Question 1

Compare and contrast the population theories of Malthus and Kremer.

Accepted Answer

The difference is that Malthus predicted...

Question 2

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) B) and D)
F) All of the above

Question 3

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) B) and D)
F) None of the above

Question 4

In 2008, income per person in the United States was about 16 times that in India.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  societal good.
B)  private good.
C)  public good.
D)  proprietary good.E) None of the above
F) All of the above

Question 6

A leading environmental group recently published a report contending that humans are running a "resource deficit" because we are using natural resources faster than they can be regenerated. The group claims that this means that economic growth will eventually stop, and will even be reversed. An economist would

Accepted Answer

A)  agree with the report, and would point to rising natural resource prices as evidence.
B)  agree with the report, but wouldn't think it was important because growth will not slow down for several centuries.
C)  disagree with the report, in part because it ignores the mitigating effects of technological change.
D)  disagree with the report because labor and capital are the primary determinants of growth, and since they are plentiful, growth will not slow down.E) B) and C)
F) None of the above

Question 7

If a country increases its saving rate, which of the following permanently grow at a higher rate?

Accepted Answer

A)  productivity and real GDP per person
B)  productivity but not real GDP per person
C)  real GDP per person but not productivity
D)  neither real GDP per person nor productivityE) None of the above
F) A) and D)

Question 8

Historical trends in the prices of most natural resources compared to prices of other goods indicate that most natural resources have become scarcer over time.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following will increase a country's real GDP per person?

Accepted Answer

A)  imposing restrictions on foreign trade and foreign investment
B)  imposing restrictions on foreign trade and reducing restrictions on foreign investment
C)  reducing restrictions on foreign trade and imposing restrictions on foreign investment
D)  reducing restrictions on foreign trade and foreign investmentE) B) and C)
F) A) and C)

Question 10

An increase in the saving rate would, other things the same,

Accepted Answer

A)  increase growth more for a poor country than for a rich country, and raise growth permanently.
B)  increase growth more for a poor country than for a rich country, but raise growth temporarily.
C)  increase growth more for a rich country than for a poor country, and raise growth permanently.
D)  increase growth more for a rich country than for a poor country, but raise growth temporarily.E) A) and D)
F) A) and B)

Question 11

Why does a nation's standard of living depend on property rights?

Accepted Answer

Property rights are an important prerequ...

Question 12

In 1870, the richest country in the world was

Accepted Answer

A)  the United States.
B)  Spain.
C)  the United Kingdom.
D)  Germany.E) All of the above
F) C) and D)

Question 13

Figure 12-1. 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 12-1. 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 D)
F) All of the above

Question 14

Two countries with the same saving rates must have the same growth rate of real GDP per person.

Accepted Answer

A) True 
 B)False

Question 15

The president of Suldinia, a developing country, proposes that his country needs to help domestic firms by reducing trade restrictions.

Accepted Answer

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

Question 16

In the 1800s, Europeans purchased stock in American companies that used the funds to build railroads and factories. The Europeans who did this engaged in

Accepted Answer

A)  foreign portfolio investment.
B)  indirect domestic investment.
C)  foreign direct investment.
D)  foreign indirect investment.E) B) and D)
F) C) and D)

Question 17

Which of the following best describes the response of output as time passes to an increase in the saving rate?

Accepted Answer

A)  The growth rate of output does not change.
B)  The growth rate of output increases and gets even larger as time passes.
C)  The growth rate of output increases and does not change as time passes.
D)  The growth rate of output increases, but diminishes to its former level as time passes.E) A) and B)
F) A) and C)

Question 18

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) All of the above
F) B) and C)

Question 19

In a market economy, the real, or inflation-adjusted, price of a resource measures its

Accepted Answer

A)  contribution to revenue.
B)  relative scarcity.
C)  productivity.
D)  contribution to efficiency.E) C) and D)
F) A) and B)

Question 20

A professor at a university finds a way to reduce the costs of producing automobile glass. The method is very easy for anyone to copy. A company develops a substance which prevents eyeglasses from smudging. It receives a patent on the formula. Which of these are common technological knowledge?

Accepted Answer

A)  the method to reduce costs of producing automobile glass, and the formula for the substance that prevents smudging
B)  the method to reduce costs of producing automobile glass, but not the formula for the substance that prevents smudging
C)  the formula for the substance that prevents smudging, but not the method to reduce costs of producing automobile glass
D)  neither the method to reduce costs of producing automobile glass nor the formula for the substance that prevents smudgingE) B) and C)
F) A) and D)

Exam 12: Production and Growth

Compare and contrast the population theories of Malthus and Kremer.

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

In 1870, the richest country in the world was

Correct Answer
verified

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

Correct Answer
verified

An increase in the saving rate would, other things the same,

Correct Answer
verified

If a country increases its saving rate, which of the following permanently grow at a higher rate?

Correct Answer
verified

The president of Suldinia, a developing country, proposes that his country needs to help domestic firms by reducing trade restrictions.

Correct Answer
verified

Correct Answer
verified

In 2008, real GDP per person in Bangladesh was

Correct Answer
verified

In a market economy, the real, or inflation-adjusted, price of a resource measures its

Correct Answer
verified

Why does a nation's standard of living depend on property rights?

Correct Answer
verified
Property rights are an important prerequ...
View Answer

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

Correct Answer
verified

Which of the following best describes the response of output as time passes to an increase in the saving rate?

Correct Answer
verified

In 2008, income per person in the United States was about 16 times that in India.

Correct Answer
verified

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

A professor at a university finds a way to reduce the costs of producing automobile glass. The method is very easy for anyone to copy. A company develops a substance which prevents eyeglasses from smudging. It receives a patent on the formula. Which of these are common technological knowledge?

Correct Answer
verified

Historical trends in the prices of most natural resources compared to prices of other goods indicate that most natural resources have become scarcer over time.

Correct Answer
verified

Which of the following will increase a country's real GDP per person?

Correct Answer
verified

Two countries with the same saving rates must have the same growth rate of real GDP per person.

Correct Answer
verified

In the 1800s, Europeans purchased stock in American companies that used the funds to build railroads and factories. The Europeans who did this engaged in

Correct Answer
verified

Exam 12: Production and Growth

Compare and contrast the population theories of Malthus and Kremer.

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

In 1870, the richest country in the world was

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An increase in the saving rate would, other things the same,

Correct AnswerverifiedShow Answer

If a country increases its saving rate, which of the following permanently grow at a higher rate?

Correct AnswerverifiedShow Answer

The president of Suldinia, a developing country, proposes that his country needs to help domestic firms by reducing trade restrictions.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In 2008, real GDP per person in Bangladesh was

Correct AnswerverifiedShow Answer

In a market economy, the real, or inflation-adjusted, price of a resource measures its

Correct AnswerverifiedShow Answer

Why does a nation's standard of living depend on property rights?

Correct AnswerverifiedProperty rights are an important prerequ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following best describes the response of output as time passes to an increase in the saving rate?

Correct AnswerverifiedShow Answer

In 2008, income per person in the United States was about 16 times that in India.

Correct AnswerverifiedShow Answer

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

A professor at a university finds a way to reduce the costs of producing automobile glass. The method is very easy for anyone to copy. A company develops a substance which prevents eyeglasses from smudging. It receives a patent on the formula. Which of these are common technological knowledge?

Correct AnswerverifiedShow Answer

Historical trends in the prices of most natural resources compared to prices of other goods indicate that most natural resources have become scarcer over time.

Correct AnswerverifiedShow Answer

Which of the following will increase a country's real GDP per person?

Correct AnswerverifiedShow Answer

Two countries with the same saving rates must have the same growth rate of real GDP per person.

Correct AnswerverifiedShow Answer

In the 1800s, Europeans purchased stock in American companies that used the funds to build railroads and factories. The Europeans who did this engaged in

Correct AnswerverifiedShow Answer

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
Property rights are an important prerequ...
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