Question 1

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units.This year the same country had 1000 workers who worked an average of 8 hours and produced 14,000 units.This country's productivity was

Accepted Answer

A)   higher this year than last year.A possible source of this change in productivity is a change in the size of the capital stock.
B)   higher this year than last year.A change in the size of the capital stock does not affect productivity.
C)   lower this year than last year.A possible source of this change in productivity is a change in the size of the capital stock.
D)   lower this year than last year.A change in the size of the capital stock does not affect productivity.E) B) and C)
F) A) and B)

Question 2

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

Question 3

Table 17-1.
Athens and Troy both produce only ribs and baked potatoes.
 
-Refer to Table 17-1.Which of the following is correct?

Accepted Answer

A)   Both productivity and the standard of living are higher in Athens than Troy.
B)   Productivity is higher in Athens while the standard of living is higher in Troy
C)   Productivity is higher in Troy while the standard of living is higher in Athens.
D)   Both productivity and the standard of living are higher in Troy than Athens.E) B) and C)
F) A) and D)

Question 4

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

Question 5

The catch-up effect says that countries with low income can grow faster than countries with higher income.However,in statistical studies that include many diverse countries we do not observe the catch-up-effect unless we control for other variables that affect productivity.Considering the determinants of productivity,list and explain some things that would tend to prohibit or limit a poor country's ability to catch up with the rich ones.

Accepted Answer

The argument that poor countries will te...

Question 6

The one variable that stands out as the most significant explanation of large variations in living standards around the world is

Accepted Answer

A)   productivity.
B)   population.
C)   preferences.
D)   prices.E) A) and B)
F) A) and C)

Question 7

Two countries are the same,except one is poorer.Assuming the traditional assumption about the production function is made there are

Accepted Answer

A)   diminishing returns to capital so the poor country grows slower.
B)   increasing returns to capital so the poor country grows slower.
C)   diminishing returns to capital so the poor country grows faster.
D)   increasing returns to capital so the poor country grows faster.E) B) and C)
F) A) and B)

Question 8

In 2008,the typical Bangladeshi had about

Accepted Answer

A)   1/5 the real income of a typical American a century ago.
B)   1/3 the real income of a typical American a century ago.
C)   2 times as much real income as that of a typical American a century ago.
D)   4 times as much real income as that of a typical American a century ago.E) B) and C)
F) A) and B)

Question 9

If a good has become more scarce,then we know for sure that

Accepted Answer

A)   the demand for it increased.
B)   the supply of it decreased.
C)   either the demand for it increased or the supply of it decreased.
D)   both the supply of it and the demand for it decreased.E) C) and D)
F) A) and B)

Question 10

Last year Panglossia had real GDP of 27.0 billion.This year it had real GDP of 31.5 billion.Which of the following changes in population is consistent with a 5 percent growth rate of real GDP per person over the last year?

Accepted Answer

A)   The population decreased from 88 million to 84 million.
B)   The population decreased from 75 million to 73 million.
C)   The population increased from 45 million to 50 million.
D)   The population increased from 60 million to 62 million.E) All of the above
F) A) and B)

Question 11

Gramp's Potato Chips produces 1280 bags of potato chips a day.Each employee at Gramp's works 8 hours.If the company's productivity is 20 bags per hour,how many people does Gramp's employ?

Accepted Answer

A)   8
B)   10
C)   80
D)   100E) None of the above
F) A) and D)

Question 12

Suppose there are constant returns to scale.Now suppose that over time a country doubles its workers,its natural resources,its physical capital,and its human capital,but its technology is unchanged.Which of the following would double?

Accepted Answer

A)   both output and productivity
B)   output,but not productivity
C)   productivity,but not output
D)   neither productivity nor outputE) A) and D)
F) B) and C)

Question 13

Petroleum is an example of a nonrenewable resource.

Accepted Answer

A) True 
 B)False

Question 14

A country's standard of living depends on its ability to produce goods and services.

Accepted Answer

A) True 
 B)False

Question 15

International data on the history of real GDP growth rates shows that over the last 110 years or so,rich countries got richer and poor countries got poorer.

Accepted Answer

A) True 
 B)False

Question 16

An increase in capital will increase real GNP per person

Accepted Answer

A)   more in a poor country than a rich country.The increase in real GNP per person will be larger if the addition to capital is from domestic rather than foreign investment.
B)   more in a poor country than a rich country.The increase in real GNP per person will be larger if the addition to capital is foreign rather than from domestic investment.
C)   less in a poor country than a rich country.The increase in real GNP per person will be larger if the addition to capital is from domestic rather than foreign investment.
D)   less in a poor country than a rich country.The increase in real GNP per person will be larger if the addition to capital is foreign rather than from domestic investment.E) C) and D)
F) A) and B)

Question 17

Which of the following would not be considered physical capital?

Accepted Answer

A)   a new factory building
B)   a computer used to help Mercury Delivery Service keep track of its orders
C)   on-the-job training
D)   a desk used in an accountant's officeE) C) and D)
F) B) and D)

Question 18

If an American-based firm opens and operates a service call center in Bulgaria,then it is engaging in

Accepted Answer

A)   foreign portfolio investment.
B)   foreign financial investment.
C)   foreign direct investment.
D)   indirect foreign investment.E) B) and C)
F) All of the above

Question 19

The president of Suldinia,a developing country,proposes that his country needs to help domestic firms by reducing trade restrictions.

Accepted Answer

A)   These are outward-oriented policies and most economists believe they would have beneficial effects on growth in Suldinia.
B)   These are outward-oriented policies and most economists believe they would have adverse effects on growth in Suldinia.
C)   These are inward-oriented policies and most economists believe they would have beneficial effects on growth in Suldinia.
D)   These are inward-oriented policies and most economists believe they would have adverse effects on growth in Suldinia.E) A) and B)
F) None of the above

Question 20

Ralph is a plumber.Which of the following are included in his physical capital?

Accepted Answer

A)   the knowledge he learned on the job,and the tools he uses
B)   the knowledge he learned on the job,but not the tools he uses
C)   the tools he uses,but not the knowledge he learned on the job
D)   neither the knowledge he learned on the job nor the tools he usesE) None of the above
F) All of the above

Exam 17: Production and Growth

Which of the following would not be considered physical capital?

Correct Answer
verified

If a good has become more scarce,then we know for sure that

Correct Answer
verified

In 2008,the typical Bangladeshi had about

Correct Answer
verified

The president of Suldinia,a developing country,proposes that his country needs to help domestic firms by reducing trade restrictions.

Correct Answer
verified

Table 17-1. Athens and Troy both produce only ribs and baked potatoes. -Refer to Table 17-1.Which of the following is correct?

Correct Answer
verified

Gramp's Potato Chips produces 1280 bags of potato chips a day.Each employee at Gramp's works 8 hours.If the company's productivity is 20 bags per hour,how many people does Gramp's employ?

Correct Answer
verified

Ralph is a plumber.Which of the following are included in his physical capital?

Correct Answer
verified

Two countries are the same,except one is poorer.Assuming the traditional assumption about the production function is made there are

Correct Answer
verified

Correct Answer
verified
The argument that poor countries will te...
View Answer

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units.This year the same country had 1000 workers who worked an average of 8 hours and produced 14,000 units.This country's productivity was

Correct Answer
verified

An increase in capital will increase real GNP per person

Correct Answer
verified

The one variable that stands out as the most significant explanation of large variations in living standards around the world is

Correct Answer
verified

If an American-based firm opens and operates a service call center in Bulgaria,then it is engaging in

Correct Answer
verified

Suppose there are constant returns to scale.Now suppose that over time a country doubles its workers,its natural resources,its physical capital,and its human capital,but its technology is unchanged.Which of the following would double?

Correct Answer
verified

Petroleum is an example of a nonrenewable resource.

Correct Answer
verified

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

Correct Answer
verified

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 Answer
verified

Last year Panglossia had real GDP of 27.0 billion.This year it had real GDP of 31.5 billion.Which of the following changes in population is consistent with a 5 percent growth rate of real GDP per person over the last year?

Correct Answer
verified

A country's standard of living depends on its ability to produce goods and services.

Correct Answer
verified

International data on the history of real GDP growth rates shows that over the last 110 years or so,rich countries got richer and poor countries got poorer.

Correct Answer
verified

Exam 17: Production and Growth

Which of the following would not be considered physical capital?

Correct AnswerverifiedShow Answer

If a good has become more scarce,then we know for sure that

Correct AnswerverifiedShow Answer

In 2008,the typical Bangladeshi had about

Correct AnswerverifiedShow Answer

The president of Suldinia,a developing country,proposes that his country needs to help domestic firms by reducing trade restrictions.

Correct AnswerverifiedShow Answer

Table 17-1. Athens and Troy both produce only ribs and baked potatoes. -Refer to Table 17-1.Which of the following is correct?

Correct AnswerverifiedShow Answer

Gramp's Potato Chips produces 1280 bags of potato chips a day.Each employee at Gramp's works 8 hours.If the company's productivity is 20 bags per hour,how many people does Gramp's employ?

Correct AnswerverifiedShow Answer

Ralph is a plumber.Which of the following are included in his physical capital?

Correct AnswerverifiedShow Answer

Two countries are the same,except one is poorer.Assuming the traditional assumption about the production function is made there are

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe argument that poor countries will te...View AnswerShow Answer

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units.This year the same country had 1000 workers who worked an average of 8 hours and produced 14,000 units.This country's productivity was

Correct AnswerverifiedShow Answer

An increase in capital will increase real GNP per person

Correct AnswerverifiedShow Answer

The one variable that stands out as the most significant explanation of large variations in living standards around the world is

Correct AnswerverifiedShow Answer

If an American-based firm opens and operates a service call center in Bulgaria,then it is engaging in

Correct AnswerverifiedShow Answer

Suppose there are constant returns to scale.Now suppose that over time a country doubles its workers,its natural resources,its physical capital,and its human capital,but its technology is unchanged.Which of the following would double?

Correct AnswerverifiedShow Answer

Petroleum is an example of a nonrenewable resource.

Correct AnswerverifiedShow Answer

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

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

Last year Panglossia had real GDP of 27.0 billion.This year it had real GDP of 31.5 billion.Which of the following changes in population is consistent with a 5 percent growth rate of real GDP per person over the last year?

Correct AnswerverifiedShow Answer

A country's standard of living depends on its ability to produce goods and services.

Correct AnswerverifiedShow Answer

International data on the history of real GDP growth rates shows that over the last 110 years or so,rich countries got richer and poor countries got poorer.

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
verified
The argument that poor countries will te...
View 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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