Question 1

Which of the following is true?

Accepted Answer

A)  Kremer argued that with greater population, society would generate more ideas so that growth of real GDP per person could continue. Malthus argued that increasing population would outstrip agricultural production. 
B)  Kremer argued that increases in population would reduce the amount of human and physical capital per worker so that eventually the standard of living would decline. Malthus argued that increases in technology would allow increased output growth so that even with population growth, society would enjoy a higher standard of living. 
C)  Malthus argued that with greater population, society would generate more ideas so that growth of real GDP per person could continue. Kremer argued that increasing population would outstrip agricultural production. 
D)  Malthus argued that increases in population would reduce the amount of human and physical capital per worker so that eventually the standard of living would decline. Kremer argued that increases in technology would allow increased output growth so that even with population growth, society would enjoy a higher standard of living. 
A)  Kremer argued that with greater population, society would generate more ideas so that growth of real GDP per person could continue. Malthus argued that increasing population would outstrip agricultural production. 
B)  Kremer argued that increases in population would reduce the amount of human and physical capital per worker so that eventually the standard of living would decline. Malthus argued that increases in technology would allow increased output growth so that even with population growth, society would enjoy a higher standard of living. 
C)  Malthus argued that with greater population, society would generate more ideas so that growth of real GDP per person could continue. Kremer argued that increasing population would outstrip agricultural production. 
D)  Malthus argued that increases in population would reduce the amount of human and physical capital per worker so that eventually the standard of living would decline. Kremer argued that increases in technology would allow increased output growth so that even with population growth, society would enjoy a higher standard of living.

Question 2

Dilbert's Incorporated produced 6,000,000 units of software in 2010. At the start of 2011 the pointy­haired boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units. These number indicate that productivity

Accepted Answer

A)  fell by about 16.7%. 
B)  stayed the same. 
C)  rose by about 16.7%. 
D)  rose by about 40%. 
A)  fell by about 16.7%. 
B)  stayed the same. 
C)  rose by about 16.7%. 
D)  rose by about 40%.

Question 3

Measured in 2010 dollars, real GDP per person in the United States in 2010 was about 14 times that in

Accepted Answer

A)  China. 
B)  India. 
C)  Indonesia. 
D)  Pakistan. 
A)  China. 
B)  India. 
C)  Indonesia. 
D)  Pakistan.

Question 4

Increases in both human capital per worker and physical capital per worker increase productivity.

Accepted Answer

A) True 
 B)False

Question 5

What is a production function? Write an equation for a typical production function, and explain what each of the terms represents.

Accepted Answer

A production function is a mathematical

Question 6

Human capital is the term economists use to refer to the knowledge and skills that workers acquire through education, training, and experience.

Accepted Answer

A) True 
 B)False

Question 7

Is physical capital a produced factor of production? Is human capital a produced factor of production?

Accepted Answer

Both physical capita

Question 8

Studies confirm that controlling for other variables such as the percentage of GDP devoted to investment, poor countries tend to grow at a faster rate than rich countries.

Accepted Answer

A) True 
 B)False

Question 9

You and your friend work together for 4 hours to produce a total of 8 bookcases. What is productivity?

Accepted Answer

A)  16 bookcases 
B)  8 bookcases 
C)  2 bookcases per hour 
D)  1 bookcase per hour 
A)  16 bookcases 
B)  8 bookcases 
C)  2 bookcases per hour 
D)  1 bookcase per hour

Question 10

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 11

In 2010, Acme Foods produced 300,000 bags of pretzels, employing 12,000 hours of labor. In 2011, it produced 322,000 bags of pretzels, employing 14,000 hours of labor. Acme Foods productivity

Accepted Answer

A)  decreased by 8%. 
B)  was unchanged. 
C)  increased by 6.8%. 
D)  increased by 7.3%. 
A)  decreased by 8%. 
B)  was unchanged. 
C)  increased by 6.8%. 
D)  increased by 7.3%.

Question 12

Explain the distinction between technological knowledge and human capital.

Accepted Answer

Technological knowledge refers

Question 13

If a country's saving rate declined, then other things the same, in the long run the country would have

Accepted Answer

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

Question 14

Why does a nation's standard of living depend on property rights?

Accepted Answer

Property rights are an important prerequ

Question 15

In some East Asian countries, average income, as measured by real GDP per person, has recently grown at an average annual rate that implies output will double about every

Accepted Answer

A)  10 years. 
B)  15 years. 
C)  20 years. 
D)  25 years. 
A)  10 years. 
B)  15 years. 
C)  20 years. 
D)  25 years.

Question 16

Proprietary technology is knowledge that is

Accepted Answer

A)  known but no longer used much. 
B)  known, but only recently discovered. 
C)  known mostly by only those in a certain profession. 
D)  known only by the company that discovered it. 
A)  known but no longer used much. 
B)  known, but only recently discovered. 
C)  known mostly by only those in a certain profession. 
D)  known only by the company that discovered it.

Question 17

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

Accepted Answer

A)  foreign portfolio investment. 
B)  foreign financial investment. 
C)  foreign direct investment. 
D)  indirect foreign investment. 
A)  foreign portfolio investment. 
B)  foreign financial investment. 
C)  foreign direct investment. 
D)  indirect foreign investment.

Question 18

Which of the following is an example of a nonrenewable natural resource?

Accepted Answer

A)  tin 
B)  petroleum 
C)  gold 
D)  All of the above are correct. 
A)  tin 
B)  petroleum 
C)  gold 
D)  All of the above are correct.

Question 19

Countries that pursued outward-oriented policies in the 20th century

Accepted Answer

A)  experienced lower rates of economic growth than did countries that pursued inward-oriented policies. 
B)  experienced higher levels of political instability than did countries that pursued inward-oriented policies. 
C)  include Singapore, South Korea, and Taiwan. 
D)  All of the above are correct. 
A)  experienced lower rates of economic growth than did countries that pursued inward-oriented policies. 
B)  experienced higher levels of political instability than did countries that pursued inward-oriented policies. 
C)  include Singapore, South Korea, and Taiwan. 
D)  All of the above are correct.

Question 20

Why do we refer to physical capital as a produced factor of production?

Accepted Answer

Physical capital originates as

Exam 25: Production and Growth

Which of the following is true?

Dilbert's Incorporated produced 6,000,000 units of software in 2010. At the start of 2011 the pointy­haired boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units. These number indicate that productivity

Measured in 2010 dollars, real GDP per person in the United States in 2010 was about 14 times that in

Increases in both human capital per worker and physical capital per worker increase productivity.

What is a production function? Write an equation for a typical production function, and explain what each of the terms represents.

Human capital is the term economists use to refer to the knowledge and skills that workers acquire through education, training, and experience.

Is physical capital a produced factor of production? Is human capital a produced factor of production?

Studies confirm that controlling for other variables such as the percentage of GDP devoted to investment, poor countries tend to grow at a faster rate than rich countries.

You and your friend work together for 4 hours to produce a total of 8 bookcases. What is productivity?

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

In 2010, Acme Foods produced 300,000 bags of pretzels, employing 12,000 hours of labor. In 2011, it produced 322,000 bags of pretzels, employing 14,000 hours of labor. Acme Foods productivity

Explain the distinction between technological knowledge and human capital.

If a country's saving rate declined, then other things the same, in the long run the country would have

Why does a nation's standard of living depend on property rights?

In some East Asian countries, average income, as measured by real GDP per person, has recently grown at an average annual rate that implies output will double about every

Proprietary technology is knowledge that is

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

Which of the following is an example of a nonrenewable natural resource?

Countries that pursued outward-oriented policies in the 20th century

Why do we refer to physical capital as a produced factor of production?

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 6,000,000 units of software in 2010. At the start of 2011 the pointyhaired boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units. These number indicate that productivity