Question 1

Over the last ten years productivity grew more slowly in Upland than in Lowland and the population and total hours worked remained the same in both countries.It follows that

Accepted Answer

A)   real GDP per person must be lower in Upland than in Lowland.
B)   real GDP per person grew more slowly in Upland than in Lowland.
C)   the standard of living must be higher in Upland than in Lowland.
D)   All of the above are correct.E) B) and D)
F) All of the above

Question 2

National defense and knowledge are generally considered to be

Accepted Answer

A)   private goods.
B)   public goods.
C)   proprietary goods.
D)   societal goods.E) A) and B)
F) A) and C)

Question 3

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 D)
F) C) and D)

Question 4

Dilbert's Incorporated produced 6,000,000 units of software in 2008.At the start of 2009 the pointy-haired boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units.These number indicate that productivity

Accepted Answer

A)   fell by about 16.7%.
B)   stayed the same.
C)   rose by about 16.7%.
D)   rose by about 40%.E) C) and D)
F) A) and C)

Question 5

Figure 17-1.On the horizontal axis,K/L represents capital (K) per worker (L) .On the vertical axis,Y/L represents output (Y) per worker (L) . 
-Refer to Figure 17-1.Choose a point anywhere on the curve and call it point A.If the economy is at point A in 2011,then it will definitely remain at point A in 2012 if,between 2011 and 2012,

Accepted Answer

A)   the quantity of physical capital remains constant; the number of workers doubles; and human capital,natural resources,and technology all double as well.
B)   the quantity of physical capital doubles; human capital,natural resources,and technology all double as well; and the number of workers remains constant.
C)   the quantity of physical capital doubles; the number of workers doubles; and human capital,natural resources,and technology all double as well.
D)   the quantity of physical capital doubles; the number of workers doubles; and human capital,natural resources,and technology remain constant.E) A) and B)
F) B) and D)

Question 6

Journey Motorcycles produced 100 motorcycles using 50 workers who each worked 8 hours a day.Journey's productivity was 12.5.

Accepted Answer

A) True 
 B)False

Question 7

A rapid increase in the number of workers,other things the same,is likely in the short term to

Accepted Answer

A)   raise real GDP per person,but decrease real GDP.
B)   decrease both real GDP and real GDP per person.
C)   raise both real GDP and real GDP per person.
D)   raise real GDP,but decrease real GDP per person.E) None of the above
F) A) and C)

Question 8

As of 2008,using real GDP per person as a measure,we would classify

Accepted Answer

A)   the United States and Mexico as advanced economies and Bangladesh as a middle-income country.
B)   Canada as an advanced economy,Mexico as a middle-income country,and Pakistan as a poor country.
C)   Japan and India as advanced economies and Mexico as a poor country.
D)   Japan as an advanced economy,the United Kingdom as a middle-income country,and Argentina as a poor country.E) B) and D)
F) B) and C)

Question 9

In the equation for the production function H/L represents

Accepted Answer

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

Question 10

Which of the following best illustrates the human capital of a survivor stranded on an island?

Accepted Answer

A)   the fishing poles she has produced
B)   the invention of a better fishing lure
C)   the fresh fruit and fish on and around the island
D)   her previous training in a survival courseE) B) and C)
F) A) and B)

Question 11

Other things the same,if a country increased its saving rate,in 40 years or so it would likely have

Accepted Answer

A)   higher productivity,and a higher growth rate of real GDP.
B)   higher productivity,but not a higher growth rate of real GDP.
C)   the same productivity and growth of real GDP it began with.
D)   None of the above is correct.E) None of the above
F) All of the above

Question 12

If a country made it easier for people to establish and prove the ownership of their property,real GDP per person would likely rise.

Accepted Answer

A) True 
 B)False

Question 13

Country A and country B both increase their capital stock by one unit.Output in country A increases by 15 while output in country B increases by 12.Other things the same,diminishing returns implies that country A is

Accepted Answer

A)   richer than Country B.If Country A adds another unit of capital,output will increase by more than 15 units.
B)   richer than Country B.If Country A adds another unit of capital,output will increase by less than 15 units.
C)   poorer than Country B.If Country A adds another unit of capital,output will increase by more than 15 units.
D)   poorer than Country B.If Country A adds another unit of capital,output will increase by less than 15 units.E) B) and C)
F) All of the above

Question 14

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)   India
B)   Mexico
C)   Senegal
D)   SingaporeE) A) and D)
F) All of the above

Question 15

Over the period 1900-2008,Brazil's rate of economic growth exceeded that of China.

Accepted Answer

A) True 
 B)False

Question 16

Greg's Ice Cream produces 1120 gallons of ice cream per day.Each employed works seven hours and has productivity of 20 gallons an hour.How many employees does Greg's employ?

Accepted Answer

A)   160
B)   56
C)   8
D)   None of the above is correct.E) B) and D)
F) A) and C)

Question 17

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 18

The Economic Development Minister of a country has a list of things she thinks may explain her country's low growth of real GDP per person relative to other countries.She asks you to pick the one you think most likely explains her country's low growth.Which of the following contributes to low growth?

Accepted Answer

A)   poorly enforced property rights
B)   outward-oriented trade policies
C)   policies that permit foreign investment
D)   All of the above are correct.E) B) and D)
F) B) and C)

Question 19

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)   40 percent
B)   20 percent
C)   10 percent
D)   5 percentE) C) and D)
F) B) and C)

Question 20

Of the following countries,which grew most slowly,in terms of real GDP per person,over the last 100 years?

Accepted Answer

A)   Brazil
B)   Mexico
C)   China
D)   United StatesE) B) and D)
F) C) and D)

Exam 17: Production and Growth

As of 2008,using real GDP per person as a measure,we would classify

Correct Answer
verified

Journey Motorcycles produced 100 motorcycles using 50 workers who each worked 8 hours a day.Journey's productivity was 12.5.

Correct Answer
verified

A rapid increase in the number of workers,other things the same,is likely in the short term to

Correct Answer
verified

Other things the same,if a country increased its saving rate,in 40 years or so it would likely have

Correct Answer
verified

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

Country A and country B both increase their capital stock by one unit.Output in country A increases by 15 while output in country B increases by 12.Other things the same,diminishing returns implies that country A is

Correct Answer
verified

Of the following countries,which grew most slowly,in terms of real GDP per person,over the last 100 years?

Correct Answer
verified

Dilbert's Incorporated produced 6,000,000 units of software in 2008.At the start of 2009 the pointy-haired boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units.These number indicate that productivity

Correct Answer
verified

National defense and knowledge are generally considered to be

Correct Answer
verified

Greg's Ice Cream produces 1120 gallons of ice cream per day.Each employed works seven hours and has productivity of 20 gallons an hour.How many employees does Greg's employ?

Correct Answer
verified

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
verified

Over the last ten years productivity grew more slowly in Upland than in Lowland and the population and total hours worked remained the same in both countries.It follows that

Correct Answer
verified

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

Correct Answer
verified

In the equation for the production function H/L represents

Correct Answer
verified

If a country made it easier for people to establish and prove the ownership of their property,real GDP per person would likely rise.

Correct Answer
verified

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
verified

Over the period 1900-2008,Brazil's rate of economic growth exceeded that of China.

Correct Answer
verified

Correct Answer
verified

Which of the following best illustrates the human capital of a survivor stranded on an island?

Correct Answer
verified

Exam 17: Production and Growth

As of 2008,using real GDP per person as a measure,we would classify

Correct AnswerverifiedShow Answer

Journey Motorcycles produced 100 motorcycles using 50 workers who each worked 8 hours a day.Journey's productivity was 12.5.

Correct AnswerverifiedShow Answer

A rapid increase in the number of workers,other things the same,is likely in the short term to

Correct AnswerverifiedShow Answer

Other things the same,if a country increased its saving rate,in 40 years or so it would likely have

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

Country A and country B both increase their capital stock by one unit.Output in country A increases by 15 while output in country B increases by 12.Other things the same,diminishing returns implies that country A is

Correct AnswerverifiedShow Answer

Of the following countries,which grew most slowly,in terms of real GDP per person,over the last 100 years?

Correct AnswerverifiedShow Answer

Dilbert's Incorporated produced 6,000,000 units of software in 2008.At the start of 2009 the pointy-haired boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units.These number indicate that productivity

Correct AnswerverifiedShow Answer

National defense and knowledge are generally considered to be

Correct AnswerverifiedShow Answer

Greg's Ice Cream produces 1120 gallons of ice cream per day.Each employed works seven hours and has productivity of 20 gallons an hour.How many employees does Greg's employ?

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

Over the last ten years productivity grew more slowly in Upland than in Lowland and the population and total hours worked remained the same in both countries.It follows that

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the equation for the production function H/L represents

Correct AnswerverifiedShow Answer

If a country made it easier for people to establish and prove the ownership of their property,real GDP per person would likely rise.

Correct AnswerverifiedShow Answer

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

Over the period 1900-2008,Brazil's rate of economic growth exceeded that of China.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following best illustrates the human capital of a survivor stranded on an island?

Correct AnswerverifiedShow Answer

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