Question 1

In the long run,a higher saving rate

Accepted Answer

A)  cannot increase the capital stock.
B)  means that people must consume less in the future.
C)  increases productivity.
D)  None of the above is correct.E) None of the above
F) B) and C)

Question 2

Which of the following countries achieved higher economic growth,in part by mandating a reduction in population growth?

Accepted Answer

A)  Great Britain
B)  China
C)  Australia
D)  FranceE) A) and D)
F) B) and C)

Question 3

The behavior of market prices over time show that natural resources

Accepted Answer

A)  are a limit to economic growth.
B)  are unrelated to economic growth.
C)  are not a limit to economic growth.
D)  are the major determinant of productivity.E) B) and D)
F) All of the above

Question 4

Compare and contrast the population theories of Malthus and Kremer.

Accepted Answer

The difference is that Malthus predicted...

Question 5

In some East Asian countries,average income,as measured by real GDP per person,has recently grown at an average annual rate that implies output should double about every

Accepted Answer

A)  10 years.
B)  15 years.
C)  20 years.
D)  25 years.E) C) and D)
F) A) and B)

Question 6

Which of the following is correct?

Accepted Answer

A)  Although levels of real GDP per person vary substantially from country to country, the growth rate of real GDP per person is similar across countries.
B)  Productivity is not closely linked to government policies.
C)  The level of real GDP per person is a good gauge of economic prosperity, and the growth rate of real GDP per person is a good gauge of economic progress.
D)  Productivity may be measured by the growth rate of real GDP per person.E) C) and D)
F) All of the above

Question 7

If the price of a good has risen over time,

Accepted Answer

A)  it must have become more scarce.
B)  it must have become less scarce.
C)  it has become more scarce only if the price adjusted for inflation has risen.
D)  it has become less scarce only if the price adjusted for inflation has risen.E) A) and B)
F) C) and D)

Question 8

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) A) and C)
F) C) and D)

Question 9

Although growth rates across countries vary some,rankings of country by income remain pretty much the same over time.

Accepted Answer

A) True 
 B)False

Question 10

A forest is an example of a nonrenewable resource.

Accepted Answer

A) True 
 B)False

Question 11

In the past there have been violent protests against the World Bank and the World Trade Organization.The protesters argued that these institutions promote free trade and also encourage corporations in rich countries to invest in poor countries.The protesters contended that these practices make rich countries richer and poor countries poorer.An economist would

Accepted Answer

A)  disagree with the protesters because these practices will help make both rich and poor countries richer.
B)  disagree with the protesters about free trade, but would agree with the protesters about corporate investment.
C)  disagree with the protesters about corporate investment, but would agree with the protesters about free trade.
D)  agree with the protesters.E) None of the above
F) A) and B)

Question 12

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.reduce or eliminate subsidizes to U.S.producers when poor countries have a comparative advantage producing those goods the U.S.subsidizes;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 B)
F) A) and C)

Question 13

The President of a developing country proposes that his country needs to help domestic firms by imposing trade restrictions.

Accepted Answer

A)  These are outward-oriented policies and most economists believe they would have beneficial effects on growth.
B)  These are outward-oriented policies and most economists believe they would have adverse effects on growth.
C)  These are inward-oriented policies and most economists believe they would have beneficial effects on growth.
D)  These are inward-oriented policies and most economists believe they would have adverse effects on growth.E) A) and C)
F) A) and B)

Question 14

It is possible for a country without a lot of domestic natural resources to have a high standard of living.

Accepted Answer

A) True 
 B)False

Question 15

Outward-oriented policies

Accepted Answer

A)  prevent countries from taking advantage of gains from trade.
B)  have generally led to high growth for the countries that pursued them.
C)  receive little support from economists, despite such polices success.
D)  None of the above is correct.E) C) and D)
F) A) and B)

Question 16

Which of the following World Bank poverty aid programs did the Poverty Action Lab find to have no beneficial effects?

Accepted Answer

A)  hiring high-school graduates to tutor groups of lagging students in Bombay slums
B)  adding an extra teacher to classrooms in rural India
C)  giving poor Kenyan students drugs to treat intestinal worms
D)  All of the above programs were shown to have no beneficial effects.E) A) and B)
F) All of the above

Question 17

Suppose Albania increases its saving rate.In the long run

Accepted Answer

A)  the growth rates of productivity and real GDP per person increase.
B)  productivity and real GDP per person increase.
C)  the growth rate of productivity increases, and real GDP per person increases.
D)  productivity increases, and the growth rate of real GDP per person increases.E) B) and D)
F) B) and C)

Question 18

Once an idea enters society's pool of knowledge,the knowledge becomes a

Accepted Answer

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

Question 19

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

Question 20

Inward-oriented policies

Accepted Answer

A)  include imposing tariffs and other trade restrictions.
B)  have generally increased productivity and growth in the countries that pursued them.
C)  promote the production of goods and services the country produce most efficiently.
D)  All of the above are correct.E) A) and B)
F) B) and C)

Exam 25: Production and Growth

The President of a developing country proposes that his country needs to help domestic firms by imposing trade restrictions.

Correct Answer
verified

Which of the following World Bank poverty aid programs did the Poverty Action Lab find to have no beneficial effects?

Correct Answer
verified

Correct Answer
verified

Compare and contrast the population theories of Malthus and Kremer.

Correct Answer
verified
The difference is that Malthus predicted...
View Answer

If the price of a good has risen over time,

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

Outward-oriented policies

Correct Answer
verified

Once an idea enters society's pool of knowledge,the knowledge becomes a

Correct Answer
verified

Suppose Albania increases its saving rate.In the long run

Correct Answer
verified

The behavior of market prices over time show that natural resources

Correct Answer
verified

Inward-oriented policies

Correct Answer
verified

Which of the following countries achieved higher economic growth,in part by mandating a reduction in population growth?

Correct Answer
verified

Which of the following is correct?

Correct Answer
verified

Although growth rates across countries vary some,rankings of country by income remain pretty much the same over time.

Correct Answer
verified

Correct Answer
verified

It is possible for a country without a lot of domestic natural resources to have a high standard of living.

Correct Answer
verified

In some East Asian countries,average income,as measured by real GDP per person,has recently grown at an average annual rate that implies output should double about every

Correct Answer
verified

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

Correct Answer
verified

In the long run,a higher saving rate

Correct Answer
verified

A forest is an example of a nonrenewable resource.

Correct Answer
verified

Exam 25: Production and Growth

The President of a developing country proposes that his country needs to help domestic firms by imposing trade restrictions.

Correct AnswerverifiedShow Answer

Which of the following World Bank poverty aid programs did the Poverty Action Lab find to have no beneficial effects?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Compare and contrast the population theories of Malthus and Kremer.

Correct AnswerverifiedThe difference is that Malthus predicted...View AnswerShow Answer

If the price of a good has risen over time,

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

Outward-oriented policies

Correct AnswerverifiedShow Answer

Once an idea enters society's pool of knowledge,the knowledge becomes a

Correct AnswerverifiedShow Answer

Suppose Albania increases its saving rate.In the long run

Correct AnswerverifiedShow Answer

The behavior of market prices over time show that natural resources

Correct AnswerverifiedShow Answer

Inward-oriented policies

Correct AnswerverifiedShow Answer

Which of the following countries achieved higher economic growth,in part by mandating a reduction in population growth?

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Although growth rates across countries vary some,rankings of country by income remain pretty much the same over time.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

It is possible for a country without a lot of domestic natural resources to have a high standard of living.

Correct AnswerverifiedShow Answer

In some East Asian countries,average income,as measured by real GDP per person,has recently grown at an average annual rate that implies output should double about every

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the long run,a higher saving rate

Correct AnswerverifiedShow Answer

A forest is an example of a nonrenewable resource.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The difference is that Malthus predicted...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified