Question 1

Which of the following statements is true?

Accepted Answer

A)   Natural resources per worker influence productivity only when those natural resources are renewable.
B)   The prices of most natural resources are stable or falling relative to other prices.
C)   Technology requires greater use of natural resources.
D)   The terms human capital and technological knowledge are used interchangeably.E) A) and D)
F) A) and C)

Question 2

Which of the following is an example of a nonrenewable resource?

Accepted Answer

A)   coal
B)   honey
C)   livestock
D)   All of the above are correct.E) A) and D)
F) A) and B)

Question 3

Which of the following is indicated by the data on real income per person for various countries over the past 100 or so years?

Accepted Answer

A)   If,in a relatively poor country,real income per person had grown by 3.5 percent per year for the last 100 years,it would be a relatively rich country today.
B)   Rich countries became richer and poor countries became poorer.
C)   In the United States,real income per person today is about four times as high as it was 100 years ago.
D)   All of the above are correct.E) None of the above
F) All of the above

Question 4

One reason that governments may find it useful to sponsor universities and basic research is that to a large extent knowledge is generally a private good.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a determinant of productivity?

Accepted Answer

A)   human capital per worker
B)   physical capital per worker
C)   natural resources per worker
D)   All of the above are correct.E) A) and B)
F) C) and D)

Question 6

In determining living standards,productivity plays a key role

Accepted Answer

A)   for individuals,but not for nations.
B)   for nations,but not for individuals.
C)   for both nations and individuals.
D)   for neither nations nor individuals.E) B) and C)
F) B) and D)

Question 7

A nation's standard of living is best measured by its

Accepted Answer

A)   real GDP.
B)   real GDP per person.
C)   nominal GDP.
D)   nominal GDP per person.E) A) and B)
F) A) and C)

Question 8

Which of the following is correct?

Accepted Answer

A)   Once adjustment is made for inflation,the prices of most natural resources have been about steady or falling.
B)   Technological progress has allowed us to substitute renewable resources for some nonrenewable resources.
C)   Technological progress has made once-crucial natural resources less necessary.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 9

In the equation for the production function Y/L represents

Accepted Answer

A)   productivity.
B)   output.
C)   the availability of natural resources.
D)   the amount of human capital.E) A) and D)
F) B) and C)

Question 10

In a market economy,we know that a resource has become scarcer when

Accepted Answer

A)   its price rises relative to other prices.
B)   it is non-renewable and some of it is used.
C)   people search for substitutes.
D)   All of the above are correct.E) All of the above
F) A) and D)

Question 11

All else equal,by saving more,a country

Accepted Answer

A)   has more resources for capital goods.The increase in capital raises productivity.
B)   has more resources for capital goods.The increase in capital reduces productivity.
C)   has fewer resources for capital goods.The decrease in capital raises productivity.
D)   has fewer resources for capital goods.The decrease in capital reduces productivity.E) A) and B)
F) A) and C)

Question 12

Which of the following nations experienced average rates of economic growth of less than 2 percent over the last 100 years?

Accepted Answer

A)   Bangladesh
B)   Pakistan
C)   United Kingdom
D)   All of the above are correct.E) All of the above
F) None of the above

Question 13

Greater scarcity of a natural resource is indicated

Accepted Answer

A)   by an increase in the price of the resource,whether the price increase is less than or greater than the rate of inflation.
B)   only by an increase in the price of the resource that is less than the rate of inflation.
C)   only by an increase in the price of the resource that is greater than the rate of inflation.
D)   only by an increase in the price of the resource that is caused by a decrease in supply and is greater than the rate of inflation.E) All of the above
F) B) and D)

Question 14

If a country's saving rate increases,then in the long run

Accepted Answer

A)   productivity is higher but real GDP per person is not higher.
B)   real GDP per person is higher but productivity is not higher.
C)   productivity and real GDP per person are both higher.
D)   neither productivity nor real GDP per person is higher.E) C) and D)
F) None of the above

Question 15

If a country has a higher level of productivity than another,then it also has a higher level of real GDP.

Accepted Answer

A) True 
 B)False

Question 16

Economist Robert Fogel focused on which of the following factors as one determinant of long-run economic growth?

Accepted Answer

A)   education
B)   research and development
C)   nutrition
D)   trade restrictionsE) A) and B)
F) A) and C)

Question 17

An economy's production function has the constant-returns-to-scale property.If the economy's labor force doubled and all other inputs stayed the same,then real GDP would

Accepted Answer

A)   stay the same.
B)   increase by exactly 50 percent.
C)   increase by exactly 100 percent.
D)   increase,but not necessarily by either 50 percent or 100 percent.E) A) and D)
F) A) and C)

Question 18

Assuming constant returns to scale,if two countries are otherwise the same,the one that is poorer grows faster.

Accepted Answer

A) True 
 B)False

Question 19

Suppose that a new government is elected in Eurnesia.The new government takes steps toward improving the court system and reducing government corruption.The citizens of Eurnesia find these efforts credible and outsiders believe these changes will be effective and long lasting.These changes will probably

Accepted Answer

A)   raise real GDP per person and productivity in Eurnesia.
B)   raise real GDP per person but not productivity in Eurnesia.
C)   raise productivity but not real GDP per person in Eurnesia.
D)   raise neither productivity nor real GDP per person in Eurnesia.E) C) and D)
F) B) and C)

Question 20

Suppose that an American opens and operates a candy factory in Finland.This is an example of

Accepted Answer

A)   foreign direct investment.American saving is used to finance Finish investment.
B)   foreign direct investment.American saving is used to finance American investment.
C)   foreign portfolio investment.American saving is used to finance Finish investment.
D)   foreign portfolio investment.American saving is used to finance American investment.E) C) and D)
F) A) and B)

Exam 17: Production and Growth

Which of the following is indicated by the data on real income per person for various countries over the past 100 or so years?

Correct Answer
verified

Suppose that an American opens and operates a candy factory in Finland.This is an example of

Correct Answer
verified

Correct Answer
verified

Which of the following is correct?

Correct Answer
verified

Economist Robert Fogel focused on which of the following factors as one determinant of long-run economic growth?

Correct Answer
verified

All else equal,by saving more,a country

Correct Answer
verified

Assuming constant returns to scale,if two countries are otherwise the same,the one that is poorer grows faster.

Correct Answer
verified

If a country has a higher level of productivity than another,then it also has a higher level of real GDP.

Correct Answer
verified

If a country's saving rate increases,then in the long run

Correct Answer
verified

Which of the following nations experienced average rates of economic growth of less than 2 percent over the last 100 years?

Correct Answer
verified

An economy's production function has the constant-returns-to-scale property.If the economy's labor force doubled and all other inputs stayed the same,then real GDP would

Correct Answer
verified

Greater scarcity of a natural resource is indicated

Correct Answer
verified

In determining living standards,productivity plays a key role

Correct Answer
verified

In a market economy,we know that a resource has become scarcer when

Correct Answer
verified

Which of the following statements is true?

Correct Answer
verified

Which of the following is a determinant of productivity?

Correct Answer
verified

A nation's standard of living is best measured by its

Correct Answer
verified

One reason that governments may find it useful to sponsor universities and basic research is that to a large extent knowledge is generally a private good.

Correct Answer
verified

Which of the following is an example of a nonrenewable resource?

Correct Answer
verified

In the equation for the production function Y/L represents

Correct Answer
verified

Exam 17: Production and Growth

Which of the following is indicated by the data on real income per person for various countries over the past 100 or so years?

Correct AnswerverifiedShow Answer

Suppose that an American opens and operates a candy factory in Finland.This is an example of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Economist Robert Fogel focused on which of the following factors as one determinant of long-run economic growth?

Correct AnswerverifiedShow Answer

All else equal,by saving more,a country

Correct AnswerverifiedShow Answer

Assuming constant returns to scale,if two countries are otherwise the same,the one that is poorer grows faster.

Correct AnswerverifiedShow Answer

If a country has a higher level of productivity than another,then it also has a higher level of real GDP.

Correct AnswerverifiedShow Answer

If a country's saving rate increases,then in the long run

Correct AnswerverifiedShow Answer

Which of the following nations experienced average rates of economic growth of less than 2 percent over the last 100 years?

Correct AnswerverifiedShow Answer

An economy's production function has the constant-returns-to-scale property.If the economy's labor force doubled and all other inputs stayed the same,then real GDP would

Correct AnswerverifiedShow Answer

Greater scarcity of a natural resource is indicated

Correct AnswerverifiedShow Answer

In determining living standards,productivity plays a key role

Correct AnswerverifiedShow Answer

In a market economy,we know that a resource has become scarcer when

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Which of the following is a determinant of productivity?

Correct AnswerverifiedShow Answer

A nation's standard of living is best measured by its

Correct AnswerverifiedShow Answer

One reason that governments may find it useful to sponsor universities and basic research is that to a large extent knowledge is generally a private good.

Correct AnswerverifiedShow Answer

Which of the following is an example of a nonrenewable resource?

Correct AnswerverifiedShow Answer

In the equation for the production function Y/L represents

Correct AnswerverifiedShow Answer

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