Question 1

In the past there have been violent protests against the World Bank and the World Trade Organization. The protesters argued that these institutions promote free trade and also encourage corporations in rich countries to invest in poor countries. The protesters contended that these practices make rich countries richer and poor countries poorer. An economist would

Accepted Answer

A)   disagree with the protesters because these practices will help make both rich and poor countries richer.
B)   disagree with the protesters about free trade, but would agree with the protesters about corporate investment.
C)   disagree with the protesters about corporate investment, but would agree with the protesters about free trade.
D)   agree with the protesters.E) A) and B)
F) A) and C)

Question 2

Which list contains, in this order, a country whose real GDP per person grew faster and one whose real GDP per person grew slower than real GDP per person in the U.S. over about the last 100 years?

Accepted Answer

A)   Bangladesh, India
B)   China, United Kingdom
C)   Japan, Brazil
D)   Pakistan, MexicoE) B) and D)
F) A) and D)

Question 3

Which of the following is correct?

Accepted Answer

A)   Once adjustment is made for inflation, the prices of most natural resources have been about steady or falling.
B)   Technological progress has allowed us to substitute renewable resources for some nonrenewable resources.
C)   Technological progress has made once-crucial natural resources less necessary.
D)   All of the above are correct.E) All of the above
F) B) and C)

Question 4

In recent decades Americans have increased their purchase of stocks of foreign-based companies. The Americans who have bought these stocks were engaged in

Accepted Answer

A)   foreign portfolio investment.
B)   indirect domestic investment.
C)   foreign direct investment.
D)   foreign indirect investment.E) A) and C)
F) B) and C)

Question 5

Productivity can be computed as the number of hours worked divided by output.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not correct?

Accepted Answer

A)   China allows only one child per family and couples that violate this rule are subject to substantial fines.
B)   In developed countries, population growth is consistently about 3 percent per year; in developing countries it is consistently about 5 percent per year.
C)   Educational attainment tends to be lowest in countries with the highest population growth.
D)   Economists generally believe that a country that decreases a high population growth rate can increase its economic growth rate.E) A) and B)
F) All of the above

Question 7

Which of the following is a determinant of productivity?

Accepted Answer

A)   human capital per worker
B)   physical capital per worker
C)   natural resources per worker
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 8

Scenario 25-1. An economy's production form takes the form Y = AFL, K, H, N) .
-Refer to Scenario 25-1. If the production function has the constant-returns-to-scale property, then it is possible that the specific form of the production function is

Accepted Answer

A)   Y = 4L + 2K + 3H + N
B)   Y = L + K + H + N) /4
C)   Y =2
D)   Y = 4E) All of the above
F) A) and D)

Question 9

Investment in human capital has opportunity costs, but investment in physical capital does not.

Accepted Answer

A) True 
 B)False

Question 10

In the 19th century John Deere took out a patent on a newly designed plow that incorporated steel to make plowing faster. Many farmers bought plows from his company and he made millions. This example shows that patents turn an idea into a

Accepted Answer

A)   public good.
B)   societal good.
C)   private good.
D)   normal good.E) All of the above
F) B) and C)

Question 11

According to research by Robert Fogel, what proportion of the British population in 1780 was so malnourished that they could not perform manual labor?

Accepted Answer

A)   5 percent
B)   10 percent
C)   20 percent
D)   25 percentE) A) and D)
F) B) and D)

Question 12

Which of the following lists contains, in this order, natural resources, human capital, and physical capital?

Accepted Answer

A)   For a restaurant: the land the restaurant was built on, the money it borrowed to buy supplies, the freezers where the chops and steaks are kept.
B)   For a furniture company: wood, the skills and knowledge of its workers, saws.
C)   For a railroad: fuel, railroad engines, railroad tracks.
D)   None of the above is correct.E) A) and D)
F) A) and B)

Question 13

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units. This year the same country had 1000 workers who worked an average of 8 hours and produced 14,000 units. This country's productivity was

Accepted Answer

A)   higher this year than last year. A possible source of this change in productivity is a change in the size of the capital stock.
B)   higher this year than last year. A change in the size of the capital stock does not affect productivity.
C)   lower this year than last year. A possible source of this change in productivity is a change in the size of the capital stock.
D)   lower this year than last year. A change in the size of the capital stock does not affect productivity.E) B) and D)
F) A) and C)

Question 14

Figure 25-1 
-Refer to Figure 21-1. In order for the figure to make sense, do we have to assume that capital is the only determinant of output? Briefly explain.

Accepted Answer

No, we do not have to assume that capita...

Question 15

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

Question 16

Consider the nations of Brazil, Mexico, and Pakistan. Over the past century, which of these three nations has experienced, by far, slower economic growth than the other two nations?

Accepted Answer

Pakistan's growth rate 1.20 pe...

Question 17

Economists generally believe that inward-oriented policies are more likely to foster growth than outward-oriented policies.

Accepted Answer

A) True 
 B)False

Question 18

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

Question 19

Perry accumulated a lot of mathematical skills while in high school, college, and graduate school. Economists include these skills as part of Perry's

Accepted Answer

A)   proprietary knowledge.
B)   technological knowledge.
C)   human capital.
D)   physical capital.E) A) and B)
F) None of the above

Question 20

Since 1870 Canadian and U.S real GDP per person grew from below to above that in the United Kingdom. The explanation for this is likely that productivity grew faster in Canada and the U.S. than in the United Kingdom.

Accepted Answer

A) True 
 B)False

Exam 12: Production and Growth

In the 19th century John Deere took out a patent on a newly designed plow that incorporated steel to make plowing faster. Many farmers bought plows from his company and he made millions. This example shows that patents turn an idea into a

Correct Answer
verified

Which of the following is correct?

Correct Answer
verified

Which of the following lists contains, in this order, natural resources, human capital, and physical capital?

Correct Answer
verified

Consider the nations of Brazil, Mexico, and Pakistan. Over the past century, which of these three nations has experienced, by far, slower economic growth than the other two nations?

Correct Answer
verified
Pakistan's growth rate 1.20 pe...
View Answer

Which list contains, in this order, a country whose real GDP per person grew faster and one whose real GDP per person grew slower than real GDP per person in the U.S. over about the last 100 years?

Correct Answer
verified

Which of the following is not correct?

Correct Answer
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According to research by Robert Fogel, what proportion of the British population in 1780 was so malnourished that they could not perform manual labor?

Correct Answer
verified

Correct Answer
verified

Since 1870 Canadian and U.S real GDP per person grew from below to above that in the United Kingdom. The explanation for this is likely that productivity grew faster in Canada and the U.S. than in the United Kingdom.

Correct Answer
verified

Figure 25-1 -Refer to Figure 21-1. In order for the figure to make sense, do we have to assume that capital is the only determinant of output? Briefly explain.

Correct Answer
verified
No, we do not have to assume that capita...
View Answer

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

Correct Answer
verified

Scenario 25-1. An economy's production form takes the form Y = AFL, K, H, N) . -Refer to Scenario 25-1. If the production function has the constant-returns-to-scale property, then it is possible that the specific form of the production function is

Correct Answer
verified

Perry accumulated a lot of mathematical skills while in high school, college, and graduate school. Economists include these skills as part of Perry's

Correct Answer
verified

Which of the following is a determinant of productivity?

Correct Answer
verified

Investment in human capital has opportunity costs, but investment in physical capital does not.

Correct Answer
verified

In recent decades Americans have increased their purchase of stocks of foreign-based companies. The Americans who have bought these stocks were engaged in

Correct Answer
verified

Productivity can be computed as the number of hours worked divided by output.

Correct Answer
verified

Economists generally believe that inward-oriented policies are more likely to foster growth than outward-oriented policies.

Correct Answer
verified

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units. This year the same country had 1000 workers who worked an average of 8 hours and produced 14,000 units. This country's productivity was

Correct Answer
verified

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

Correct Answer
verified

Exam 12: Production and Growth

In the 19th century John Deere took out a patent on a newly designed plow that incorporated steel to make plowing faster. Many farmers bought plows from his company and he made millions. This example shows that patents turn an idea into a

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Which of the following lists contains, in this order, natural resources, human capital, and physical capital?

Correct AnswerverifiedShow Answer

Consider the nations of Brazil, Mexico, and Pakistan. Over the past century, which of these three nations has experienced, by far, slower economic growth than the other two nations?

Correct AnswerverifiedPakistan's growth rate 1.20 pe...View AnswerShow Answer

Which list contains, in this order, a country whose real GDP per person grew faster and one whose real GDP per person grew slower than real GDP per person in the U.S. over about the last 100 years?

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

According to research by Robert Fogel, what proportion of the British population in 1780 was so malnourished that they could not perform manual labor?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Since 1870 Canadian and U.S real GDP per person grew from below to above that in the United Kingdom. The explanation for this is likely that productivity grew faster in Canada and the U.S. than in the United Kingdom.

Correct AnswerverifiedShow Answer

Figure 25-1 -Refer to Figure 21-1. In order for the figure to make sense, do we have to assume that capital is the only determinant of output? Briefly explain.

Correct AnswerverifiedNo, we do not have to assume that capita...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Scenario 25-1. An economy's production form takes the form Y = AFL, K, H, N) . -Refer to Scenario 25-1. If the production function has the constant-returns-to-scale property, then it is possible that the specific form of the production function is

Correct AnswerverifiedShow Answer

Perry accumulated a lot of mathematical skills while in high school, college, and graduate school. Economists include these skills as part of Perry's

Correct AnswerverifiedShow Answer

Which of the following is a determinant of productivity?

Correct AnswerverifiedShow Answer

Investment in human capital has opportunity costs, but investment in physical capital does not.

Correct AnswerverifiedShow Answer

In recent decades Americans have increased their purchase of stocks of foreign-based companies. The Americans who have bought these stocks were engaged in

Correct AnswerverifiedShow Answer

Productivity can be computed as the number of hours worked divided by output.

Correct AnswerverifiedShow Answer

Economists generally believe that inward-oriented policies are more likely to foster growth than outward-oriented policies.

Correct AnswerverifiedShow Answer

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units. This year the same country had 1000 workers who worked an average of 8 hours and produced 14,000 units. This country's productivity was

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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Pakistan's growth rate 1.20 pe...
View Answer

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No, we do not have to assume that capita...
View Answer

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