Question 1

Waldo works eight hours and produces 7 units of goods per hour. Emerson works six hours and produces 10 units of goods per hour.

Accepted Answer

A)  Waldo's productivity and output are greater than Emerson's. 
B)  Waldo's productivity is greater than Emerson's but his output is less. 
C)  Emerson's productivity and output are greater than Waldo's. 
D)  Emerson's productivity is greater than Waldo's but his output is less. 
A)  Waldo's productivity and output are greater than Emerson's. 
B)  Waldo's productivity is greater than Emerson's but his output is less. 
C)  Emerson's productivity and output are greater than Waldo's. 
D)  Emerson's productivity is greater than Waldo's but his output is less.

Question 2

What term do we use to refer to the understanding of the best ways to produce goods and services?

Accepted Answer

The term i

Question 3

When a country eliminates tariffs and other trade restrictions, intending to promote economic growth, it is pursuing_______-oriented policies.

Accepted Answer

The answer of When a country eliminates tariffs and other...

Question 4

Which of the following is not correct?

Accepted Answer

A)  Across countries there are large differences in the average income per person. These differences are reflected in large differences in the quality of life. 
B)  With a growth rate of about 2 percent per year, average income per person doubles about every 60 years. 
C)  The ranking of countries by average income changes substantially over time. 
D)  In some countries real income per person has changed very little over many years. 
A)  Across countries there are large differences in the average income per person. These differences are reflected in large differences in the quality of life. 
B)  With a growth rate of about 2 percent per year, average income per person doubles about every 60 years. 
C)  The ranking of countries by average income changes substantially over time. 
D)  In some countries real income per person has changed very little over many years.

Question 5

Figure 25-1  
-Refer to Figure 21-1. In what way is the figure relevant to the catch-up effect?

Accepted Answer

The catch-up effect is observed when a r

Question 6

Other things the same, an increase in population growth

Accepted Answer

A)  increases capital per worker. Further, there is some evidence that a higher population growth rate may increase the pace of technological progress. 
B)  increases capital per worker. However, there is some evidence that a higher population growth rate may decrease the pace of technological progress. 
C)  decreases capital per worker. Further, there is some evidence that a higher population growth rate may decrease the pace of technological progress. 
D)  decreases capital per worker. However, there is some evidence that a higher population growth rate may increase the pace of technological progress. 
A)  increases capital per worker. Further, there is some evidence that a higher population growth rate may increase the pace of technological progress. 
B)  increases capital per worker. However, there is some evidence that a higher population growth rate may decrease the pace of technological progress. 
C)  decreases capital per worker. Further, there is some evidence that a higher population growth rate may decrease the pace of technological progress. 
D)  decreases capital per worker. However, there is some evidence that a higher population growth rate may increase the pace of technological progress.

Question 7

Thomas Malthus's predictions turned out to be wrong due to

Accepted Answer

A)  technological advances such as those during the Industrial Revolution. 
B)  smaller populations now than in the time of Malthus. 
C)  the effects of brain-drain. 
D)  unlimited natural resources. 
A)  technological advances such as those during the Industrial Revolution. 
B)  smaller populations now than in the time of Malthus. 
C)  the effects of brain-drain. 
D)  unlimited natural resources.

Question 8

In 2010, the typical Bangladeshi had about

Accepted Answer

A)  less than half the real income of a typical American a century ago. 
B)  about the same real income of a typical American a century ago. 
C)  2 times as much real income as that of a typical American a century ago. 
D)  4 times as much real income as that of a typical American a century ago. 
A)  less than half the real income of a typical American a century ago. 
B)  about the same real income of a typical American a century ago. 
C)  2 times as much real income as that of a typical American a century ago. 
D)  4 times as much real income as that of a typical American a century ago.

Question 9

If a country were to increase its saving rate, then in the long run it would also increase its

Accepted Answer

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

Question 10

The president of Suldinia, a developing country, proposes that his country needs to help domestic firms by reducing trade restrictions.

Accepted Answer

A)  These are outward-oriented policies and most economists believe they would have beneficial effects on growth in Suldinia. 
B)  These are outward-oriented policies and most economists believe they would have adverse effects on growth in Suldinia. 
C)  These are inward-oriented policies and most economists believe they would have beneficial effects on growth in Suldinia. 
D)  These are inward-oriented policies and most economists believe they would have adverse effects on growth in Suldinia. 
A)  These are outward-oriented policies and most economists believe they would have beneficial effects on growth in Suldinia. 
B)  These are outward-oriented policies and most economists believe they would have adverse effects on growth in Suldinia. 
C)  These are inward-oriented policies and most economists believe they would have beneficial effects on growth in Suldinia. 
D)  These are inward-oriented policies and most economists believe they would have adverse effects on growth in Suldinia.

Question 11

Suppose that an American company opens and operates a restaurant in Ireland. This is an example of

Accepted Answer

A)  foreign direct investment. American saving is used to finance Irish investment. 
B)  foreign direct investment. American saving is used to finance American investment. 
C)  foreign portfolio investment. American saving is used to finance Irish investment. 
D)  foreign portfolio investment. American saving is used to finance American investment. 
A)  foreign direct investment. American saving is used to finance Irish investment. 
B)  foreign direct investment. American saving is used to finance American investment. 
C)  foreign portfolio investment. American saving is used to finance Irish investment. 
D)  foreign portfolio investment. American saving is used to finance American investment.

Question 12

In one day Alpha Cabinet Company made 40 cabinets with 320 hours of labor. What was Alpha Cabinet Company's productivity?

Accepted Answer

A)  1/8 cabinet per hour 
B)  8 hours per cabinet 
C)  40 cabinets 
D)  None of the above is correct. 
A)  1/8 cabinet per hour 
B)  8 hours per cabinet 
C)  40 cabinets 
D)  None of the above is correct.

Question 13

In recent decades, economic growth has been much more rapid in South Korea than in the United States. What is the likely explanation for this fact?

Accepted Answer

The likely explanati

Question 14

After adjusting for inflation, over time the prices of most natural resources have been

Accepted Answer

A)  steady or falling, meaning that our ability to conserve them is growing more rapidly than their supplies are dwindling. 
B)  steady or falling, meaning that their supplies are dwindling more rapidly than our ability to conserve them is growing. 
C)  rising, meaning that our ability to conserve them is growing more rapidly than their supplies are dwindling. 
D)  rising, meaning that their supplies are dwindling more rapidly than our ability to conserve them is growing. 
A)  steady or falling, meaning that our ability to conserve them is growing more rapidly than their supplies are dwindling. 
B)  steady or falling, meaning that their supplies are dwindling more rapidly than our ability to conserve them is growing. 
C)  rising, meaning that our ability to conserve them is growing more rapidly than their supplies are dwindling. 
D)  rising, meaning that their supplies are dwindling more rapidly than our ability to conserve them is growing.

Question 15

Real GDP per person is $10,000 in Country A, $20,000 in Country B, and $30,000 in Country C. The saving rate increases by the same rate in all three countries. Other things equal, we would expect that

Accepted Answer

A)  all three countries will grow at the same rate. 
B)  Country A will grow the fastest. 
C)  Country B will grow the fastest. 
D)  Country C will grow the fastest. 
A)  all three countries will grow at the same rate. 
B)  Country A will grow the fastest. 
C)  Country B will grow the fastest. 
D)  Country C will grow the fastest.

Question 16

Which of the following is correct?

Accepted Answer

A)  If developing countries limit career and educational opportunities for women, birth rates are likely to be lower. 
B)  Growth rates in developed and developing countries are nearly the same. 
C)  Historically, in periods where the rate of population growth was high, so was the rate of growth in world real GDP per person. 
D)  None of the above is correct. 
A)  If developing countries limit career and educational opportunities for women, birth rates are likely to be lower. 
B)  Growth rates in developed and developing countries are nearly the same. 
C)  Historically, in periods where the rate of population growth was high, so was the rate of growth in world real GDP per person. 
D)  None of the above is correct.

Question 17

List the four determinants of an economy's productivity.

Accepted Answer

The four determinants are phys

Question 18

If your firm's production function has constant returns to scale and you increase all your inputs by 60%, then your firm's output will

Accepted Answer

A)  not change. 
B)  increase, but by less than 60% 
C)  increase by 60% 
D)  increase by more than 60%. 
A)  not change. 
B)  increase, but by less than 60% 
C)  increase by 60% 
D)  increase by more than 60%.

Question 19

What is the distinction between foreign direct investment and foreign portfolio investment?

Accepted Answer

A capital investment that is owned and o

Question 20

The United Kingdom is

Accepted Answer

A)  an advanced economy, and over the past century its rate of economic growth has been higher than that of the United States. 
B)  an advanced economy, and over the past century its rate of economic growth has been lower than that of the United States. 
C)  a middle-income country, and over the past century its rate of economic growth has been higher than that of the United States. 
D)  a middle-income country, and over the past century its rate of economic growth has been lower than that of the United States. 
A)  an advanced economy, and over the past century its rate of economic growth has been higher than that of the United States. 
B)  an advanced economy, and over the past century its rate of economic growth has been lower than that of the United States. 
C)  a middle-income country, and over the past century its rate of economic growth has been higher than that of the United States. 
D)  a middle-income country, and over the past century its rate of economic growth has been lower than that of the United States.

Exam 12: Production and Growth

Waldo works eight hours and produces 7 units of goods per hour. Emerson works six hours and produces 10 units of goods per hour.

What term do we use to refer to the understanding of the best ways to produce goods and services?

When a country eliminates tariffs and other trade restrictions, intending to promote economic growth, it is pursuing_______-oriented policies.

Which of the following is not correct?

Figure 25-1 -Refer to Figure 21-1. In what way is the figure relevant to the catch-up effect?

Other things the same, an increase in population growth

Thomas Malthus's predictions turned out to be wrong due to

In 2010, the typical Bangladeshi had about

If a country were to increase its saving rate, then in the long run it would also increase its

The president of Suldinia, a developing country, proposes that his country needs to help domestic firms by reducing trade restrictions.

Suppose that an American company opens and operates a restaurant in Ireland. This is an example of

In one day Alpha Cabinet Company made 40 cabinets with 320 hours of labor. What was Alpha Cabinet Company's productivity?

In recent decades, economic growth has been much more rapid in South Korea than in the United States. What is the likely explanation for this fact?

After adjusting for inflation, over time the prices of most natural resources have been

Real GDP per person is $10,000 in Country A, $20,000 in Country B, and $30,000 in Country C. The saving rate increases by the same rate in all three countries. Other things equal, we would expect that

Which of the following is correct?

List the four determinants of an economy's productivity.

If your firm's production function has constant returns to scale and you increase all your inputs by 60%, then your firm's output will

What is the distinction between foreign direct investment and foreign portfolio investment?

The United Kingdom is

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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