Question 1

If a good has become more scarce,then we know for sure that

Accepted Answer

A)  the demand for it increased.
B)  the supply of it decreased.
C)  either the demand for it increased or the supply of it decreased.
D)  both the supply of it and the demand for it decreased.E) A) and B)
F) All of the above

Question 2

Which of the following terms is used to refer to the ability of people to exercise authority over the resources they own?

Accepted Answer

A)  natural rights
B)  property rights
C)  input control
D)  collective controlE) A) and D)
F) A) and B)

Question 3

In some East Asian countries,average income,as measured by real GDP per person,has recently grown at an average annual rate that implies output will double about every

Accepted Answer

A)  10 years.
B)  15 years.
C)  20 years.
D)  25 years.E) A) and C)
F) B) and C) A

Question 4

Alexis and Tara both mine salt.Alexis mines 400 pounds in 40 hours.Tara mines 300 pounds in 20 hours.Which of the following is correct?

Accepted Answer

A)  Alexis's productivity is greater than Tara's.This difference could be explained by Alexis having more physical capital than Tara.
B)  Alexis's productivity is greater than Tara's.This difference cannot be explained by a difference in the physical capital each has.
C)  Tara's productivity is greater than Alexis's.This difference could be explained by Tara having more physical capital than Alexis.
D)  Tara's productivity is greater than Alexis's.This difference cannot be explained by a difference in the physical capital each has.E) A) and B)
F) A) and C)

Question 5

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Accepted Answer

A)  most economists do not regard the availability of natural resources as a determinant of productivity.
B)  the quantity of natural resources does not enter into any production function.
C)  inflation-adjusted prices of most natural resources have been stable or fallen over time.
D)  inflation-adjusted prices of most natural resources have risen over time.E) None of the above
F) All of the above

Question 6

In addition to investment in physical and human capital,what other public policies might a country adopt to increase productivity?

Accepted Answer

In addition to investment in physical an...

Question 7

If Country A produces 7,000 units of goods and services using 700 hours of labor,and if Country B produces 5,500 units of goods and services using 500 units of labor,then productivity is lower in Country A than in Country B.

Accepted Answer

A) True 
 B)False

Question 8

An increase in a country's saving rate permanently raises its productivity.

Accepted Answer

A) True 
 B)False

Question 9

Country A and country B both increase their capital stock by one unit.Output in country A increases by 15 while output in country B increases by 12.Other things the same,diminishing returns implies that country A is

Accepted Answer

A)  richer than Country B.If Country A adds another unit of capital,output will increase by more than 15 units.
B)  richer than Country B.If Country A adds another unit of capital,output will increase by less than 15 units.
C)  poorer than Country B.If Country A adds another unit of capital,output will increase by more than 15 units.
D)  poorer than Country B.If Country A adds another unit of capital,output will increase by less than 15 units.E) A) and B)
F) A) and C)

Question 10

If a production function has constant returns to scale,then if all inputs double so does production.

Accepted Answer

A) True 
 B)False

Question 11

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

Question 12

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) B) and D)

Question 13

The traditional view of the production process is that capital is subject to

Accepted Answer

A)  constant returns.
B)  increasing returns.
C)  diminishing returns.
D)  diminishing returns for low levels of capital,and increasing returns for high levels of capital.E) None of the above
F) A) and B) C

Question 14

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

Question 15

Foreign direct investment and domestic investment have the same effect on all measures of economic prosperity.

Accepted Answer

A) True 
 B)False

Question 16

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

Question 17

Which of the following statements is true?

Accepted Answer

A)  Productivity is calculated as hours worked divided by output produced.
B)  Americans have a higher standard of living than Indonesians because American workers are more productive than Indonesian workers.
C)  Both A and B are correct.
D)  None of the above are correct.E) A) and B)
F) B) and D)

Question 18

Figure 12-1. 
-Refer to Figure 12-1.The curve becomes flatter as the amount of capital per worker increases because of

Accepted Answer

A)  increasing returns to capital.
B)  increasing returns to labor.
C)  diminishing returns to capital.
D)  diminishing returns to labor.E) C) and D)
F) B) and D) C

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Which of the following items plays a role in determining productivity?

Accepted Answer

A)  physical capital
B)  natural resources
C)  technological knowledge
D)  All of the above are correct.E) All of the above
F) A) and D)

Exam 25: Production and Growth

If a good has become more scarce,then we know for sure that

Correct Answer
verified

Which of the following terms is used to refer to the ability of people to exercise authority over the resources they own?

Correct Answer
verified

In some East Asian countries,average income,as measured by real GDP per person,has recently grown at an average annual rate that implies output will double about every

Correct Answer
verified
A

Alexis and Tara both mine salt.Alexis mines 400 pounds in 40 hours.Tara mines 300 pounds in 20 hours.Which of the following is correct?

Correct Answer
verified

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Correct Answer
verified

In addition to investment in physical and human capital,what other public policies might a country adopt to increase productivity?

Correct Answer
verified
In addition to investment in physical an...
View Answer

If Country A produces 7,000 units of goods and services using 700 hours of labor,and if Country B produces 5,500 units of goods and services using 500 units of labor,then productivity is lower in Country A than in Country B.

Correct Answer
verified

An increase in a country's saving rate permanently raises its productivity.

Correct Answer
verified

Country A and country B both increase their capital stock by one unit.Output in country A increases by 15 while output in country B increases by 12.Other things the same,diminishing returns implies that country A is

Correct Answer
verified

If a production function has constant returns to scale,then if all inputs double so does production.

Correct Answer
verified

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

Correct Answer
verified

In the long run,a higher saving rate

Correct Answer
verified

The traditional view of the production process is that capital is subject to

Correct Answer
verified
C

Correct Answer
verified

Foreign direct investment and domestic investment have the same effect on all measures of economic prosperity.

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

Which of the following statements is true?

Correct Answer
verified

Figure 12-1. -Refer to Figure 12-1.The curve becomes flatter as the amount of capital per worker increases because of

Correct Answer
verified
C

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

Correct Answer
verified

Which of the following items plays a role in determining productivity?

Correct Answer
verified

Exam 25: Production and Growth

If a good has become more scarce,then we know for sure that

Correct AnswerverifiedShow Answer

Which of the following terms is used to refer to the ability of people to exercise authority over the resources they own?

Correct AnswerverifiedShow Answer

In some East Asian countries,average income,as measured by real GDP per person,has recently grown at an average annual rate that implies output will double about every

Correct AnswerverifiedA

Alexis and Tara both mine salt.Alexis mines 400 pounds in 40 hours.Tara mines 300 pounds in 20 hours.Which of the following is correct?

Correct AnswerverifiedShow Answer

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Correct AnswerverifiedShow Answer

In addition to investment in physical and human capital,what other public policies might a country adopt to increase productivity?

Correct AnswerverifiedIn addition to investment in physical an...View AnswerShow Answer

If Country A produces 7,000 units of goods and services using 700 hours of labor,and if Country B produces 5,500 units of goods and services using 500 units of labor,then productivity is lower in Country A than in Country B.

Correct AnswerverifiedShow Answer

An increase in a country's saving rate permanently raises its productivity.

Correct AnswerverifiedShow Answer

Country A and country B both increase their capital stock by one unit.Output in country A increases by 15 while output in country B increases by 12.Other things the same,diminishing returns implies that country A is

Correct AnswerverifiedShow Answer

If a production function has constant returns to scale,then if all inputs double so does production.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the long run,a higher saving rate

Correct AnswerverifiedShow Answer

The traditional view of the production process is that capital is subject to

Correct AnswerverifiedC

Correct AnswerverifiedShow Answer

Foreign direct investment and domestic investment have the same effect on all measures of economic prosperity.

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

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Figure 12-1. -Refer to Figure 12-1.The curve becomes flatter as the amount of capital per worker increases because of

Correct AnswerverifiedC

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

Correct AnswerverifiedShow Answer

Which of the following items plays a role in determining productivity?

Correct AnswerverifiedShow Answer

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A

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Correct Answer
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In addition to investment in physical an...
View Answer

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Correct Answer
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Correct Answer
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Correct Answer
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C

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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C

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Correct Answer
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