Question 1

If one wants to know how the material well-being of the average person has changed over time in a given country, one should look at the

Accepted Answer

A)   level of real GDP.
B)   growth rate of nominal GDP.
C)   growth rate of real GDP.
D)   growth rate of real GDP per person.E) C) and D)
F) A) and D)

Question 2

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) C) and D)
F) B) and C)

Question 3

If the price of a good has risen over time,

Accepted Answer

A)   it must have become more scarce.
B)   it must have become less scarce.
C)   it has become more scarce only if the price adjusted for inflation has risen.
D)   it has become less scarce only if the price adjusted for inflation has risen.E) A) and B)
F) All of the above

Question 4

Other things the same, an increase in population growth

Accepted Answer

A)   increases capital per worker. Further, there is some evidence that a higher population growth rate may increase the pace of technological progress.
B)   increases capital per worker. However, there is some evidence that a higher population growth rate may decrease the pace of technological progress.
C)   decreases capital per worker. Further, there is some evidence that a higher population growth rate may decrease the pace of technological progress.
D)   decreases capital per worker. However, there is some evidence that a higher population growth rate may increase the pace of technological progress.E) A) and D)
F) A) and B)

Question 5

Perry accumulated a lot of mathematical skills while in high school, college, and graduate school. Economists include these skills as part of Perry's

Accepted Answer

A)   standard of learning.
B)   technological knowledge.
C)   physical capital.
D)   human capital.E) None of the above
F) B) and D)

Question 6

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

Accepted Answer

A)   tin
B)   petroleum
C)   gold
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 7

Other things the same, another unit of capital will increase output by more in a poor country than in a rich country.

Accepted Answer

A) True 
 B)False

Question 8

Inward-oriented policies

Accepted Answer

A)   are generally supported by economists.
B)   are primarily concerned with the development of human capital.
C)   in some ways are like prohibiting the use of certain technologies.
D)   All of the above are correct.E) A) and C)
F) A) and B)

Question 9

Your company discovers a better way to produce mousetraps, but your better methods are not apparent from the mousetraps themselves. Your knowledge of how to more efficiently produce mousetraps is

Accepted Answer

A)   common technological knowledge.
B)   common, but not technological, knowledge.
C)   proprietary technological knowledge.
D)   proprietary, but not technological, knowledge.E) All of the above
F) A) and C)

Question 10

In the equation for the production function H/L represents

Accepted Answer

A)   natural resources per worker.
B)   human capital per worker.
C)   output per worker.
D)   physical capital per worker.E) A) and C)
F) A) and D)

Question 11

Senator Noitall says that in order to help poor countries develop, the United States should: 1. Prevent U.S. corporations from investing in poor countries because they take profits that the poor countries should have; 2. Not import goods from poor countries that use child labor; 3. Work to promote political stability in poor countries; and 4. Reduce poor countries' reliance on market forces in their economies. How many of these ideas are likely to help poor countries grow?

Accepted Answer

A)   1
B)   2
C)   3
D)   4E) B) and C)
F) A) and D)

Question 12

A barber shop produces 96 haircuts a day. Each barber in the shop works 8 hours per day and produces the same number of haircuts per hour. If the shop's productivity is 2 haircuts per hour of labor, then how many barbers does the shop employ?

Accepted Answer

A)   2
B)   3
C)   4
D)   6E) A) and C)
F) A) and B)

Question 13

Productivity is the amount of goods and services

Accepted Answer

A)   an economy produces. It is not linked to a nation's economic policies.
B)   an economy produces. It is linked to a nation's economic policies.
C)   produced for each hour of a worker's time. It is not linked to a nation's economic policies.
D)   produced for each hour of a worker's time. It is linked to a nation's economic policies.E) A) and B)
F) A) and C)

Question 14

Allied Business Consultants employs five researchers that each work 8 hour days. In one day the researchers prepare 60 reports for its 10 largest clients. What was Allied Business Consultants' productivity?

Accepted Answer

A)   1.5 reports per hour
B)   6 reports per client
C)   7.5 reports per hour
D)   60 reportsE) None of the above
F) B) and C)

Question 15

Over the last 100 years which of the following had growth rates higher than that of the United States?

Accepted Answer

A)   the United Kingdom
B)   India
C)   Mexico
D)   None of the above is correct.E) None of the above
F) A) and D)

Question 16

Consider three imaginary countries. In Mainland, saving amounts to $4,000 and consumption amounts to $8,000; in Upland, saving amounts to $2,000 and consumption amounts to $15,000; and in Lowland, saving amounts to $6,000 and consumption amounts to $11,000. The saving rate is

Accepted Answer

A)   higher in Mainland than in Lowland, and it is higher in Lowland than in Upland.
B)   higher in Lowland than in Mainland, and it is higher in Mainland than in Upland.
C)   higher in Lowland than in Upland, and it is the same in Upland and Mainland.
D)   higher in Mainland than in Upland, and it is the same in Mainland and Lowland.E) C) and D)
F) B) and D)

Question 17

In recent decades Americans have increased their purchase of stocks of foreign-based companies. The Americans who have bought these stocks were engaged in

Accepted Answer

A)   foreign portfolio investment.
B)   indirect domestic investment.
C)   foreign direct investment.
D)   foreign indirect investment.E) A) and D)
F) None of the above

Question 18

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)   the demand for the resource has increased and the supply has decreased.
D)   the demand for the resource has decreased and the supply has increased.E) None of the above
F) All of the above

Question 19

Table 7-1.
Athens and Troy both produce only ribs and baked potatoes.
 
-Refer to Table 7-1. 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) A) and B)
F) A) and C)

Question 20

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

Exam 7: Production and Growth

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

Correct Answer
verified

Over the last 100 years which of the following had growth rates higher than that of the United States?

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

Perry accumulated a lot of mathematical skills while in high school, college, and graduate school. Economists include these skills as part of Perry's

Correct Answer
verified

Other things the same, an increase in population growth

Correct Answer
verified

Your company discovers a better way to produce mousetraps, but your better methods are not apparent from the mousetraps themselves. Your knowledge of how to more efficiently produce mousetraps is

Correct Answer
verified

Other things the same, another unit of capital will increase output by more in a poor country than in a rich country.

Correct Answer
verified

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

Correct Answer
verified

In the equation for the production function H/L represents

Correct Answer
verified

Table 7-1. Athens and Troy both produce only ribs and baked potatoes. -Refer to Table 7-1. Which of the following is correct?

Correct Answer
verified

Productivity is the amount of goods and services

Correct Answer
verified

In recent decades Americans have increased their purchase of stocks of foreign-based companies. The Americans who have bought these stocks were engaged in

Correct Answer
verified

A barber shop produces 96 haircuts a day. Each barber in the shop works 8 hours per day and produces the same number of haircuts per hour. If the shop's productivity is 2 haircuts per hour of labor, then how many barbers does the shop employ?

Correct Answer
verified

Allied Business Consultants employs five researchers that each work 8 hour days. In one day the researchers prepare 60 reports for its 10 largest clients. What was Allied Business Consultants' productivity?

Correct Answer
verified

Inward-oriented policies

Correct Answer
verified

Consider three imaginary countries. In Mainland, saving amounts to $4,000 and consumption amounts to $8,000; in Upland, saving amounts to $2,000 and consumption amounts to $15,000; and in Lowland, saving amounts to $6,000 and consumption amounts to $11,000. The saving rate is

Correct Answer
verified

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

Correct Answer
verified

If the price of a good has risen over time,

Correct Answer
verified

Correct Answer
verified

If one wants to know how the material well-being of the average person has changed over time in a given country, one should look at the

Correct Answer
verified

Exam 7: Production and Growth

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

Correct AnswerverifiedShow Answer

Over the last 100 years which of the following had growth rates higher than that of the United States?

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

Perry accumulated a lot of mathematical skills while in high school, college, and graduate school. Economists include these skills as part of Perry's

Correct AnswerverifiedShow Answer

Other things the same, an increase in population growth

Correct AnswerverifiedShow Answer

Your company discovers a better way to produce mousetraps, but your better methods are not apparent from the mousetraps themselves. Your knowledge of how to more efficiently produce mousetraps is

Correct AnswerverifiedShow Answer

Other things the same, another unit of capital will increase output by more in a poor country than in a rich country.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the equation for the production function H/L represents

Correct AnswerverifiedShow Answer

Table 7-1. Athens and Troy both produce only ribs and baked potatoes. -Refer to Table 7-1. Which of the following is correct?

Correct AnswerverifiedShow Answer

Productivity is the amount of goods and services

Correct AnswerverifiedShow Answer

In recent decades Americans have increased their purchase of stocks of foreign-based companies. The Americans who have bought these stocks were engaged in

Correct AnswerverifiedShow Answer

A barber shop produces 96 haircuts a day. Each barber in the shop works 8 hours per day and produces the same number of haircuts per hour. If the shop's productivity is 2 haircuts per hour of labor, then how many barbers does the shop employ?

Correct AnswerverifiedShow Answer

Allied Business Consultants employs five researchers that each work 8 hour days. In one day the researchers prepare 60 reports for its 10 largest clients. What was Allied Business Consultants' productivity?

Correct AnswerverifiedShow Answer

Inward-oriented policies

Correct AnswerverifiedShow Answer

Consider three imaginary countries. In Mainland, saving amounts to $4,000 and consumption amounts to $8,000; in Upland, saving amounts to $2,000 and consumption amounts to $15,000; and in Lowland, saving amounts to $6,000 and consumption amounts to $11,000. The saving rate is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If the price of a good has risen over time,

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If one wants to know how the material well-being of the average person has changed over time in a given country, one should look at the

Correct AnswerverifiedShow Answer

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