Question 1

In one day Madison Laundry washed 4,000 pounds of laundry with 5 workers who each worked 8 hours. What was its productivity?

Accepted Answer

A)  4000 pounds of laundry 
B)  500 pounds of laundry per hour 
C)  100 pounds of laundry per hour 
D)  None of the above is correct. 
A)  4000 pounds of laundry 
B)  500 pounds of laundry per hour 
C)  100 pounds of laundry per hour 
D)  None of the above is correct.

Question 2

Figure 25-1  
-Refer to Figure 21-1. Does the figure represent the idea that the amount of capital per worker influences the amount of output per worker, or does the figure represent the idea that the amount of output per worker influences the amount of capital per worker?

Accepted Answer

The figure represents the idea

Question 3

The level of real GDP is a good measure of economic prosperity, and the growth of real GDP is a good measure of
__________.

Accepted Answer

The answer of The level of real GDP is a...

Question 4

Allied Business Consultants employs five researchers that each work 8 hour days. In one day the researchers prepared 10 reports for its 2 largest clients. What was Allied Business Consultants' productivity?

Accepted Answer

A)  10 reports 
B)  5 reports per client 
C)  1.25 reports per hour 
D)  1/4 report per hour 
A)  10 reports 
B)  5 reports per client 
C)  1.25 reports per hour 
D)  1/4 report per hour

Question 5

What do we mean when we say that some technological knowledge is not proprietary?

Accepted Answer

Technological knowledge is not

Question 6

Consider the production function Y=2F(L,K,H,N). Suppose F(12,10,9,7)=100 and F(24,20,18,14)=180. Does the production function have the property of constant returns to scale? Why or why not?

Accepted Answer

No, the production function does not hav

Question 7

When Chile experiences investment from abroad, it experiences, as a result,

Accepted Answer

A)  an increase in productivity. 
B)  a decrease in Gross National Product (GNP). 
C)  lower wages for Chilean workers. 
D)  None of the above is correct. 
A)  an increase in productivity. 
B)  a decrease in Gross National Product (GNP). 
C)  lower wages for Chilean workers. 
D)  None of the above is correct.

Question 8

Which of the following countries had the lowest level of real GDP per person in 2010?

Accepted Answer

A)  Bangladesh 
B)  Indonesia 
C)  Mexico 
D)  China 
A)  Bangladesh 
B)  Indonesia 
C)  Mexico 
D)  China

Question 9

If an economy with constant returns to scale were to double its physical capital stock, its available natural resources, and its human capital, but leave the size of the labor force the same,

Accepted Answer

A)  its output would stay the same and so would its productivity. 
B)  its output and productivity would increase, but less than double. 
C)  its output and productivity would increase by more than double. 
D)  None of the above is correct. 
A)  its output would stay the same and so would its productivity. 
B)  its output and productivity would increase, but less than double. 
C)  its output and productivity would increase by more than double. 
D)  None of the above is correct.

Question 10

Phoenix furniture uses 12 workers, each working eight hours, to produce 192 rocking chairs. What is Phoenix's productivity?

Accepted Answer

A)  192 rocking chairs 
B)  24 rocking chairs per hour 
C)  2 rocking chairs per hour 
D)  2 hours per rocking chair 
A)  192 rocking chairs 
B)  24 rocking chairs per hour 
C)  2 rocking chairs per hour 
D)  2 hours per rocking chair

Question 11

Which well­known economist from the past asserted that "the power of population is infinitely greater than the power in the earth to produce subsistence for man?"

Accepted Answer

The econom

Question 12

When a country imposes tariffs, intending to protect domestic firms from foreign competition, it is pursuing_______-oriented policies.

Accepted Answer

The answer of When a country imposes tariffs, intending to...

Question 13

Inward-oriented policies

Accepted Answer

A)  include imposing tariffs and other trade restrictions. 
B)  have generally increased productivity and growth in the countries that pursued them. 
C)  promote the production of goods and services that the country produces most efficiently. 
D)  All of the above are correct. 
A)  include imposing tariffs and other trade restrictions. 
B)  have generally increased productivity and growth in the countries that pursued them. 
C)  promote the production of goods and services that the country produces most efficiently. 
D)  All of the above are correct.

Question 14

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

Accepted Answer

A)  $37,000. 
B)  $47,000. 
C)  $57,000. 
D)  $67,000. 
A)  $37,000. 
B)  $47,000. 
C)  $57,000. 
D)  $67,000.

Question 15

The population growth rate tends to be higher in developed countries than in developing countries.

Accepted Answer

A) True 
 B)False

Question 16

After adjusting for inflation, over time the prices of most natural resources have been

Accepted Answer

A)  steady or falling, meaning that our ability to conserve them is growing more rapidly than their supplies are dwindling. 
B)  steady or falling, meaning that their supplies are dwindling more rapidly than our ability to conserve them is growing. 
C)  rising, meaning that our ability to conserve them is growing more rapidly than their supplies are dwindling. 
D)  rising, meaning that their supplies are dwindling more rapidly than our ability to conserve them is growing. 
A)  steady or falling, meaning that our ability to conserve them is growing more rapidly than their supplies are dwindling. 
B)  steady or falling, meaning that their supplies are dwindling more rapidly than our ability to conserve them is growing. 
C)  rising, meaning that our ability to conserve them is growing more rapidly than their supplies are dwindling. 
D)  rising, meaning that their supplies are dwindling more rapidly than our ability to conserve them is growing.

Question 17

Over extended periods of time, population growth

Accepted Answer

A)  has no effect on the standard of living. 
B)  has uncertain effects on the standard of living. 
C)  clearly raises the standard of living. 
D)  clearly lowers the standard of living. 
A)  has no effect on the standard of living. 
B)  has uncertain effects on the standard of living. 
C)  clearly raises the standard of living. 
D)  clearly lowers the standard of living.

Question 18

The people of Country X save 10 percent of their income, and the people of Country Y save 25 percent of their income. If these respective saving rates persist forever, will one country or the other enjoy a higher rate of income growth forever? Explain.

Accepted Answer

In the long run, a higher saving rate le

Question 19

As capital per worker rises, output per worker rises. However, this increase in output per worker is smaller at smaller levels of existing capital per worker.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following are human capital and physical capital, respectively?

Accepted Answer

A)  for a brick layer: her bricks and her tools 
B)  for a gas station: the pumps and the cash register 
C)  for a restaurant: the chefs' knowledge about preparing food and the equipment in the kitchen 
D)  for a medical office: the building and the doctors' knowledge of medicine 
A)  for a brick layer: her bricks and her tools 
B)  for a gas station: the pumps and the cash register 
C)  for a restaurant: the chefs' knowledge about preparing food and the equipment in the kitchen 
D)  for a medical office: the building and the doctors' knowledge of medicine

Exam 25: Production and Growth

In one day Madison Laundry washed 4,000 pounds of laundry with 5 workers who each worked 8 hours. What was its productivity?

Figure 25-1 -Refer to Figure 21-1. Does the figure represent the idea that the amount of capital per worker influences the amount of output per worker, or does the figure represent the idea that the amount of output per worker influences the amount of capital per worker?

The level of real GDP is a good measure of economic prosperity, and the growth of real GDP is a good measure of __________.

Allied Business Consultants employs five researchers that each work 8 hour days. In one day the researchers prepared 10 reports for its 2 largest clients. What was Allied Business Consultants' productivity?

What do we mean when we say that some technological knowledge is not proprietary?

Consider the production function Y=2F(L,K,H,N). Suppose F(12,10,9,7)=100 and F(24,20,18,14)=180. Does the production function have the property of constant returns to scale? Why or why not?

When Chile experiences investment from abroad, it experiences, as a result,

Which of the following countries had the lowest level of real GDP per person in 2010?

If an economy with constant returns to scale were to double its physical capital stock, its available natural resources, and its human capital, but leave the size of the labor force the same,

Phoenix furniture uses 12 workers, each working eight hours, to produce 192 rocking chairs. What is Phoenix's productivity?

Which well­known economist from the past asserted that "the power of population is infinitely greater than the power in the earth to produce subsistence for man?"

When a country imposes tariffs, intending to protect domestic firms from foreign competition, it is pursuing_______-oriented policies.

Inward-oriented policies

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

The population growth rate tends to be higher in developed countries than in developing countries.

After adjusting for inflation, over time the prices of most natural resources have been

Over extended periods of time, population growth

The people of Country X save 10 percent of their income, and the people of Country Y save 25 percent of their income. If these respective saving rates persist forever, will one country or the other enjoy a higher rate of income growth forever? Explain.

As capital per worker rises, output per worker rises. However, this increase in output per worker is smaller at smaller levels of existing capital per worker.

Which of the following are human capital and physical capital, respectively?

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

Which wellknown economist from the past asserted that "the power of population is infinitely greater than the power in the earth to produce subsistence for man?"