Question 1

When Americans invest in Russia, the income of Russians that is, Russian GNP) rises by more than production in Russia that is, Russian GDP).

Accepted Answer

A) True 
 B)False

Question 2

Like physical capital, human capital is a produced factor of production.

Accepted Answer

A) True 
 B)False

Question 3

Which country has had a higher growth rate than the U.S. over about the last 120 years?

Accepted Answer

A)  India 
B)  Mexico 
C)  United Kingdom 
D)  Pakistan 
A)  India 
B)  Mexico 
C)  United Kingdom 
D)  Pakistan

Question 4

In the long run, an increase in the saving rate

Accepted Answer

A)  doesn't change the level of productivity or income. 
B)  raises the levels of both productivity and income. 
C)  raises the level of productivity but not the level of income. 
D)  raises the level of income but not the level of productivity. 
A)  doesn't change the level of productivity or income. 
B)  raises the levels of both productivity and income. 
C)  raises the level of productivity but not the level of income. 
D)  raises the level of income but not the level of productivity.

Question 5

"When workers acquire tools, they become more productive." This statement reflects the general fact that is a determinant of productivity.

Accepted Answer

physical c

Question 6

John and Miguel are fishermen. When they go fishing, John consistently catches 2 or 3 fish per hour, while Miguel consistently catches 5 or 6 fish per hour. Miguel's exceeds that of John.

Accepted Answer

The answer of John and Miguel are fishermen. When they...

Question 7

Phoenix furniture uses 12 workers, each working eight hours, to produce 192 rocking chairs. What is Phoenix's productivity?

Accepted Answer

A)  192 rocking chairs 
B)  24 rocking chairs per hour 
C)  2 rocking chairs per hour 
D)  2 hours per rocking chair 
A)  192 rocking chairs 
B)  24 rocking chairs per hour 
C)  2 rocking chairs per hour 
D)  2 hours per rocking chair

Question 8

If a newly elected government takes actions that makes its country's courts more efficient and less corrupt, then

Accepted Answer

A)  producers will have greater confidence that they will benefit from their efforts. 
B)  producers are likely to be more specialized. 
C)  buyers and sellers will be more likely to honor contracts. 
D)  All of the above are correct. 
A)  producers will have greater confidence that they will benefit from their efforts. 
B)  producers are likely to be more specialized. 
C)  buyers and sellers will be more likely to honor contracts. 
D)  All of the above are correct.

Question 9

An understanding of the best ways to produce goods and services is called

Accepted Answer

A)  human capital. 
B)  physical capital. 
C)  technology. 
D)  productivity. 
A)  human capital. 
B)  physical capital. 
C)  technology. 
D)  productivity.

Question 10

Consider the nations of India, Indonesia, and Japan. Over the past century, which of these three nations has experienced, by far, more rapid economic growth than the other two nations?

Accepted Answer

Japan's growth rate 2.65 perce

Question 11

Over the past century in the United States, real GDP per person has grown, on average, by about

Accepted Answer

A)  1 percent per year. 
B)  2 percent per year. 
C)  3 percent per year. 
D)  5 percent per year. 
A)  1 percent per year. 
B)  2 percent per year. 
C)  3 percent per year. 
D)  5 percent per year.

Question 12

How would an economist typically assess the extent of economic progress in a nation?

Accepted Answer

An economist typical

Question 13

The return to schooling for society is higher than the return to schooling for the individual if

Accepted Answer

A)  the concept of diminishing returns applies to education. 
B)  the concept of constant returns to scale applies to education. 
C)  human capital conveys positive externalities. 
D)  investment in human capital involves no opportunity costs. 
A)  the concept of diminishing returns applies to education. 
B)  the concept of constant returns to scale applies to education. 
C)  human capital conveys positive externalities. 
D)  investment in human capital involves no opportunity costs.

Question 14

In what sense is capital accumulation costly to a society?

Accepted Answer

Capital accumulation requires

Question 15

Which of the following statements is true?

Accepted Answer

A)  Natural resources per worker influence productivity only when those natural resources are renewable. 
B)  The prices of most natural resources are stable or falling relative to other prices. 
C)  Technology requires greater use of natural resources. 
D)  The terms human capital and technological knowledge are used interchangeably. 
A)  Natural resources per worker influence productivity only when those natural resources are renewable. 
B)  The prices of most natural resources are stable or falling relative to other prices. 
C)  Technology requires greater use of natural resources. 
D)  The terms human capital and technological knowledge are used interchangeably.

Question 16

If over a short time there is an increase in the number of people retired and a decrease in the number of people working, then productivity

Accepted Answer

A)  and real GDP per person rise. 
B)  rises but real GDP per person falls. 
C)  falls and real GDP per person rises. 
D)  and real GDP per person fall. 
A)  and real GDP per person rise. 
B)  rises but real GDP per person falls. 
C)  falls and real GDP per person rises. 
D)  and real GDP per person fall.

Question 17

If your firm's production function has constant returns to scale, and if you double all your inputs, then your firm's productivity will

Accepted Answer

A)  not change. 
B)  increase but not double. 
C)  double. 
D)  more than double. 
A)  not change. 
B)  increase but not double. 
C)  double. 
D)  more than double.

Question 18

You and your friend work together for 4 hours to produce a total of 8 bookcases. What is productivity?

Accepted Answer

A)  16 bookcases 
B)  8 bookcases 
C)  2 bookcases per hour 
D)  1 bookcase per hour 
A)  16 bookcases 
B)  8 bookcases 
C)  2 bookcases per hour 
D)  1 bookcase per hour

Question 19

How does the phenomenon of diminishing returns to capital explain the catch-up effect?

Accepted Answer

When an economy initially has a small am

Question 20

Suppose a country reduces restrictions on how many hours people can work. If reducing these restrictions increase the total number of hours worked in the economy, but all other factors that determine output are held fixed, then

Accepted Answer

A)  productivity and output both rise. 
B)  productivity rises and output falls. 
C)  productivity falls and output rises. 
D)  productivity and output fall. 
A)  productivity and output both rise. 
B)  productivity rises and output falls. 
C)  productivity falls and output rises. 
D)  productivity and output fall.

Exam 12: Production and Growth

When Americans invest in Russia, the income of Russians that is, Russian GNP) rises by more than production in Russia that is, Russian GDP).

Like physical capital, human capital is a produced factor of production.

Which country has had a higher growth rate than the U.S. over about the last 120 years?

In the long run, an increase in the saving rate

"When workers acquire tools, they become more productive." This statement reflects the general fact that is a determinant of productivity.

John and Miguel are fishermen. When they go fishing, John consistently catches 2 or 3 fish per hour, while Miguel consistently catches 5 or 6 fish per hour. Miguel's exceeds that of John.

Phoenix furniture uses 12 workers, each working eight hours, to produce 192 rocking chairs. What is Phoenix's productivity?

If a newly elected government takes actions that makes its country's courts more efficient and less corrupt, then

An understanding of the best ways to produce goods and services is called

Consider the nations of India, Indonesia, and Japan. Over the past century, which of these three nations has experienced, by far, more rapid economic growth than the other two nations?

Over the past century in the United States, real GDP per person has grown, on average, by about

How would an economist typically assess the extent of economic progress in a nation?

The return to schooling for society is higher than the return to schooling for the individual if

In what sense is capital accumulation costly to a society?

Which of the following statements is true?

If over a short time there is an increase in the number of people retired and a decrease in the number of people working, then productivity

If your firm's production function has constant returns to scale, and if you double all your inputs, then your firm's productivity will

You and your friend work together for 4 hours to produce a total of 8 bookcases. What is productivity?

How does the phenomenon of diminishing returns to capital explain the catch-up effect?

Suppose a country reduces restrictions on how many hours people can work. If reducing these restrictions increase the total number of hours worked in the economy, but all other factors that determine output are held fixed, then

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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