Question 1

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.E) A) and B)
F) All of the above

Question 2

John and Miguel are fishermen.When they go fishing,John consistently catches 2 or 3 fish per hour,while Miguel consistently catches 5 or 6 fish per hour.Miguel's __________ exceeds that of John.

Accepted Answer

The answer of John and Miguel are fishermen.When they go...

Question 3

Which of the following statements is correct?

Accepted Answer

A)   Productivity is a determinant of human capital per worker.
B)   Technological knowledge is a determinant of productivity.
C)   Human capital and technological knowledge are the same thing.
D)   All of the above are correct.E) B) and C)
F) A) and B)

Question 4

Alexis and Tara both mine salt.Alexis mines 400 pounds in 40 hours.Tara mines 300 pounds in 20 hours.Which of the following is correct?

Accepted Answer

A)   Alexis's productivity is greater than Tara's.This difference could be explained by Alexis having more physical capital than Tara.
B)   Alexis's productivity is greater than Tara's.This difference cannot be explained by a difference in the physical capital each has.
C)   Tara's productivity is greater than Alexis's.This difference could be explained by Tara having more physical capital than Alexis.
D)   Tara's productivity is greater than Alexis's.This difference cannot be explained by a difference in the physical capital each has.E) A) and D)
F) A) and C)

Question 5

Which of the following nations experienced average rates of economic growth of less than 2 percent over the last 100 years?

Accepted Answer

A)   Bangladesh
B)   Pakistan
C)   United Kingdom
D)   All of the above are correct.E) A) and C)
F) B) and C)

Question 6

Which of the following statements about inputs is correct?

Accepted Answer

A)   A forest is an example of a natural resource;it is also an example of a renewable resource.
B)   There is no distinction between human capital and technological knowledge.
C)   Human capital is a non-produced factor of production.
D)   Physical capital is a non-produced factor of production.E) A) and D)
F) B) and C)

Question 7

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.E) None of the above
F) B) and D)

Question 8

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.E) B) and C)
F) A) and B)

Question 9

How would an economist typically assess the extent of economic progress in a nation?

Accepted Answer

An economist typical...

Question 10

An increase in capital will increase real GDP per person

Accepted Answer

A)   more in a poor country than a rich country.The increase in real GDP per person will be larger if the addition to capital is from domestic rather than foreign investment.
B)   more in a poor country than a rich country.The increase in real GDP per person will be the same whether the addition to capital is from domestic or foreign investment.
C)   less in a poor country than a rich country.The increase in real GDP per person will be larger if the addition to capital is from domestic rather than foreign investment.
D)   less in a poor country than a rich country.The increase in real GDP per person will be the same whether the addition to capital is from domestic or foreign investment.E) B) and C)
F) A) and D)

Question 11

If WarmWear,a U.S.manufacturer of winter clothing,opens a new factory in Austria,then

Accepted Answer

A)   Austrian GNP increases by more than Austrian GDP,because GDP includes income earned by foreigners working in Austria.
B)   Austrian GNP increases by more than Austrian GDP,because GDP excludes income earned by foreigners working in Austria.
C)   Austrian GNP increases by less than Austrian GDP,because GDP includes income earned by foreigners working in Austria.
D)   Austrian GNP increases by less than Austrian GDP,because GDP excludes income earned by foreigners working in Austria.E) A) and D)
F) All of the above

Question 12

A country's standard of living depends on its ability to produce goods and services.

Accepted Answer

A) True 
 B)False

Question 13

Suppose that there are diminishing returns to capital.Suppose also that two countries are the same except one has less capital and so less real GDP per person.Suppose that both increase their saving rate from 3 percent to 4 percent.In the long run

Accepted Answer

A)   both countries will have permanently higher growth rates of real GDP per person,and the growth rate will be higher in the country with more capital.
B)   both countries will have permanently higher growth rates of real GDP per person,and the growth rate will be higher in the country with less capital.
C)   both countries will have higher levels of real GDP per person,and the temporary increase in growth in the level of real GDP per person will have been greater in the country with more capital.
D)   both countries will have higher levels of real GDP per person,and the temporary increase in growth in the level of real GDP per person will have been greater in the country with less capital.E) A) and B)
F) A) and C)

Question 14

If a country increases its saving rate in the long run

Accepted Answer

A)   K/L and productivity will be higher.
B)   K/L will be higher but productivity will not be higher.
C)   K/L will not be higher but productivity will be higher.
D)   neither K/L nor productivity will be higher.E) A) and C)
F) A) and D)

Question 15

Which of the following correctly ranks the three countries,from highest to lowest,for percentage of high-school age children in school?

Accepted Answer

A)   United Kingdom,Mali,Mexico.
B)   Mexico,Mali,United Kingdom.
C)   United Kingdom,Mexico,Mali.
D)   Mali,Mexico,United Kingdom.E) A) and D)
F) B) and D)

Question 16

The catch-up effect says that countries with low income can grow faster than countries with higher income.However,in statistical studies that include many diverse countries we do not observe the catch-up-effect unless we control for other variables that affect productivity.Considering the determinants of productivity,list and explain some things that would tend to prohibit or limit a poor country's ability to catch up with the rich ones.

Accepted Answer

The argument that poor countries will te...

Question 17

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 percentE) B) and D)
F) None of the above

Question 18

Which of the following will increase a country's real GDP per person?

Accepted Answer

A)   imposing restrictions on foreign trade and foreign investment
B)   imposing restrictions on foreign trade and reducing restrictions on foreign investment
C)   reducing restrictions on foreign trade and imposing restrictions on foreign investment
D)   reducing restrictions on foreign trade and foreign investmentE) A) and C)
F) B) and D)

Question 19

Countries that have lower levels of real GDP per person than the United States

Accepted Answer

A)   tend to have growth rates that are higher than that of the United States.
B)   tend to have growth rates that are about the same as that of the United States.
C)   tend to have growth rates that are lower than that of the United States.
D)   in some cases have growth rates that are higher than that of the United States and in other cases lower than that of the United States.E) All of the above
F) B) and D)

Question 20

Foreign direct investment and domestic investment have the same effect on all measures of economic prosperity.

Accepted Answer

A) True 
 B)False

Exam 25: Production and Growth

Productivity is defined as the quantity of

Correct Answer
verified

John and Miguel are fishermen.When they go fishing,John consistently catches 2 or 3 fish per hour,while Miguel consistently catches 5 or 6 fish per hour.Miguel's __________ exceeds that of John.

Correct Answer
verified

Correct Answer
verified
The argument that poor countries will te...
View Answer

Which of the following statements is correct?

Correct Answer
verified

Foreign direct investment and domestic investment have the same effect on all measures of economic prosperity.

Correct Answer
verified

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

Correct Answer
verified

How would an economist typically assess the extent of economic progress in a nation?

Correct Answer
verified
An economist typical...
View Answer

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

Correct Answer
verified

Which of the following will increase a country's real GDP per person?

Correct Answer
verified

Which of the following nations experienced average rates of economic growth of less than 2 percent over the last 100 years?

Correct Answer
verified

Which of the following correctly ranks the three countries,from highest to lowest,for percentage of high-school age children in school?

Correct Answer
verified

An increase in capital will increase real GDP per person

Correct Answer
verified

Which of the following statements about inputs is correct?

Correct Answer
verified

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?

Correct Answer
verified

Countries that have lower levels of real GDP per person than the United States

Correct Answer
verified

If WarmWear,a U.S.manufacturer of winter clothing,opens a new factory in Austria,then

Correct Answer
verified

Suppose that there are diminishing returns to capital.Suppose also that two countries are the same except one has less capital and so less real GDP per person.Suppose that both increase their saving rate from 3 percent to 4 percent.In the long run

Correct Answer
verified

A country's standard of living depends on its ability to produce goods and services.

Correct Answer
verified

If a country increases its saving rate in the long run

Correct Answer
verified

Alexis and Tara both mine salt.Alexis mines 400 pounds in 40 hours.Tara mines 300 pounds in 20 hours.Which of the following is correct?

Correct Answer
verified

Exam 25: Production and Growth

Productivity is defined as the quantity of

Correct AnswerverifiedShow Answer

John and Miguel are fishermen.When they go fishing,John consistently catches 2 or 3 fish per hour,while Miguel consistently catches 5 or 6 fish per hour.Miguel's __________ exceeds that of John.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe argument that poor countries will te...View AnswerShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Foreign direct investment and domestic investment have the same effect on all measures of economic prosperity.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

How would an economist typically assess the extent of economic progress in a nation?

Correct AnswerverifiedAn economist typical...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following will increase a country's real GDP per person?

Correct AnswerverifiedShow Answer

Which of the following nations experienced average rates of economic growth of less than 2 percent over the last 100 years?

Correct AnswerverifiedShow Answer

Which of the following correctly ranks the three countries,from highest to lowest,for percentage of high-school age children in school?

Correct AnswerverifiedShow Answer

An increase in capital will increase real GDP per person

Correct AnswerverifiedShow Answer

Which of the following statements about inputs is correct?

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Countries that have lower levels of real GDP per person than the United States

Correct AnswerverifiedShow Answer

If WarmWear,a U.S.manufacturer of winter clothing,opens a new factory in Austria,then

Correct AnswerverifiedShow Answer

Suppose that there are diminishing returns to capital.Suppose also that two countries are the same except one has less capital and so less real GDP per person.Suppose that both increase their saving rate from 3 percent to 4 percent.In the long run

Correct AnswerverifiedShow Answer

A country's standard of living depends on its ability to produce goods and services.

Correct AnswerverifiedShow Answer

If a country increases its saving rate in the long run

Correct AnswerverifiedShow Answer

Alexis and Tara both mine salt.Alexis mines 400 pounds in 40 hours.Tara mines 300 pounds in 20 hours.Which of the following is correct?

Correct AnswerverifiedShow Answer

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The argument that poor countries will te...
View Answer

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An economist typical...
View Answer

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