Question 1

Per capita GDP in Japan exceeds per capita GDP in Europe because Japanese employees work more hours.

Accepted Answer

A) True 
 B)False

Question 2

Expert economists believe that the capital intensity effect on productivity in the "new economy" is mainly tied to the:

Accepted Answer

A)   increases in production of "new goods".
B)   increases in labor intensity.
C)   increases in capital services from IT assets.
D)   increases in land intensity.E) None of the above
F) A) and C)

Question 3

Resources found in nature, such as land, water, forests, mineral deposits, and air are called:

Accepted Answer

A)   land resources.
B)   labor resources.
C)   capital resources.
D)   natural resources.E) A) and D)
F) C) and D)

Question 4

Which of the following would result in an outward shift of the production possibilities curve?

Accepted Answer

A)   Efficiency improvement.
B)   A decrease in capital.
C)   Technological improvement.
D)   A decrease in land.E) None of the above
F) A) and B)

Question 5

Technology catch up offers an advantage to today's developing countries.

Accepted Answer

A) True 
 B)False  True

Question 6

The four primary resources are land, labor, capital, and entrepreneurship.

Accepted Answer

A) True 
 B)False  True

Question 7

It is always better for the economy to experience economic growth.

Accepted Answer

A) True 
 B)False

Question 8

Use the following diagram to answer the following questions.
 
-Refer to Ovens. Which combination of pizza and ovens at present (p₀-p₀)  would more likely result in growth congruent with production possibilities curve (p₁-p₁)  in the future?

Accepted Answer

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

Question 9

Use the following diagram to answer the following questions.
 
-Refer to Consumption Goods. Suppose the marginal benefit of moving from point B to point C is $500 while the marginal cost is $350. We know that:

Accepted Answer

A)   the economy should produce additional capital goods.
B)   the economy should produce additional consumption goods.
C)   the economy should stay at point B.
D)   the economy should move from point B to point A.E) A) and C)
F) C) and D)

Question 10

A production possibilities curve shows:

Accepted Answer

A)   the maximum combinations of two goods or services that can be produced when resources are fully used and the best technology is employed.
B)   the minimum combinations of two goods or services that can be produced when resources are fully used and the best technology is employed.
C)   the maximum combinations of two goods or services that can be produced when the unemployment rate in the economy is not above 6 percent.
D)   the maximum combinations of two goods or services that can be produced when the economy is at the trough of the business cycle.E) A) and B)
F) A) and C)

Question 11

Correlations between high levels of economic freedom and high standards of living prove that economic freedom causes prosperity.

Accepted Answer

A) True 
 B)False

Question 12

The management department's secretary has just gotten a new computer that allows him to do reports in less time. This is an example of:

Accepted Answer

A)   efficiency progress.
B)   efficiency change.
C)   efficiency improvement.
D)   efficiency growth.E) None of the above
F) A) and C)

Question 13

As resources are transferred from production of trucks to the production of computers, marginal cost of computers decreases.

Accepted Answer

A) True 
 B)False

Question 14

The decline in the growth of capital intensity in the United States has been caused largely by a rapid increase in labor inputs in addition to slow growth in capital inputs.

Accepted Answer

A) True 
 B)False

Question 15

Economic stagnation has become a concern because:

Accepted Answer

A)   growth rates in industrialized countries have declined significantly over the 1973 - 1990 time period.
B)   Third World countries have experienced extremely high growth rates since 1972.
C)   growth rates in Third World countries have declined significantly over the 1973 - 1990 time period.
D)   growth rates in all countries have stagnated since 1972.E) B) and C)
F) A) and D)

Question 16

Use the following diagram to answer the following questions.
 
-Refer to Ovens. Which combination of pizza and ovens at present (p₀-p₀)  would more likely result in growth congruent with production possibilities curve (p₂-p₂)  in the future?

Accepted Answer

A)   A.
B)   B.
C)   C.
D)   D.E) All of the above
F) A) and B)

Question 17

Which of the following was authored by Adam Smith?

Accepted Answer

A)   Declaration of Independence
B)   Principles of Economics
C)   The Wealth of Nations
D)   The Academic ScribblersE) None of the above
F) A) and D)

Question 18

The U.S. growth rates for the 1990-99 period has:

Accepted Answer

A)   increased compared to 1973-90 period.
B)   decreased compared to 1973-90 period.
C)   has remained the same as that of 1973-90 period.
D)   has stagnated at low rates.E) None of the above
F) B) and C) A

Question 19

Efforts and services of people in production of goods and services are:

Accepted Answer

A)   land.
B)   labor.
C)   capital.
D)   human capital.E) All of the above
F) B) and C)

Question 20

Capital resources consist of:

Accepted Answer

A)   land and physical capital.
B)   physical and human capital.
C)   land and human capital.
D)   labor and human capital.E) A) and D)
F) None of the above

Exam 1: Economic Growth: an Introduction to Scarcity and Choice

Per capita GDP in Japan exceeds per capita GDP in Europe because Japanese employees work more hours.

Correct AnswerverifiedShow Answer

Expert economists believe that the capital intensity effect on productivity in the "new economy" is mainly tied to the:

Correct AnswerverifiedShow Answer

Resources found in nature, such as land, water, forests, mineral deposits, and air are called:

Correct AnswerverifiedShow Answer

Which of the following would result in an outward shift of the production possibilities curve?

Correct AnswerverifiedShow Answer

Technology catch up offers an advantage to today's developing countries.

Correct AnswerverifiedTrue

The four primary resources are land, labor, capital, and entrepreneurship.

Correct AnswerverifiedTrue

It is always better for the economy to experience economic growth.

Correct AnswerverifiedShow Answer

Use the following diagram to answer the following questions. -Refer to Ovens. Which combination of pizza and ovens at present (p₀-p₀) would more likely result in growth congruent with production possibilities curve (p₁-p₁) in the future?

Correct AnswerverifiedShow Answer

Use the following diagram to answer the following questions. -Refer to Consumption Goods. Suppose the marginal benefit of moving from point B to point C is $500 while the marginal cost is $350. We know that:

Correct AnswerverifiedShow Answer

A production possibilities curve shows:

Correct AnswerverifiedShow Answer

Correlations between high levels of economic freedom and high standards of living prove that economic freedom causes prosperity.

Correct AnswerverifiedShow Answer

The management department's secretary has just gotten a new computer that allows him to do reports in less time. This is an example of:

Correct AnswerverifiedShow Answer

As resources are transferred from production of trucks to the production of computers, marginal cost of computers decreases.

Correct AnswerverifiedShow Answer

The decline in the growth of capital intensity in the United States has been caused largely by a rapid increase in labor inputs in addition to slow growth in capital inputs.

Correct AnswerverifiedShow Answer

Economic stagnation has become a concern because:

Correct AnswerverifiedShow Answer

Use the following diagram to answer the following questions. -Refer to Ovens. Which combination of pizza and ovens at present (p₀-p₀) would more likely result in growth congruent with production possibilities curve (p₂-p₂) in the future?

Correct AnswerverifiedShow Answer

Which of the following was authored by Adam Smith?

Correct AnswerverifiedShow Answer

The U.S. growth rates for the 1990-99 period has:

Correct AnswerverifiedA

Efforts and services of people in production of goods and services are:

Correct AnswerverifiedShow Answer

Capital resources consist of:

Correct AnswerverifiedShow Answer

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