Question 1

Countries with high population growth rates tend to have lower levels of educational attainment.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements is correct?

Accepted Answer

A)  Human capital per worker is a determinant of productivity. 
B)  A nation cannot be highly productive in producing goods and services without abundant quantities of natural resources. 
C)  Human capital and technological knowledge are the same thing. 
D)  All technological knowledge is proprietary. 
A)  Human capital per worker is a determinant of productivity. 
B)  A nation cannot be highly productive in producing goods and services without abundant quantities of natural resources. 
C)  Human capital and technological knowledge are the same thing. 
D)  All technological knowledge is proprietary.

Question 3

Table 25-1.
Athens and Troy both produce only ribs and baked potatoes.  
-Refer to Table 25-1. Which of the following is correct?

Accepted Answer

A)  Both real GDP and real GDP per person are higher in Athens than Troy. 
B)  Real GDP is higher in Athens while real GDP per person is higher in Troy 
C)  Real GDP is higher in Troy while real GDP per person is higher in Athens. 
D)  Both real GDP and real GDP per person are higher in Troy than Athens. 
A)  Both real GDP and real GDP per person are higher in Athens than Troy. 
B)  Real GDP is higher in Athens while real GDP per person is higher in Troy 
C)  Real GDP is higher in Troy while real GDP per person is higher in Athens. 
D)  Both real GDP and real GDP per person are higher in Troy than Athens.

Question 4

Which of the following is not an example of physical capital?

Accepted Answer

A)  a new factory building 
B)  a delivery van 
C)  the knowledge of workers 
D)  the office chair in a lawyer's office 
A)  a new factory building 
B)  a delivery van 
C)  the knowledge of workers 
D)  the office chair in a lawyer's office

Question 5

In the long run, a higher saving rate

Accepted Answer

A)  cannot increase the capital stock. 
B)  means that people must consume less in the future. 
C)  increases the level of productivity. 
D)  None of the above is correct. 
A)  cannot increase the capital stock. 
B)  means that people must consume less in the future. 
C)  increases the level of productivity. 
D)  None of the above is correct.

Question 6

Perry accumulated a lot of mathematical skills while in high school, college, and graduate school. Economists include these skills as part of Perry's

Accepted Answer

A)  proprietary knowledge. 
B)  technological knowledge. 
C)  human capital. 
D)  physical capital. 
A)  proprietary knowledge. 
B)  technological knowledge. 
C)  human capital. 
D)  physical capital.

Question 7

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 8

In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 500,000. In 2011 it had a population of 5,100 and real GDP of 520,200. During 2011 real GDP per person in Bovina grew by

Accepted Answer

A)  2 percent, which is high compared to average U.S. growth over the last one-hundred years. 
B)  2 percent, which is about the same as average U.S. growth over the last one-hundred years. 
C)  4 percent, which is high compared to average U.S. growth over the last one-hundred years. 
D)  4 percent, which is about the same as average U.S. growth over the last one-hundred years. 
A)  2 percent, which is high compared to average U.S. growth over the last one-hundred years. 
B)  2 percent, which is about the same as average U.S. growth over the last one-hundred years. 
C)  4 percent, which is high compared to average U.S. growth over the last one-hundred years. 
D)  4 percent, which is about the same as average U.S. growth over the last one-hundred years.

Question 9

Adam and Doug both build birdhouses. Adam works 30 hours a week and produces 15 bird houses. Doug works 20 hours a week and produces 12 bird houses. Which of the following is correct?

Accepted Answer

A)  Adam's production and productivity are higher than Doug's. 
B)  Adam's production is higher than Doug's, but Doug's productivity is higher than Adam's. 
C)  Doug's production is higher than Adam's, but Adam's productivity is higher than Doug's. 
D)  Doug's production and productivity are higher than Adam's. 
A)  Adam's production and productivity are higher than Doug's. 
B)  Adam's production is higher than Doug's, but Doug's productivity is higher than Adam's. 
C)  Doug's production is higher than Adam's, but Adam's productivity is higher than Doug's. 
D)  Doug's production and productivity are higher than Adam's.

Question 10

Which of the following is a determinant of productivity?

Accepted Answer

A)  human capital per worker 
B)  physical capital per worker 
C)  natural resources per worker 
D)  All of the above are correct. 
A)  human capital per worker 
B)  physical capital per worker 
C)  natural resources per worker 
D)  All of the above are correct.

Question 11

The short-run effects of an increase in the saving rate include

Accepted Answer

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

Question 12

International data on the history of real GDP growth rates shows that over the last 120 years or so, rich countries got richer and poor countries got poorer.

Accepted Answer

A) True 
 B)False

Question 13

Economist Michael Kremer found that world growth rates fell as population increased.

Accepted Answer

A) True 
 B)False

Question 14

Amy discovers a way to produce water heaters so they are less expensive and use less natural gas. Amy's discovery is

Accepted Answer

A)  physical capital. If Amy's discovery leads to lower natural gas prices, it has made natural gas less scarce. 
B)  physical capital. If Amy's discovery leads to lower natural gas prices, it has made natural gas scarcer. 
C)  technological knowledge. If Amy's discovery leads to lower natural gas prices, it has made natural gas less scarce. 
D)  technological knowledge. If Amy's discovery leads to lower natural gas prices, it has made natural gas scarcer. 
A)  physical capital. If Amy's discovery leads to lower natural gas prices, it has made natural gas less scarce. 
B)  physical capital. If Amy's discovery leads to lower natural gas prices, it has made natural gas scarcer. 
C)  technological knowledge. If Amy's discovery leads to lower natural gas prices, it has made natural gas less scarce. 
D)  technological knowledge. If Amy's discovery leads to lower natural gas prices, it has made natural gas scarcer.

Question 15

Which of the following is correct?

Accepted Answer

A)  Countries with the highest growth rates over the last 120 years are the ones that had the highest level of real GDP 120 years ago. 
B)  Most countries have had little fluctuation around their average growth rates during the past 120 years. 
C)  The ranking of countries by income changes little over time. 
D)  Even though Japan had a higher growth rate of real GDP per person than the U.S. over the last 120 years, it's level of real GDP per person is less than that of the U.S. 
A)  Countries with the highest growth rates over the last 120 years are the ones that had the highest level of real GDP 120 years ago. 
B)  Most countries have had little fluctuation around their average growth rates during the past 120 years. 
C)  The ranking of countries by income changes little over time. 
D)  Even though Japan had a higher growth rate of real GDP per person than the U.S. over the last 120 years, it's level of real GDP per person is less than that of the U.S.

Question 16

An increase in capital will increase real GDP per person

Accepted Answer

A)  more in a poor country than a rich country. The increase in real GDP per person will be larger if the addition to capital is from domestic rather than foreign investment. 
B)  more in a poor country than a rich country. The increase in real GDP per person will be the same whether the addition to capital is from domestic or foreign investment. 
C)  less in a poor country than a rich country. The increase in real GDP per person will be larger if the addition to capital is from domestic rather than foreign investment. 
D)  less in a poor country than a rich country. The increase in real GDP per person will be the same whether the addition to capital is from domestic or foreign investment. 
A)  more in a poor country than a rich country. The increase in real GDP per person will be larger if the addition to capital is from domestic rather than foreign investment. 
B)  more in a poor country than a rich country. The increase in real GDP per person will be the same whether the addition to capital is from domestic or foreign investment. 
C)  less in a poor country than a rich country. The increase in real GDP per person will be larger if the addition to capital is from domestic rather than foreign investment. 
D)  less in a poor country than a rich country. The increase in real GDP per person will be the same whether the addition to capital is from domestic or foreign investment.

Question 17

"When workers already have a large quantity of capital to use in producing goods and services, giving them an additional unit of capital increases their productivity only slightly." This statement

Accepted Answer

A)  represents the traditional view of the production process. 
B)  is an assertion that capital is subject to diminishing returns. 
C)  is made under the assumption that the quantities of human capital, natural resources, and technology are being held constant. 
D)  All of the above are correct. 
A)  represents the traditional view of the production process. 
B)  is an assertion that capital is subject to diminishing returns. 
C)  is made under the assumption that the quantities of human capital, natural resources, and technology are being held constant. 
D)  All of the above are correct.

Question 18

If a country increases its saving rate, which of the following permanently grow at a higher rate?

Accepted Answer

A)  productivity and real GDP per person 
B)  productivity but not real GDP per person 
C)  real GDP per person but not productivity 
D)  neither real GDP per person nor productivity 
A)  productivity and real GDP per person 
B)  productivity but not real GDP per person 
C)  real GDP per person but not productivity 
D)  neither real GDP per person nor productivity

Question 19

Which of the following is an observation made by economist Michael Kremer?

Accepted Answer

A)  World growth rates increased as the population increased. 
B)  Technological progress allows for increasing population because of advances in agriculture. 
C)  World population is growing so rapidly that soon it will outstrip natural resources and our standard of living will decline. 
D)  All of the above are observations made by Kremer. 
A)  World growth rates increased as the population increased. 
B)  Technological progress allows for increasing population because of advances in agriculture. 
C)  World population is growing so rapidly that soon it will outstrip natural resources and our standard of living will decline. 
D)  All of the above are observations made by Kremer.

Question 20

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

Accepted Answer

physical c

Exam 25: Production and Growth

Countries with high population growth rates tend to have lower levels of educational attainment.

Which of the following statements is correct?

Table 25-1. Athens and Troy both produce only ribs and baked potatoes. -Refer to Table 25-1. Which of the following is correct?

Which of the following is not an example of physical capital?

In the long run, a higher saving rate

Perry accumulated a lot of mathematical skills while in high school, college, and graduate school. Economists include these skills as part of Perry's

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

In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 500,000. In 2011 it had a population of 5,100 and real GDP of 520,200. During 2011 real GDP per person in Bovina grew by

Adam and Doug both build birdhouses. Adam works 30 hours a week and produces 15 bird houses. Doug works 20 hours a week and produces 12 bird houses. Which of the following is correct?

Which of the following is a determinant of productivity?

The short-run effects of an increase in the saving rate include

International data on the history of real GDP growth rates shows that over the last 120 years or so, rich countries got richer and poor countries got poorer.

Economist Michael Kremer found that world growth rates fell as population increased.

Amy discovers a way to produce water heaters so they are less expensive and use less natural gas. Amy's discovery is

Which of the following is correct?

An increase in capital will increase real GDP per person

"When workers already have a large quantity of capital to use in producing goods and services, giving them an additional unit of capital increases their productivity only slightly." This statement

If a country increases its saving rate, which of the following permanently grow at a higher rate?

Which of the following is an observation made by economist Michael Kremer?

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

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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