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)  60%
B)  45%
C)  30%
D)  15%E) All of the above
F) A) and B)

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Lower Equitoral and Upper Equitorial are the same except Lower Equitorial has a smaller capital stock.Both countries undertake policies that raise their saving rates to the same higher level.We'd expect that

Accepted Answer

A)  both countries would have permanent increases in their growth rates, but the increase would initially be larger in Lower Equitorial.
B)  both countries would have permanent increases in their growth rates, but the increase would initially be smaller in Upper Equitorial.
C)  both countries would have temporary increases in their growth rates, but the increase would be larger in Lower Equitorial.
D)  both countries would have temporary increases in their growth rates, but the increase would be smaller in Lower Equitorial.E) A) and D)
F) All of the above

Question 4

Some data that at first might seem puzzling: The share of GDP devoted to investment was similar for the United States and South Korea from 1960-1991.However,during these same years South Korea had a 6 percent growth rate of average annual income,while the United States had only a 2 percent growth rate.If the saving rates were the same,why were the growth rates so different?

Accepted Answer

The explanation is based on the concept ...

Question 5

Other things the same,a country that increases its savings rate will have

Accepted Answer

A)  higher future capital and higher future real GDP per person.
B)  higher future capital but not higher future real GDP per person.
C)  higher future real GDP per person but not higher future capital.
D)  neither higher future capital nor higher future real GDP per person.E) C) and D)
F) A) and B)

Question 6

Which of the following 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)  An absence of well-established and well-enforced property rights appears to associated with a reduced standard of living.
D)  All of the above are correct.E) None of the above
F) A) and D)

Question 7

Constant returns to scale is the point on a production function where increasing inputs will no longer increase output.

Accepted Answer

A) True 
 B)False

Question 8

What is the difference between human capital and technology?

Accepted Answer

Technology is society's understanding of...

Question 9

The inputs used to produce goods and services are also called

Accepted Answer

A)  productivity indicators.
B)  capitalization producers.
C)  production functions.
D)  factors of production.E) C) and D)
F) None of the above

Question 10

The equipment and structures available to produce goods and services are called

Accepted Answer

A)  physical capital.
B)  human capital.
C)  the production function.
D)  technology.E) C) and D)
F) All of the above

Question 11

Michael Kramer found that world growth rates fell as population increased.

Accepted Answer

A) True 
 B)False

Question 12

If natural resources had become scarcer,then we'd 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 D)
F) B) and C)

Question 13

International data on the history of real GDP growth rates shows that over the last 100 years or so,rich countries got richer and poor countries got poorer.

Accepted Answer

A) True 
 B)False

Question 14

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)  has no tradeoffs.E) B) and C)
F) A) and D)

Question 15

Last year Panglossia had real GDP of 3000 billion.This year it had real GDP of 3116 billion.Which of the following values of population would be consistent with a 2.5% growth rate of real GDP per person?

Accepted Answer

A)  The population fell from 76 million to 75 million.
B)  The population rose from 75 million to 76 million.
C)  The population fell from 80 million to 78 million.
D)  The population rose from 80 million to 78 million.E) A) and B)
F) A) and C)

Question 16

Which of the following is consistent with the catch-up effect?

Accepted Answer

A)  The United States had a higher growth rate before 1900 than after.
B)  After World War II the United States had lower growth rates than war-ravaged European countries.
C)  Although the United States has a relatively high level of output per person, its growth rate is rather modest compared to some countries.
D)  All of the above are correct.E) All of the above
F) B) and C)

Question 17

Which of the following best describes the response of output as time passes to an increase in the saving rate?

Accepted Answer

A)  The growth rate of output does not change.
B)  The growth rate of output increases and gets even larger as time passes.
C)  The growth rate of output increases and does not change as time passes.
D)  The growth rate of output increases, but diminishes to its former level as time passes.E) C) and D)
F) All of the above

Question 18

Dilbert's Incorporated produced 6,000,000 units of software in 2005.At the start of 2006 pointy-haired boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units.Based on these numbers what happened to productivity?

Accepted Answer

A)  It fell by about 16.7%.
B)  It stayed the same.
C)  It rose by about 16.7%.
D)  It rose by about 40%.E) B) and C)
F) B) and D)

Question 19

Mary looks over reports on four of her workers.Jack made 25 baskets in 5 hours.Walter made 36 baskets in 6 hours.Rudy made 40 baskets in 10 hours.Sam made 22 baskets in four hours.Who has the greatest productivity?

Accepted Answer

A)  Jack
B)  Walter
C)  Rudy
D)  SamE) C) and D)
F) B) and C)

Question 20

Suppose Japanese-based Sony Corporation builds and operates a new digital camera factory in the United States.Future production from such an investment would

Accepted Answer

A)  increase U.S.GNP more than it would increase U.S.GDP.
B)  increase U.S.GDP more than it would increase U.S.GNP.
C)  not affect U.S.GNP, but would increase U.S.GDP.
D)  have no affect on U.S.GNP or GDP.E) C) and D)
F) A) and B)

Exam 25: Production and Growth

What is the difference between human capital and technology?

Correct Answer
verified
Technology is society's understanding of...
View Answer

Other things the same,a country that increases its savings rate will have

Correct Answer
verified

The equipment and structures available to produce goods and services are called

Correct Answer
verified

Accumulating capital

Correct Answer
verified

The inputs used to produce goods and services are also called

Correct Answer
verified

International data on the history of real GDP growth rates shows that over the last 100 years or so,rich countries got richer and poor countries got poorer.

Correct Answer
verified

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

Correct Answer
verified

Last year Panglossia had real GDP of 3000 billion.This year it had real GDP of 3116 billion.Which of the following values of population would be consistent with a 2.5% growth rate of real GDP per person?

Correct Answer
verified

Suppose Japanese-based Sony Corporation builds and operates a new digital camera factory in the United States.Future production from such an investment would

Correct Answer
verified

If natural resources had become scarcer,then we'd expect their

Correct Answer
verified

Dilbert's Incorporated produced 6,000,000 units of software in 2005.At the start of 2006 pointy-haired boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units.Based on these numbers what happened to productivity?

Correct Answer
verified

Michael Kramer found that world growth rates fell as population increased.

Correct Answer
verified

Mary looks over reports on four of her workers.Jack made 25 baskets in 5 hours.Walter made 36 baskets in 6 hours.Rudy made 40 baskets in 10 hours.Sam made 22 baskets in four hours.Who has the greatest productivity?

Correct Answer
verified

Correct Answer
verified
The explanation is based on the concept ...
View 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 Answer
verified

Which of the following is consistent with the catch-up effect?

Correct Answer
verified

Which of the following best describes the response of output as time passes to an increase in the saving rate?

Correct Answer
verified

Lower Equitoral and Upper Equitorial are the same except Lower Equitorial has a smaller capital stock.Both countries undertake policies that raise their saving rates to the same higher level.We'd expect that

Correct Answer
verified

Constant returns to scale is the point on a production function where increasing inputs will no longer increase output.

Correct Answer
verified

Which of the following is correct?

Correct Answer
verified

Exam 25: Production and Growth

What is the difference between human capital and technology?

Correct AnswerverifiedTechnology is society's understanding of...View AnswerShow Answer

Other things the same,a country that increases its savings rate will have

Correct AnswerverifiedShow Answer

The equipment and structures available to produce goods and services are called

Correct AnswerverifiedShow Answer

Accumulating capital

Correct AnswerverifiedShow Answer

The inputs used to produce goods and services are also called

Correct AnswerverifiedShow Answer

International data on the history of real GDP growth rates shows that over the last 100 years or so,rich countries got richer and poor countries got poorer.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Last year Panglossia had real GDP of 3000 billion.This year it had real GDP of 3116 billion.Which of the following values of population would be consistent with a 2.5% growth rate of real GDP per person?

Correct AnswerverifiedShow Answer

Suppose Japanese-based Sony Corporation builds and operates a new digital camera factory in the United States.Future production from such an investment would

Correct AnswerverifiedShow Answer

If natural resources had become scarcer,then we'd expect their

Correct AnswerverifiedShow Answer

Dilbert's Incorporated produced 6,000,000 units of software in 2005.At the start of 2006 pointy-haired boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units.Based on these numbers what happened to productivity?

Correct AnswerverifiedShow Answer

Michael Kramer found that world growth rates fell as population increased.

Correct AnswerverifiedShow Answer

Mary looks over reports on four of her workers.Jack made 25 baskets in 5 hours.Walter made 36 baskets in 6 hours.Rudy made 40 baskets in 10 hours.Sam made 22 baskets in four hours.Who has the greatest productivity?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe explanation is based on the concept ...View AnswerShow 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 is consistent with the catch-up effect?

Correct AnswerverifiedShow Answer

Which of the following best describes the response of output as time passes to an increase in the saving rate?

Correct AnswerverifiedShow Answer

Lower Equitoral and Upper Equitorial are the same except Lower Equitorial has a smaller capital stock.Both countries undertake policies that raise their saving rates to the same higher level.We'd expect that

Correct AnswerverifiedShow Answer

Constant returns to scale is the point on a production function where increasing inputs will no longer increase output.

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Correct Answer
verified
Technology is society's understanding of...
View Answer

Correct Answer
verified

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 explanation is based on the concept ...
View Answer

Correct Answer
verified

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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