Question 1

Other things the same,an economy's factors of production are likely to be used more effectively if there is an economywide respect for property rights.

Accepted Answer

A) True 
 B)False

Question 2

Country A has a population of 1,000,of whom 700 worked an average of 8 hours a day and had a productivity of 2.5.Country B has a population of 800,of whom 560 worked 8 hours a day and had productivity of 3.0.The country with the higher real GDP was

Accepted Answer

A)   country A,and the country with higher real GDP per person was country A.
B)   country A,and the country with higher real GDP per person was country B.
C)   country B,and the country with higher real GDP per person was country A.
D)   country B,and the country with higher real GDP per person was country B.E) None of the above
F) A) and D)

Question 3

Which of the following is a part of your economics professor's human capital?

Accepted Answer

A)   the things she learned at some prestigious university
B)   her copy of Mankiw's text
C)   her chalk holder
D)   All of the above are correct.E) B) and C)
F) A) and D)

Question 4

In the long run,a higher saving rate

Accepted Answer

A)   cannot increase the capital stock.
B)   means that people must consume less in the future.
C)   increases the level of productivity.
D)   None of the above is correct.E) All of the above
F) A) and B)

Question 5

Waldo works eight hours and produces 7 units of goods per hour.Emerson works six hours and produces 10 units of goods per hour.

Accepted Answer

A)   Waldo's productivity and output are greater than Emerson's.
B)   Waldo's productivity is greater than Emerson's but his output is less.
C)   Emerson's productivity and output are greater than Waldo's.
D)   Emerson's productivity is greater than Waldo's but his output is less.E) None of the above
F) B) and C)

Question 6

If there are diminishing returns to capital,then

Accepted Answer

A)   capital produces fewer goods as it ages.
B)   old ideas are not as useful as new ones.
C)   increases in the capital stock eventually decrease output.
D)   increases in the capital stock increase output by ever smaller amounts.E) A) and D)
F) A) and C)

Question 7

Which of the following is considered human capital? Knowledge acquired from

Accepted Answer

A)   early childhood education programs
B)   job training
C)   on-the-job experience
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 8

What is the difference between human capital and technology?

Accepted Answer

Technology is society's understanding of...

Question 9

Historical trends in the prices of most natural resources compared to prices of other goods indicate that most natural resources have become scarcer over time.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following countries had the highest level of real GDP per person in 2008?

Accepted Answer

A)   Germany
B)   United Kingdom
C)   United States
D)   JapanE) None of the above
F) A) and B)

Question 11

Which of the following statements 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)   Based on the available evidence,the existence of well-established and well-enforced property rights appears to be associated with an enhanced standard of living.
D)   All of the above are correct.E) None of the above
F) A) and C)

Question 12

Investment in human capital has opportunity costs,but investment in physical capital does not.

Accepted Answer

A) True 
 B)False

Question 13

In which of the following cases can we be certain that a natural resource has become scarcer?

Accepted Answer

A)   both the demand for the resource and the supply of the resource have increased
B)   both the demand for the resource and the supply of the resource have decreased
C)   demand for the resource is unchanged and the supply of the resource has increased
D)   the demand for the resource has decreased and the supply of the resource is unchangedE) None of the above
F) A) and D)

Question 14

The saws,lathes,and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called

Accepted Answer

A)   human capital.
B)   physical capital.
C)   natural resources.
D)   technological knowledge.E) A) and B)
F) A) and C)

Question 15

In the 1800s,Europeans purchased stock in American companies that used the funds to build railroads and factories.The Europeans who did this engaged in

Accepted Answer

A)   foreign portfolio investment.
B)   indirect domestic investment.
C)   foreign direct investment.
D)   foreign indirect investment.E) A) and B)
F) C) and D)

Question 16

You sell fruit smoothies.One day you double the time you spend and double all your inputs,and make twice as many smoothies.Your smoothie production function has

Accepted Answer

A)   decreasing returns to scale.
B)   zero returns to scale.
C)   constant returns to scale.
D)   increasing returns to scale.E) None of the above
F) A) and B)

Question 17

Which of the following is considered human capital?

Accepted Answer

A)   the comfortable chair in your dorm room where you read economics texts
B)   the amount you get paid each week to work at the library
C)   the things you have learned this semester
D)   any capital goods that require a human to be present to operateE) A) and B)
F) A) and C)

Question 18

Which of the following are human capital and physical capital,respectively?

Accepted Answer

A)   for an accounting firm: the accountants' knowledge of tax laws and computer software
B)   for a grocery store: grocery carts and shelving
C)   for a school: chalkboard and desks
D)   for a library: the building and the reference librarians' knowledge of the InternetE) All of the above
F) None of the above

Question 19

Productivity is the

Accepted Answer

A)   key determinant of living standards,and growth in productivity is the key determinant of growth in living standards.
B)   key determinant of living standards,but growth in productivity is not the key determinant of growth in living standards.
C)   not the key determinant of living standards,but growth in productivity is the key determinant of growth in living standards.
D)   not the key determinant of living standards,and growth in productivity is not the key determinant of growth in living standards.E) A) and D)
F) B) and C)

Question 20

The inputs into production of goods and services that are provided by nature,such as land,rivers,and mineral deposits are called

Accepted Answer

A)   physical capital.
B)   natural resources.
C)   human capital.
D)   technological knowledge.E) A) and C)
F) A) and B)

Exam 17: Production and Growth

Which of the following is a part of your economics professor's human capital?

Correct AnswerverifiedShow Answer

Which of the following countries had the highest level of real GDP per person in 2008?

Correct AnswerverifiedShow Answer

Which of the following is considered human capital? Knowledge acquired from

Correct AnswerverifiedShow Answer

Historical trends in the prices of most natural resources compared to prices of other goods indicate that most natural resources have become scarcer over time.

Correct AnswerverifiedShow Answer

The saws,lathes,and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called

Correct AnswerverifiedShow Answer

You sell fruit smoothies.One day you double the time you spend and double all your inputs,and make twice as many smoothies.Your smoothie production function has

Correct AnswerverifiedShow Answer

Waldo works eight hours and produces 7 units of goods per hour.Emerson works six hours and produces 10 units of goods per hour.

Correct AnswerverifiedShow Answer

Productivity is the

Correct AnswerverifiedShow Answer

The inputs into production of goods and services that are provided by nature,such as land,rivers,and mineral deposits are called

Correct AnswerverifiedShow Answer

If there are diminishing returns to capital,then

Correct AnswerverifiedShow Answer

Which of the following are human capital and physical capital,respectively?

Correct AnswerverifiedShow Answer

Which of the following is considered human capital?

Correct AnswerverifiedShow Answer

Country A has a population of 1,000,of whom 700 worked an average of 8 hours a day and had a productivity of 2.5.Country B has a population of 800,of whom 560 worked 8 hours a day and had productivity of 3.0.The country with the higher real GDP was

Correct AnswerverifiedShow Answer

In the 1800s,Europeans purchased stock in American companies that used the funds to build railroads and factories.The Europeans who did this engaged in

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Investment in human capital has opportunity costs,but investment in physical capital does not.

Correct AnswerverifiedShow Answer

In which of the following cases can we be certain that a natural resource has become scarcer?

Correct AnswerverifiedShow Answer

Other things the same,an economy's factors of production are likely to be used more effectively if there is an economywide respect for property rights.

Correct AnswerverifiedShow Answer

What is the difference between human capital and technology?

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

In the long run,a higher saving rate

Correct AnswerverifiedShow Answer

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Technology is society's understanding of...
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