Question 1

The one variable that stands out as the most significant explanation of large variations in living standards around the world is

Accepted Answer

A)   productivity.
B)   population.
C)   preferences.
D)   prices.E) B) and D)
F) None of the above

Question 2

If a production function has constant returns to scale,output can be doubled if

Accepted Answer

A)   labor alone doubles.
B)   all inputs but labor double.
C)   all of the inputs double.
D)   None of the above is correct.E) C) and D)
F) B) and D)

Question 3

Which of the following is generally an opportunity cost of investment in human capital?

Accepted Answer

A)   future job security
B)   forgone present wages
C)   increased earning potential
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 4

Educated people may generate ideas that increase production.These ideas

Accepted Answer

A)   produce a return to society from education that is greater than the return to the individual.
B)   could justify government subsides for education.
C)   are external benefits of education.
D)   All of the above are correct.E) B) and C)
F) All of the above

Question 5

The key determinant of a the standard of living in a country is

Accepted Answer

A)   the amount of goods and services produced from each hour of a worker's time.
B)   the total amount of goods and services produced within the country.
C)   the total amount of its physical capital.
D)   its growth rate of real GDP.E) B) and C)
F) A) and D)

Question 6

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) B) and D)

Question 7

Proprietary technology is knowledge that is

Accepted Answer

A)   known but no longer used much.
B)   known,but only recently discovered.
C)   known mostly by only those in a certain profession.
D)   known only by the company that discovered it.E) B) and C)
F) A) and D)

Question 8

Which of the following statements is not correct?

Accepted Answer

A)   The catch-up effect is based on the assumption of diminishing returns to capital.
B)   Investment in poor countries by citizens of rich countries is one way poor countries can learn new technologies.
C)   Malthus argued that charity and government aid was an effective way to reduce poverty.
D)   Peace and justice are keys to growth.E) B) and C)
F) All of the above

Question 9

Mary looks over reports on four of her workers.Jack made 25 baskets in 5 hours.Walter made 36 baskets in 6 hours.Rudy made 40 baskets in 10 hours.Sam made 22 baskets in four hours.Who has the greatest productivity?

Accepted Answer

A)   Jack
B)   Walter
C)   Rudy
D)   SamE) B) and D)
F) A) and B)

Question 10

Consider three imaginary countries.In Old York,saving amounts to $3,000 and consumption amounts to $7,000;in New Frank,saving amounts to $2,000 and consumption amounts to $8,000;and in Ganzee,saving amounts to $4,500 and consumption amounts to $10,500.The saving rate is

Accepted Answer

A)   higher in Old York than in Ganzee,and it is higher in Ganzee than in New Frank.
B)   higher in New Frank than in Ganzee,and it is higher in Ganzee than in Old York.
C)   higher in Ganzee than in New Frank,and it is the same in New Frank and Old York.
D)   higher in Old York than in New Frank,and it is the same in Old York and Ganzee.E) A) and D)
F) A) and C)

Question 11

At first patents might seem like a deterrent to growth because in effect they restrict the use of new technology.Yet many economists believe that patents generate growth.Explain why.

Accepted Answer

Once someone comes up with an idea it is...

Question 12

When Americans invest in Russia,the income of Russians (that is,Russian GNP)rises by more than does production in Russia (that is,Russian GDP).

Accepted Answer

A) True 
 B)False

Question 13

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 computer software
B)   for a grocery store,grocery carts and shelving
C)   for a school,chalkboard and desks
D)   for a library,the building and the reference librarians' knowledge of the InternetE) None of the above
F) B) and C)

Question 14

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 D)
F) B) and C)

Question 15

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) B) and D)

Question 16

Which of the following is an example of the "brain drain?"

Accepted Answer

A)   A country's most highly educated workers emigrate to rich countries.
B)   A country has such a poor educational system that human capital falls over time.
C)   The population of a country grows so fast that the educational system can't keep up.
D)   A country steals patented technology from another country.E) A) and B)
F) C) and D)

Question 17

Some economists argue that it is possible to raise the standard of living by reducing population growth.As an economist interested in incentives rather than coercion,what kind of policy would you recommend to slow population growth?

Accepted Answer

Since bearing a child has an opportunity...

Question 18

The saws,lathes,and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called

Accepted Answer

A)   human capital.
B)   physical capital.
C)   natural resources.
D)   technological knowledge.E) B) and D)
F) A) and D)

Question 19

When a country removes trade barriers and imports toys and exports farm machinery,

Accepted Answer

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

Question 20

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)   Bangladesh
C)   Brazil
D)   None of the above is correct.E) B) and C)
F) None of the above

Exam 25: Production and Growth

Which of the following is an example of the "brain drain?"

Correct AnswerverifiedShow Answer

The saws,lathes,and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called

Correct AnswerverifiedShow Answer

Proprietary technology is knowledge that is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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 is generally an opportunity cost of investment in human capital?

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

If a production function has constant returns to scale,output can be doubled if

Correct AnswerverifiedShow Answer

Educated people may generate ideas that increase production.These ideas

Correct AnswerverifiedShow Answer

The key determinant of a the standard of living in a country is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When a country removes trade barriers and imports toys and exports farm machinery,

Correct AnswerverifiedShow Answer

At first patents might seem like a deterrent to growth because in effect they restrict the use of new technology.Yet many economists believe that patents generate growth.Explain why.

Correct AnswerverifiedOnce someone comes up with an idea it is...View AnswerShow Answer

Mary looks over reports on four of her workers.Jack made 25 baskets in 5 hours.Walter made 36 baskets in 6 hours.Rudy made 40 baskets in 10 hours.Sam made 22 baskets in four hours.Who has the greatest productivity?

Correct AnswerverifiedShow Answer

The one variable that stands out as the most significant explanation of large variations in living standards around the world is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Consider three imaginary countries.In Old York,saving amounts to $3,000 and consumption amounts to $7,000;in New Frank,saving amounts to $2,000 and consumption amounts to $8,000;and in Ganzee,saving amounts to $4,500 and consumption amounts to $10,500.The saving rate is

Correct AnswerverifiedShow Answer

Some economists argue that it is possible to raise the standard of living by reducing population growth.As an economist interested in incentives rather than coercion,what kind of policy would you recommend to slow population growth?

Correct AnswerverifiedSince bearing a child has an opportunity...View AnswerShow Answer

When Americans invest in Russia,the income of Russians (that is,Russian GNP)rises by more than does production in Russia (that is,Russian GDP).

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Once someone comes up with an idea it is...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Since bearing a child has an opportunity...
View Answer

Correct Answer
verified