Question 1

If an American-based firm opens and operates a factory in China, then it is engaging in

Accepted Answer

A)  foreign portfolio investment. 
B)  foreign financial investment. 
C)  foreign direct investment. 
D)  indirect foreign investment. 
A)  foreign portfolio investment. 
B)  foreign financial investment. 
C)  foreign direct investment. 
D)  indirect foreign investment.

Question 2

Compare and contrast the population theories of Malthus and Kremer.

Accepted Answer

The difference is that Malthus predicted

Question 3

Which of the following statements is true?

Accepted Answer

A)  Productivity is calculated as hours worked divided by output produced. 
B)  Americans have a higher standard of living than Indonesians because American workers are more productive than Indonesian workers. 
C)  Both A and B are correct. 
D)  None of the above are correct. 
A)  Productivity is calculated as hours worked divided by output produced. 
B)  Americans have a higher standard of living than Indonesians because American workers are more productive than Indonesian workers. 
C)  Both A and B are correct. 
D)  None of the above are correct.

Question 4

The equipment and structures available to produce goods and services are called

Accepted Answer

A)  physical capital. 
B)  human capital. 
C)  the production function. 
D)  technology. 
A)  physical capital. 
B)  human capital. 
C)  the production function. 
D)  technology.

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

All else equal, if there are diminishing returns, then if a country raised its capital by 100 units last year and by 100 units this year,

Accepted Answer

A)  the increase in output was greater for this year than last year. 
B)  the increase in output was greater last year than this year. 
C)  the increase in output is the same in both years. 
D)  None of the above is necessarily correct. 
A)  the increase in output was greater for this year than last year. 
B)  the increase in output was greater last year than this year. 
C)  the increase in output is the same in both years. 
D)  None of the above is necessarily correct.

Question 7

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 8

Scenario 25-1. An economy's production form takes the form Y = AFL, K, H, N).
-Refer to Scenario 25-1. In the production function, which of the following represents technology?

Accepted Answer

A)  A 
B)  K 
C)  H 
D)  N 
A)  A 
B)  K 
C)  H 
D)  N

Question 9

In the fourteenth century it is estimated that deaths resulting from the bubonic plague reduced the population by about a third. Assuming diminishing returns, the decrease in population should have

Accepted Answer

A)  increased productivity and real GDP per person. 
B)  increased productivity but decreased real GDP per person. 
C)  increased real GDP per person, but decreased productivity. 
D)  decreased productivity and real GDP per person. 
A)  increased productivity and real GDP per person. 
B)  increased productivity but decreased real GDP per person. 
C)  increased real GDP per person, but decreased productivity. 
D)  decreased productivity and real GDP per person.

Question 10

Which of the following statements is correct?

Accepted Answer

A)  Productivity is a determinant of human capital per worker. 
B)  Technological knowledge is a determinant of productivity. 
C)  Human capital and technological knowledge are the same thing. 
D)  All of the above are correct. 
A)  Productivity is a determinant of human capital per worker. 
B)  Technological knowledge is a determinant of productivity. 
C)  Human capital and technological knowledge are the same thing. 
D)  All of the above are correct.

Question 11

"Market prices give no reason to believe that natural resources are a limit to economic growth." Explain this statement.

Accepted Answer

If the world were running out of natural

Question 12

Matt is going to college to become a pharmacist. What he learns about existing information increases

Accepted Answer

A)  both technological knowledge and human capital. 
B)  technological knowledge but not human capital. 
C)  human capital but not technological knowledge. 
D)  neither technological knowledge nor human capital. 
A)  both technological knowledge and human capital. 
B)  technological knowledge but not human capital. 
C)  human capital but not technological knowledge. 
D)  neither technological knowledge nor human capital.

Question 13

A nation's standard of living is determined by

Accepted Answer

A)  the percentage of its GDP that is accounted for by government purchases. 
B)  the quantity of natural resources with which it is endowed. 
C)  the productivity of its workers. 
D)  factors and events that are beyond the nation's control. 
A)  the percentage of its GDP that is accounted for by government purchases. 
B)  the quantity of natural resources with which it is endowed. 
C)  the productivity of its workers. 
D)  factors and events that are beyond the nation's control.

Question 14

If it could increase its growth rates slightly, a country with low income would catch up with rich countries in about ten years.

Accepted Answer

A) True 
 B)False

Question 15

Of the following countries, which grew most slowly, in terms of real GDP per person, over about the last 120 years?

Accepted Answer

A)  Brazil 
B)  Mexico 
C)  China 
D)  United States 
A)  Brazil 
B)  Mexico 
C)  China 
D)  United States

Question 16

Dilbert's Incorporated produced 6,000,000 units of software in 2010. At the start of 2011 the pointy­haired boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units. These number indicate that productivity

Accepted Answer

A)  fell by about 16.7%. 
B)  stayed the same. 
C)  rose by about 16.7%. 
D)  rose by about 40%. 
A)  fell by about 16.7%. 
B)  stayed the same. 
C)  rose by about 16.7%. 
D)  rose by about 40%.

Question 17

Educated people may generate ideas that increase production. These ideas

Accepted Answer

A)  produce a return to society from education that is greater than the return to the individual. 
B)  could justify government subsides for education. 
C)  are external benefits of education. 
D)  All of the above are correct. 
A)  produce a return to society from education that is greater than the return to the individual. 
B)  could justify government subsides for education. 
C)  are external benefits of education. 
D)  All of the above are correct.

Question 18

What particularly important role do courts play in a market economy?

Accepted Answer

Courts enforce prope

Question 19

Journey Motorcycles produced 100 motorcycles using 50 workers who each worked 8 hours a day. Journey's productivity was 1/4.

Accepted Answer

A) True 
 B)False

Question 20

If per capita real income grows by 2 percent per year, then it will double in approximately 20 years.

Accepted Answer

A) True 
 B)False

Exam 12: Production and Growth

If an American-based firm opens and operates a factory in China, then it is engaging in

Compare and contrast the population theories of Malthus and Kremer.

Which of the following statements is true?

The equipment and structures available to produce goods and services are called

Investment from abroad

All else equal, if there are diminishing returns, then if a country raised its capital by 100 units last year and by 100 units this year,

Which of the following statements is correct?

Scenario 25-1. An economy's production form takes the form Y = AFL, K, H, N). -Refer to Scenario 25-1. In the production function, which of the following represents technology?

In the fourteenth century it is estimated that deaths resulting from the bubonic plague reduced the population by about a third. Assuming diminishing returns, the decrease in population should have

Which of the following statements is correct?

"Market prices give no reason to believe that natural resources are a limit to economic growth." Explain this statement.

Matt is going to college to become a pharmacist. What he learns about existing information increases

A nation's standard of living is determined by

If it could increase its growth rates slightly, a country with low income would catch up with rich countries in about ten years.

Of the following countries, which grew most slowly, in terms of real GDP per person, over about the last 120 years?

Dilbert's Incorporated produced 6,000,000 units of software in 2010. At the start of 2011 the pointy­haired boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units. These number indicate that productivity

Educated people may generate ideas that increase production. These ideas

What particularly important role do courts play in a market economy?

Journey Motorcycles produced 100 motorcycles using 50 workers who each worked 8 hours a day. Journey's productivity was 1/4.

If per capita real income grows by 2 percent per year, then it will double in approximately 20 years.

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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Dilbert's Incorporated produced 6,000,000 units of software in 2010. At the start of 2011 the pointyhaired boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units. These number indicate that productivity