Question 1

All else equal,which of the following would tend to cause real GDP per person to rise?

Accepted Answer

A)   a change from inward-oriented policies to outward-oriented policies
B)   an increase in investment in human capital
C)   strengthening of property rights.
D)   All of the above are correct.E) C) and D)
F) B) and C)

Question 2

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)   India
B)   Mexico
C)   Senegal
D)   SingaporeE) A) and D)
F) None of the above

Question 3

Which of the following is correct?

Accepted Answer

A)   There is no debate about the effects of higher population growth on economic growth.
B)   Natural resources clearly place limits on growth;there is simply no way to reduce either the amount or type of natural resources needed to produce goods.
C)   How much an increase in capital increases a country's output is independent of that country's current level of capital.
D)   Economists argue that outward rather than inward policies are likely to promote economic growth.E) B) and D)
F) A) and B)

Question 4

Although growth rates across countries vary some,rankings of countries by income remain pretty much the same over time.

Accepted Answer

A) True 
 B)False

Question 5

Because of its vast oil reserves,Saudi Arabia is a rich country.Saudi Arabia exemplifies the general fact that differences in __________ are responsible for some of the differences in standards of living around the world.

Accepted Answer

The answer of Because of its vast oil reserves,Saudi Arabia...

Question 6

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

Question 7

If your firm's production function has constant returns to scale,then if you double all your inputs,your firm's output will

Accepted Answer

A)   double and productivity will rise.
B)   double but productivity will not change.
C)   more than double and productivity will rise.
D)   more then double but productivity will not change.E) C) and D)
F) A) and C)

Question 8

Which of the following statements is correct?

Accepted Answer

A)   Growth of productivity is the main determinant of growth in living standards.
B)   Common knowledge and proprietary technology are both important for the economy's production of goods and services.
C)   The terms capital and physical capital refer to the same thing.
D)   All of the above are correct.E) A) and B)
F) C) and D)

Question 9

Over the last ten years productivity grew more slowly in Upland than in Lowland and the population and total hours worked remained the same in both countries.It follows that

Accepted Answer

A)   real GDP per person must be lower in Upland than in Lowland.
B)   real GDP per person grew more slowly in Upland than in Lowland.
C)   the standard of living must be higher in Upland than in Lowland.
D)   All of the above are correct.E) B) and D)
F) All of the above

Question 10

A rapid increase in the number of workers,other things the same,is likely in the short term to

Accepted Answer

A)   raise real GDP per person,but decrease real GDP.
B)   decrease both real GDP and real GDP per person.
C)   raise both real GDP and real GDP per person.
D)   raise real GDP,but decrease real GDP per person.E) B) and C)
F) A) and D)

Question 11

Petroleum is an example of a nonrenewable resource.

Accepted Answer

A) True 
 B)False

Question 12

Other things the same,a country that increases its saving rate increases

Accepted Answer

A)   its future productivity and future real GDP.
B)   neither its future productivity nor future real GDP.
C)   its future productivity,but not its future real GDP.
D)   its future real GDP,but not its future productivity.E) None of the above
F) B) and D)

Question 13

In the long run,a higher saving rate

Accepted Answer

A)   cannot increase the capital stock.
B)   increases the growth rate of income.
C)   increases the growth rate of productivity.
D)   None of the above is correct.E) A) and B)
F) A) and C)

Question 14

If your firm's production function has constant returns to scale and you increase all your inputs by 60%,then your firm's output will

Accepted Answer

A)   not change.
B)   increase,but by less than 60%
C)   increase by 60%
D)   increase by more than 60%.E) A) and C)
F) B) and D)

Question 15

When a country removes trade barriers and imports appliances and exports engineering services,

Accepted Answer

A)   its growth slows.
B)   its productivity decreases.
C)   it is essentially transforming engineering services into appliances.
D)   its economic well-being decreases while that of the country that sells appliances increases.E) B) and C)
F) All of the above

Question 16

The behavior of market prices over time indicates that natural resources are

Accepted Answer

A)   a limit to economic growth.
B)   unrelated to economic growth.
C)   not a limit to economic growth.
D)   the major determinant of productivity.E) All of the above
F) A) and D)

Question 17

Upland has a population of 15,000,of whom 9,000 work 8 hours a day to produce real output of $342,000.Lowland has a population of 8,000,of whom 7,000 work 7 hours a day to produce real output of $171,500.

Accepted Answer

A)   Upland has higher productivity and higher real GDP per person than Lowland.
B)   Upland has higher productivity but lower real GDP per person than Lowland.
C)   Upland has lower productivity but higher real GDP per person than Lowland.
D)   Upland has lower productivity and lower real GDP per person than Lowland.E) A) and B)
F) None of the above

Question 18

If natural resources had become scarcer,then we would expect their

Accepted Answer

A)   prices to have risen more than inflation as they have.
B)   prices to have risen more than inflation,but they have not.
C)   known quantities to have fallen as they have.
D)   known quantities to have fallen but they have not.E) B) and C)
F) A) and D)

Question 19

Evidence shows that other things the same,poor countries grow

Accepted Answer

A)   faster than rich countries.However,no country that was poor in 1870 is now rich.
B)   faster than rich countries.In fact,some countries that were poor in 1870 are now rich.
C)   slower than rich countries.In fact,no country that was poor in 1870 is now rich.
D)   slower than rich countries.However,some countries that were poor in 1870 are now rich.E) B) and C)
F) A) and D)

Question 20

Suppose that Slovenia undertakes a policy to increase its saving rate.This policy will likely

Accepted Answer

A)   have no impact on GDP growth.
B)   lead to higher GDP growth for a few years.
C)   lead to higher GDP growth for a period of several decades.
D)   lead to a permanently higher growth rate.E) None of the above
F) A) and B)

Exam 25: Production and Growth

Evidence shows that other things the same,poor countries grow

Correct AnswerverifiedShow Answer

In the long run,a higher saving rate

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Petroleum is an example of a nonrenewable resource.

Correct AnswerverifiedShow Answer

When a country removes trade barriers and imports appliances and exports engineering services,

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

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

All else equal,which of the following would tend to cause real GDP per person to rise?

Correct AnswerverifiedShow Answer

Upland has a population of 15,000,of whom 9,000 work 8 hours a day to produce real output of $342,000.Lowland has a population of 8,000,of whom 7,000 work 7 hours a day to produce real output of $171,500.

Correct AnswerverifiedShow Answer

The behavior of market prices over time indicates that natural resources are

Correct AnswerverifiedShow Answer

Other things the same,a country that increases its saving rate increases

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If your firm's production function has constant returns to scale and you increase all your inputs by 60%,then your firm's output will

Correct AnswerverifiedShow Answer

Although growth rates across countries vary some,rankings of countries by income remain pretty much the same over time.

Correct AnswerverifiedShow Answer

If natural resources had become scarcer,then we would expect their

Correct AnswerverifiedShow Answer

If your firm's production function has constant returns to scale,then if you double all your inputs,your firm's output will

Correct AnswerverifiedShow Answer

Over the last ten years productivity grew more slowly in Upland than in Lowland and the population and total hours worked remained the same in both countries.It follows that

Correct AnswerverifiedShow Answer

Suppose that Slovenia undertakes a policy to increase its saving rate.This policy will likely

Correct AnswerverifiedShow Answer

A rapid increase in the number of workers,other things the same,is likely in the short term to

Correct AnswerverifiedShow Answer

Because of its vast oil reserves,Saudi Arabia is a rich country.Saudi Arabia exemplifies the general fact that differences in __________ are responsible for some of the differences in standards of living around the world.

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

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