Question 1

Electronics firms may be able to get patents on their ideas. Doing so makes their ideas

Accepted Answer

A)  private goods rather than public goods. This gives people more incentive to engage in research. 
B)  private goods rather than public goods. This gives people less incentive to engage in research. 
C)  public goods rather than private goods. This gives people more incentive to engage in research. 
D)  public goods rather than private goods. This gives people more incentive to engage in private research. 
A)  private goods rather than public goods. This gives people more incentive to engage in research. 
B)  private goods rather than public goods. This gives people less incentive to engage in research. 
C)  public goods rather than private goods. This gives people more incentive to engage in research. 
D)  public goods rather than private goods. This gives people more incentive to engage in private research.

Question 2

Which of the following is an example of physical capital?

Accepted Answer

A)  the strength of workers 
B)  on the job training 
C)  financial assets like cash and bonds 
D)  the equipment in a factory 
A)  the strength of workers 
B)  on the job training 
C)  financial assets like cash and bonds 
D)  the equipment in a factory

Question 3

Which of the following terms is used to refer to the ability of people to exercise authority over the resources they own?

Accepted Answer

A)  natural rights 
B)  property rights 
C)  input control 
D)  collective control 
A)  natural rights 
B)  property rights 
C)  input control 
D)  collective control

Question 4

An increase in a country's population may contribute to the rate of technological progress because a larger population

Accepted Answer

A)  forces the capital stock to be spread more thinly. 
B)  forces natural resources to be spread more thinly. 
C)  brings with it more scientists, inventors, and engineers. 
D)  brings with it more favorable recognition from other countries. 
A)  forces the capital stock to be spread more thinly. 
B)  forces natural resources to be spread more thinly. 
C)  brings with it more scientists, inventors, and engineers. 
D)  brings with it more favorable recognition from other countries.

Question 5

The level of real GDP person

Accepted Answer

A)  differs widely across countries, but the growth rate of real GDP per person is similar across countries. 
B)  is very similar across countries, but the growth rate of real GDP per person differs widely across countries. 
C)  and the growth rate of real GDP per person are similar across countries. 
D)  and the growth rate of real GDP per person vary widely across countries. 
A)  differs widely across countries, but the growth rate of real GDP per person is similar across countries. 
B)  is very similar across countries, but the growth rate of real GDP per person differs widely across countries. 
C)  and the growth rate of real GDP per person are similar across countries. 
D)  and the growth rate of real GDP per person vary widely across countries.

Question 6

How do outward-oriented policies affect a nation's productivity?

Accepted Answer

Most economists believe that poor nation

Question 7

Rapid population growth

Accepted Answer

A)  was hailed by Thomas Robert Malthus as the key to future economic growth. 
B)  tends to lead to higher levels of educational attainment. 
C)  is the main reason that less developed nations are poor. 
D)  may depress economic prosperity by reducing the amount of capital which each worker has to work with. 
A)  was hailed by Thomas Robert Malthus as the key to future economic growth. 
B)  tends to lead to higher levels of educational attainment. 
C)  is the main reason that less developed nations are poor. 
D)  may depress economic prosperity by reducing the amount of capital which each worker has to work with.

Question 8

Each day Sue works 8 hours and produces 7 units of goods and services. Mary works 10 hours each day and produces 10 units of goods and services. It follows that

Accepted Answer

A)  Sue's productivity is higher than Mary's. 
B)  Mary's productivity is higher than Sue's. 
C)  Sue's income per hour will be higher than Mary's. 
D)  Sue's income per day will be higher than Mary's. 
A)  Sue's productivity is higher than Mary's. 
B)  Mary's productivity is higher than Sue's. 
C)  Sue's income per hour will be higher than Mary's. 
D)  Sue's income per day will be higher than Mary's.

Question 9

In order to assess the level of prosperity in a nation in a given year, should we examine the level of that nation's real GDP per person, or should we examine the growth rate of that nation's real GDP per person?

Accepted Answer

The level of that na

Question 10

Productivity can be computed as the number of hours worked divided by output.

Accepted Answer

A) True 
 B)False

Question 11

One of the Ten Principles of Economics in Chapter 1 is that people face tradeoffs. The growth that arises from capital accumulation is not a free lunch. It requires that society

Accepted Answer

A)  conserve resources for future generations. 
B)  sacrifice consumption goods and services now in order to enjoy more consumption in the future. 
C)  recycle resources so that future generations can produce goods and services with the accumulated capital. 
D)  None of the above is correct. 
A)  conserve resources for future generations. 
B)  sacrifice consumption goods and services now in order to enjoy more consumption in the future. 
C)  recycle resources so that future generations can produce goods and services with the accumulated capital. 
D)  None of the above is correct.

Question 12

If your firm's production function has constant returns to scale and you increase all your inputs by 60%, then your firm's output will

Accepted Answer

A)  not change. 
B)  increase, but by less than 60% 
C)  increase by 60% 
D)  increase by more than 60%. 
A)  not change. 
B)  increase, but by less than 60% 
C)  increase by 60% 
D)  increase by more than 60%.

Question 13

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

Accepted Answer

A)  fish 
B)  soybeans 
C)  wood 
D)  All of the above are correct. 
A)  fish 
B)  soybeans 
C)  wood 
D)  All of the above are correct.

Question 14

Last year the imaginary nation of Freedonia had a population of 2,800 and real GDP of 16,800,000. This year it had a population of 2,700 and real GDP of 15,390,000. About what was the growth rate of real GDP per person between last year and this year?

Accepted Answer

A)  -5.3 percent 
B)  -5 percent 
C)  5 percent 
D)  5.3 percent 
A)  -5.3 percent 
B)  -5 percent 
C)  5 percent 
D)  5.3 percent

Question 15

Which of the following is an example of human capital?

Accepted Answer

A)  textbooks 
B)  hand held power tools 
C)  knowing how to repair cars 
D)  All of the above are correct. 
A)  textbooks 
B)  hand held power tools 
C)  knowing how to repair cars 
D)  All of the above are correct.

Question 16

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units. This year the same country had 1000 workers who worked an average of 8 hours and produced 14,000 units. This country's productivity was

Accepted Answer

A)  higher this year than last year. A possible source of this change in productivity is a change in the size of the capital stock. 
B)  higher this year than last year. A change in the size of the capital stock does not affect productivity. 
C)  lower this year than last year. A possible source of this change in productivity is a change in the size of the capital stock. 
D)  lower this year than last year. A change in the size of the capital stock does not affect productivity. 
A)  higher this year than last year. A possible source of this change in productivity is a change in the size of the capital stock. 
B)  higher this year than last year. A change in the size of the capital stock does not affect productivity. 
C)  lower this year than last year. A possible source of this change in productivity is a change in the size of the capital stock. 
D)  lower this year than last year. A change in the size of the capital stock does not affect productivity.

Question 17

Over the period 1900­2010, Brazil's rate of economic growth exceeded that of China.

Accepted Answer

A) True 
 B)False

Question 18

If there are constant returns to scale, the production function can be written as

Accepted Answer

A)  xY = 2xAF(L, K, H, N). 
B)  Y/L = A F(xL, xK, xH, xN). 
C)  Y/L = A F( 1, K/L, H/L, N/L). 
D)  L = AF(Y, K, H, N). 
A)  xY = 2xAF(L, K, H, N). 
B)  Y/L = A F(xL, xK, xH, xN). 
C)  Y/L = A F( 1, K/L, H/L, N/L). 
D)  L = AF(Y, K, H, N).

Question 19

Suppose that the U.S. undertakes a policy to increase its saving rate. This policy will likely

Accepted Answer

A)  have no impact on the level of real GDP per person. 
B)  immediately and permanently decrease the level of real GDP per person. 
C)  immediately and permanently increase the level of real GDP person. 
D)  gradually raise the level of real GDP per person. 
A)  have no impact on the level of real GDP per person. 
B)  immediately and permanently decrease the level of real GDP per person. 
C)  immediately and permanently increase the level of real GDP person. 
D)  gradually raise the level of real GDP per person.

Question 20

A barber shop produces 192 haircuts a day. Each barber in the shop works 8 hours per day and produces the same number of haircuts per hour. If the shop's productivity is 2 haircuts per hour of labor, then how many barbers does the shop employ?

Accepted Answer

A)  8 
B)  12 
C)  16 
D)  None of the above is correct. 
A)  8 
B)  12 
C)  16 
D)  None of the above is correct.

Exam 25: Production and Growth

Electronics firms may be able to get patents on their ideas. Doing so makes their ideas

Which of the following is an example of physical capital?

Which of the following terms is used to refer to the ability of people to exercise authority over the resources they own?

An increase in a country's population may contribute to the rate of technological progress because a larger population

The level of real GDP person

How do outward-oriented policies affect a nation's productivity?

Rapid population growth

Each day Sue works 8 hours and produces 7 units of goods and services. Mary works 10 hours each day and produces 10 units of goods and services. It follows that

In order to assess the level of prosperity in a nation in a given year, should we examine the level of that nation's real GDP per person, or should we examine the growth rate of that nation's real GDP per person?

Productivity can be computed as the number of hours worked divided by output.

One of the Ten Principles of Economics in Chapter 1 is that people face tradeoffs. The growth that arises from capital accumulation is not a free lunch. It requires that society

If your firm's production function has constant returns to scale and you increase all your inputs by 60%, then your firm's output will

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

Last year the imaginary nation of Freedonia had a population of 2,800 and real GDP of 16,800,000. This year it had a population of 2,700 and real GDP of 15,390,000. About what was the growth rate of real GDP per person between last year and this year?

Which of the following is an example of human capital?

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units. This year the same country had 1000 workers who worked an average of 8 hours and produced 14,000 units. This country's productivity was

Over the period 1900­2010, Brazil's rate of economic growth exceeded that of China.

If there are constant returns to scale, the production function can be written as

Suppose that the U.S. undertakes a policy to increase its saving rate. This policy will likely

A barber shop produces 192 haircuts a day. Each barber in the shop works 8 hours per day and produces the same number of haircuts per hour. If the shop's productivity is 2 haircuts per hour of labor, then how many barbers does the shop employ?

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

Over the period 19002010, Brazil's rate of economic growth exceeded that of China.