Question 1

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 2

Which of the following would,by itself,reveal the most about a country's standard of living?

Accepted Answer

A)   its level of capital
B)   the number of hours worked
C)   its availability of natural resources
D)   its productivityE) A) and C)
F) All of the above

Question 3

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) A) and C)
F) A) and D)

Question 4

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

Question 5

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) All of the above
F) A) and C)

Question 6

Over the period 1900-2008,Brazil's rate of economic growth exceeded that of China.

Accepted Answer

A) True 
 B)False

Question 7

Assuming diminishing returns,

Accepted Answer

A)   the increase in output growth from an increase in the saving rate rises over time,and that,other things the same,rich countries should grow faster than poor ones.
B)   the increase in output growth from an increase in the saving rate falls over time,and that,other things the same,rich countries should grow faster than poor ones.
C)   the increase in output growth from an increase in the saving rate rises over time,and that,other things the same,poor countries should grow faster than rich ones.
D)   the increase in output growth from an increase in the saving rate falls over time,and that,other things the same,poor countries should grow faster than rich ones.E) None of the above
F) A) and C)

Question 8

Which of the following provide benefits to society at large and not just to the person(s) who pursues it?

Accepted Answer

A)   both technological knowledge that is a public good and education
B)   technological knowledge that is a public good,but not education
C)   education,but not technological knowledge that is a public good
D)   neither education,nor technological knowledge that is a public goodE) A) and B)
F) B) and D)

Question 9

Which of the following are residents of rich countries likely to have in greater quantities,or better quality,than residents of poor countries?

Accepted Answer

A)   housing
B)   healthcare
C)   life expectancy
D)   All of the above.E) C) and D)
F) A) and B)

Question 10

In what sense is capital accumulation costly to a society?

Accepted Answer

Capital accumulation requires ...

Question 11

In which of the following countries has economic growth been sufficiently strong in recent history to propel that country from being among the poorest in the world to being among the richest in the world?

Accepted Answer

A)   South Korea
B)   Senegal
C)   India
D)   IndonesiaE) All of the above
F) B) and C)

Question 12

A professor at a university finds a way to reduce the costs of producing automobile glass.The method is very easy for anyone to copy.A company develops a substance which prevents eyeglasses from smudging.It receives a patent on the formula.Which of these are common technological knowledge?

Accepted Answer

A)   the method to reduce costs of producing automobile glass,and the formula for the substance that prevents smudging
B)   the method to reduce costs of producing automobile glass,but not the formula for the substance that prevents smudging
C)   the formula for the substance that prevents smudging,but not the method to reduce costs of producing automobile glass
D)   neither the method to reduce costs of producing automobile glass nor the formula for the substance that prevents smudgingE) A) and B)
F) A) and C)

Question 13

If an American-based firm opens and operates a new watch factory in Panama,then it is engaging in

Accepted Answer

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

Question 14

In the production function  ,which symbol reflects the state of technology?

Accepted Answer

A)   A
B)   K
C)   H
D)   NE) None of the above
F) All of the above

Question 15

The catch-up effect refers to the idea that poor countries,despite their best efforts,are not likely ever to experience the economic growth rates of wealthier countries.

Accepted Answer

A) True 
 B)False

Question 16

Industrial machinery is an example of

Accepted Answer

A)   a factor of production that in the past was an output from the production process.
B)   physical capital.
C)   something that influences productivity.
D)   All of the above are correct.E) B) and C)
F) None of the above

Question 17

According to some estimates,over the last two decades China has had an annual average growth rate of about 12 percent.

Accepted Answer

A) True 
 B)False

Question 18

Refer to Scenario 12-1.If the production function has the constant-returns-to-scale property,then it could be rewritten as

Accepted Answer

A)   Y/L = AF(1,K/L,H/L,N/L) 
B)   Y/L = AF(L,1,H/L,N/L) 
C)   Y/L = AF(L,K/L,1,N/L) 
D)   Y/L = AF(L,K/L,H/L,1) E) All of the above
F) None of the above

Question 19

An increase in the saving rate would,other things the same,

Accepted Answer

A)   increase growth more for a poor country than for a rich country,and raise growth permanently.
B)   increase growth more for a poor country than for a rich country,but raise growth temporarily.
C)   increase growth more for a rich country than for a poor country,and raise growth permanently.
D)   increase growth more for a rich country than for a poor country,but raise growth temporarily.E) A) and B)
F) A) and C)

Question 20

Which of the following statements is true?

Accepted Answer

A)   The quantity of natural resources per worker can influence productivity.
B)   Technological knowledge and human capital are closely related.
C)   Over long periods of time,the prices of most natural resources are stable or falling,relative to other prices.
D)   All of the above are correct.E) C) and D)
F) A) and C)

Exam 25: Production and Growth

In the production function ,which symbol reflects the state of technology?

Correct AnswerverifiedShow Answer

The catch-up effect refers to the idea that poor countries,despite their best efforts,are not likely ever to experience the economic growth rates of wealthier countries.

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

Which of the following provide benefits to society at large and not just to the person(s) who pursues it?

Correct AnswerverifiedShow Answer

An increase in the saving rate would,other things the same,

Correct AnswerverifiedShow Answer

If an American-based firm opens and operates a new watch factory in Panama,then it is engaging in

Correct AnswerverifiedShow Answer

Refer to Scenario 12-1.If the production function has the constant-returns-to-scale property,then it could be rewritten as

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

In what sense is capital accumulation costly to a society?

Correct AnswerverifiedCapital accumulation requires ...View AnswerShow 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

Which of the following are residents of rich countries likely to have in greater quantities,or better quality,than residents of poor countries?

Correct AnswerverifiedShow Answer

A professor at a university finds a way to reduce the costs of producing automobile glass.The method is very easy for anyone to copy.A company develops a substance which prevents eyeglasses from smudging.It receives a patent on the formula.Which of these are common technological knowledge?

Correct AnswerverifiedShow Answer

In which of the following countries has economic growth been sufficiently strong in recent history to propel that country from being among the poorest in the world to being among the richest in the world?

Correct AnswerverifiedShow Answer

Over the period 1900-2008,Brazil's rate of economic growth exceeded that of China.

Correct AnswerverifiedShow Answer

Which of the following would,by itself,reveal the most about a country's standard of living?

Correct AnswerverifiedShow Answer

According to some estimates,over the last two decades China has had an annual average growth rate of about 12 percent.

Correct AnswerverifiedShow Answer

Which of the following statements is true?

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

Industrial machinery is an example of

Correct AnswerverifiedShow Answer

Assuming diminishing returns,

Correct AnswerverifiedShow 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
Capital accumulation requires ...
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