Question 1

Which of the following countries had the highest level of real GDP per person in 2010?

Accepted Answer

A)   Germany
B)   Canada
C)   United States
D)   JapanE) C) and D)
F) A) and D)

Question 2

Figure 25-1.
On the horizontal axis, K/L represents capital K)  per worker L) . On the vertical axis, Y/L represents output Y)  per worker L) . 
-Refer to Figure 25-1. The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

Accepted Answer

A)   In the long run, a higher saving rate leads to a higher growth rate of productivity.
B)   In the long run, a higher saving rate leads to a higher growth rate of income.
C)   Returns to capital become increasingly smaller as the amount of capital per worker increases.
D)   All of the above are correct.E) C) and D)
F) A) and B)

Question 3

It is possible for a country without a lot of domestic natural resources to have a high standard of living.

Accepted Answer

A) True 
 B)False

Question 4

The United Kingdom is

Accepted Answer

A)   an advanced economy, and over the past century its rate of economic growth has been higher than that of the United States.
B)   an advanced economy, and over the past century its rate of economic growth has been lower than that of the United States.
C)   a middle-income country, and over the past century its rate of economic growth has been higher than that of the United States.
D)   a middle-income country, and over the past century its rate of economic growth has been lower than that of the United States.E) A) and C)
F) C) and D)

Question 5

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

Accepted Answer

A)   A
B)   K
C)   H
D)   NE) C) and D)
F) A) and B)

Question 6

Inventors often obtain patents on new products and processes, thereby turning new ideas into

Accepted Answer

A)   private goods and increasing the incentive to engage in research.
B)   private goods but decreasing the incentive to engage in research.
C)   public goods and increasing the incentive to engage in research.
D)   public goods but decreasing the incentive to engage in research.E) A) and B)
F) A) and C)

Question 7

The key determinant of 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) All of the above

Question 8

Explain the distinction between technological knowledge and human capital.

Accepted Answer

Technological knowledge refers...

Question 9

Economists differ in their views of the role of the government in promoting economic growth. A controversial idea is that government should

Accepted Answer

A)   lend support to the invisible hand by maintaining property rights and political stability.
B)   lower barriers and impediments to free trade.
C)   encourage capital formation.
D)   target and subsidize specific industries important for technological progress.E) A) and D)
F) A) and B)

Question 10

Measured in 2010 dollars, real GDP per person in the United States in 2010 was about

Accepted Answer

A)   $37,000.
B)   $47,000.
C)   $57,000.
D)   $67,000.E) All of the above
F) A) and D)

Question 11

Countries that have lower levels of real GDP per person than the United States

Accepted Answer

A)   tend to have growth rates that are higher than that of the United States.
B)   tend to have growth rates that are about the same as that of the United States.
C)   tend to have growth rates that are lower than that of the United States.
D)   in some cases have growth rates that are higher than that of the United States and in other cases lower than that of the United States.E) All of the above
F) A) and C)

Question 12

All else equal, if there are diminishing returns, then what happens to productivity if both capital and labor increase?

Accepted Answer

A)   Productivity will definitely fall.
B)   Productivity will definitely be unchanged.
C)   Productivity will definitely rise.
D)   None of the above are necessarily correct.E) A) and B)
F) A) and C)

Question 13

How would an economist typically assess the extent of economic progress in a nation?

Accepted Answer

An economist typical...

Question 14

Measured in 2010 dollars, real GDP per person in the United States in 2010 was about 14 times that in

Accepted Answer

A)   China.
B)   India.
C)   Indonesia.
D)   Pakistan.E) None of the above
F) A) and B)

Question 15

The average income in a rich country

Accepted Answer

A)   is about 5 times that in a poor country. Further, people in rich countries have longer life expectancy.
B)   is about 5 times that in a poor country. However, people in rich countries have about the same life expectancy as those in poor countries.
C)   is more than ten times that in a poor country. Further, people in rich countries have longer life expectancy.
D)   is more than ten times that in poor country. However, people in rich countries have about the same life expectancy as those in poor countries.E) C) and D)
F) A) and B)

Question 16

In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 500,000. In 2011 it had a population of 5,100 and real GDP of 520,200. During 2011 real GDP per person in Bovina grew by

Accepted Answer

A)   2 percent, which is high compared to average U.S. growth over the last one-hundred years.
B)   2 percent, which is about the same as average U.S. growth over the last one-hundred years.
C)   4 percent, which is high compared to average U.S. growth over the last one-hundred years.
D)   4 percent, which is about the same as average U.S. growth over the last one-hundred years.E) None of the above
F) All of the above

Question 17

Technological knowledge refers to

Accepted Answer

A)   human capital.
B)   available information on how to produce things.
C)   resources expended transmitting society's understanding to the labor force.
D)   All of the above are technological knowledge.E) B) and C)
F) All of the above

Question 18

An organization that tries to encourage the flow of investment to poor countries is the

Accepted Answer

A)   World Bank.
B)   Organization of Less Developed Countries.
C)   Alliance of Developing Countries.
D)   International Development Alliance.E) A) and B)
F) A) and C)

Question 19

Ralph is a plumber. Which of the following are included in his human capital?

Accepted Answer

A)   the knowledge he learned on the job, and the tools he uses
B)   the knowledge he learned on the job, but not the tools he uses
C)   the tools he uses, but not the knowledge he learned on the job
D)   neither the knowledge he learned on the job nor the tools he usesE) A) and B)
F) C) and D)

Question 20

Which of the following public policies would be least likely to result in more rapid economic growth for a poor or developing country?

Accepted Answer

A)   policies designed to promote economic development in coastal areas
B)   policies designed to foster strict enforcement of property rights
C)   policies designed to foster free trade
D)   inward-oriented policiesE) None of the above
F) All of the above

Exam 7: Production and Growth

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

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Economists differ in their views of the role of the government in promoting economic growth. A controversial idea is that government should

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The average income in a rich country

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Inventors often obtain patents on new products and processes, thereby turning new ideas into

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The United Kingdom is

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How would an economist typically assess the extent of economic progress in a nation?

Correct AnswerverifiedAn economist typical...View AnswerShow Answer

Countries that have lower levels of real GDP per person than the United States

Correct AnswerverifiedShow Answer

In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 500,000. In 2011 it had a population of 5,100 and real GDP of 520,200. During 2011 real GDP per person in Bovina grew by

Correct AnswerverifiedShow Answer

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

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All else equal, if there are diminishing returns, then what happens to productivity if both capital and labor increase?

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Which of the following public policies would be least likely to result in more rapid economic growth for a poor or developing country?

Correct AnswerverifiedShow Answer

It is possible for a country without a lot of domestic natural resources to have a high standard of living.

Correct AnswerverifiedShow Answer

Measured in 2010 dollars, real GDP per person in the United States in 2010 was about 14 times that in

Correct AnswerverifiedShow Answer

Explain the distinction between technological knowledge and human capital.

Correct AnswerverifiedTechnological knowledge refers...View AnswerShow Answer

Which of the following countries had the highest level of real GDP per person in 2010?

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Measured in 2010 dollars, real GDP per person in the United States in 2010 was about

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Technological knowledge refers to

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Ralph is a plumber. Which of the following are included in his human capital?

Correct AnswerverifiedShow Answer

Figure 25-1. On the horizontal axis, K/L represents capital K) per worker L) . On the vertical axis, Y/L represents output Y) per worker L) . -Refer to Figure 25-1. The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

Correct AnswerverifiedShow Answer

An organization that tries to encourage the flow of investment to poor countries is the

Correct AnswerverifiedShow Answer

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An economist typical...
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Technological knowledge refers...
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