Question 1

If a newly elected government takes actions that makes its country's courts more efficient and less corrupt, then

Accepted Answer

A)  producers will have greater confidence that they will benefit from their efforts.
B)  producers are likely to be more specialized.
C)  buyers and sellers will be more likely to honor contracts.
D)  All of the above are correct.E) A) and B)
F) A) and C)

Question 2

A leading environmental group recently published a report contending that humans are running a "resource deficit" because we are using natural resources faster than they can be regenerated. The group claims that this means that economic growth will eventually stop, and will even be reversed. An economist would

Accepted Answer

A)  agree with the report, and would point to rising natural resource prices as evidence.
B)  agree with the report, but wouldn't think it was important because growth will not slow down for several centuries.
C)  disagree with the report, in part because it ignores the mitigating effects of technological change.
D)  disagree with the report because labor and capital are the primary determinants of growth, and since they are plentiful, growth will not slow down.E) A) and D)
F) None of the above

Question 3

In which of the following countries has economic growth been sufficiently high that income would double every ten years?

Accepted Answer

A)  India
B)  Mexico
C)  South Korea
D)  ZimbabweE) None of the above
F) A) and B)

Question 4

​The BRAC anti-poverty program in Bangladesh gave poor families training on how to raise livestock, a savings account, and help with their physical and mental health. These policies can potentially improve economic growth by increasing

Accepted Answer

A)  education, savings, and human capital, respectively.
B)  ​physical capital, savings, and natural resources, respectively.
C)  ​property rights, research and development, and human capital, respectively.
D)  ​education, research and development, and natural resources, respectively.E) A) and D)
F) All of the above

Question 5

Which of the following is not correct?

Accepted Answer

A)  Across countries there are large differences in the average income per person. These differences are reflected in large differences in the quality of life.
B)  With a growth rate of about 2 percent per year, average income per person doubles about every 60 years.
C)  The ranking of countries by average income changes substantially over time.
D)  In some countries real income per person has changed very little over many years.E) A) and B)
F) B) and C)

Question 6

Suppose that a country increased its saving rate. In the long run it would have

Accepted Answer

A)  higher productivity, and another unit of capital would increase output by more than before.
B)  higher productivity, but another unit of capital would increase output by less than before.
C)  lower productivity, and another unit of capital would increase output by more than before.
D)  lower productivity, but another unit of capital would increase output by less than before.E) B) and C)
F) B) and D)

Question 7

An increase in a country's population may contribute to the rate of technological progress because a larger population

Accepted Answer

A)  forces the capital stock to be spread more thinly.
B)  forces natural resources to be spread more thinly.
C)  brings with it more scientists, inventors, and engineers.
D)  brings with it more favorable recognition from other countries.E) None of the above
F) A) and C)

Question 8

When a country imposes tariffs, intending to protect domestic firms from foreign competition, it is pursuing _______-oriented policies.

Accepted Answer

The answer of When a country imposes tariffs, intending to...

Question 9

The Karmic Deed Restaurant uses all of the following to produce vegetarian meals. Which of them is an example of physical capital?

Accepted Answer

A)  the owner's knowledge of how to prepare vegetarian entrees
B)  the money in the owner's account at the bank from which she borrowed money
C)  the tables and chairs in the restaurant
D)  the fresh fruits, vegetables, and grains the restaurant uses to prepare its mealsE) A) and B)
F) A) and C)

Question 10

In one day Alpha Cabinet Company made 40 cabinets with 320 hours of labor. What was Alpha Cabinet Company's productivity?

Accepted Answer

A)  1/8 cabinet per hour
B)  8 hours per cabinet
C)  40 cabinets
D)  None of the above is correct.E) B) and D)
F) A) and B)

Question 11

If a country made it easier for people to establish and prove the ownership of their property, real GDP per person would likely rise.

Accepted Answer

A) True 
 B)False

Question 12

If a production function has constant returns to scale, output can be doubled if

Accepted Answer

A)  labor alone doubles.
B)  all inputs but labor double.
C)  all of the inputs double.
D)  None of the above is correct.E) C) and D)
F) B) and D)

Question 13

Investment in human capital has opportunity costs, but investment in physical capital does not.

Accepted Answer

A) True 
 B)False

Question 14

List the four determinants of an economy's productivity.

Accepted Answer

The four determinants are phys...

Question 15

A basic principle of economics is that a country's standard of living depends on its

Accepted Answer

A)  quantity of physical capital.
B)  abundance of natural resources.
C)  ability to produce goods and services.
D)  ability to thrive economically without having to interact with other countries.E) A) and B)
F) A) and C)

Question 16

Suppose that there are diminishing returns to capital. Suppose also that two countries are the same except one has more capital per worker and so it has more real GDP per worker than the other. Finally, suppose that the saving rate in both countries increases from 4 percent to 7 percent. Over the next ten years we would expect that

Accepted Answer

A)  the growth rate will not change in either country.
B)  the country that started with less capital per worker will grow faster.
C)  the country that started with more capital per worker will grow faster.
D)  both countries will grow and at the same higher rate.E) B) and D)
F) B) and C)

Question 17

Average income has been stagnant for many years in

Accepted Answer

A)  Western European counties.
B)  some Asian countries like South Korea and Singapore.
C)  some Sub-Saharan African countries.
D)  All of the above are correct.E) None of the above
F) A) and C)

Question 18

Which of the following countries had the highest level of real GDP per person in 2014?

Accepted Answer

A)  Germany
B)  Canada
C)  United States
D)  JapanE) None of the above
F) C) and D)

Question 19

The logic behind the catch-up effect is that

Accepted Answer

A)  workers in countries with low incomes will work more hours than workers in countries with high incomes.
B)  the capital stock in rich countries deteriorates at a higher rate because it already has a lot of capital.
C)  new capital adds more to production in a country that doesn't have much capital than in a country that already has much capital.
D)  None of the above is correct.E) A) and C)
F) A) and D)

Question 20

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

Exam 25: Production and Growth

Which of the following is not correct?

Correct Answer
verified

The Karmic Deed Restaurant uses all of the following to produce vegetarian meals. Which of them is an example of physical capital?

Correct Answer
verified

In which of the following countries has economic growth been sufficiently high that income would double every ten years?

Correct Answer
verified

A basic principle of economics is that a country's standard of living depends on its

Correct Answer
verified

If a production function has constant returns to scale, output can be doubled if

Correct Answer
verified

In one day Alpha Cabinet Company made 40 cabinets with 320 hours of labor. What was Alpha Cabinet Company's productivity?

Correct Answer
verified

Average income has been stagnant for many years in

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

If a country made it easier for people to establish and prove the ownership of their property, real GDP per person would likely rise.

Correct Answer
verified

If a newly elected government takes actions that makes its country's courts more efficient and less corrupt, then

Correct Answer
verified

The BRAC anti-poverty program in Bangladesh gave poor families training on how to raise livestock, a savings account, and help with their physical and mental health. These policies can potentially improve economic growth by increasing

Correct Answer
verified

The logic behind the catch-up effect is that

Correct Answer
verified

Investment in human capital has opportunity costs, but investment in physical capital does not.

Correct Answer
verified

Which of the following countries had the highest level of real GDP per person in 2014?

Correct Answer
verified

Japan's status as a rich nation is attributable to

Correct Answer
verified

List the four determinants of an economy's productivity.

Correct Answer
verified
The four determinants are phys...
View Answer

Suppose that a country increased its saving rate. In the long run it would have

Correct Answer
verified

An increase in a country's population may contribute to the rate of technological progress because a larger population

Correct Answer
verified

When a country imposes tariffs, intending to protect domestic firms from foreign competition, it is pursuing _______-oriented policies.

Correct Answer
verified

Exam 25: Production and Growth

Which of the following is not correct?

Correct AnswerverifiedShow Answer

The Karmic Deed Restaurant uses all of the following to produce vegetarian meals. Which of them is an example of physical capital?

Correct AnswerverifiedShow Answer

In which of the following countries has economic growth been sufficiently high that income would double every ten years?

Correct AnswerverifiedShow Answer

A basic principle of economics is that a country's standard of living depends on its

Correct AnswerverifiedShow Answer

If a production function has constant returns to scale, output can be doubled if

Correct AnswerverifiedShow Answer

In one day Alpha Cabinet Company made 40 cabinets with 320 hours of labor. What was Alpha Cabinet Company's productivity?

Correct AnswerverifiedShow Answer

Average income has been stagnant for many years in

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If a country made it easier for people to establish and prove the ownership of their property, real GDP per person would likely rise.

Correct AnswerverifiedShow Answer

If a newly elected government takes actions that makes its country's courts more efficient and less corrupt, then

Correct AnswerverifiedShow Answer

​The BRAC anti-poverty program in Bangladesh gave poor families training on how to raise livestock, a savings account, and help with their physical and mental health. These policies can potentially improve economic growth by increasing

Correct AnswerverifiedShow Answer

The logic behind the catch-up effect is that

Correct AnswerverifiedShow Answer

Investment in human capital has opportunity costs, but investment in physical capital does not.

Correct AnswerverifiedShow Answer

Which of the following countries had the highest level of real GDP per person in 2014?

Correct AnswerverifiedShow Answer

Japan's status as a rich nation is attributable to

Correct AnswerverifiedShow Answer

List the four determinants of an economy's productivity.

Correct AnswerverifiedThe four determinants are phys...View AnswerShow Answer

Suppose that a country increased its saving rate. In the long run it would have

Correct AnswerverifiedShow Answer

An increase in a country's population may contribute to the rate of technological progress because a larger population

Correct AnswerverifiedShow Answer

When a country imposes tariffs, intending to protect domestic firms from foreign competition, it is pursuing _______-oriented policies.

Correct AnswerverifiedShow Answer

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
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Correct Answer
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Correct Answer
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Correct Answer
verified

The BRAC anti-poverty program in Bangladesh gave poor families training on how to raise livestock, a savings account, and help with their physical and mental health. These policies can potentially improve economic growth by increasing

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The four determinants are phys...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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