Question 1

Roughly what percentage of growth in real GDP per person in Britain between 1790 and 1980 was accounted for by improved nutrition according to the estimates of Robert Fogel?

Accepted Answer

A)   30 percent
B)   20 percent
C)   10 percent
D)   5 percentE) C) and D)
F) A) and B)

Question 2

Over the last 140 years or so,on average Canada's real GDP per-person grew faster than that of the U.K.

Accepted Answer

A) True 
 B)False

Question 3

According to research by Robert Fogel,what proportion of the British population in 1780 was so malnourished that they could not perform manual labor?

Accepted Answer

A)   40 percent
B)   20 percent
C)   10 percent
D)   5 percentE) A) and D)
F) B) and D)

Question 4

Which of the following is indicated by the data on real income per person for various countries over the past 100 or so years?

Accepted Answer

A)   If,in a relatively poor country,real income per person had grown by 3.5 percent per year for the last 100 years,it would be a relatively rich country today.
B)   Rich countries became richer and poor countries became poorer.
C)   In the United States,real income per person today is about four times as high as it was 100 years ago.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 5

Which of the following would not be considered physical capital?

Accepted Answer

A)   a new factory building
B)   a computer used to help Mercury Delivery Service keep track of its orders
C)   on-the-job training
D)   a desk used in an accountant's officeE) C) and D)
F) B) and D)

Question 6

Over the past century in the United States,real GDP per person has grown,on average,by about

Accepted Answer

A)   1 percent per year.
B)   2 percent per year.
C)   3 percent per year.
D)   5 percent per year.E) None of the above
F) A) and B)

Question 7

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 C)
F) A) and D)

Question 8

Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,300 a ton.Over the same time a measure of the overall price level increased from 168 to 187.The price of iron ore increased by

Accepted Answer

A)   less than inflation,and this means it became relatively less scarce.
B)   less than inflation,and this means it became scarcer.
C)   more than inflation,and this means it became scarcer.
D)   more than inflation,but this doesn't necessarily mean that it become scarcer.E) A) and B)
F) C) and D)

Question 9

Greater scarcity of a natural resource is indicated

Accepted Answer

A)   by an increase in the price of the resource,whether the price increase is less than or greater than the rate of inflation.
B)   only by an increase in the price of the resource that is less than the rate of inflation.
C)   only by an increase in the price of the resource that is greater than the rate of inflation.
D)   only by an increase in the price of the resource that is caused by a decrease in supply and is greater than the rate of inflation.E) None of the above
F) A) and D)

Question 10

Country A and country B are the same except country A currently has a lower level of capital.Assuming diminishing returns,if both countries increase their capital by 100 units and other factors that determine output are unchanged,then

Accepted Answer

A)   output in country A increases by more than in country B.
B)   output in country A increases by the same amount as in country B.
C)   output in country A increases by less than in country B.
D)   None of the above is necessarily correct.E) A) and B)
F) B) and C)

Question 11

Both Arnold and Will work 10 hours a day.Arnold can produce six baskets of goods per hour while Will can produce four baskets of the same goods per hour.It follows that Arnold's

Accepted Answer

A)   productivity is greater than Will's.
B)   output is greater than Will's.
C)   standard of living is higher than Will's.
D)   All of the above are correct.E) A) and D)
F) A) and B)

Question 12

If the number of workers in an economy doubled,all other inputs stayed the same,and there were constant returns to scale,productivity would

Accepted Answer

A)   fall to less than one-half of its former value.
B)   fall,but it would still be greater than one-half of its former value.
C)   stay the same.
D)   rise but less than double.E) A) and D)
F) A) and B)

Question 13

Journey Motorcycles produced 100 motorcycles using 50 workers who each worked 8 hours a day.Journey's productivity was 12.5.

Accepted Answer

A) True 
 B)False

Question 14

Indonesians,for example,have a lower standard of living than Americans because they have a lower level of productivity.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements is correct?

Accepted Answer

A)   In an economy-wide sense,property rights are an important prerequisite for the price system to work.
B)   Property rights give people the ability to exercise authority over the resources they own.
C)   Based on the available evidence,the existence of well-established and well-enforced property rights appears to be associated with an enhanced standard of living.
D)   All of the above are correct.E) B) and D)
F) C) and D)

Question 16

It is possible for a country without a lot of domestic natural resources to have a high standard of living.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a part of your economics professor's human capital?

Accepted Answer

A)   the things she learned at some prestigious university
B)   her copy of Mankiw's text
C)   her chalk holder
D)   All of the above are correct.E) All of the above
F) B) and D)

Question 18

Suppose over the last year that the price of copper increased from ore increased from $1.70 a pound to $1.79 per pound.Over the same time a measure of the overall price level increased from 300 to 309.The price of copper increased by

Accepted Answer

A)   less than inflation,and this means it became relatively less scarce.
B)   less than inflation,and this means it became scarcer.
C)   more than inflation,and this means it became scarcer.
D)   more than inflation,but this doesn't necessarily mean that it become scarcer.E) B) and C)
F) All of the above

Question 19

Human capital is

Accepted Answer

A)   the same thing as technological knowledge.
B)   the same thing as labor.
C)   the tools and equipment operated by humans.
D)   knowledge and skills that workers have acquired.E) A) and B)
F) A) and C)

Question 20

Adam and Doug both build birdhouses.Adam works 20 hours a week and produces 12 bird houses.Doug works 30 hours a week and produces 15 bird houses.Which of the following is correct?

Accepted Answer

A)   Adam's production and productivity are higher than Doug's.
B)   Adam's production is higher than Doug's,but Doug's productivity is higher than Adam's.
C)   Doug's production is higher than Adam's,but Adam's productivity is higher than Doug's.
D)   Doug's production and productivity are higher than Adam's.E) C) and D)
F) None of the above

Exam 25: Production and Growth

Which of the following would not be considered physical capital?

Correct AnswerverifiedShow Answer

Over the last 140 years or so,on average Canada's real GDP per-person grew faster than that of the U.K.

Correct AnswerverifiedShow Answer

Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,300 a ton.Over the same time a measure of the overall price level increased from 168 to 187.The price of iron ore increased by

Correct AnswerverifiedShow Answer

Both Arnold and Will work 10 hours a day.Arnold can produce six baskets of goods per hour while Will can produce four baskets of the same goods per hour.It follows that Arnold's

Correct AnswerverifiedShow Answer

Journey Motorcycles produced 100 motorcycles using 50 workers who each worked 8 hours a day.Journey's productivity was 12.5.

Correct AnswerverifiedShow Answer

Country A and country B are the same except country A currently has a lower level of capital.Assuming diminishing returns,if both countries increase their capital by 100 units and other factors that determine output are unchanged,then

Correct AnswerverifiedShow Answer

Adam and Doug both build birdhouses.Adam works 20 hours a week and produces 12 bird houses.Doug works 30 hours a week and produces 15 bird houses.Which of the following is correct?

Correct AnswerverifiedShow Answer

Over the past century in the United States,real GDP per person has grown,on average,by about

Correct AnswerverifiedShow Answer

Suppose over the last year that the price of copper increased from ore increased from $1.70 a pound to $1.79 per pound.Over the same time a measure of the overall price level increased from 300 to 309.The price of copper increased by

Correct AnswerverifiedShow Answer

Indonesians,for example,have a lower standard of living than Americans because they have a lower level of productivity.

Correct AnswerverifiedShow Answer

Which of the following is indicated by the data on real income per person for various countries over the past 100 or so years?

Correct AnswerverifiedShow Answer

According to research by Robert Fogel,what proportion of the British population in 1780 was so malnourished that they could not perform manual labor?

Correct AnswerverifiedShow Answer

Human capital is

Correct AnswerverifiedShow Answer

Roughly what percentage of growth in real GDP per person in Britain between 1790 and 1980 was accounted for by improved nutrition according to the estimates of Robert Fogel?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Greater scarcity of a natural resource is indicated

Correct AnswerverifiedShow Answer

Over extended periods of time,population growth

Correct AnswerverifiedShow Answer

Which of the following is a part of your economics professor's human capital?

Correct AnswerverifiedShow Answer

It is possible for a country without a lot of domestic natural resources to have a high standard of living.

Correct AnswerverifiedShow Answer

If the number of workers in an economy doubled,all other inputs stayed the same,and there were constant returns to scale,productivity would

Correct AnswerverifiedShow Answer

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