer

A)  public goods, and increase the incentive to engage in research. 
B)  public goods, but decrease the incentive to engage in research. 
C)  private goods, and increase the incentive to engage in research. 
D)  private goods, but decrease the incentive to engage in research. 
A)  public goods, and increase the incentive to engage in research. 
B)  public goods, but decrease the incentive to engage in research. 
C)  private goods, and increase the incentive to engage in research. 
D)  private goods, but decrease the incentive to engage in research.

Question 14

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Accepted Answer

A)  most economists do not regard the availability of natural resources as a determinant of productivity. 
B)  the quantity of natural resources does not enter into any production function. 
C)  inflation-adjusted prices of most natural resources have been stable or fallen over time. 
D)  inflation-adjusted prices of most natural resources have risen over time. 
A)  most economists do not regard the availability of natural resources as a determinant of productivity. 
B)  the quantity of natural resources does not enter into any production function. 
C)  inflation-adjusted prices of most natural resources have been stable or fallen over time. 
D)  inflation-adjusted prices of most natural resources have risen over time.

Question 15

During the past century the average growth rate of U.S. real GDP per person implies that it doubled, on average, about every

Accepted Answer

A)  100 years. 
B)  70 years. 
C)  35 years. 
D)  25 years. 
A)  100 years. 
B)  70 years. 
C)  35 years. 
D)  25 years.

Question 16

If your company opens and operates a branch in a foreign country, your company engages in foreign direct investment.

Accepted Answer

A) True 
 B)False

Question 17

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 18

The traditional view of the production process is that capital is subject to

Accepted Answer

A)  constant returns. 
B)  increasing returns. 
C)  diminishing returns. 
D)  diminishing returns for low levels of capital, and increasing returns for high levels of capital. 
A)  constant returns. 
B)  increasing returns. 
C)  diminishing returns. 
D)  diminishing returns for low levels of capital, and increasing returns for high levels of capital.

Question 19

Over the last ten years productivity grew faster in Mapoli than in Romeria while the population and total hours worked remained the same in both countries. It follows that

Accepted Answer

A)  real GDP per person grew faster in Mapoli than in Romeria. 
B)  real GDP per person must be higher in Mapoli than in Romeria. 
C)  the standard of living must be higher in Mapoli than in Romeria. 
D)  All of the above are correct. 
A)  real GDP per person grew faster in Mapoli than in Romeria. 
B)  real GDP per person must be higher in Mapoli than in Romeria. 
C)  the standard of living must be higher in Mapoli than in Romeria. 
D)  All of the above are correct.

Question 20

If a country increases its saving rate, which of the following permanently grow at a higher rate?

Accepted Answer

A)  productivity and real GDP per person 
B)  productivity but not real GDP per person 
C)  real GDP per person but not productivity 
D)  neither real GDP per person nor productivity 
A)  productivity and real GDP per person 
B)  productivity but not real GDP per person 
C)  real GDP per person but not productivity 
D)  neither real GDP per person nor productivity

Exam 12: Production and Growth

Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over about the last 120 years?

Over the period 1900­2010, Brazil's rate of economic growth exceeded that of China.

In 2012, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its real GDP per person grew by about 1.94%. Which of the following sets of growth rates is consistent with this growth in real GDP per person?

Which of the following is correct?

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

Other things the same, if a country raises its saving rate, then in the long run

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

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

Apple founder Steve Jobs received patents on many of his ideas. While the patents existed, his ideas were

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

Inward-oriented policies

Country A had a population of 2,000, of whom 1,300 worked an average of 8 hours a day and had a productivity of 5.Country B had a population of 2,500, of whom 1,700 worked 8 hours a day and had productivity of 4. Country

Patents turn new ideas into

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

During the past century the average growth rate of U.S. real GDP per person implies that it doubled, on average, about every

If your company opens and operates a branch in a foreign country, your company engages in foreign direct investment.

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

The traditional view of the production process is that capital is subject to

Over the last ten years productivity grew faster in Mapoli than in Romeria while the population and total hours worked remained the same in both countries. It follows that

If a country increases its saving rate, which of the following permanently grow at a higher rate?

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

Over the period 19002010, Brazil's rate of economic growth exceeded that of China.