Question 1

Hong Kong and Japan have achieved relatively high incomes per capita despite lacking an abundance of natural resources.

Accepted Answer

A) True 
 B)False

Question 2

Which one of the following will cause the production possibilities curve to shift outward?

Accepted Answer

A) ​improved public education 
B) ​improved health care systems 
C) ​larger budgets for research, development, and exploration 
D) ​all of the above

Question 3

What is the relationship between savings, capital formation, and consumption?

Accepted Answer

The answer of What is the relationship between savings, capital...

Question 4

In a fully employed economy, invention and discovery:

Accepted Answer

A) ​are automatic. 
B) ​are achieved through sacrifices in current consumption. 
C) ​have negative opportunity costs. 
D) ​All of the above are correct.

Question 5

There are several factors that nearly everyone agrees have contributed to economic growth in some or all countries. They do not include which of the following?

Accepted Answer

A) ​Growth in the quantity and quality of labor resources used 
B) ​Increase in the use of inputs provided by the land 
C) ​Growth in physical capital inputs 
D) ​All of the above are included.

Question 6

When an economy experiences significant economic growth:

Accepted Answer

A) ​a negative relationship exists between output per capita and adult literacy rates. 
B) ​an indirect relationship exists between output per capita and adult literacy rates. 
C) ​a direct relationship exists between output per capita and adult literacy rates. 
D) ​no observed relationship exists between output per capita and adult literacy rates.

Question 7

Over the last several decades, the amount of government investment in U.S. infrastructure in real terms has:

Accepted Answer

A) ​remained the same. 
B) ​decreased. 
C) ​increased marginally. 
D) ​increased substantially.

Question 8

What were the negative results predicted by Malthus' and how can we avoid such results?

Accepted Answer

The answer of What were the negative results predicted by...

Question 9

If a country's annual growth rate is 2%, then its output will double in approximately ____ years.

Accepted Answer

A) ​2 
B) ​10 
C) ​25 
D) ​35

Question 10

In any country, the population will generally be better off as long as the ____ over time and population ____.

Accepted Answer

A) ​quantity and quality of output decreases; does not increase faster than real output 
B) ​quantity and quality of output increases; increases faster than real output 
C) ​quantity and quality of output increases; does not increase faster than real output 
D) ​technology improves; increases faster than real output

Question 11

Capital formation is a key component of economic growth.

Accepted Answer

A) True 
 B)False

Question 12

Thomas Malthus believed that in the long run, the growth rates of real GDP would not exceed population growth.

Accepted Answer

A) True 
 B)False

Question 13

The slower the rate of capital formation:

Accepted Answer

A) ​the greater the rate of economic growth. 
B) ​the slower the rate of economic growth. 
C) ​the greater the rate of population growth. 
D) ​the slower the rate of growth of the money supply.

Question 14

The per-worker production function is ____ sloped and ____ at a(n) ____ rate.

Accepted Answer

A) ​negatively; decreases; diminishing 
B) ​negatively; decreases; increasing 
C) ​positively; increases; increasing 
D) ​positively; increases; diminishing

Question 15

As savings grow in an economy, economic growth rises.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is correct?

Accepted Answer

A) ​An increase in the quantity of labor always leads to economic growth. 
B) ​Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital. 
C) ​A decrease in the productivity of labor leads to economic growth. 
D) ​Japan and Hong Kong are rich in natural resources.

Question 17

Does the political freedom existing in democracies always aid economic growth?

Accepted Answer

The answer of Does the political freedom existing in democracies...

Question 18

Brazil has a relatively low income per capita because it has relatively few natural resources.

Accepted Answer

A) True 
 B)False

Question 19

Thomas Malthus's predictions did not come to pass because he implicitly assumed that there would be no technological advances and did not foresee that agricultural land was not completely fixed in quantity or quality.

Accepted Answer

A) True 
 B)False

Question 20

Economists generally define economic growth as an increase in the nominal income of the population.

Accepted Answer

A) True 
 B)False

Exam 12: Firms in Perfectly Competitive Markets

Hong Kong and Japan have achieved relatively high incomes per capita despite lacking an abundance of natural resources.

Which one of the following will cause the production possibilities curve to shift outward?

What is the relationship between savings, capital formation, and consumption?

In a fully employed economy, invention and discovery:

There are several factors that nearly everyone agrees have contributed to economic growth in some or all countries. They do not include which of the following?

When an economy experiences significant economic growth:

Over the last several decades, the amount of government investment in U.S. infrastructure in real terms has:

What were the negative results predicted by Malthus' and how can we avoid such results?

If a country's annual growth rate is 2%, then its output will double in approximately ____ years.

In any country, the population will generally be better off as long as the over time and population .

Capital formation is a key component of economic growth.

Thomas Malthus believed that in the long run, the growth rates of real GDP would not exceed population growth.

The slower the rate of capital formation:

The per-worker production function is sloped and at a(n) rate.

As savings grow in an economy, economic growth rises.

Which of the following is correct?

Does the political freedom existing in democracies always aid economic growth?

Brazil has a relatively low income per capita because it has relatively few natural resources.

Thomas Malthus's predictions did not come to pass because he implicitly assumed that there would be no technological advances and did not foresee that agricultural land was not completely fixed in quantity or quality.

Economists generally define economic growth as an increase in the nominal income of the population.