Exam 25: Production and Growth

Gramp's Potato Chips produces 2560 bags of potato chips a day. Each employee at Gramp's works 8 hours. If the company's productivity is 20 bags per hour, how many people does Gramp's employ?

Country A has a population of 1,000, of whom 800 work 8 hours a day to make 128,000 final goods. Country B has a population of 2,000, of whom 1,800 work 6 hours a day to make 270,000 final goods.

In a market economy, we know that a resource has become scarcer when

Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over about the last 120 years?

A nation's standard of living is best measured by its

Other things the same, if a country raises its saving rate, then in the long run

The president of a poor country has announced that he will implement the following measures which he claims are designed to increase growth: 1. Reduce corruption in the legal system; 2. Reduce reliance on market forces because they allocate goods and services in an unfair manner; 3. Restrict investment in domestic industries by foreigners because they take some of the profits out of the country; 4. Encourage trade with neighboring countries; and 5. Increase the fraction of GDP devoted to consumption. How many of these measures will have a positive effect on growth?

Which of the following is correct?

According to the traditional view of the production function, which of the following values of the additions to output per worker would be consistent with moving from 5 to 6, and then from 6 to 7, and then from 7 to 8 units of capital per worker in that order?

If the price of a good has risen over time,

Which of the following statements is correct?

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

In 2010, real GDP per person in Bangladesh was

Which of the following pairs of terms refer to the same thing?

In 2009, the imaginary nation of Mainland had a population of 7,000 and real GDP of 210,000. In 2010 the population was 7,300 and real GDP of 223,380. Over the year in question, real GDP per person in Mainland grew by

Which of the following is a correct way to measure productivity?

If an American-based firm opens and operates a new clothing factory in Honduras, then it is engaging in

Natural resources

Other things the same, if a country increased its saving rate, in 40 years or so it would likely have

Investment in