Question 1

Hit-It produces 320 baseball bats per day using 2 workers who each work 8 hours per day. What is Hit­It's productivity?

Accepted Answer

A)  320 baseball bats 
B)  160 baseball bats per hour 
C)  20 baseball bats per hour 
D)  None of the above is correct. 
A)  320 baseball bats 
B)  160 baseball bats per hour 
C)  20 baseball bats per hour 
D)  None of the above is correct.

Question 2

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

Accepted Answer

Most economists believe that poor nation

Question 3

The Economic Development Minister of a country has a list of things she thinks may explain her country's low growth of real GDP per person relative to other countries. She asks you to pick the one you think most likely explains her country's low growth. Which of the following contributes to low growth?

Accepted Answer

A)  poorly enforced property rights 
B)  outward-oriented trade policies 
C)  policies that permit foreign investment 
D)  All of the above are correct. 
A)  poorly enforced property rights 
B)  outward-oriented trade policies 
C)  policies that permit foreign investment 
D)  All of the above are correct.

Question 4

In a particular production process, if the quantities of all inputs used are increased by 60%, then the quantity of output increases by 60% as well. This means that

Accepted Answer

A)  the production process cannot be enhanced by technological advances. 
B)  no mathematical representation of the relevant production function can be formulated. 
C)  the relevant production function has the limits-to-growth property. 
D)  the relevant production function has constant-returns-to-scale. 
A)  the production process cannot be enhanced by technological advances. 
B)  no mathematical representation of the relevant production function can be formulated. 
C)  the relevant production function has the limits-to-growth property. 
D)  the relevant production function has constant-returns-to-scale.

Question 5

Last year the imaginary nation of Panglossia had real GDP of 400 billion. This year it had real GDP of 472.5 billion. Which of the following changes in population is consistent with a 5 percent growth rate of real GDP per person over the last year?

Accepted Answer

A)  The population decreased from 75 million to 72 million. 
B)  The population decreased from 60 million to 50 million. 
C)  The population increased from 70 million to 80 million. 
D)  The population increased from 80 million to 90 million. 
A)  The population decreased from 75 million to 72 million. 
B)  The population decreased from 60 million to 50 million. 
C)  The population increased from 70 million to 80 million. 
D)  The population increased from 80 million to 90 million.

Question 6

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 7

What is the relationship between education and human capital?

Accepted Answer

Education

Question 8

Suppose Japanese-based Toshiba Corporation builds and operates a new computer factory in the United States. Future production from such an investment will

Accepted Answer

A)  increase U.S. GNP more than it increases U.S. GDP. 
B)  increase U.S. GDP more than it increases U.S. GNP. 
C)  have no affect on U.S. GNP, but will increase U.S. GDP. 
D)  have no affect on U.S. GNP or GDP. 
A)  increase U.S. GNP more than it increases U.S. GDP. 
B)  increase U.S. GDP more than it increases U.S. GNP. 
C)  have no affect on U.S. GNP, but will increase U.S. GDP. 
D)  have no affect on U.S. GNP or GDP.

Question 9

Other things the same, if a country raises its saving rate, when is growth of real GDP per person higher?

Accepted Answer

A)  as the economy moves toward the long run and in the long run. 
B)  as the economy moves toward the long run, but not in the long run. 
C)  in the long run, but not as the economy moves toward the long run. 
D)  neither as the economy moves toward the long run, nor in the long run. 
A)  as the economy moves toward the long run and in the long run. 
B)  as the economy moves toward the long run, but not in the long run. 
C)  in the long run, but not as the economy moves toward the long run. 
D)  neither as the economy moves toward the long run, nor in the long run.

Question 10

The level of real GDP is a good measure of economic prosperity, and the growth of real GDP is a good measure of
__________.

Accepted Answer

The answer of The level of real GDP is a...

Question 11

Brazil gives cash payments to its poor citizens on the condition that those citizens' children stay in school. In terms of the determinants of productivity, how might this public policy contribute to higher productivity in Brazil?

Accepted Answer

This public policy aims to inc

Question 12

Measured in 2010 dollars, real GDP per person in the United States in 2010 was about 14 times that in

Accepted Answer

A)  China. 
B)  India. 
C)  Indonesia. 
D)  Pakistan. 
A)  China. 
B)  India. 
C)  Indonesia. 
D)  Pakistan.

Question 13

Human capital is

Accepted Answer

A)  the same thing as technological knowledge. 
B)  the same thing as labor. 
C)  the tools and equipment operated by humans. 
D)  knowledge and skills that workers have acquired. 
A)  the same thing as technological knowledge. 
B)  the same thing as labor. 
C)  the tools and equipment operated by humans. 
D)  knowledge and skills that workers have acquired.

Question 14

Other things the same, when an economy increases its saving rate

Accepted Answer

A)  consumption and production rise now. 
B)  consumption rises now and production rises later 
C)  consumption falls now and production rises later. 
D)  consumption falls now and production falls later. 
A)  consumption and production rise now. 
B)  consumption rises now and production rises later 
C)  consumption falls now and production rises later. 
D)  consumption falls now and production falls later.

Question 15

In the equation for the production function H/L represents

Accepted Answer

A)  natural resources per worker. 
B)  human capital per worker. 
C)  output per worker. 
D)  physical capital per worker. 
A)  natural resources per worker. 
B)  human capital per worker. 
C)  output per worker. 
D)  physical capital per worker.

Question 16

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 17

Which of the following can explain faster growth of real GDP in country A than in Country B?

Accepted Answer

A)  both greater population growth and greater productivity growth in Country A 
B)  greater population growth in Country A, but not greater productivity growth in Country A 
C)  greater productivity growth in Country A, but not greater population growth in Country A 
D)  neither greater population growth nor greater productivity growth in Country A 
A)  both greater population growth and greater productivity growth in Country A 
B)  greater population growth in Country A, but not greater productivity growth in Country A 
C)  greater productivity growth in Country A, but not greater population growth in Country A 
D)  neither greater population growth nor greater productivity growth in Country A

Question 18

Which of the following countries had the lowest level of real GDP per person in 2010?

Accepted Answer

A)  Bangladesh 
B)  Indonesia 
C)  Mexico 
D)  China 
A)  Bangladesh 
B)  Indonesia 
C)  Mexico 
D)  China

Question 19

If a production function has the property called , then doubling all inputs causes the amount of output to double as well.

Accepted Answer

constant r

Question 20

Once an idea enters society's pool of knowledge, the idea becomes a

Accepted Answer

A)  societal good. 
B)  private good. 
C)  public good. 
D)  proprietary good. 
A)  societal good. 
B)  private good. 
C)  public good. 
D)  proprietary good.

Exam 12: Production and Growth

Hit-It produces 320 baseball bats per day using 2 workers who each work 8 hours per day. What is Hit­It's productivity?

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

In a particular production process, if the quantities of all inputs used are increased by 60%, then the quantity of output increases by 60% as well. This means that

Last year the imaginary nation of Panglossia had real GDP of 400 billion. This year it had real GDP of 472.5 billion. Which of the following changes in population is consistent with a 5 percent growth rate of real GDP per person over the last year?

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?

What is the relationship between education and human capital?

Suppose Japanese-based Toshiba Corporation builds and operates a new computer factory in the United States. Future production from such an investment will

Other things the same, if a country raises its saving rate, when is growth of real GDP per person higher?

The level of real GDP is a good measure of economic prosperity, and the growth of real GDP is a good measure of __________.

Brazil gives cash payments to its poor citizens on the condition that those citizens' children stay in school. In terms of the determinants of productivity, how might this public policy contribute to higher productivity in Brazil?

Measured in 2010 dollars, real GDP per person in the United States in 2010 was about 14 times that in

Human capital is

Other things the same, when an economy increases its saving rate

In the equation for the production function H/L represents

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

Which of the following can explain faster growth of real GDP in country A than in Country B?

Which of the following countries had the lowest level of real GDP per person in 2010?

If a production function has the property called , then doubling all inputs causes the amount of output to double as well.

Once an idea enters society's pool of knowledge, the idea becomes a

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

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Hit-It produces 320 baseball bats per day using 2 workers who each work 8 hours per day. What is HitIt's productivity?