Question 1

Suppose U.S.-based Intel Corporation builds and operates a new computer chip factory in Ghana. Future production from such an investment would

Accepted Answer

A)  increase Ghanaian GDP more than it would increase Ghanaian GNP.
B)  increase Ghanaian GNP more than it would increase Ghanaian GDP.
C)  not affect Ghanaian GNP, but would increase Ghanaian GDP.
D)  have no affect on either Ghanaian GDP or GNP.E) None of the above
F) All of the above

Question 2

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 3

Senator Noitall says that in order to help poor countries develop, the United States should: 1. Prevent U.S. corporations from investing in poor countries because they take profits that the poor countries should have; 2. Not import goods from poor countries that use child labor; 3. Work to promote political stability in poor countries; and 4. Reduce poor countries' reliance on market forces in their economies. How many of these ideas are likely to help poor countries grow?

Accepted Answer

A)  1
B)  2
C)  3
D)  4E) A) and D)
F) None of the above

Question 4

Table 12-1.Athens and Troy both produce only ribs and baked potatoes. 
-Refer to Table 12-1. Which of the following is correct?

Accepted Answer

A)  Both productivity and the standard of living are higher in Athens than Troy.
B)  Productivity is higher in Athens while the standard of living is higher in Troy
C)  Productivity is higher in Troy while the standard of living is higher in Athens.
D)  Both productivity and the standard of living are higher in Troy than Athens.E) None of the above
F) A) and C)

Question 5

Educated people may generate ideas that increase production. These ideas

Accepted Answer

A)  produce a return to society from education that is greater than the return to the individual.
B)  could justify government subsides for education.
C)  are external benefits of education.
D)  All of the above are correct.E) A) and D)
F) None of the above

Question 6

The population growth rate tends to be higher in developed countries than in developing countries.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is an example of a renewable natural resource?

Accepted Answer

A)  fish
B)  soybeans
C)  wood
D)  All of the above are correct.E) All of the above
F) C) and D)

Question 8

Over the period 1870-2008, the United States experienced an average annual growth rate of real GDP per person of about 4 percent per year.

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

In 2009, the imaginary nation of Mainland had a population of 7,000 and real GDP of 210,000. In 2010 the population was 7,300 and real GDP of 223,380. Over the year in question, real GDP per person in Mainland grew by

Accepted Answer

A)  2 percent, which is high compared to average U.S. growth over the last one-hundred years.
B)  2 percent, which is about the same as average U.S. growth over the last one-hundred years.
C)  4 percent, which is high compared to average U.S. growth over the last one-hundred years.
D)  4 percent, which is about the same as average U.S. growth over the last one-hundred years.E) A) and D)
F) None of the above

Question 11

Which of the following countries had the highest level of real GDP per person in 2008?

Accepted Answer

A)  Germany
B)  United Kingdom
C)  United States
D)  JapanE) None of the above
F) All of the above

Question 12

The same size decrease in the amount of capital stock per worker will cause output per worker to fall by more in a country with a relatively high level of capital per worker than in a country with a relatively low level of capital per worker.

Accepted Answer

A) True 
 B)False

Question 13

Suppose that an American opens and operates a recording studio in Poland. This is an example of

Accepted Answer

A)  foreign direct investment. American saving is used to finance Polish investment.
B)  foreign direct investment. American saving is used to finance American investment.
C)  foreign portfolio investment. American saving is used to finance Polish investment.
D)  foreign portfolio investment. American saving is used to finance American investment.E) B) and C)
F) All of the above

Question 14

Last year real GDP per person in the imaginary nation of Olympus was 4,500. The year before it was 4,250. By about what percentage did Olympian real GDP per person grow during the period?

Accepted Answer

A)  4.6 percent
B)  5.2 percent
C)  5.9 percent
D)  6.5 percentE) A) and B)
F) A) and C)

Question 15

Suppose that there are diminishing returns to capital. Suppose also that two countries are the same except one has less capital and so less real GDP per person. Suppose that both increase their saving rate from 3 percent to 4 percent. In the long run

Accepted Answer

A)  both countries will have permanently higher growth rates of real GDP per person, and the growth rate will be higher in the country with more capital.
B)  both countries will have permanently higher growth rates of real GDP per person, and the growth rate will be higher in the country with less capital.
C)  both countries will have higher levels of real GDP per person, and the temporary increase in growth in the level of real GDP per person will have been greater in the country with more capital.
D)  both countries will have higher levels of real GDP per person, and the temporary increase in growth in the level of real GDP per person will have been greater in the country with less capital.E) A) and D)
F) A) and B)

Question 16

Rapid population growth

Accepted Answer

A)  was hailed by Thomas Robert Malthus as the key to future economic growth.
B)  tends to lead to higher levels of educational attainment.
C)  is the main reason that less developed nations are poor.
D)  may depress economic prosperity by reducing the amount of capital which each worker has to work with.E) A) and B)
F) A) and C)

Question 17

Waldo works eight hours and produces 7 units of goods per hour. Emerson works six hours and produces 10 units of goods per hour.

Accepted Answer

A)  Waldo's productivity and output are greater than Emerson's.
B)  Waldo's productivity is greater than Emerson's but his output is less.
C)  Emerson's productivity and output are greater than Waldo's.
D)  Emerson's productivity is greater than Waldo's but his output is less.E) A) and B)
F) C) and D)

Question 18

The key determinant of the standard of living in a country is

Accepted Answer

A)  the amount of goods and services produced from each hour of a worker's time.
B)  the total amount of goods and services produced within the country.
C)  the total amount of its physical capital.
D)  its growth rate of real GDP.E) A) and B)
F) B) and D)

Question 19

Workland has a population of 10,000, of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods. Laborland has a population of 5,000, of whom 4,000 work 12 hours a day to produce a total of 120,000 final goods.

Accepted Answer

A)  Workland has higher productivity and higher real GDP per person than Laborland.
B)  Workland has higher productivity but lower real GDP per person than Laborland.
C)  Workland has lower productivity but higher real GDP per person than Laborland.
D)  Workland has lower productivity and lower real GDP per person than Laborland.E) B) and D)
F) A) and D)

Question 20

In which of the following countries has economic growth been sufficiently strong in recent history to propel that country from being among the poorest in the world to being among the richest in the world?

Accepted Answer

A)  South Korea
B)  Senegal
C)  India
D)  IndonesiaE) None of the above
F) B) and C)

Exam 12: Production and Growth

Workland has a population of 10,000, of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods. Laborland has a population of 5,000, of whom 4,000 work 12 hours a day to produce a total of 120,000 final goods.

Correct Answer
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Which of the following is an example of a renewable natural resource?

Correct Answer
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In 2009, the imaginary nation of Mainland had a population of 7,000 and real GDP of 210,000. In 2010 the population was 7,300 and real GDP of 223,380. Over the year in question, real GDP per person in Mainland grew by

Correct Answer
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The population growth rate tends to be higher in developed countries than in developing countries.

Correct Answer
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Educated people may generate ideas that increase production. These ideas

Correct Answer
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Table 12-1.Athens and Troy both produce only ribs and baked potatoes. -Refer to Table 12-1. Which of the following is correct?

Correct Answer
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Over the period 1870-2008, the United States experienced an average annual growth rate of real GDP per person of about 4 percent per year.

Correct Answer
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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 Answer
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Last year real GDP per person in the imaginary nation of Olympus was 4,500. The year before it was 4,250. By about what percentage did Olympian real GDP per person grow during the period?

Correct Answer
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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

Waldo works eight hours and produces 7 units of goods per hour. Emerson works six hours and produces 10 units of goods per hour.

Correct Answer
verified

The same size decrease in the amount of capital stock per worker will cause output per worker to fall by more in a country with a relatively high level of capital per worker than in a country with a relatively low level of capital per worker.

Correct Answer
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Rapid population growth

Correct Answer
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Which of the following countries had the highest level of real GDP per person in 2008?

Correct Answer
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Correct Answer
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In which of the following countries has economic growth been sufficiently strong in recent history to propel that country from being among the poorest in the world to being among the richest in the world?

Correct Answer
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Suppose that there are diminishing returns to capital. Suppose also that two countries are the same except one has less capital and so less real GDP per person. Suppose that both increase their saving rate from 3 percent to 4 percent. In the long run

Correct Answer
verified

Suppose that an American opens and operates a recording studio in Poland. This is an example of

Correct Answer
verified

Suppose U.S.-based Intel Corporation builds and operates a new computer chip factory in Ghana. Future production from such an investment would

Correct Answer
verified

The key determinant of the standard of living in a country is

Correct Answer
verified

Exam 12: Production and Growth

Workland has a population of 10,000, of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods. Laborland has a population of 5,000, of whom 4,000 work 12 hours a day to produce a total of 120,000 final goods.

Correct AnswerverifiedShow Answer

Which of the following is an example of a renewable natural resource?

Correct AnswerverifiedShow Answer

In 2009, the imaginary nation of Mainland had a population of 7,000 and real GDP of 210,000. In 2010 the population was 7,300 and real GDP of 223,380. Over the year in question, real GDP per person in Mainland grew by

Correct AnswerverifiedShow Answer

The population growth rate tends to be higher in developed countries than in developing countries.

Correct AnswerverifiedShow Answer

Educated people may generate ideas that increase production. These ideas

Correct AnswerverifiedShow Answer

Table 12-1.Athens and Troy both produce only ribs and baked potatoes. -Refer to Table 12-1. Which of the following is correct?

Correct AnswerverifiedShow Answer

Over the period 1870-2008, the United States experienced an average annual growth rate of real GDP per person of about 4 percent per year.

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

Last year real GDP per person in the imaginary nation of Olympus was 4,500. The year before it was 4,250. By about what percentage did Olympian real GDP per person grow during the period?

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

Waldo works eight hours and produces 7 units of goods per hour. Emerson works six hours and produces 10 units of goods per hour.

Correct AnswerverifiedShow Answer

The same size decrease in the amount of capital stock per worker will cause output per worker to fall by more in a country with a relatively high level of capital per worker than in a country with a relatively low level of capital per worker.

Correct AnswerverifiedShow Answer

Rapid population growth

Correct AnswerverifiedShow Answer

Which of the following countries had the highest level of real GDP per person in 2008?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In which of the following countries has economic growth been sufficiently strong in recent history to propel that country from being among the poorest in the world to being among the richest in the world?

Correct AnswerverifiedShow Answer

Suppose that there are diminishing returns to capital. Suppose also that two countries are the same except one has less capital and so less real GDP per person. Suppose that both increase their saving rate from 3 percent to 4 percent. In the long run

Correct AnswerverifiedShow Answer

Suppose that an American opens and operates a recording studio in Poland. This is an example of

Correct AnswerverifiedShow Answer

Suppose U.S.-based Intel Corporation builds and operates a new computer chip factory in Ghana. Future production from such an investment would

Correct AnswerverifiedShow Answer

The key determinant of the standard of living in a country is

Correct AnswerverifiedShow Answer

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