Question 1

Senator Smith 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) B) and C)
F) B) and D)

Question 2

If a country's saving rate increases, then in the long run

Accepted Answer

A)   productivity is higher but real GDP per person is not higher.
B)   real GDP per person is higher but productivity is not higher.
C)   productivity and real GDP per person are both higher.
D)   neither productivity nor real GDP per person is higher.E) None of the above
F) C) and D)

Question 3

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 4

Real GDP per person is $10,000 in Country A, $20,000 in Country B, and $30,000 in Country C. The saving rate increases by the same rate in all three countries. Other things equal, we would expect that

Accepted Answer

A)   all three countries will grow at the same rate.
B)   Country A will grow the fastest.
C)   Country B will grow the fastest.
D)   Country C will grow the fastest.E) A) and C)
F) A) and D)

Question 5

In the equation for the production function Y/L represents

Accepted Answer

A)   productivity.
B)   output.
C)   the availability of natural resources.
D)   the amount of human capital.E) A) and D)
F) A) and C)

Question 6

Human capital is

Accepted Answer

A)   the same thing as technological knowledge.
B)   the same thing as labor.
C)   the tools and equipment operated by humans.
D)   knowledge and skills that workers have acquired.E) None of the above
F) All of the above

Question 7

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

Exam 7: Production and Growth

In the equation for the production function Y/L represents

Correct Answer
verified

Human capital is

Correct Answer
verified

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

Correct Answer
verified

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
verified

Correct Answer
verified

Real GDP per person is $10,000 in Country A, $20,000 in Country B, and $30,000 in Country C. The saving rate increases by the same rate in all three countries. Other things equal, we would expect that

Correct Answer
verified

If a country's saving rate increases, then in the long run

Correct Answer
verified

Exam 7: Production and Growth

In the equation for the production function Y/L represents

Correct AnswerverifiedShow Answer

Human capital is

Correct AnswerverifiedShow Answer

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

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

Correct AnswerverifiedShow Answer

Real GDP per person is $10,000 in Country A, $20,000 in Country B, and $30,000 in Country C. The saving rate increases by the same rate in all three countries. Other things equal, we would expect that

Correct AnswerverifiedShow Answer

If a country's saving rate increases, then in the long run

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified