Question 1

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 B)
F) A) and C)

Question 2

Which of the following statements is true?

Accepted Answer

A)   The quantity of natural resources per worker can influence productivity.
B)   Technological knowledge and human capital are closely related.
C)   Over long periods of time, the prices of most natural resources are stable or falling, relative to other prices.
D)   All of the above are correct.E) All of the above
F) A) and D)

Question 3

Increases in both human capital per worker and physical capital per worker increase productivity.

Accepted Answer

A) True 
 B)False

Question 4

In which of the following cases can we be certain that a natural resource has become scarcer?

Accepted Answer

A)   both the demand for the resource and the supply of the resource have increased.
B)   both the demand for the resource and the supply of the resource have decreased.
C)   the demand for the resource has increased and the supply has decreased.
D)   the demand for the resource has decreased and the supply has increased.E) A) and B)
F) A) and C)

Question 5

Which of the following statements is correct?

Accepted Answer

A)   In an economy-wide sense, property rights are an important prerequisite for the price system to work.
B)   Property rights give people the ability to exercise authority over the resources they own.
C)   Based on the available evidence, the existence of well-established and well-enforced property rights appears to be associated with an enhanced standard of living.
D)   All of the above are correct.E) C) and D)
F) A) and B)

Question 6

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) C) and D)
F) None of the above

Question 7

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

Question 8

Outward-oriented policies

Accepted Answer

A)   allow countries to take advantage of gains from trade.
B)   have generally led to high growth for the countries that pursued them.
C)   receive widespread support from economists.
D)   All of the above are correct.E) B) and C)
F) A) and C)

Question 9

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

Question 10

Which of the following countries benefited significantly from the catch-up effect in the last half of the twentieth century?

Accepted Answer

A)   Ethiopia
B)   the United States
C)   Canada
D)   South KoreaE) B) and C)
F) A) and D)

Question 11

The long-run effects of an increase in the saving rate include

Accepted Answer

A)   a higher level of productivity.
B)   a higher growth rate of productivity.
C)   a higher growth rate of income.
D)   All of the above are correct.E) A) and C)
F) A) and D)

Question 12

Suppose a person receives an education in her home country. Which of the following will tend to make the increase in GDP of the person's home country larger than the increase in this person's income?

Accepted Answer

A)   externalities and brain drain
B)   externalities but not brain drain
C)   brain drain but not externalities
D)   neither externalities nor brain drainE) A) and D)
F) B) and C)

Question 13

Both Arnold and Will work 10 hours a day. Arnold can produce six baskets of goods per hour while Will can produce four baskets of the same goods per hour. It follows that Arnold's

Accepted Answer

A)   productivity is greater than Will's.
B)   output is greater than Will's.
C)   standard of living is higher than Will's.
D)   All of the above are correct.E) None of the above
F) B) and D)

Question 14

When Chile experiences investment from abroad, it experiences, as a result,

Accepted Answer

A)   an increase in productivity.
B)   a decrease in Gross National Product GNP) .
C)   lower wages for Chilean workers.
D)   None of the above is correct.E) None of the above
F) All of the above

Question 15

International data on real GDP per person gives us a sense of how standards of living vary across countries.

Accepted Answer

A) True 
 B)False

Question 16

Productivity is defined as the quantity of

Accepted Answer

A)   labor required to produce a nation's GDP.
B)   labor required to produce one unit of goods and services.
C)   goods and services produced from each unit of labor input.
D)   goods and services produced per unit of time.E) A) and C)
F) C) and D)

Question 17

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

Question 18

What do we mean when we say that some technological knowledge is not proprietary?

Accepted Answer

Technological knowledge is not...

Question 19

Among the following countries, which one has the highest growth rate of real GDP per person over about the last 100 years?

Accepted Answer

A)   Argentina
B)   Mexico
C)   the United Kingdom
D)   the United StatesE) B) and C)
F) All of the above

Question 20

Countries with high population growth rates tend to have lower levels of educational attainment.

Accepted Answer

A) True 
 B)False

Exam 12: Production and Growth

Which of the following countries benefited significantly from the catch-up effect in the last half of the twentieth century?

Correct AnswerverifiedShow Answer

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

International data on real GDP per person gives us a sense of how standards of living vary across countries.

Correct AnswerverifiedShow Answer

Among the following countries, which one has the highest growth rate of real GDP per person over about the last 100 years?

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Increases in both human capital per worker and physical capital per worker increase productivity.

Correct AnswerverifiedShow Answer

Both Arnold and Will work 10 hours a day. Arnold can produce six baskets of goods per hour while Will can produce four baskets of the same goods per hour. It follows that Arnold's

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Countries with high population growth rates tend to have lower levels of educational attainment.

Correct AnswerverifiedShow Answer

Outward-oriented policies

Correct AnswerverifiedShow Answer

The long-run effects of an increase in the saving rate include

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

Suppose a person receives an education in her home country. Which of the following will tend to make the increase in GDP of the person's home country larger than the increase in this person's income?

Correct AnswerverifiedShow Answer

In which of the following cases can we be certain that a natural resource has become scarcer?

Correct AnswerverifiedShow Answer

What do we mean when we say that some technological knowledge is not proprietary?

Correct AnswerverifiedTechnological knowledge is not...View AnswerShow Answer

Productivity is defined as the quantity of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When Chile experiences investment from abroad, it experiences, as a result,

Correct AnswerverifiedShow Answer

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Technological knowledge is not...
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