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

Which of the following is an example of physical capital?

Accepted Answer

A)  the computer a secretary uses 
B)  rivers on which goods are transported 
C)  the skills and knowledge of a doctor 
D)  All of the above are correct. 
A)  the computer a secretary uses 
B)  rivers on which goods are transported 
C)  the skills and knowledge of a doctor 
D)  All of the above are correct.

Question 3

Given that a country's real output has increased, in which of the following cases can we be sure that its productivity also has increased?

Accepted Answer

A)  The total number of hours worked rose. 
B)  The total number of hours worked stayed the same. 
C)  The total number of hours worked fell. 
D)  Both b and c are correct. 
A)  The total number of hours worked rose. 
B)  The total number of hours worked stayed the same. 
C)  The total number of hours worked fell. 
D)  Both b and c are correct.

Question 4

Currently a country has real GDP per person of 500. Raising capital per worker by one would increase output per worker by 4. Other things the same, which of the following long-run combinations are consistent with the effects of this country increasing its saving rate?

Accepted Answer

A)  real GDP per person is 520 and raising capital per worker by one would increase output per worker by 3 
B)  real GDP per person is 520 and raising capital per worker by one would increase output per worker by 5 
C)  real GDP per person is 480 and raising capital per worker by one would increase output per worker by 3 
D)  real GDP per person is 480 and raising capital per worker by one would increase output per worker by 5 
A)  real GDP per person is 520 and raising capital per worker by one would increase output per worker by 3 
B)  real GDP per person is 520 and raising capital per worker by one would increase output per worker by 5 
C)  real GDP per person is 480 and raising capital per worker by one would increase output per worker by 3 
D)  real GDP per person is 480 and raising capital per worker by one would increase output per worker by 5

Question 5

What word do we use to refer to the amount of goods and services produced for each hour of a worker's time?

Accepted Answer

The word i

Question 6

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 7

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2010. At the start of 2011 the pointy­ haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000. These numbers indicate that productivity

Accepted Answer

A)  fell by 4%. 
B)  fell by 20%. 
C)  rose by 12%. 
D)  rose by 20%. 
A)  fell by 4%. 
B)  fell by 20%. 
C)  rose by 12%. 
D)  rose by 20%.

Question 8

An important prerequisite for the price system to work is an economy-wide respect for _______ rights.

Accepted Answer

The answer of An important prerequisite for the price system...

Question 9

In which of the following cases can we be certain that a natural resource has become scarcer?

Accepted Answer

A)  both the demand for the resource and the supply of the resource have increased. 
B)  both the demand for the resource and the supply of the resource have decreased. 
C)  the demand for the resource has increased and the supply has decreased. 
D)  the demand for the resource has decreased and the supply has increased. 
A)  both the demand for the resource and the supply of the resource have increased. 
B)  both the demand for the resource and the supply of the resource have decreased. 
C)  the demand for the resource has increased and the supply has decreased. 
D)  the demand for the resource has decreased and the supply has increased.

Question 10

Studies have found that there is a relationship between height and productivity. Briefly explain.

Accepted Answer

Studies show that taller worke

Question 11

Which of the following is not correct?

Accepted Answer

A)  Countries that have had higher output growth per person have typically done so without higher productivity growth. 
B)  A country's standard of living and its productivity are closely related. 
C)  Productivity refers to output produced per hour of work. 
D)  Increases in productivity can be used to increase output or leisure. 
A)  Countries that have had higher output growth per person have typically done so without higher productivity growth. 
B)  A country's standard of living and its productivity are closely related. 
C)  Productivity refers to output produced per hour of work. 
D)  Increases in productivity can be used to increase output or leisure.

Question 12

If the best educated and most skilled persons leave a country, then in the short term this country's human capital per worker

Accepted Answer

A)  and physical capital per worker will increase. 
B)  and physical capital per worker will decrease. 
C)  will increase but physical capital per worker will decrease. 
D)  will decrease but physical capital per worker will increase. 
A)  and physical capital per worker will increase. 
B)  and physical capital per worker will decrease. 
C)  will increase but physical capital per worker will decrease. 
D)  will decrease but physical capital per worker will increase.

Question 13

The one variable that stands out as the most significant explanation of large variations in living standards around the world is

Accepted Answer

A)  productivity. 
B)  population. 
C)  preferences. 
D)  prices. 
A)  productivity. 
B)  population. 
C)  preferences. 
D)  prices.

Question 14

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 15

Which of the following is a part of your economics professor's human capital?

Accepted Answer

A)  the things she learned at some prestigious university 
B)  her copy of Mankiw's text 
C)  her chalk holder 
D)  All of the above are correct. 
A)  the things she learned at some prestigious university 
B)  her copy of Mankiw's text 
C)  her chalk holder 
D)  All of the above are correct.

Question 16

Proprietary technology is technology

Accepted Answer

A)  that the government prohibits firms from using. 
B)  conserves natural resources. 
C)  that is useful while other types of technology are outdated. 
D)  that is known or controlled only by the company that discovered it. 
A)  that the government prohibits firms from using. 
B)  conserves natural resources. 
C)  that is useful while other types of technology are outdated. 
D)  that is known or controlled only by the company that discovered it.

Question 17

In the United States in 2010 real GDP per person was about $47,000, while in some poor countries real GDP per person was less than $5,000.

Accepted Answer

A) True 
 B)False

Question 18

Real GDP per person in rich countries, such as Germany, is sometimes more than 10 times that of poor countries like India.

Accepted Answer

A) True 
 B)False

Question 19

Country A has real GDP per person of 250,000 while Country B has real GDP per person of 500,000. All else constant, Country A will eventually have a higher standard of living than Country B if

Accepted Answer

A)  the level of saving per person is 5.000 in Country A and 7,500 in Country B. 
B)  the level of saving per person is 3,000 in Country A and 6,000 in Country B. 
C)  Both of the above are correct. 
D)  None of the above are correct. 
A)  the level of saving per person is 5.000 in Country A and 7,500 in Country B. 
B)  the level of saving per person is 3,000 in Country A and 6,000 in Country B. 
C)  Both of the above are correct. 
D)  None of the above are correct.

Question 20

Because of its effect on the amount of capital per worker, in the short term an increase in the working population is likely to

Accepted Answer

A)  raise productivity. Other things the same, this increase will be larger in a poor country. 
B)  raise productivity. Other things the same, this increase will be larger in a rich country. 
C)  reduce productivity. Other things the same, this decrease will be larger in a poor country. 
D)  reduce productivity. Other things the same, this decrease will be larger in a rich country. 
A)  raise productivity. Other things the same, this increase will be larger in a poor country. 
B)  raise productivity. Other things the same, this increase will be larger in a rich country. 
C)  reduce productivity. Other things the same, this decrease will be larger in a poor country. 
D)  reduce productivity. Other things the same, this decrease will be larger in a rich country.

Exam 25: 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).

Which of the following is an example of physical capital?

Given that a country's real output has increased, in which of the following cases can we be sure that its productivity also has increased?

Currently a country has real GDP per person of 500. Raising capital per worker by one would increase output per worker by 4. Other things the same, which of the following long-run combinations are consistent with the effects of this country increasing its saving rate?

What word do we use to refer to the amount of goods and services produced for each hour of a worker's time?

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

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2010. At the start of 2011 the pointy­ haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000. These numbers indicate that productivity

An important prerequisite for the price system to work is an economy-wide respect for _______ rights.

In which of the following cases can we be certain that a natural resource has become scarcer?

Studies have found that there is a relationship between height and productivity. Briefly explain.

Which of the following is not correct?

If the best educated and most skilled persons leave a country, then in the short term this country's human capital per worker

The one variable that stands out as the most significant explanation of large variations in living standards around the world is

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 is a part of your economics professor's human capital?

Proprietary technology is technology

In the United States in 2010 real GDP per person was about $47,000, while in some poor countries real GDP per person was less than $5,000.

Real GDP per person in rich countries, such as Germany, is sometimes more than 10 times that of poor countries like India.

Country A has real GDP per person of 250,000 while Country B has real GDP per person of 500,000. All else constant, Country A will eventually have a higher standard of living than Country B if

Because of its effect on the amount of capital per worker, in the short term an increase in the working population is likely to

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

Filters

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2010. At the start of 2011 the pointy haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000. These numbers indicate that productivity