Question 1

Mexico is

Accepted Answer

A)   a poor country,and over the past century its rate of economic growth has been higher than that of the United States.
B)   a poor country,and over the past century its rate of economic growth has been lower than that of the United States.
C)   a middle-income country,and over the past century its rate of economic growth has been higher than that of the United States.
D)   a middle-income country,and over the past century its rate of economic growth has been lower than that of the United States.E) B) and C)
F) B) and D)

Question 2

Which of the following can be measured by the level of real GDP per person?

Accepted Answer

A)   productivity and the standard of living
B)   productivity but not the standard of living
C)   the standard of living but not productivy
D)   neither the standard of living nor productivityE) A) and B)
F) A) and C)

Question 3

Which of the following is an observation made by economist Michael Kremer?

Accepted Answer

A)   World growth rates increased as the population increased.
B)   Technological progress allows for increasing population because of advances in agriculture.
C)   World population is growing so rapidly that soon it will outstrip natural resources and our standard of living will decline.
D)   All of the above are observations made by Kremer.E) A) and D)
F) All of the above

Question 4

If an inexpensive alternative to oil were found,the price of oil adjusted for inflation

Accepted Answer

A)   would decline as the alternative would reduce the demand for oil.
B)   would decline as the alternative would reduce the supply of oil.
C)   would increase as the alternative would increase the demand for oil.
D)   would increase as the alternative would increase the supply of oil.E) B) and D)
F) C) and D)

Question 5

During the past century the average growth rate of U.S.real GDP per person implies that it doubled,on average,about every

Accepted Answer

A)   100 years.
B)   70 years.
C)   35 years.
D)   25 years.E) None of the above
F) A) and B)

Question 6

Which of the following statements is correct? In 2008,

Accepted Answer

A)   real income per person in the U.S.was about 8 times that in China.
B)   real income per person in China was about 2 times that in India in 2008.
C)   the typical resident of India had less real income than the typical resident of England in 1870.
D)   All of the above are correct.E) None of the above
F) A) and C)

Question 7

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

Question 8

Nathan owns a bakery that bakes only cakes.All of his bakers work 8 hours per day.In 2009,he employed 5 bakers who produced a total of 200 cakes each day.In 2010,he employed 6 bakers who produced a total of 249 cakes each day.The bakery's productivity

Accepted Answer

A)   decreased by 2.33%.
B)   increased by 2.33%.
C)   increased by 3.75%.
D)   increased by 24.50%.E) B) and C)
F) C) and D)

Question 9

Countries that grew the fastest over the last 100 or so years had growth rates of real income per person of about

Accepted Answer

A)   0.5 percent per year.
B)   1.5 percent per year.
C)   2.0 percent per year.
D)   2.5 percent per year.E) A) and C)
F) A) and B)

Question 10

In 2008,real GDP per person in Bangladesh was

Accepted Answer

A)   about 3 times as high as it was in the U.S.in 1870.
B)   about twice as high as it was in the U.S.in 1870.
C)   about the same as it was in the U.S.in 1870.
D)   less than it was in the U.S.in 1870.E) All of the above
F) None of the above

Question 11

Megan is a landscaper.Which of the following are included in her human capital?

Accepted Answer

A)   her knowledge of landscaping learned in college and her landscaping equipment
B)   her knowledge of landscaping learned in college,but not her landscaping equipment
C)   her landscaping equipment,but not her knowledge of landscaping learned in college
D)   neither her knowledge of landscaping learned in college nor her landscaping equipmentE) None of the above
F) A) and B)

Question 12

On the basis of theory and empirical evidence,economists have reached several conclusions about economic growth.Which of the following is not one of these conclusions?

Accepted Answer

A)   A relatively simple way to increase growth rates permanently is to increase a country's saving rate.
B)   Growth is generally inhibited rather than promoted by policies like protective tariffs.
C)   Well-established property rights that are enforced by fair and efficient courts are important to economic growth.
D)   Countries with few domestic natural resources still have opportunities for economic growth.E) A) and D)
F) All of the above

Question 13

Which of the following lists contains,in this order,natural resources,human capital,and physical capital?

Accepted Answer

A)   For a restaurant: the land the restaurant was built on,the things the Chef learned at Cooking School,the freezers where the chops and steaks are kept.
B)   For a furniture company: wood,the company cafeteria,saws.
C)   For a railroad: fuel,railroad engines,railroad tracks.
D)   None of the above is correct.E) All of the above
F) A) and B)

Question 14

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 15

Japan's status as a rich nation is attributable to

Accepted Answer

A)   Japan's quantities of natural resources,but not to international trade.
B)   international trade,but not to Japan's domestic quantities of natural resources.
C)   the fact that Japanese productivity has remained nearly constant for more than 100 years.
D)   the fact that the Japanese have downplayed the role of human capital in economic growth.E) B) and C)
F) All of the above

Question 16

Which of the following are human capital and physical capital,respectively?

Accepted Answer

A)   for a brick layer: her bricks and her tools
B)   for a gas station: the pumps and the cash register
C)   for a restaurant: the chefs' knowledge about preparing food and the equipment in the kitchen
D)   for a medical office: the building and the doctors' knowledge of medicineE) A) and B)
F) C) and D)

Question 17

Suppose that there are diminishing returns to capital.Suppose also that two countries are the same except one has more capital per worker and so it has more real GDP per worker than the other.Finally,suppose that the saving rate in both countries increases from 4 percent to 7 percent.Over the next ten years we would expect that

Accepted Answer

A)   the growth rate will not change in either country.
B)   the country that started with less capital per worker will grow faster.
C)   the country that started with more capital per worker will grow faster.
D)   both countries will grow and at the same higher rate.E) B) and D)
F) B) and C)

Question 18

Each day Sonja works 8 hours and produces 8 units of goods and services.Emma works 10 hours each day and produces 9 units of goods and services.It follows that

Accepted Answer

A)   Sonja's productivity is higher than Emma's.
B)   Emma's productivity is higher than Sonja's.
C)   Emma's income per hour will be higher than Sonja's.
D)   Sonja's income per day will be higher than Emma's.E) All of the above
F) None of the above

Question 19

Historically,the market prices of most natural resources (adjusted for inflation) have

Accepted Answer

A)   increased.
B)   remained stable.
C)   remained stable or decreased.
D)   decreased.E) B) and C)
F) None of the above

Question 20

If one wants to know how the material well-being of the average person has changed over time in a given country,one should look at the

Accepted Answer

A)   level of real GDP.
B)   growth rate of nominal GDP.
C)   growth rate of real GDP.
D)   growth rate of real GDP per person.E) B) and D)
F) C) and D)

Exam 25: Production and Growth

Megan is a landscaper.Which of the following are included in her human capital?

Correct Answer
verified

Historically,the market prices of most natural resources (adjusted for inflation) have

Correct Answer
verified

Japan's status as a rich nation is attributable to

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

Which of the following are human capital and physical capital,respectively?

Correct Answer
verified

Mexico is

Correct Answer
verified

Which of the following statements is correct? In 2008,

Correct Answer
verified

During the past century the average growth rate of U.S.real GDP per person implies that it doubled,on average,about every

Correct Answer
verified

If an inexpensive alternative to oil were found,the price of oil adjusted for inflation

Correct Answer
verified

On the basis of theory and empirical evidence,economists have reached several conclusions about economic growth.Which of the following is not one of these conclusions?

Correct Answer
verified

Nathan owns a bakery that bakes only cakes.All of his bakers work 8 hours per day.In 2009,he employed 5 bakers who produced a total of 200 cakes each day.In 2010,he employed 6 bakers who produced a total of 249 cakes each day.The bakery's productivity

Correct Answer
verified

If one wants to know how the material well-being of the average person has changed over time in a given country,one should look at the

Correct Answer
verified

In 2008,real GDP per person in Bangladesh was

Correct Answer
verified

Each day Sonja works 8 hours and produces 8 units of goods and services.Emma works 10 hours each day and produces 9 units of goods and services.It follows that

Correct Answer
verified

Which of the following can be measured by the level of real GDP per person?

Correct Answer
verified

Which of the following is an observation made by economist Michael Kremer?

Correct Answer
verified

Countries that grew the fastest over the last 100 or so years had growth rates of real income per person of about

Correct Answer
verified

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 Answer
verified

Correct Answer
verified

Which of the following lists contains,in this order,natural resources,human capital,and physical capital?

Correct Answer
verified

Exam 25: Production and Growth

Megan is a landscaper.Which of the following are included in her human capital?

Correct AnswerverifiedShow Answer

Historically,the market prices of most natural resources (adjusted for inflation) have

Correct AnswerverifiedShow Answer

Japan's status as a rich nation is attributable to

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

Which of the following are human capital and physical capital,respectively?

Correct AnswerverifiedShow Answer

Mexico is

Correct AnswerverifiedShow Answer

Which of the following statements is correct? In 2008,

Correct AnswerverifiedShow Answer

During the past century the average growth rate of U.S.real GDP per person implies that it doubled,on average,about every

Correct AnswerverifiedShow Answer

If an inexpensive alternative to oil were found,the price of oil adjusted for inflation

Correct AnswerverifiedShow Answer

On the basis of theory and empirical evidence,economists have reached several conclusions about economic growth.Which of the following is not one of these conclusions?

Correct AnswerverifiedShow Answer

Nathan owns a bakery that bakes only cakes.All of his bakers work 8 hours per day.In 2009,he employed 5 bakers who produced a total of 200 cakes each day.In 2010,he employed 6 bakers who produced a total of 249 cakes each day.The bakery's productivity

Correct AnswerverifiedShow Answer

If one wants to know how the material well-being of the average person has changed over time in a given country,one should look at the

Correct AnswerverifiedShow Answer

In 2008,real GDP per person in Bangladesh was

Correct AnswerverifiedShow Answer

Each day Sonja works 8 hours and produces 8 units of goods and services.Emma works 10 hours each day and produces 9 units of goods and services.It follows that

Correct AnswerverifiedShow Answer

Which of the following can be measured by the level of real GDP per person?

Correct AnswerverifiedShow Answer

Which of the following is an observation made by economist Michael Kremer?

Correct AnswerverifiedShow Answer

Countries that grew the fastest over the last 100 or so years had growth rates of real income per person of about

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

Correct AnswerverifiedShow Answer

Which of the following lists contains,in this order,natural resources,human capital,and physical capital?

Correct AnswerverifiedShow Answer

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