Question 1

According to research by Robert Fogel, people in Britain grew taller because of

Accepted Answer

A)  genetics. However this increase in height had no effect on productivity. 
B)  genetics. This increase in height is associated with higher productivity. 
C)  higher caloric intake. However, this increase in height had no effect on productivity. 
D)  higher caloric intake. This increase in height is associated with higher productivity. 
A)  genetics. However this increase in height had no effect on productivity. 
B)  genetics. This increase in height is associated with higher productivity. 
C)  higher caloric intake. However, this increase in height had no effect on productivity. 
D)  higher caloric intake. This increase in height is associated with higher productivity.

Question 2

Accumulating capital

Accepted Answer

A)  requires that society sacrifice consumption goods in the present. 
B)  allows society to consume more in the present. 
C)  decreases saving rates. 
D)  involves no tradeoffs. 
A)  requires that society sacrifice consumption goods in the present. 
B)  allows society to consume more in the present. 
C)  decreases saving rates. 
D)  involves no tradeoffs.

Question 3

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 4

Country A experienced a growth rate of real GDP per person of 0.5 percent per year throughout the 1900's. In view of other countries' experiences, country A's growth was

Accepted Answer

A)  exceptionally high. 
B)  moderately high. 
C)  moderately low. 
D)  exceptionally low. 
A)  exceptionally high. 
B)  moderately high. 
C)  moderately low. 
D)  exceptionally low.

Question 5

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 6

A rapid increase in the number of workers, other things the same, is likely in the short term to

Accepted Answer

A)  raise real GDP per person, but decrease real GDP. 
B)  decrease both real GDP and real GDP per person. 
C)  raise both real GDP and real GDP per person. 
D)  raise real GDP, but decrease real GDP per person. 
A)  raise real GDP per person, but decrease real GDP. 
B)  decrease both real GDP and real GDP per person. 
C)  raise both real GDP and real GDP per person. 
D)  raise real GDP, but decrease real GDP per person.

Question 7

Which of the following will increase a country's real GDP per person?

Accepted Answer

A)  imposing restrictions on foreign trade and foreign investment 
B)  imposing restrictions on foreign trade and reducing restrictions on foreign investment 
C)  reducing restrictions on foreign trade and imposing restrictions on foreign investment 
D)  reducing restrictions on foreign trade and foreign investment 
A)  imposing restrictions on foreign trade and foreign investment 
B)  imposing restrictions on foreign trade and reducing restrictions on foreign investment 
C)  reducing restrictions on foreign trade and imposing restrictions on foreign investment 
D)  reducing restrictions on foreign trade and foreign investment

Question 8

Megan is a landscaper. Which of the following are included in her physical capital?

Accepted Answer

A)  her knowledge of landscaping learned in college and her landscaping equipment 
B)  her knowledge of landscaping learned in college, but not her landscaping equipment 
C)  her landscaping equipment, but not her knowledge of landscaping learned in college 
D)  neither her knowledge of landscaping learned in college nor her landscaping equipment 
A)  her knowledge of landscaping learned in college and her landscaping equipment 
B)  her knowledge of landscaping learned in college, but not her landscaping equipment 
C)  her landscaping equipment, but not her knowledge of landscaping learned in college 
D)  neither her knowledge of landscaping learned in college nor her landscaping equipment

Question 9

The catch-up effect says that countries with low income can grow faster than countries with higher income.
However, in statistical studies that include many diverse countries we do not observe the catch-up-effect unless we control for other variables that affect productivity. Considering the determinants of productivity, list and explain some things that would tend to prohibit or limit a poor country's ability to catch up with the rich ones.

Accepted Answer

The argument that poor countries will te

Question 10

Although growth rates across countries vary some, rankings of countries by income remain pretty much the same over time.

Accepted Answer

A) True 
 B)False

Question 11

In which of the following countries has economic growth been sufficiently high that income would double every ten years?

Accepted Answer

A)  Singapore 
B)  Nigeria 
C)  India 
D)  Indonesia 
A)  Singapore 
B)  Nigeria 
C)  India 
D)  Indonesia

Question 12

All else equal, which of the following would tend to cause real GDP per person to rise?

Accepted Answer

A)  a change from outward-oriented policies to inward-oriented policies 
B)  an increase in investment in human capital 
C)  a weakening of property rights 
D)  All of the above are correct. 
A)  a change from outward-oriented policies to inward-oriented policies 
B)  an increase in investment in human capital 
C)  a weakening of property rights 
D)  All of the above are correct.

Question 13

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 14

Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,275 a ton. Over the same time a measure of the overall price level increased from 150 to 156. The price of iron ore increased by

Accepted Answer

A)  less than inflation, so it became less scarce. 
B)  less than inflation, so it became more scarce. 
C)  more than inflation, so it became more scarce. 
D)  more than inflation, so it became less scarce. 
A)  less than inflation, so it became less scarce. 
B)  less than inflation, so it became more scarce. 
C)  more than inflation, so it became more scarce. 
D)  more than inflation, so it became less scarce.

Question 15

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 16

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 17

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 18

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 19

Economists generally believe that policies such as reducing barriers to trade are likely to foster economic growth.

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 25: Production and Growth

According to research by Robert Fogel, people in Britain grew taller because of

Accumulating capital

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?

Country A experienced a growth rate of real GDP per person of 0.5 percent per year throughout the 1900's. In view of other countries' experiences, country A's growth was

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

A rapid increase in the number of workers, other things the same, is likely in the short term to

Which of the following will increase a country's real GDP per person?

Megan is a landscaper. Which of the following are included in her physical capital?

Although growth rates across countries vary some, rankings of countries by income remain pretty much the same over time.

In which of the following countries has economic growth been sufficiently high that income would double every ten years?

All else equal, which of the following would tend to cause real GDP per person to rise?

Which of the following statements is correct?

Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,275 a ton. Over the same time a measure of the overall price level increased from 150 to 156. The price of iron ore increased by

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

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

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

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?

Economists generally believe that policies such as reducing barriers to trade are likely to foster economic growth.

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

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

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers of Microeconomics

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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