Question 1

In the United States over the past century,real GDP per person has grown by about __________ percent per year.

Accepted Answer

2 (or,more...

Question 2

Country A has real GDP per person of 10,000 while country B has real GDP per person of 20,000.All else constant,country A will eventually have a higher standard of living than country B if

Accepted Answer

A)   the level of saving per person is 500 in country A and 750 in country B.
B)   the level of saving per person is 1,000 in country A and 1,800 in country B.
C)   Both of the above are correct.
D)   None of the above are correct.E) None of the above
F) A) and D)

Question 3

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) C) and D)
F) A) and C)

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Studies confirm that controlling for other variables such as the percentage of GDP devoted to investment,poor countries tend to grow at a faster rate than rich countries.

Accepted Answer

A) True 
 B)False

Question 6

In some countries it is time consuming and costly to establish ownership of property.Reforms to reduce these costs would likely

Accepted Answer

A)   have no affect on either real GDP nor productivity
B)   raise real GDP and productivity.
C)   raise real GDP but not productivity.
D)   raise productivity but not real GDP.E) A) and D)
F) None of the above

Question 7

Consider three imaginary countries.In Mainland,saving amounts to $4,000 and consumption amounts to $8,000;in Upland,saving amounts to $2,000 and consumption amounts to $15,000;and in Lowland,saving amounts to $6,000 and consumption amounts to $11,000.The saving rate is

Accepted Answer

A)   higher in Mainland than in Lowland,and it is higher in Lowland than in Upland.
B)   higher in Lowland than in Mainland,and it is higher in Mainland than in Upland.
C)   higher in Lowland than in Upland,and it is the same in Upland and Mainland.
D)   higher in Mainland than in Upland,and it is the same in Mainland and Lowland.E) A) and B)
F) A) and C)

Question 8

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

Question 9

In one day Madison Laundry washed 4,000 pounds of laundry with 5 workers who each worked 8 hours.What was its productivity?

Accepted Answer

A)   4000 pounds of laundry
B)   500 pounds of laundry per hour
C)   100 pounds of laundry per hour
D)   None of the above is correct.E) C) and D)
F) B) and C)

Question 10

Which of the following is a correct way to measure productivity?

Accepted Answer

A)   Divide the number of hours worked by the quantity of output.
B)   Divide the quantity of output by the number of hours worked.
C)   Determine how much output is produced in a given time.
D)   Determine how much time it takes to produce a unit of output.E) None of the above
F) A) and C)

Question 11

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) None of the above
F) A) and B)

Question 12

Accumulating capital

Accepted Answer

A)   requires that society sacrifice consumption goods in the present.
B)   allows society to consume more in the present.
C)   decreases saving rates.
D)   involves no tradeoffs.E) B) and C)
F) A) and C)

Question 13

Which list contains,in this order,a country whose real GDP per person grew faster and one whose real GDP per person grew slower than real GDP per person in the U.S.over the last 100 years?

Accepted Answer

A)   China,Pakistan
B)   United Kingdom,China
C)   Pakistan,Argentina
D)   Argentina,JapanE) All of the above
F) A) and C)

Question 14

At first patents might seem like a deterrent to growth because in effect they restrict the use of new technology.Yet many economists believe that patents generate growth.Explain why.

Accepted Answer

Once someone comes up with an idea it is...

Question 15

List the four determinants of an economy's productivity.

Accepted Answer

The four determinants are phys...

Question 16

Which of the following is human capital?

Accepted Answer

A)   a student loan
B)   understanding how to use a company's accounting software
C)   training videos for new corporate employees
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 17

In what sense is it likely that geography has an effect on a country's rate of economic growth?

Accepted Answer

Countries with natural seaport...

Question 18

In a market economy,the real,or inflation-adjusted,price of a resource measures its

Accepted Answer

A)   contribution to revenue.
B)   relative scarcity.
C)   productivity.
D)   contribution to efficiency.E) All of the above
F) B) and C)

Question 19

The population growth rate tends to be higher in developed countries than in developing countries.

Accepted Answer

A) True 
 B)False

Question 20

If there are constant returns to scale,the production function can be written as

Accepted Answer

A)   xY = 2xAF(L,K,H,N) .
B)   Y/L = A F(xL,xK,xH,xN) .
C)   Y/L = A F( 1,K/L,H/L,N/L) .
D)   L = AF(Y,K,H,N) .E) A) and B)
F) A) and D)

Exam 25: Production and Growth

The population growth rate tends to be higher in developed countries than in developing countries.

Correct AnswerverifiedShow Answer

Which of the following is human capital?

Correct AnswerverifiedShow Answer

In some countries it is time consuming and costly to establish ownership of property.Reforms to reduce these costs would likely

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In a market economy,the real,or inflation-adjusted,price of a resource measures its

Correct AnswerverifiedShow Answer

Consider three imaginary countries.In Mainland,saving amounts to $4,000 and consumption amounts to $8,000;in Upland,saving amounts to $2,000 and consumption amounts to $15,000;and in Lowland,saving amounts to $6,000 and consumption amounts to $11,000.The saving rate is

Correct AnswerverifiedShow Answer

In one day Madison Laundry washed 4,000 pounds of laundry with 5 workers who each worked 8 hours.What was its productivity?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which list contains,in this order,a country whose real GDP per person grew faster and one whose real GDP per person grew slower than real GDP per person in the U.S.over the last 100 years?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is a correct way to measure productivity?

Correct AnswerverifiedShow Answer

If there are constant returns to scale,the production function can be written as

Correct AnswerverifiedShow Answer

In what sense is it likely that geography has an effect on a country's rate of economic growth?

Correct AnswerverifiedCountries with natural seaport...View AnswerShow Answer

List the four determinants of an economy's productivity.

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

Accumulating capital

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

Correct AnswerverifiedShow Answer

At first patents might seem like a deterrent to growth because in effect they restrict the use of new technology.Yet many economists believe that patents generate growth.Explain why.

Correct AnswerverifiedOnce someone comes up with an idea it is...View AnswerShow Answer

Studies confirm that controlling for other variables such as the percentage of GDP devoted to investment,poor countries tend to grow at a faster rate than rich countries.

Correct AnswerverifiedShow Answer

In the United States over the past century,real GDP per person has grown by about __________ percent per year.

Correct Answerverified2 (or,more...View AnswerShow Answer

Country A has real GDP per person of 10,000 while country B has real GDP per person of 20,000.All else constant,country A will eventually have a higher standard of living than country B if

Correct AnswerverifiedShow Answer

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Countries with natural seaport...
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The four determinants are phys...
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Once someone comes up with an idea it is...
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2 (or,more...
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Correct Answer
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