Question 1

Over the period 1870-2010, the United States experienced an average annual growth rate of real GDP per person of about 4 percent per year.

Accepted Answer

A) True 
 B)False

Question 2

In countries where women are discriminated against, policies that increase the likelihood of career success and educational opportunities for women are likely to decrease the birth rate.

Accepted Answer

A) True 
 B)False

Question 3

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.E) C) and D)
F) B) and D)

Question 4

Figure 25-1.
On the horizontal axis, K/L represents capital K)  per worker L) . On the vertical axis, Y/L represents output Y)  per worker L) . 
-Refer to Figure 25-1. The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

Accepted Answer

A)   In the long run, a higher saving rate leads to a higher growth rate of productivity.
B)   In the long run, a higher saving rate leads to a higher growth rate of income.
C)   Returns to capital become increasingly smaller as the amount of capital per worker increases.
D)   All of the above are correct.E) B) and C)
F) A) and D)

Question 5

Which of the following statements is correct?

Accepted Answer

A)   Human capital per worker is a determinant of productivity.
B)   A nation cannot be highly productive in producing goods and services without abundant quantities of natural resources.
C)   Human capital and technological knowledge are the same thing.
D)   All technological knowledge is proprietary.E) A) and D)
F) None of the above

Question 6

Other things the same, which of the following would increase productivity?

Accepted Answer

A)   an increase in either human or physical capital
B)   an increase in human capital but not an increase in physical capital
C)   an increase in physical capital but not an increase in human capital
D)   neither an increase in human capital nor an increase in physical capitalE) A) and C)
F) A) and D)

Question 7

According to the traditional view of the production function, which of the following values of the additions to output per worker would be consistent with moving from 5 to 6, and then from 6 to 7, and then from 7 to 8 units of capital per worker in that order?

Accepted Answer

A)   40, 40, 40
B)   40, 35, 38
C)   40, 34, 32
D)   40, 43, 48E) None of the above
F) B) and C)

Question 8

Last year the imaginary country of Basova had a population of 10,000, 6,000 people worked 8 hours a day, and produced a real GDP of $30,000,000. The imaginary country of Andovia had a population of 12,000, 8,000 people worked 8 hours a day, and produced a real GDP of $38,000,000. Which of the following is correct?

Accepted Answer

A)   Basova had higher productivity and higher real GDP per person.
B)   Andovia had the higher productivity and higher real GDP per person.
C)   Basova had the higher productivity while Andovia had the higher real GDP per person.
D)   Andovia had the higher productivity while Basova had the higher real GDP per person.E) A) and B)
F) All of the above

Question 9

Figure 25-1.
On the horizontal axis, K/L represents capital K)  per worker L) . On the vertical axis, Y/L represents output Y)  per worker L) . 
-Refer to Figure 25-1. Choose a point anywhere on the curve and call it point A. If the economy is at point A in 2011, then it will definitely remain at point A in 2012 if, between 2011 and 2012,

Accepted Answer

A)   the quantity of physical capital remains constant; the number of workers doubles; and human capital, natural resources, and technology all double as well.
B)   the quantity of physical capital doubles; human capital, natural resources, and technology all double as well; and the number of workers remains constant.
C)   the quantity of physical capital doubles; the number of workers doubles; and human capital, natural resources, and technology all double as well.
D)   the quantity of physical capital doubles; the number of workers doubles; and human capital, natural resources, and technology remain constant.E) C) and D)
F) None of the above

Question 10

Over the last century, U.S. real GDP per person grew at a rate of about

Accepted Answer

A)   2 percent per year, so that it is now 2 times as high as it was a century ago.
B)   2 percent per year, so that it is now 8 times as high as it was a century ago.
C)   4 percent per year, so that it is now 2 times as high as it was a century ago.
D)   4 percent per year, so that it is now 8 times as high as it was a century ago.E) A) and B)
F) A) and C)

Question 11

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

Question 12

All else equal, which of the following would tend to cause real GDP per person to rise?

Accepted Answer

A)   a change from outward-oriented policies to inward-oriented policies
B)   an increase in investment in human capital
C)   a weakening of property rights
D)   All of the above are correct.E) B) and C)
F) C) and D)

Question 13

An increase in a country's saving rate permanently raises its productivity.

Accepted Answer

A) True 
 B)False

Question 14

Inventors often obtain patents on new products and processes, thereby turning new ideas into

Accepted Answer

A)   private goods and increasing the incentive to engage in research.
B)   private goods but decreasing the incentive to engage in research.
C)   public goods and increasing the incentive to engage in research.
D)   public goods but decreasing the incentive to engage in research.E) A) and D)
F) A) and C)

Question 15

If an American-based firm opens and operates a new clothing factory in Honduras, then it is engaging in

Accepted Answer

A)   foreign portfolio investment.
B)   foreign financial investment.
C)   foreign direct investment.
D)   indirect foreign investment.E) A) and D)
F) B) and C)

Question 16

Which of the following is correct?

Accepted Answer

A)   Over the last 100 years Japan had a higher average growth rate than the United States. It follows that, today, the standard of living in Japan is higher than in the United States.
B)   The typical person in Bangladesh today has about twice the real income of a typical American 100 years ago.
C)   The typical citizen of China today has about one-half as much real income as the typical citizen of America today.
D)   None of the above is correct.E) A) and D)
F) A) and C)

Question 17

In addition to investment in physical and human capital, what other public policies might a country adopt to increase productivity?

Accepted Answer

In addition to investment in physical an...

Question 18

Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to compute the percentage increase in real GDP per person from 1993 to 2012.

Accepted Answer

Real GDP per person in 1993 wa...

Question 19

If a good has become more scarce, then we know for sure that

Accepted Answer

A)   the demand for it increased.
B)   the supply of it decreased.
C)   either the demand for it increased or the supply of it decreased.
D)   both the supply of it and the demand for it decreased.E) None of the above
F) A) and D)

Question 20

Studies have found that there is a relationship between height and productivity. Briefly explain.

Accepted Answer

Studies show that taller worke...

Exam 12: Production and Growth

In countries where women are discriminated against, policies that increase the likelihood of career success and educational opportunities for women are likely to decrease the birth rate.

Correct Answer
verified

Figure 25-1. On the horizontal axis, K/L represents capital K) per worker L) . On the vertical axis, Y/L represents output Y) per worker L) . -Refer to Figure 25-1. The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

Correct Answer
verified

Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to compute the percentage increase in real GDP per person from 1993 to 2012.

Correct Answer
verified
Real GDP per person in 1993 wa...
View Answer

Other things the same, which of the following would increase productivity?

Correct Answer
verified

Inventors often obtain patents on new products and processes, thereby turning new ideas into

Correct Answer
verified

Over the period 1870-2010, the United States experienced an average annual growth rate of real GDP per person of about 4 percent per year.

Correct Answer
verified

Which of the following is correct?

Correct Answer
verified

According to the traditional view of the production function, which of the following values of the additions to output per worker would be consistent with moving from 5 to 6, and then from 6 to 7, and then from 7 to 8 units of capital per worker in that order?

Correct Answer
verified

Studies have found that there is a relationship between height and productivity. Briefly explain.

Correct Answer
verified
Studies show that taller worke...
View Answer

Over the last century, U.S. real GDP per person grew at a rate of about

Correct Answer
verified

Correct Answer
verified

An increase in a country's saving rate permanently raises its productivity.

Correct Answer
verified

Correct Answer
verified

All else equal, which of the following would tend to cause real GDP per person to rise?

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

Over extended periods of time, population growth

Correct Answer
verified

If an American-based firm opens and operates a new clothing factory in Honduras, then it is engaging in

Correct Answer
verified

If a good has become more scarce, then we know for sure that

Correct Answer
verified

In addition to investment in physical and human capital, what other public policies might a country adopt to increase productivity?

Correct Answer
verified
In addition to investment in physical an...
View Answer

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,

Correct Answer
verified

Exam 12: Production and Growth

In countries where women are discriminated against, policies that increase the likelihood of career success and educational opportunities for women are likely to decrease the birth rate.

Correct AnswerverifiedShow Answer

Figure 25-1. On the horizontal axis, K/L represents capital K) per worker L) . On the vertical axis, Y/L represents output Y) per worker L) . -Refer to Figure 25-1. The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

Correct AnswerverifiedShow Answer

Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to compute the percentage increase in real GDP per person from 1993 to 2012.

Correct AnswerverifiedReal GDP per person in 1993 wa...View AnswerShow Answer

Other things the same, which of the following would increase productivity?

Correct AnswerverifiedShow Answer

Inventors often obtain patents on new products and processes, thereby turning new ideas into

Correct AnswerverifiedShow Answer

Over the period 1870-2010, the United States experienced an average annual growth rate of real GDP per person of about 4 percent per year.

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

According to the traditional view of the production function, which of the following values of the additions to output per worker would be consistent with moving from 5 to 6, and then from 6 to 7, and then from 7 to 8 units of capital per worker in that order?

Correct AnswerverifiedShow Answer

Studies have found that there is a relationship between height and productivity. Briefly explain.

Correct AnswerverifiedStudies show that taller worke...View AnswerShow Answer

Over the last century, U.S. real GDP per person grew at a rate of about

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An increase in a country's saving rate permanently raises its productivity.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

All else equal, which of the following would tend to cause real GDP per person to rise?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Over extended periods of time, population growth

Correct AnswerverifiedShow Answer

If an American-based firm opens and operates a new clothing factory in Honduras, then it is engaging in

Correct AnswerverifiedShow Answer

If a good has become more scarce, then we know for sure that

Correct AnswerverifiedShow Answer

In addition to investment in physical and human capital, what other public policies might a country adopt to increase productivity?

Correct AnswerverifiedIn addition to investment in physical an...View AnswerShow Answer

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,

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Real GDP per person in 1993 wa...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
Studies show that taller worke...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
In addition to investment in physical an...
View Answer

Correct Answer
verified