Question 1

In the country of Suchnott,the price of silver increased from $30 per ounce to $32 per ounce during a time when the overall price level increased by 5 percent.During this period,the real price of silver

Accepted Answer

A)   increased.
B)   decreased.
C)   stayed the same.
D)   might have increased,decreased or stayed the same;more information is needed to be sure.E) A) and C)
F) All of the above

Question 2

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

Accepted Answer

A)   4 percent per year,which implies a doubling about every 18 years.
B)   4 percent per year,which implies a doubling about every 8 years.
C)   2 percent per year,which implies a doubling about every 35 years.
D)   2 percent per year,which implies a doubling about every 18 years.E) A) and B)
F) All of the above

Question 3

Other things the same,if a country raises its saving rate,then in the long run

Accepted Answer

A)   both the level and growth rate of real GDP are unchanged.
B)   the level of real GDP is higher but the growth rate of real GDP is unchanged.
C)   both the level and growth rate of real GDP are higher.
D)   None of the above are correct.E) None of the above
F) C) and D)

Question 4

Historical trends in the prices of most natural resources compared to prices of other goods indicate that natural resources have become scarcer over time.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is considered human capital?

Accepted Answer

A)   the comfortable chair in your dorm room where you read economics texts
B)   the amount you get paid each week to work at the library
C)   the things you have learned this semester
D)   any capital goods that require a human to be present to operateE) A) and B)
F) A) and C)

Question 6

If a rich country reduced subsidies to domestic producers who produce goods for which poor countries have a comparative advantage,the standard of living in these poor countries would likely rise.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following does the level of real GDP measure?

Accepted Answer

A)   total real income
B)   productivity
C)   the standard of living
D)   All of the above are correct.E) B) and C)
F) A) and D)

Question 8

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) A) and C)
F) All of the above

Question 9

How do outward-oriented policies affect a nation's productivity?

Accepted Answer

Most economists believe that poor nation...

Question 10

If natural resources had become scarcer,then we would expect their

Accepted Answer

A)   prices to have risen more than inflation as they have.
B)   prices to have risen more than inflation,but they have not.
C)   known quantities to have fallen as they have.
D)   known quantities to have fallen but they have not.E) A) and B)
F) A) and C)

Question 11

The inputs into production of goods and services that are provided by nature,such as land,rivers,and mineral deposits are called

Accepted Answer

A)   physical capital.
B)   natural resources.
C)   human capital.
D)   technological knowledge.E) A) and B)
F) All of the above

Question 12

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) A) and B)
F) B) and C)

Question 13

You bake cookies.One day you double the time you spend,double the number of chocolate chips,flour,eggs,and all your other inputs,and bake twice as many cookies.Your cookie production function has

Accepted Answer

A)   decreasing returns to scale.
B)   zero returns to scale.
C)   constant returns to scale.
D)   increasing returns to scale.E) B) and D)
F) A) and D)

Question 14

Which of the following statements is correct?

Accepted Answer

A)   In 1870,real income per person was higher in the United Kingdom than in any other country at that time.
B)   Between 1870 and 2006,India experienced significantly stronger growth of real income per person than did the United States.
C)   Between 1870 and 2006,the United States experienced significantly stronger growth of real income per person than did Canada.
D)   All of the above are correct.E) A) and B)
F) None of the above

Question 15

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 16

Average income has been stagnant for many years in

Accepted Answer

A)   Argentina.
B)   Singapore.
C)   Nigeria.
D)   All of the above are correct.E) B) and D)
F) A) and B)

Question 17

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) B) and D)
F) A) and B)

Question 18

In a market economy,we know that a resource has become scarcer when

Accepted Answer

A)   both the demand for the good and the supply of the good have increased.
B)   both the demand for the good and the supply of the good have decreased.
C)   the demand for the good has increased and the supply has decreased.
D)   the demand for the good has decreased and the supply has remained constant.E) None of the above
F) All of the above

Question 19

Scenario 25-1.An economy's production form takes the form Y = AF(L,K,H,N) .
-Refer to Scenario 25-1.In the production function,which variable would increase in value as technology improved?

Accepted Answer

A)   A
B)   K
C)   H
D)   NE) B) and D)
F) All of the above

Question 20

If a country's saving rate increases,then in the long run

Accepted Answer

A)   productivity is higher but real GDP per person is not higher.
B)   real GDP per person is higher but productivity is not higher.
C)   productivity and real GDP per person are both higher.
D)   neither productivity nor real GDP per person is higher.E) B) and C)
F) A) and C)

Exam 25: Production and Growth

The inputs into production of goods and services that are provided by nature,such as land,rivers,and mineral deposits are called

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

If natural resources had become scarcer,then we would expect their

Correct AnswerverifiedShow Answer

Which of the following does the level of real GDP measure?

Correct AnswerverifiedShow Answer

In a market economy,we know that a resource has become scarcer when

Correct AnswerverifiedShow Answer

How do outward-oriented policies affect a nation's productivity?

Correct AnswerverifiedMost economists believe that poor nation...View AnswerShow Answer

If a country's saving rate increases,then in the long run

Correct AnswerverifiedShow Answer

In the country of Suchnott,the price of silver increased from $30 per ounce to $32 per ounce during a time when the overall price level increased by 5 percent.During this period,the real price of silver

Correct AnswerverifiedShow Answer

Other things the same,if a country raises its saving rate,then in the long run

Correct AnswerverifiedShow Answer

Over extended periods of time,population growth

Correct AnswerverifiedShow Answer

Average income has been stagnant for many years in

Correct AnswerverifiedShow Answer

Which of the following is considered human capital?

Correct AnswerverifiedShow Answer

Which of the following statements about inputs is correct?

Correct AnswerverifiedShow Answer

You bake cookies.One day you double the time you spend,double the number of chocolate chips,flour,eggs,and all your other inputs,and bake twice as many cookies.Your cookie production function has

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Scenario 25-1.An economy's production form takes the form Y = AF(L,K,H,N) . -Refer to Scenario 25-1.In the production function,which variable would increase in value as technology improved?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If a rich country reduced subsidies to domestic producers who produce goods for which poor countries have a comparative advantage,the standard of living in these poor countries would likely rise.

Correct AnswerverifiedShow Answer

Historical trends in the prices of most natural resources compared to prices of other goods indicate that natural resources have become scarcer over time.

Correct AnswerverifiedShow Answer

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Most economists believe that poor nation...
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