Question 1

Last year real GDP in the imaginary nation of Populia was 907.5 billion and the population was 3.3 million. The year before real GDP was 750 billion and the population was 3 million. What was the growth rate of real GDP per person during the year?

Accepted Answer

A)  10 percent 
B)  14 percent 
C)  17 percent 
D)  21 percent

Question 2

Which of these countries' growth rates of real GDP per person have exceeded the United States' growth rate of real GDP per person over the last century?

Accepted Answer

A)  Canada and China 
B)  China and India 
C)  Germany and India 
D)  Germany and Pakistan

Question 3

In the production function Y = AFL,K,H,N), Y represents the quantity of output; L represents the quantity of labor; K represents the quantity of physical capital; and N represents the quantity of natural resources. What does H represent?

Accepted Answer

The answer of In the production function Y = AFL,K,H,N),...

Question 4

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%.

Question 5

Other things the same, another unit of capital will increase output by more in a poor country than in a rich country.

Accepted Answer

A) True 
 B)False

Question 6

In 2011, the imaginary nation of Maconia had a population of 8,200 and real GDP of 210,500. Maconia had 5% growth in real GDP per person. In 2012 it had a population of 8,400. To the nearest dollar what was real GDP in Maconia in 2012?

Accepted Answer

A)  216,815 
B)  221,025 
C)  226,416 
D)  None of the above is correct.

Question 7

Which of the following statements is correct?

Accepted Answer

A)  By definition, all natural resources are nonrenewable. 
B)  Market prices give us reason to believe that natural resources are a limit to economic growth. 
C)  An economy must be blessed with ample quantities of natural resources if it is to be a highly productive economy. 
D)  Differences in natural resources can explain some of the differences in standards of living around the world.

Question 8

Although growth rates across countries vary some, rankings of countries by income remain pretty much the same over time.

Accepted Answer

A) True 
 B)False

Question 9

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2010. At the start of 2011 the pointy­ haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000. These numbers indicate that productivity

Accepted Answer

A)  fell by 4%. 
B)  fell by 20%. 
C)  rose by 12%. 
D)  rose by 20%.

Question 10

The inputs into production of goods and services that are provided by nature, such as land, rivers, and mineral deposits are called

Accepted Answer

A)  physical capital. 
B)  natural resources. 
C)  human capital. 
D)  technological knowledge.

Question 11

In the United States over the past century, real GDP per person has grown by about
percent per year.

Accepted Answer

The answer of In the United States over the past...

Question 12

According to some estimates, over the last two decades China has had an annual average growth rate of about 12 percent.

Accepted Answer

A) True 
 B)False

Question 13

In the production function Y = AFL,K,H,N), Y represents the quantity of output; L represents the quantity of labor; K represents the quantity of physical capital; and H represents the quantity of human capital. What does N represent?

Accepted Answer

The answer of In the production function Y = AFL,K,H,N),...

Question 14

Japan's status as a rich nation is attributable to

Accepted Answer

A)  Japan's quantities of natural resources, but not to international trade. 
B)  international trade, but not to Japan's domestic quantities of natural resources. 
C)  the fact that Japanese productivity has remained nearly constant for more than 100 years. 
D)  the fact that the Japanese have downplayed the role of human capital in economic growth.

Question 15

An increase in the saving rate would, other things the same,

Accepted Answer

A)  increase growth more for a poor country than for a rich country, and raise growth permanently. 
B)  increase growth more for a poor country than for a rich country, but raise growth temporarily. 
C)  increase growth more for a rich country than for a poor country, and raise growth permanently. 
D)  increase growth more for a rich country than for a poor country, but raise growth temporarily.

Question 16

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

Accepted Answer

A)  A country with no or few domestic natural resources is destined to be poor. 
B)  Differences in natural resources have virtually no role in explaining differences in standards of living. 
C)  Some countries can be rich mostly because of their natural resources and countries without natural resources need not be poor, but can never have very high standards of living. 
D)  Abundant domestic natural resources may help make a country rich, but even countries with few natural resources can have high standards of living.

Question 17

Foreign saving is used for domestic investment when foreigners engage in

Accepted Answer

A)  foreign direct investment. 
B)  foreign portfolio investment. 
C)  either foreign direct investment or foreign portfolio investment. 
D)  None of the above is correct.

Question 18

Productivity is defined as the quantity of

Accepted Answer

A)  labor required to produce a nation's GDP. 
B)  labor required to produce one unit of goods and services. 
C)  goods and services produced from each unit of labor input. 
D)  goods and services produced per unit of time.

Question 19

Matt is going to college to become a pharmacist. What he learns about existing information increases

Accepted Answer

A)  both technological knowledge and human capital. 
B)  technological knowledge but not human capital. 
C)  human capital but not technological knowledge. 
D)  neither technological knowledge nor human capital.

Question 20

Senator Noitall says that in order to help poor countries develop, the United States should: 1. Encourage poor countries to allow U.S. and other foreign firms to build and operate businesses in their country; 2. Reduce or eliminate subsidizes to U.S. producers when poor countries have a comparative advantage producing those goods the U.S. subsidizes; 3. Work to promote political stability in poor countries; and 4. Reduce poor countries reliance on market forces in their economies. How many of these ideas are likely to help poor countries grow?

Accepted Answer

A)  1 
B)  2 
C)  3 
D)  4

Exam 17: Production and Growth

Last year real GDP in the imaginary nation of Populia was 907.5 billion and the population was 3.3 million. The year before real GDP was 750 billion and the population was 3 million. What was the growth rate of real GDP per person during the year?

Which of these countries' growth rates of real GDP per person have exceeded the United States' growth rate of real GDP per person over the last century?

In the production function Y = AFL,K,H,N), Y represents the quantity of output; L represents the quantity of labor; K represents the quantity of physical capital; and N represents the quantity of natural resources. What does H represent?

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

Other things the same, another unit of capital will increase output by more in a poor country than in a rich country.

In 2011, the imaginary nation of Maconia had a population of 8,200 and real GDP of 210,500. Maconia had 5% growth in real GDP per person. In 2012 it had a population of 8,400. To the nearest dollar what was real GDP in Maconia in 2012?

Which of the following statements is correct?

Although growth rates across countries vary some, rankings of countries by income remain pretty much the same over time.

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2010. At the start of 2011 the pointy haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000. These numbers indicate that productivity

The inputs into production of goods and services that are provided by nature, such as land, rivers, and mineral deposits are called

In the United States over the past century, real GDP per person has grown by about percent per year.

According to some estimates, over the last two decades China has had an annual average growth rate of about 12 percent.

In the production function Y = AFL,K,H,N), Y represents the quantity of output; L represents the quantity of labor; K represents the quantity of physical capital; and H represents the quantity of human capital. What does N represent?

Japan's status as a rich nation is attributable to

An increase in the saving rate would, other things the same,

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

Foreign saving is used for domestic investment when foreigners engage in

Productivity is defined as the quantity of

Matt is going to college to become a pharmacist. What he learns about existing information increases

Exam 17: Production and Growth

Last year real GDP in the imaginary nation of Populia was 907.5 billion and the population was 3.3 million. The year before real GDP was 750 billion and the population was 3 million. What was the growth rate of real GDP per person during the year?

Which of these countries' growth rates of real GDP per person have exceeded the United States' growth rate of real GDP per person over the last century?

In the production function Y = AFL,K,H,N), Y represents the quantity of output; L represents the quantity of labor; K represents the quantity of physical capital; and N represents the quantity of natural resources. What does H represent?

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

Other things the same, another unit of capital will increase output by more in a poor country than in a rich country.

In 2011, the imaginary nation of Maconia had a population of 8,200 and real GDP of 210,500. Maconia had 5% growth in real GDP per person. In 2012 it had a population of 8,400. To the nearest dollar what was real GDP in Maconia in 2012?

Which of the following statements is correct?

Although growth rates across countries vary some, rankings of countries by income remain pretty much the same over time.

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2010. At the start of 2011 the pointy­ haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000. These numbers indicate that productivity

The inputs into production of goods and services that are provided by nature, such as land, rivers, and mineral deposits are called

In the United States over the past century, real GDP per person has grown by about percent per year.

According to some estimates, over the last two decades China has had an annual average growth rate of about 12 percent.

In the production function Y = AFL,K,H,N), Y represents the quantity of output; L represents the quantity of labor; K represents the quantity of physical capital; and H represents the quantity of human capital. What does N represent?

Japan's status as a rich nation is attributable to

An increase in the saving rate would, other things the same,

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

Foreign saving is used for domestic investment when foreigners engage in

Productivity is defined as the quantity of

Matt is going to college to become a pharmacist. What he learns about existing information increases

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

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2010. At the start of 2011 the pointy haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000. These numbers indicate that productivity