Question 1

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 D)
F) A) and B)

Question 2

Country A has a population of 1,000,of whom 700 worked an average of 8 hours a day and had a productivity of 2.5.Country B has a population of 800,of whom 560 worked 8 hours a day and had productivity of 3.0.The country with the higher real GDP was

Accepted Answer

A)   country A,and the country with higher real GDP per person was country A.
B)   country A,and the country with higher real GDP per person was country B.
C)   country B,and the country with higher real GDP per person was country A.
D)   country B,and the country with higher real GDP per person was country B.E) C) and D)
F) B) and D)

Question 3

In which of the following cases can we be certain that a natural resource has become scarcer?

Accepted Answer

A)   both the demand for the resource and the supply of the resource have increased
B)   both the demand for the resource and the supply of the resource have decreased
C)   demand for the resource is unchanged and the supply of the resource has increased
D)   the demand for the resource has decreased and the supply of the resource is unchangedE) A) and D)
F) B) and C)

Question 4

The same size decrease in the amount of capital stock per worker will cause output per worker to fall by more in a country with a relatively high level of capital per worker than in a country with a relatively low level of capital per worker.

Accepted Answer

A) True 
 B)False

Question 5

Other things the same,an economy's factors of production are likely to be used more effectively if there is an economywide respect for property rights.

Accepted Answer

A) True 
 B)False

Question 6

Other things the same,higher population growth

Accepted Answer

A)   raises the amount of physical capital per worker and there is some evidence that it raises the pace of technological progress.
B)   raises the amount of physical capital per worker,but there is some evidence that it reduces the pace of technological progress.
C)   reduces the amount of physical capital per worker,but there is some evidence that it raises the pace of technological progress.
D)   reduces the amount of physical capital per worker and there is some evidence that it reduces the pace of technological progress.E) B) and C)
F) A) and D)

Question 7

What do we mean when we say that some technological knowledge is not proprietary?

Accepted Answer

Technological knowledge is not...

Question 8

Which of the following would be considered physical capital?

Accepted Answer

A)   the available knowledge on how to make semiconductors
B)   a taxi-cab driver's knowledge of the fastest routes to take
C)   bulldozers,backhoes and other construction equipment
D)   All of the above are correct.E) A) and D)
F) B) and C)

Question 9

An organization that tries to encourage the flow of investment to poor countries is the

Accepted Answer

A)   World Bank.
B)   Organization of Less Developed Countries.
C)   Alliance of Developing Countries.
D)   International Development Alliance.E) A) and B)
F) A) and C)

Question 10

When a society decides to increase its quantity of physical capital,the society

Accepted Answer

A)   can avoid the usual need to face trade-offs.
B)   is apparently not very concerned about its rate of economic growth in the future.
C)   is in effect deciding to consume fewer goods and services in the present.
D)   is in effect deciding to save less of its current income in the present.E) None of the above
F) A) and C)

Question 11

In the long run,a higher saving rate

Accepted Answer

A)   cannot increase the capital stock.
B)   means that people must consume less in the future.
C)   increases the level of productivity.
D)   None of the above is correct.E) C) and D)
F) None of the above

Question 12

Human capital

Accepted Answer

A)   can be thought of,metaphorically,as the quality of society's textbooks,whereas technological knowledge can be thought of as the time that the population has devoted to reading textbooks.
B)   is more tangible than physical capital.
C)   is an input in the production of goods and services.
D)   is the same as the quantity of labor.E) B) and D)
F) B) and C)

Question 13

How does the phenomenon of diminishing returns to capital explain the catch-up effect?

Accepted Answer

When an economy initially has a small am...

Question 14

Consider the nations of Canada,the United Kingdom,and the United States.Since 1870,which of these nations has progressed,in an economic sense,more slowly than the other two nations?

Accepted Answer

The United Kingdom's growth ra...

Question 15

The average income in a rich country,such as the United States or Japan,is more than

Accepted Answer

A)   3 times,but less than 5 times,the average income in a poor country,such as Indonesia or Nigeria.
B)   5 times,but less than 10 times,the average income in a poor country,such as Indonesia or Nigeria.
C)   10 times,but less than 20 times,the average income in a poor country,such as Indonesia or Nigeria.
D)   more than 20 times the average income in a poor country,such as Indonesia or Nigeria.E) B) and C)
F) All of the above

Question 16

If over a short time there is an increase in the number of people retired and a decrease in the number of people working,then productivity

Accepted Answer

A)   and real GDP per person rise.
B)   rises but real GDP per person falls.
C)   falls and real GDP per person rises.
D)   and real GDP per person fall.E) None of the above
F) All of the above

Question 17

Popeye produces 20 cans of spinach in 8 hours.Wimpy produces 15 hamburgers in 10 hours.If each hamburger trades for 1.5 cans of spinach,then

Accepted Answer

A)   Popeye's production and productivity are greater than Wimpy's.
B)   Popeye's production is greater than Wimpy's,but his productivity is less.
C)   Wimpy's production and productivity are greater than Popeye's.
D)   Wimpy's production is greater than Popeye's,but his productivity is less.E) A) and C)
F) B) and D)

Question 18

Over the period 1960-1991,

Accepted Answer

A)   South Korea had a higher growth rate than the United States because it had a higher ratio of investment to GDP.
B)   the United States had a higher growth rate than South Korea because it had a higher ratio of investment to GDP.
C)   South Korea had a higher growth rate than the United States even though it had a similar ratio of investment to GDP.
D)   the United States had a higher growth rate than South Korea even though it had a similar ratio of investment to real GDP.E) A) and D)
F) None of the above

Question 19

Proprietary technology is knowledge that is

Accepted Answer

A)   known but no longer used much.
B)   known,but only recently discovered.
C)   known mostly by only those in a certain profession.
D)   known only by the company that discovered it.E) All of the above
F) A) and D)

Question 20

Both the standard of living and the growth of real GDP per person vary widely across countries.

Accepted Answer

A) True 
 B)False

Exam 25: Production and Growth

An organization that tries to encourage the flow of investment to poor countries is the

Correct AnswerverifiedShow Answer

In which of the following cases can we be certain that a natural resource has become scarcer?

Correct AnswerverifiedShow Answer

What do we mean when we say that some technological knowledge is not proprietary?

Correct AnswerverifiedTechnological knowledge is not...View AnswerShow Answer

Other things the same,higher population growth

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The same size decrease in the amount of capital stock per worker will cause output per worker to fall by more in a country with a relatively high level of capital per worker than in a country with a relatively low level of capital per worker.

Correct AnswerverifiedShow Answer

In the long run,a higher saving rate

Correct AnswerverifiedShow Answer

Country A has a population of 1,000,of whom 700 worked an average of 8 hours a day and had a productivity of 2.5.Country B has a population of 800,of whom 560 worked 8 hours a day and had productivity of 3.0.The country with the higher real GDP was

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Over the period 1960-1991,

Correct AnswerverifiedShow Answer

Other things the same,an economy's factors of production are likely to be used more effectively if there is an economywide respect for property rights.

Correct AnswerverifiedShow Answer

When a society decides to increase its quantity of physical capital,the society

Correct AnswerverifiedShow Answer

Both the standard of living and the growth of real GDP per person vary widely across countries.

Correct AnswerverifiedShow Answer

Consider the nations of Canada,the United Kingdom,and the United States.Since 1870,which of these nations has progressed,in an economic sense,more slowly than the other two nations?

Correct AnswerverifiedThe United Kingdom's growth ra...View AnswerShow Answer

If over a short time there is an increase in the number of people retired and a decrease in the number of people working,then productivity

Correct AnswerverifiedShow Answer

Human capital

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Popeye produces 20 cans of spinach in 8 hours.Wimpy produces 15 hamburgers in 10 hours.If each hamburger trades for 1.5 cans of spinach,then

Correct AnswerverifiedShow Answer

Proprietary technology is knowledge that is

Correct AnswerverifiedShow Answer

The average income in a rich country,such as the United States or Japan,is more than

Correct AnswerverifiedShow Answer

Which of the following would be considered physical capital?

Correct AnswerverifiedShow Answer

How does the phenomenon of diminishing returns to capital explain the catch-up effect?

Correct AnswerverifiedWhen an economy initially has a small am...View AnswerShow Answer

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Technological knowledge is not...
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The United Kingdom's growth ra...
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When an economy initially has a small am...
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