Question 1

Real GDP per person in rich countries, such as Germany, is sometimes more than 10 times that of poor countries like India.

Accepted Answer

A) True 
 B)False

Question 2

The one variable that stands out as the most significant explanation of large variations in living standards around the world is

Accepted Answer

A)   productivity.
B)   population.
C)   preferences.
D)   prices.E) C) and D)
F) A) and B)

Question 3

What word do we use to refer to the amount of goods and services produced for each hour of a worker's time?

Accepted Answer

The word i...

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

Question 5

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 6

Studies have found that there is a relationship between height and productivity. Briefly explain.

Accepted Answer

Studies show that taller worke...

Question 7

Proprietary technology is technology

Accepted Answer

A)   that the government prohibits firms from using.
B)   conserves natural resources.
C)   that is useful while other types of technology are outdated.
D)   that is known or controlled only by the company that discovered it.E) A) and B)
F) A) and C)

Question 8

An important prerequisite for the price system to work is an economy-wide respect for _______ rights.

Accepted Answer

The answer of An important prerequisite for the price system...

Question 9

All else equal, if there are diminishing returns, then if a country raised its capital by 100 units last year and by 100 units this year,

Accepted Answer

A)   the increase in output was greater for this year than last year.
B)   the increase in output was greater last year than this year.
C)   the increase in output is the same in both years.
D)   None of the above is necessarily correct.E) B) and D)
F) All of the above

Question 10

In the United States in 2010 real GDP per person was about $47,000, while in some poor countries real GDP per person was less than $5,000.

Accepted Answer

A) True 
 B)False

Question 11

Currently a country has real GDP per person of 500. Raising capital per worker by one would increase output per worker by 4. Other things the same, which of the following long-run combinations are consistent with the effects of this country increasing its saving rate?

Accepted Answer

A)   real GDP per person is 520 and raising capital per worker by one would increase output per worker by 3
B)   real GDP per person is 520 and raising capital per worker by one would increase output per worker by 5
C)   real GDP per person is 480 and raising capital per worker by one would increase output per worker by 3
D)   real GDP per person is 480 and raising capital per worker by one would increase output per worker by 5E) None of the above
F) A) and B)

Question 12

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 D)
F) A) and B)

Question 13

Which of the following is an example of physical capital?

Accepted Answer

A)   the computer a secretary uses
B)   rivers on which goods are transported
C)   the skills and knowledge of a doctor
D)   All of the above are correct.E) All of the above
F) A) and D)

Question 14

Country A has real GDP per person of 250,000 while Country B has real GDP per person of 500,000. All else constant, Country A will eventually have a higher standard of living than Country B if

Accepted Answer

A)   the level of saving per person is 5.000 in Country A and 7,500 in Country B.
B)   the level of saving per person is 3,000 in Country A and 6,000 in Country B.
C)   Both of the above are correct.
D)   None of the above are correct.E) A) and B)
F) A) and C)

Question 15

Which of the following is a part of your economics professor's human capital?

Accepted Answer

A)   the things she learned at some prestigious university
B)   her copy of Mankiw's text
C)   her chalk holder
D)   All of the above are correct.E) B) and C)
F) None of the above

Question 16

If the best educated and most skilled persons leave a country, then in the short term this country's human capital per worker

Accepted Answer

A)   and physical capital per worker will increase.
B)   and physical capital per worker will decrease.
C)   will increase but physical capital per worker will decrease.
D)   will decrease but physical capital per worker will increase.E) A) and D)
F) A) and C)

Question 17

Given that a country's real output has increased, in which of the following cases can we be sure that its productivity also has increased?

Accepted Answer

A)   The total number of hours worked rose.
B)   The total number of hours worked stayed the same.
C)   The total number of hours worked fell.
D)   Both b and c are correct.E) B) and C)
F) A) and B)

Question 18

Which of the following is not correct?

Accepted Answer

A)   Countries that have had higher output growth per person have typically done so without higher productivity growth.
B)   A country's standard of living and its productivity are closely related.
C)   Productivity refers to output produced per hour of work.
D)   Increases in productivity can be used to increase output or leisure.E) All of the above
F) A) and B)

Question 19

If natural resources had become scarcer, then we would expect their

Accepted Answer

A)   prices to have risen more than inflation as they have.
B)   prices to have risen more than inflation, but they have not.
C)   known quantities to have fallen as they have.
D)   known quantities to have fallen but they have not.E) All of the above
F) None of the above

Question 20

Because of its effect on the amount of capital per worker, in the short term an increase in the working population is likely to

Accepted Answer

A)   raise productivity. Other things the same, this increase will be larger in a poor country.
B)   raise productivity. Other things the same, this increase will be larger in a rich country.
C)   reduce productivity. Other things the same, this decrease will be larger in a poor country.
D)   reduce productivity. Other things the same, this decrease will be larger in a rich country.E) None of the above
F) B) and D)

Exam 25: Production and Growth

Which of the following is an example of physical capital?

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Proprietary technology is technology

Correct AnswerverifiedShow Answer

In the United States in 2010 real GDP per person was about $47,000, while in some poor countries real GDP per person was less than $5,000.

Correct AnswerverifiedShow Answer

Given that a country's real output has increased, in which of the following cases can we be sure that its productivity also has increased?

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

Real GDP per person in rich countries, such as Germany, is sometimes more than 10 times that of poor countries like India.

Correct AnswerverifiedShow Answer

All else equal, if there are diminishing returns, then if a country raised its capital by 100 units last year and by 100 units this year,

Correct AnswerverifiedShow Answer

Which of the following is a part of your economics professor's human capital?

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

What word do we use to refer to the amount of goods and services produced for each hour of a worker's time?

Correct AnswerverifiedThe word i...View AnswerShow Answer

If the best educated and most skilled persons leave a country, then in the short term this country's human capital per worker

Correct AnswerverifiedShow Answer

An important prerequisite for the price system to work is an economy-wide respect for _______ rights.

Correct AnswerverifiedShow Answer

Country A has real GDP per person of 250,000 while Country B has real GDP per person of 500,000. All else constant, Country A will eventually have a higher standard of living than Country B if

Correct AnswerverifiedShow Answer

Because of its effect on the amount of capital per worker, in the short term an increase in the working population is likely to

Correct AnswerverifiedShow Answer

The one variable that stands out as the most significant explanation of large variations in living standards around the world is

Correct AnswerverifiedShow Answer

If natural resources had become scarcer, then we would expect their

Correct AnswerverifiedShow Answer

Currently a country has real GDP per person of 500. Raising capital per worker by one would increase output per worker by 4. Other things the same, which of the following long-run combinations are consistent with the effects of this country increasing its saving rate?

Correct AnswerverifiedShow Answer

Studies have found that there is a relationship between height and productivity. Briefly explain.

Correct AnswerverifiedStudies show that taller worke...View AnswerShow Answer

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

Correct AnswerverifiedShow 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

Correct Answer
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Correct Answer
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The word i...
View Answer

Correct Answer
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Correct Answer
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Studies show that taller worke...
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Correct Answer
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