Question 1

The return to schooling for society is higher than the return to schooling for the individual if

Accepted Answer

A)   the concept of diminishing returns applies to education.
B)   the concept of constant returns to scale applies to education.
C)   human capital conveys positive externalities.
D)   investment in human capital involves no opportunity costs.E) A) and D)
F) B) and D)

Question 2

Suppose a country reduces restrictions on how many hours people can work. If reducing these restrictions increase the total number of hours worked in the economy, but all other factors that determine output are held fixed, then

Accepted Answer

A)   productivity and output both rise.
B)   productivity rises and output falls.
C)   productivity falls and output rises.
D)   productivity and output fall.E) B) and D)
F) None of the above

Question 3

John and Miguel are fishermen. When they go fishing, John consistently catches 2 or 3 fish per hour, while Miguel consistently catches 5 or 6 fish per hour. Miguel's exceeds that of John.

Accepted Answer

The answer of John and Miguel are fishermen. When they...

Question 4

Like physical capital, human capital is a produced factor of production.

Accepted Answer

A) True 
 B)False

Question 5

In what sense is capital accumulation costly to a society?

Accepted Answer

Capital accumulation requires ...

Question 6

How does the phenomenon of diminishing returns to capital explain the catch-up effect?

Accepted Answer

When an economy initially has a small am...

Question 7

Which of the following statements is true?

Accepted Answer

A)   Natural resources per worker influence productivity only when those natural resources are renewable.
B)   The prices of most natural resources are stable or falling relative to other prices.
C)   Technology requires greater use of natural resources.
D)   The terms human capital and technological knowledge are used interchangeably.E) A) and B)
F) B) and C)

Question 8

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 9

If a newly elected government takes actions that makes its country's courts more efficient and less corrupt, then

Accepted Answer

A)   producers will have greater confidence that they will benefit from their efforts.
B)   producers are likely to be more specialized.
C)   buyers and sellers will be more likely to honor contracts.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 10

If your firm's production function has constant returns to scale, and if you double all your inputs, then your firm's productivity will

Accepted Answer

A)   not change.
B)   increase but not double.
C)   double.
D)   more than double.E) None of the above
F) A) and B)

Question 11

An understanding of the best ways to produce goods and services is called

Accepted Answer

A)   human capital.
B)   physical capital.
C)   technology.
D)   productivity.E) None of the above
F) A) and C)

Question 12

In the long run, an increase in the saving rate

Accepted Answer

A)   doesn't change the level of productivity or income.
B)   raises the levels of both productivity and income.
C)   raises the level of productivity but not the level of income.
D)   raises the level of income but not the level of productivity.E) None of the above
F) B) and C)

Question 13

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

Question 14

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 15

You and your friend work together for 4 hours to produce a total of 8 bookcases. What is productivity?

Accepted Answer

A)   16 bookcases
B)   8 bookcases
C)   2 bookcases per hour
D)   1 bookcase per hourE) A) and C)
F) B) and C)

Question 16

Over the past century in the United States, real GDP per person has grown, on average, by about

Accepted Answer

A)   1 percent per year.
B)   2 percent per year.
C)   3 percent per year.
D)   5 percent per year.E) None of the above
F) B) and C)

Question 17

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

Accepted Answer

An economist typical...

Question 18

"When workers acquire tools, they become more productive." This statement reflects the general fact that is a determinant of productivity.

Accepted Answer

physical c...

Question 19

If over a short time there is an increase in the number of people retired and a decrease in the number of people working, then productivity

Accepted Answer

A)   and real GDP per person rise.
B)   rises but real GDP per person falls.
C)   falls and real GDP per person rises.
D)   and real GDP per person fall.E) All of the above
F) A) and B)

Question 20

Which country has had a higher growth rate than the U.S. over about the last 120 years?

Accepted Answer

A)   India
B)   Mexico
C)   United Kingdom
D)   PakistanE) B) and C)
F) B) and D)

Exam 12: Production and Growth

How does the phenomenon of diminishing returns to capital explain the catch-up effect?

Correct AnswerverifiedWhen an economy initially has a small am...View AnswerShow Answer

You and your friend work together for 4 hours to produce a total of 8 bookcases. What is productivity?

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

Which of the following statements is true?

Correct AnswerverifiedShow Answer

If a newly elected government takes actions that makes its country's courts more efficient and less corrupt, then

Correct AnswerverifiedShow Answer

If your firm's production function has constant returns to scale, and if you double all your inputs, then your firm's productivity will

Correct AnswerverifiedShow Answer

Which country has had a higher growth rate than the U.S. over about the last 120 years?

Correct AnswerverifiedShow Answer

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

In what sense is capital accumulation costly to a society?

Correct AnswerverifiedCapital accumulation requires ...View AnswerShow Answer

"When workers acquire tools, they become more productive." This statement reflects the general fact that is a determinant of productivity.

Correct Answerverifiedphysical c...View AnswerShow Answer

Like physical capital, human capital is a produced factor of production.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedAn economist typical...View AnswerShow Answer

In the long run, an increase in the saving rate

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

The return to schooling for society is higher than the return to schooling for the individual if

Correct AnswerverifiedShow Answer

If over a short time there is an increase in the number of people retired and a decrease in the number of people working, then productivity

Correct AnswerverifiedShow Answer

Suppose a country reduces restrictions on how many hours people can work. If reducing these restrictions increase the total number of hours worked in the economy, but all other factors that determine output are held fixed, then

Correct AnswerverifiedShow Answer

An understanding of the best ways to produce goods and services is called

Correct AnswerverifiedShow Answer

Over the past century in the United States, real GDP per person has grown, on average, by about

Correct AnswerverifiedShow Answer

John and Miguel are fishermen. When they go fishing, John consistently catches 2 or 3 fish per hour, while Miguel consistently catches 5 or 6 fish per hour. Miguel's exceeds that of John.

Correct AnswerverifiedShow Answer

Correct Answer
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When an economy initially has a small am...
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Correct Answer
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Japan's growth rate 2.65 perce...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Capital accumulation requires ...
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physical c...
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Correct Answer
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An economist typical...
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Correct Answer
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Correct Answer
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