Question 1

Which of the following is a correct way to measure productivity?

Accepted Answer

A)   Divide the number of hours worked by the quantity of output.
B)   Divide the quantity of output by the number of hours worked.
C)   Determine how much output is produced in a given time.
D)   Determine how much time it takes to produce a unit of output.E) B) and C)
F) A) and B)

Question 2

International data on real GDP per person gives us a sense of how standards of living vary across countries.

Accepted Answer

A) True 
 B)False

Question 3

Other things the same, domestic investment will increase a country's real GDP by more than foreign investment.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is correct?

Accepted Answer

A)   If developing countries limit career and educational opportunities for women, birth rates are likely to be lower.
B)   Growth rates in developed and developing countries are nearly the same.
C)   Historically, in periods where the rate of population growth was high, so was the rate of growth in world real GDP per person.
D)   None of the above is correct.E) B) and D)
F) C) and D)

Question 5

Other things the same, a country that increases its saving rate increases

Accepted Answer

A)   its future productivity and future real GDP.
B)   neither its future productivity nor future real GDP.
C)   its future productivity, but not its future real GDP.
D)   its future real GDP, but not its future productivity.E) C) and D)
F) A) and C)

Question 6

Suppose that a new government is elected in Eurnesia. The new government takes steps toward improving the court system and reducing government corruption. The citizens of Eurnesia find these efforts credible and outsiders believe these changes will be effective and long lasting. These changes will probably

Accepted Answer

A)   raise real GDP per person and productivity in Eurnesia.
B)   raise real GDP per person but not productivity in Eurnesia.
C)   raise productivity but not real GDP per person in Eurnesia.
D)   raise neither productivity nor real GDP per person in Eurnesia.E) B) and D)
F) None of the above

Question 7

Economist Michael Kremer found that world growth rates fell as population increased.

Accepted Answer

A) True 
 B)False

Question 8

All else equal, if there are diminishing returns, then which of the following is true if a country increases its capital by one unit?

Accepted Answer

A)   Output will rise by more than it did when the previous unit was added.
B)   Output will rise but by less than it did when the previous unit was added.
C)   Output will fall by more than it did when the previous unit was added.
D)   Output will fall but by less then it did when the previous unit was added.E) A) and D)
F) A) and B)

Question 9

Suppose Japanese-based Toshiba Corporation builds and operates a new computer factory in the United States. Future production from such an investment would

Accepted Answer

A)   increase U.S. GNP more than it would increase U.S. GDP.
B)   increase U.S. GDP more than it would increase U.S. GNP.
C)   not affect U.S. GNP, but would increase U.S. GDP.
D)   have no affect on U.S. GNP or GDP.E) A) and D)
F) None of the above

Question 10

Last year the imaginary nation of Freedonia had a population of 2,700 and real GDP of 16,200,000. This year it had a population of 2,500 and real GDP of 14,640,000. What was the growth rate of real GDP per person between last year and this year?

Accepted Answer

A)   -2.4 percent
B)   -0.7 percent
C)   4.4 percent
D)   5.2 percentE) A) and B)
F) A) and C)

Question 11

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 12

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) None of the above
F) A) and C)

Question 13

Which of the following statements is correct?

Accepted Answer

A)   In 1870, real income per person was higher in the United Kingdom than in any other country at that time.
B)   Between 1870 and 2008, India experienced significantly higher growth of real income per person than did the United States.
C)   Between 1870 and 2008, the United States experienced significantly higher growth of real income per person than did Canada.
D)   All of the above are correct.E) None of the above
F) B) and D)

Question 14

In the United States, as measured by real GDP per person, average income is about how many times as high as average income a century ago?

Accepted Answer

A)   2
B)   4
C)   6
D)   8E) A) and B)
F) None of the above

Question 15

According to some estimates, over the last two decades China has had an annual average growth rate of about 12 percent.

Accepted Answer

A) True 
 B)False

Question 16

A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth. The first is to increase barriers to trade. The second is to restrict foreign portfolio investment. Which of these policies would most economist think would promote growth?

Accepted Answer

A)   both the first and the second
B)   the first but not the second
C)   the second but not the first
D)   neither the first nor the secondE) None of the above
F) B) and D)

Question 17

Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over the last 100 or so years?

Accepted Answer

A)   Germany and Japan
B)   Indonesia and the United Kingdom
C)   the United States and Japan
D)   Mexico and PakistanE) A) and B)
F) B) and D)

Question 18

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

Question 19

In one day Madison Laundry washed 4,000 pounds of laundry with 5 workers who each worked 8 hours. What was its productivity?

Accepted Answer

A)   4000 pounds of laundry
B)   500 pounds of laundry per hour
C)   100 pounds of laundry per hour
D)   None of the above is correct.E) A) and C)
F) A) and D)

Question 20

If they could increase their growth rates slightly, countries with low income would catch up with rich countries in about ten years.

Accepted Answer

A) True 
 B)False

Exam 7: Production and Growth

If they could increase their growth rates slightly, countries with low income would catch up with rich countries in about ten years.

Correct Answer
verified

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

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

Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over the last 100 or so years?

Correct Answer
verified

Correct Answer
verified

International data on real GDP per person gives us a sense of how standards of living vary across countries.

Correct Answer
verified

A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth. The first is to increase barriers to trade. The second is to restrict foreign portfolio investment. Which of these policies would most economist think would promote growth?

Correct Answer
verified

Which of the following is a correct way to measure productivity?

Correct Answer
verified

Suppose Japanese-based Toshiba Corporation builds and operates a new computer factory in the United States. Future production from such an investment would

Correct Answer
verified

Which of the following is correct?

Correct Answer
verified

Economist Michael Kremer found that world growth rates fell as population increased.

Correct Answer
verified

In one day Madison Laundry washed 4,000 pounds of laundry with 5 workers who each worked 8 hours. What was its productivity?

Correct Answer
verified

Other things the same, a country that increases its saving rate increases

Correct Answer
verified

In 2008, real GDP per person in Bangladesh was

Correct Answer
verified

In the United States, as measured by real GDP per person, average income is about how many times as high as average income a century ago?

Correct Answer
verified

Other things the same, domestic investment will increase a country's real GDP by more than foreign investment.

Correct Answer
verified

According to some estimates, over the last two decades China has had an annual average growth rate of about 12 percent.

Correct Answer
verified

Last year the imaginary nation of Freedonia had a population of 2,700 and real GDP of 16,200,000. This year it had a population of 2,500 and real GDP of 14,640,000. What was the growth rate of real GDP per person between last year and this year?

Correct Answer
verified

All else equal, if there are diminishing returns, then which of the following is true if a country increases its capital by one unit?

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

Exam 7: Production and Growth

If they could increase their growth rates slightly, countries with low income would catch up with rich countries in about ten years.

Correct AnswerverifiedShow Answer

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

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

Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over the last 100 or so years?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

International data on real GDP per person gives us a sense of how standards of living vary across countries.

Correct AnswerverifiedShow Answer

A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth. The first is to increase barriers to trade. The second is to restrict foreign portfolio investment. Which of these policies would most economist think would promote growth?

Correct AnswerverifiedShow Answer

Which of the following is a correct way to measure productivity?

Correct AnswerverifiedShow Answer

Suppose Japanese-based Toshiba Corporation builds and operates a new computer factory in the United States. Future production from such an investment would

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Economist Michael Kremer found that world growth rates fell as population increased.

Correct AnswerverifiedShow Answer

In one day Madison Laundry washed 4,000 pounds of laundry with 5 workers who each worked 8 hours. What was its productivity?

Correct AnswerverifiedShow Answer

Other things the same, a country that increases its saving rate increases

Correct AnswerverifiedShow Answer

In 2008, real GDP per person in Bangladesh was

Correct AnswerverifiedShow Answer

In the United States, as measured by real GDP per person, average income is about how many times as high as average income a century ago?

Correct AnswerverifiedShow Answer

Other things the same, domestic investment will increase a country's real GDP by more than foreign investment.

Correct AnswerverifiedShow Answer

According to some estimates, over the last two decades China has had an annual average growth rate of about 12 percent.

Correct AnswerverifiedShow Answer

Last year the imaginary nation of Freedonia had a population of 2,700 and real GDP of 16,200,000. This year it had a population of 2,500 and real GDP of 14,640,000. What was the growth rate of real GDP per person between last year and this year?

Correct AnswerverifiedShow Answer

All else equal, if there are diminishing returns, then which of the following is true if a country increases its capital by one unit?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

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