Question 1

Over the past 100 years,Canadian real GDP per person has doubled about every 35 years.If in the next 100 years it doubles every 25 years,then what will Canadian real GDP per person be a century from now?

Accepted Answer

A)  4 times higher than it is now
B)  8 times higher than it is now
C)  12 times higher than it is now
D)  16 times higher than it is nowE) B) and D)
F) B) and C)

Question 2

An increase in the saving rate does not permanently increase the growth rate of real GDP per person.

Accepted Answer

A) True 
 B)False

Question 3

According to an economist,what kind of goods are national defence and knowledge?

Accepted Answer

A)  private goods
B)  public goods
C)  normal goods
D)  societal goodsE) A) and B)
F) B) and C)

Question 4

Drug companies can usually obtain patents on new drugs.Which of the following goods do patents turn new ideas into?

Accepted Answer

A)  private goods, which increase the incentive to engage in research
B)  private goods, which decrease the incentive to engage in research
C)  public goods, which increase the incentive to engage in research
D)  public goods, which decrease the incentive to engage in researchE) A) and D)
F) None of the above

Question 5

Once one person discovers an idea,the idea generally enters society's pool of knowledge.Therefore,knowledge is generally what kind of good?

Accepted Answer

A)  a societal good
B)  a private good
C)  a public good
D)  a normal goodE) B) and C)
F) None of the above

Question 6

According to the traditional view,in what direction is the slope of the production function,with capital per worker on the horizontal axis and output per worker on the vertical axis?

Accepted Answer

A)  The slope is positive and becomes steeper as capital per worker rises.
B)  The slope is positive and becomes flatter as capital per worker rises.
C)  The slope is constant.
D)  The slope is negative and becomes steeper as capital per worker rises.E) B) and D)
F) C) and D)

Question 7

One of the ten principles of economics is that people face tradeoffs.The growth that arises from capital accumulation is not a free lunch.What is the opportunity cost of that capital accumulation?

Accepted Answer

A)  People need to work longer hours, thus having less time for leisure.
B)  People need to consume less goods and services now in order to enjoy more consumption in the future.
C)  People need to recycle resources so that future generations can produce goods and services with the accumulated capital.
D)  People need to devote less time in school and more at work.E) C) and D)
F) A) and B)

Question 8

The article "Are jobs obsolete?" by Douglas Rushkoff,Special to CNN September 7,2011,states the following (http://goo.gl/0aUXL):
"According to the U.N.Food and Agriculture Organization,there is enough food produced to provide everyone in the world with 2,720 kilocalories per person per day.And that's even after America disposes of thousands of tons of crop and dairy just to keep market prices high.Meanwhile,American banks overloaded with foreclosed properties are demolishing vacant dwellings to get the empty houses off their books."
a)Is it true that "America disposes of thousands of tons of crop and diary to keep market prices high?" (Search for additional sources of information in this regard.)What would be the effect of such policies on economic growth?
b)If there is a surplus of commodities in the developed world,why is it not given in aid to poor countries? (You may need to look for further information to answer this question.)

Accepted Answer

a) During the Great Depression,companies...

Question 9

How is a nation's standard of living determined?

Accepted Answer

A)  by its productivity
B)  by its gross domestic product
C)  by its national income
D)  by how much it has relative to othersE) All of the above
F) C) and D)

Question 10

Why are Canadian workers more productive than the Chinese?

Accepted Answer

A)  because Canada is a federal state
B)  because Canadians have more capital to work with
C)  because prices are higher in Canada than in China
D)  because the most productive Chinese workers have emigrated to CanadaE) All of the above
F) A) and B)

Question 11

Which of the following countries had the lowest growth rate over the period 1870 and 2008?

Accepted Answer

A)  United Kingdom
B)  Germany
C)  Canada
D)  United StatesE) B) and C)
F) A) and B)

Question 12

What is the average amount of goods and services produced from each hour of a worker's time called?

Accepted Answer

A)  per capita GDP
B)  per capita GNP
C)  productivity
D)  human capitalE) A) and D)
F) A) and C)

Question 13

Which of the following is an implication of investment from abroad?

Accepted Answer

A)  Foreign investment makes poor countries poorer.
B)  Foreign investment promotes economic growth.
C)  Foreign investment makes rich countries poorer.
D)  Foreign investment is only beneficial to investors.E) None of the above
F) C) and D)

Question 14

Which of the following would we expect to happen with prices or quantities of natural resources if they were becoming scarcer?

Accepted Answer

A)  We would expect prices to be rising relative to other prices, as they have been.
B)  We would expect prices to be rising relative to other prices, but this has not occurred.
C)  We would expect known quantities to be increasing, as they have been.
D)  We would expect known quantities to be falling, but this has not occurred.E) A) and C)
F) A) and B)

Question 15

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 16

Which of the following does Y/L refer to?

Accepted Answer

A)  productivity
B)  output
C)  the availability of natural resources
D)  the amount of human capitalE) All of the above
F) C) and D)

Question 17

Which of the following statements best explains the importance of real GDP per person?

Accepted Answer

A)  It is a useful measure of economic growth.
B)  It is a useful measure of a country's wealth.
C)  It is a useful measure of the cost of living.
D)  It is a useful measure of well-being.E) A) and B)
F) A) and C)

Question 18

As measured by real GDP per person,approximately how much higher is average income in Canada today than it was a century ago?

Accepted Answer

A)  2 times higher
B)  4 times higher
C)  6 times higher
D)  8 times higherE) None of the above
F) A) and B)

Question 19

How does productivity explain the differences in standard of living across countries?

Accepted Answer

A)  Productivity tends to be lower in countries with high population, and therefore in those countries standards of living are lower.
B)  Productivity explains very little of the differences across countries in the standard of living.
C)  Productivity explains some, but not most, of the differences across countries in the standard of living.
D)  Productivity explains most of the differences across countries in the standard of living.E) None of the above
F) B) and C)

Question 20

Some economists argue that it is possible to raise the standard of living by reducing population growth.As an economist interested in incentives rather than coercion,what kind of policy would you recommend to slow population growth?

Accepted Answer

Since bearing a child has an opportunity...

Exam 7: Production and Growth

Over the past 100 years,Canadian real GDP per person has doubled about every 35 years.If in the next 100 years it doubles every 25 years,then what will Canadian real GDP per person be a century from now?

Correct Answer
verified

An increase in the saving rate does not permanently increase the growth rate of real GDP per person.

Correct Answer
verified

According to the traditional view,in what direction is the slope of the production function,with capital per worker on the horizontal axis and output per worker on the vertical axis?

Correct Answer
verified

Why are Canadian workers more productive than the Chinese?

Correct Answer
verified

Drug companies can usually obtain patents on new drugs.Which of the following goods do patents turn new ideas into?

Correct Answer
verified

Correct Answer
verified
a) During the Great Depression,companies...
View Answer

What is the average amount of goods and services produced from each hour of a worker's time called?

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

According to an economist,what kind of goods are national defence and knowledge?

Correct Answer
verified

Which of the following countries had the lowest growth rate over the period 1870 and 2008?

Correct Answer
verified

Which of the following would we expect to happen with prices or quantities of natural resources if they were becoming scarcer?

Correct Answer
verified

One of the ten principles of economics is that people face tradeoffs.The growth that arises from capital accumulation is not a free lunch.What is the opportunity cost of that capital accumulation?

Correct Answer
verified

As measured by real GDP per person,approximately how much higher is average income in Canada today than it was a century ago?

Correct Answer
verified

Which of the following does Y/L refer to?

Correct Answer
verified

Which of the following statements best explains the importance of real GDP per person?

Correct Answer
verified

Which of the following is an implication of investment from abroad?

Correct Answer
verified

How is a nation's standard of living determined?

Correct Answer
verified

Once one person discovers an idea,the idea generally enters society's pool of knowledge.Therefore,knowledge is generally what kind of good?

Correct Answer
verified

Some economists argue that it is possible to raise the standard of living by reducing population growth.As an economist interested in incentives rather than coercion,what kind of policy would you recommend to slow population growth?

Correct Answer
verified
Since bearing a child has an opportunity...
View Answer

How does productivity explain the differences in standard of living across countries?

Correct Answer
verified

Exam 7: Production and Growth

Over the past 100 years,Canadian real GDP per person has doubled about every 35 years.If in the next 100 years it doubles every 25 years,then what will Canadian real GDP per person be a century from now?

Correct AnswerverifiedShow Answer

An increase in the saving rate does not permanently increase the growth rate of real GDP per person.

Correct AnswerverifiedShow Answer

According to the traditional view,in what direction is the slope of the production function,with capital per worker on the horizontal axis and output per worker on the vertical axis?

Correct AnswerverifiedShow Answer

Why are Canadian workers more productive than the Chinese?

Correct AnswerverifiedShow Answer

Drug companies can usually obtain patents on new drugs.Which of the following goods do patents turn new ideas into?

Correct AnswerverifiedShow Answer

Correct Answerverifieda) During the Great Depression,companies...View AnswerShow Answer

What is the average amount of goods and services produced from each hour of a worker's time called?

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

According to an economist,what kind of goods are national defence and knowledge?

Correct AnswerverifiedShow Answer

Which of the following countries had the lowest growth rate over the period 1870 and 2008?

Correct AnswerverifiedShow Answer

Which of the following would we expect to happen with prices or quantities of natural resources if they were becoming scarcer?

Correct AnswerverifiedShow Answer

One of the ten principles of economics is that people face tradeoffs.The growth that arises from capital accumulation is not a free lunch.What is the opportunity cost of that capital accumulation?

Correct AnswerverifiedShow Answer

As measured by real GDP per person,approximately how much higher is average income in Canada today than it was a century ago?

Correct AnswerverifiedShow Answer

Which of the following does Y/L refer to?

Correct AnswerverifiedShow Answer

Which of the following statements best explains the importance of real GDP per person?

Correct AnswerverifiedShow Answer

Which of the following is an implication of investment from abroad?

Correct AnswerverifiedShow Answer

How is a nation's standard of living determined?

Correct AnswerverifiedShow Answer

Once one person discovers an idea,the idea generally enters society's pool of knowledge.Therefore,knowledge is generally what kind of good?

Correct AnswerverifiedShow Answer

Some economists argue that it is possible to raise the standard of living by reducing population growth.As an economist interested in incentives rather than coercion,what kind of policy would you recommend to slow population growth?

Correct AnswerverifiedSince bearing a child has an opportunity...View AnswerShow Answer

How does productivity explain the differences in standard of living across countries?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a) During the Great Depression,companies...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Since bearing a child has an opportunity...
View Answer

Correct Answer
verified