Question 1

Which of the following is not correct?

Accepted Answer

A)   Countries that have had higher output growth per person have typically done so without higher productivity growth.
B)   A country's standard of living and its productivity are closely related.
C)   Productivity refers to output produced per hour of work.
D)   Increases in productivity can be used to increase output or leisure.E) C) and D)
F) B) and C)

Question 2

If a country made it easier for people to establish and prove the ownership of their property,real GDP per person would likely rise.

Accepted Answer

A) True 
 B)False

Question 3

Inward-oriented policies

Accepted Answer

A)   include imposing tariffs and other trade restrictions.
B)   have generally increased productivity and growth in the countries that pursued them.
C)   promote the production of goods and services that the country produces most efficiently.
D)   All of the above are correct.E) All of the above
F) B) and C)

Question 4

Which of the following would be human capital and physical capital,respectively?

Accepted Answer

A)   for an accounting firm,the accountants' knowledge of tax laws and the number of hours worked by those accountants
B)   for a grocery store,grocery carts and cash registers.
C)   for a restaurant,the chefs' knowledge about preparing food and equipment in the kitchen
D)   for a library,the building and the reference librarians' knowledge of the InternetE) A) and B)
F) C) and D)

Question 5

Suppose over the last year that the price of recycled aluminum increased from $800 a ton to $900 a ton.Over the same time a measure of the overall price level increased from 120 to 130.The price of recycled aluminum increased by

Accepted Answer

A)   less than inflation,but this doesn't necessarily mean it became scarcer.
B)   less than inflation,and this means it became scarcer.
C)   more than inflation,and this means it became scarcer.
D)   more than inflation,but this doesn't necessarily mean that it become scarcer.E) All of the above
F) C) and D)

Question 6

During the past century the average growth rate of U.S.real GDP per person implies that it doubled,on average,about every

Accepted Answer

A)   100 years.
B)   70 years.
C)   35 years.
D)   25 years.E) A) and C)
F) B) and C)

Question 7

A leading environmental group recently published a report contending that humans are running a "resource deficit" because we are using natural resources faster than they can be regenerated.The group claims that this means that economic growth will eventually stop,and will even be reversed.An economist would

Accepted Answer

A)   agree with the report,and would point to rising natural resource prices as evidence.
B)   agree with the report,but wouldn't think it was important because growth will not slow down for several centuries.
C)   disagree with the report,in part because it ignores the mitigating effects of technological change.
D)   disagree with the report because labor and capital are the primary determinants of growth,and since they are plentiful,growth will not slow down.E) B) and D)
F) B) and C)

Question 8

The catch-up effect says that countries with low income can grow faster than countries with higher income.However,in statistical studies that include many diverse countries we do not observe the catch-up-effect unless we control for other variables that affect productivity.Considering the determinants of productivity,list and explain some things that would tend to prohibit or limit a poor country's ability to catch up with the rich ones.

Accepted Answer

The argument that poor countries will te...

Question 9

Once an idea enters society's pool of knowledge,the knowledge becomes a

Accepted Answer

A)   societal good.
B)   private good.
C)   public good.
D)   proprietary good.E) A) and B)
F) A) and C)

Question 10

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

Question 11

What is the difference between human capital and technology?

Accepted Answer

Technology is society's understanding of...

Question 12

The president of a poor country has announced that he will implement the following measures which he claims are designed to increase growth: 1.Reduce corruption in the legal system;2.Reduce reliance on market forces because they allocate goods and services in an unfair manner;3.Restrict investment in domestic industries by foreigners because they take some of the profits out of the country;4.Encourage trade with neighboring countries;and 5.Increase the fraction of GDP devoted to consumption.How many of these measures will have a positive effect on growth?

Accepted Answer

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

Question 13

Other things the same,which of the following could explain an increase in productivity?

Accepted Answer

A)   either an increase in human capital or an increase in physical capital
B)   an increase in human capital but not an increase in physical capital
C)   an increase in physical capital but not an increase in human capital
D)   neither an increase in human capital nor an increase in physical capitalE) None of the above
F) B) and D)

Question 14

In medieval Europe an important technological advance was the use of the padded horse collar for plowing.Once this idea was thought of,other people used it.This illustrates that knowledge is generally a

Accepted Answer

A)   public good.
B)   societal good.
C)   private good.
D)   normal good.E) All of the above
F) A) and C)

Question 15

Which of the following best illustrates the human capital of a survivor stranded on an island?

Accepted Answer

A)   the fishing poles she has produced
B)   the invention of a better fishing lure
C)   the fresh fruit and fish on and around the island
D)   her previous training in a survival courseE) B) and C)
F) B) and D)

Question 16

Both the standard of living and the growth of real GDP per person vary widely across countries.

Accepted Answer

A) True 
 B)False

Question 17

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 D)
F) C) and D)

Question 18

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 D)
F) B) and C)

Question 19

Suppose a country reduces trade restrictions.This country would be pursing an

Accepted Answer

A)   inward policy,which most economists believe has beneficial effects on the economy.
B)   inward policy,which most economists believe has adverse effects on the economy.
C)   outward policy,which most economists believe has beneficial effects on the economy.
D)   outward policy,which most economists believe has adverse effects on the economy.E) A) and C)
F) A) and B)

Question 20

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

Exam 25: Production and Growth

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

Correct Answer
verified

Suppose over the last year that the price of recycled aluminum increased from $800 a ton to $900 a ton.Over the same time a measure of the overall price level increased from 120 to 130.The price of recycled aluminum increased by

Correct Answer
verified

Suppose a country reduces trade restrictions.This country would be pursing an

Correct Answer
verified

In medieval Europe an important technological advance was the use of the padded horse collar for plowing.Once this idea was thought of,other people used it.This illustrates that knowledge is generally a

Correct Answer
verified

During the past century the average growth rate of U.S.real GDP per person implies that it doubled,on average,about every

Correct Answer
verified

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

Correct Answer
verified

If a country made it easier for people to establish and prove the ownership of their property,real GDP per person would likely rise.

Correct Answer
verified

Correct Answer
verified

Which of the following is not correct?

Correct Answer
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Inward-oriented policies

Correct Answer
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Correct Answer
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What is the difference between human capital and technology?

Correct Answer
verified
Technology is society's understanding of...
View Answer

Other things the same,which of the following could explain an increase in productivity?

Correct Answer
verified

Which of the following best illustrates the human capital of a survivor stranded on an island?

Correct Answer
verified

Once an idea enters society's pool of knowledge,the knowledge becomes a

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified
The argument that poor countries will te...
View Answer

Which of the following would be human capital and physical capital,respectively?

Correct Answer
verified

Which of the following statements is true?

Correct Answer
verified

Both the standard of living and the growth of real GDP per person vary widely across countries.

Correct Answer
verified

Exam 25: Production and Growth

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

Correct AnswerverifiedShow Answer

Suppose over the last year that the price of recycled aluminum increased from $800 a ton to $900 a ton.Over the same time a measure of the overall price level increased from 120 to 130.The price of recycled aluminum increased by

Correct AnswerverifiedShow Answer

Suppose a country reduces trade restrictions.This country would be pursing an

Correct AnswerverifiedShow Answer

In medieval Europe an important technological advance was the use of the padded horse collar for plowing.Once this idea was thought of,other people used it.This illustrates that knowledge is generally a

Correct AnswerverifiedShow Answer

During the past century the average growth rate of U.S.real GDP per person implies that it doubled,on average,about every

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

If a country made it easier for people to establish and prove the ownership of their property,real GDP per person would likely rise.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Inward-oriented policies

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What is the difference between human capital and technology?

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

Other things the same,which of the following could explain an increase in productivity?

Correct AnswerverifiedShow Answer

Which of the following best illustrates the human capital of a survivor stranded on an island?

Correct AnswerverifiedShow Answer

Once an idea enters society's pool of knowledge,the knowledge becomes a

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe argument that poor countries will te...View AnswerShow Answer

Which of the following would be human capital and physical capital,respectively?

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Both the standard of living and the growth of real GDP per person vary widely across countries.

Correct AnswerverifiedShow Answer

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Technology is society's understanding of...
View Answer

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Correct Answer
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The argument that poor countries will te...
View Answer

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Correct Answer
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