Question 1

Which of the following provide benefits to society at large and not just to the persons)  who pursues it?

Accepted Answer

A)   both technological knowledge that is a public good and education
B)   technological knowledge that is a public good, but not education
C)   education, but not technological knowledge that is a public good
D)   neither education, nor technological knowledge that is a public goodE) C) and D)
F) B) and D)

Question 2

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 D)
F) B) and D)

Question 3

If your company opens and operates a branch in a foreign country, your company engages in foreign direct investment.

Accepted Answer

A) True 
 B)False

Question 4

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) C) and D)

Question 5

Greg's Ice Cream produces 1120 gallons of ice cream per day. Each employed works seven hours and has productivity of 20 gallons an hour. How many employees does Greg's employ?

Accepted Answer

A)   160
B)   56
C)   8
D)   None of the above is correct.E) A) and B)
F) A) and C)

Question 6

Why does a nation's standard of living depend on property rights?

Accepted Answer

Property rights are an important prerequ...

Question 7

A basic principle of economics is that a country's standard of living depends on its

Accepted Answer

A)   quantity of physical capital.
B)   abundance of natural resources.
C)   ability to produce goods and services.
D)   ability to thrive economically without having to interact with other countries.E) C) and D)
F) B) and D)

Question 8

A country's human capital increases

Accepted Answer

A)   if its workers become better educated or healthier.
B)   only if its workers become better educated.
C)   only if its workers become healthier.
D)   None of the above is correct.E) C) and D)
F) A) and B)

Question 9

Malthus predicted that the power of population

Accepted Answer

A)   was greater than the power of the earth to produce subsistence. His forecast was on the mark.
B)   was greater than the power of the earth to produce subsistence. His forecast was off the mark.
C)   was less than the power of the earth to produce subsistence. His forecast was on the mark.
D)   was less than the power of the earth to produce subsistence. His forecast was off the mark.E) C) and D)
F) A) and D)

Question 10

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

Question 11

Nathan owns a bakery that bakes only cakes. All of his bakers work 8 hours per day. In 2011, he employed 5 bakers who produced a total of 200 cakes each day. In 2012, he employed 6 bakers who produced a total of 249 cakes each day. The bakery's productivity

Accepted Answer

A)   decreased by 2.33%.
B)   increased by 2.33%.
C)   increased by 3.75%.
D)   increased by 24.50%.E) All of the above
F) A) and B)

Question 12

Consider the nations of India, Indonesia, and Japan. Over the past century, which of these three nations has experienced, by far, more rapid economic growth than the other two nations?

Accepted Answer

Japan's growth rate 2.65 perce...

Question 13

Consider the production function Y = 4FL,K,H,N). Suppose F10,8,6,5)= 100 and F30,24,18,15)=300. Does the production function have the property of constant returns to scale? Why or why not?

Accepted Answer

Yes, the production function has the pro...

Question 14

Inward-oriented policies

Accepted Answer

A)   are generally supported by economists.
B)   are primarily concerned with the development of human capital.
C)   in some ways are like prohibiting the use of certain technologies.
D)   All of the above are correct.E) A) and C)
F) All of the above

Question 15

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

Accepted Answer

A)   Bangladesh
B)   Indonesia
C)   Mexico
D)   ChinaE) B) and C)
F) A) and D)

Question 16

Over the last ten years productivity grew more slowly in Iberia than in Aire while 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 Iberia than in Aire.
B)   real GDP per person grew more slowly in Iberia than in Aire.
C)   the standard of living must be higher in Iberia than in Aire.
D)   All of the above are correct.E) All of the above
F) A) and B)

Question 17

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2010. At the start of 2011 the pointy­ haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000. These numbers indicate that productivity

Accepted Answer

A)   fell by 4%.
B)   fell by 20%.
C)   rose by 12%.
D)   rose by 20%.E) A) and B)
F) None of the above

Question 18

Economists differ in their views of the role of the government in promoting economic growth. At the very least, the government should

Accepted Answer

A)   lend support to the invisible hand by maintaining property rights and political stability.
B)   limit foreign investment to industries that don't already exist in the country.
C)   impose trade restrictions to protect the interests of domestic producers and consumers.
D)   subsidize key industries.E) B) and D)
F) All of the above

Question 19

Phoenix furniture uses 12 workers, each working eight hours, to produce 192 rocking chairs. What is Phoenix's productivity?

Accepted Answer

A)   192 rocking chairs
B)   24 rocking chairs per hour
C)   2 rocking chairs per hour
D)   2 hours per rocking chairE) B) and D)
F) None of the above

Question 20

In determining living standards, productivity plays a key role

Accepted Answer

A)   for individuals, but not for nations.
B)   for nations, but not for individuals.
C)   for both nations and individuals.
D)   for neither nations nor individuals.E) None of the above
F) A) and C)

Exam 7: Production and Growth

Greg's Ice Cream produces 1120 gallons of ice cream per day. Each employed works seven hours and has productivity of 20 gallons an hour. How many employees does Greg's employ?

Correct AnswerverifiedShow Answer

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2010. At the start of 2011 the pointy­ haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000. These numbers indicate that productivity

Correct AnswerverifiedShow Answer

Inward-oriented policies

Correct AnswerverifiedShow Answer

A country's human capital increases

Correct AnswerverifiedShow Answer

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

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 AnswerverifiedShow Answer

Consider the nations of India, Indonesia, and Japan. Over the past century, which of these three nations has experienced, by far, more rapid economic growth than the other two nations?

Correct AnswerverifiedJapan's growth rate 2.65 perce...View AnswerShow Answer

Economists differ in their views of the role of the government in promoting economic growth. At the very least, the government should

Correct AnswerverifiedShow Answer

Nathan owns a bakery that bakes only cakes. All of his bakers work 8 hours per day. In 2011, he employed 5 bakers who produced a total of 200 cakes each day. In 2012, he employed 6 bakers who produced a total of 249 cakes each day. The bakery's productivity

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Malthus predicted that the power of population

Correct AnswerverifiedShow Answer

Phoenix furniture uses 12 workers, each working eight hours, to produce 192 rocking chairs. What is Phoenix's productivity?

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

A basic principle of economics is that a country's standard of living depends on its

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Why does a nation's standard of living depend on property rights?

Correct AnswerverifiedProperty rights are an important prerequ...View AnswerShow Answer

If your company opens and operates a branch in a foreign country, your company engages in foreign direct investment.

Correct AnswerverifiedShow Answer

In determining living standards, productivity plays a key role

Correct AnswerverifiedShow Answer

Which of the following provide benefits to society at large and not just to the persons) who pursues it?

Correct AnswerverifiedShow Answer

Consider the production function Y = 4FL,K,H,N). Suppose F10,8,6,5)= 100 and F30,24,18,15)=300. Does the production function have the property of constant returns to scale? Why or why not?

Correct AnswerverifiedYes, the production function has the pro...View AnswerShow Answer

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Dilbert's Incorporated produced 5,000,000 units of accounting software in 2010. At the start of 2011 the pointy haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000. These numbers indicate that productivity

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Japan's growth rate 2.65 perce...
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Property rights are an important prerequ...
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Yes, the production function has the pro...
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