Question 1

Megan is a landscaper. Which of the following are included in her physical 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) C) and D)
F) A) and D)

Question 2

In the production function Y = AFL,K,H,N), Y represents the quantity of output; L represents the quantity of labor; K represents the quantity of physical capital; and H represents the quantity of human capital. What does N represent?

Accepted Answer

N represen...

Question 3

Suppose that a country increased its saving rate. In the long run it would have

Accepted Answer

A)   higher productivity, and another unit of capital would increase output by more than before.
B)   higher productivity, but another unit of capital would increase output by less than before.
C)   lower productivity, and another unit of capital would increase output by more than before.
D)   lower productivity, but another unit of capital would increase output by less than before.E) None of the above
F) A) and D)

Question 4

The inputs into production of goods and services that are provided by nature, such as land, rivers, and mineral deposits are called

Accepted Answer

A)   physical capital.
B)   natural resources.
C)   human capital.
D)   technological knowledge.E) A) and B)
F) A) and C)

Question 5

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) A) and B)

Question 6

International data on the history of real GDP growth rates shows that over the last 120 years or so, rich countries got richer and poor countries got poorer.

Accepted Answer

A) True 
 B)False

Question 7

Natural resources

Accepted Answer

A)   are inputs provided by nature.
B)   include land, rivers, and mineral deposits.
C)   take two forms: renewable and nonrenewable.
D)   All of the above are correct.E) All of the above
F) B) and D)

Question 8

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) None of the above

Question 9

Studies confirm that controlling for other variables such as the percentage of GDP devoted to investment, poor countries tend to grow at a faster rate than rich countries.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following nations experienced average rates of economic growth of less than 2 percent over the last 100 years or so?

Accepted Answer

A)   Bangladesh
B)   Pakistan
C)   United Kingdom
D)   All of the above are correct.E) B) and C)
F) None of the above

Question 11

Which of the following is an example of physical capital?

Accepted Answer

A)   the available knowledge on how to make semiconductors
B)   a taxi­cab driver's knowledge of the fastest routes to take
C)   bulldozers, backhoes and other construction equipment
D)   All of the above are correct.E) C) and D)
F) A) and B)

Question 12

Consider three imaginary countries. In Aire, saving amounts to $4,000 and consumption amounts to $12,000; in Bovina, saving amounts to $3,000 and consumption amounts to $24,000; and in Cartar, saving amounts to $10,000 and consumption amounts to $50,000. The saving rate is

Accepted Answer

A)   higher in Aire than in Cartar, and it is higher in Cartar than in Bovina.
B)   higher in Cartar than in Aire, and it is higher in Aire than in Bovina.
C)   higher in Cartar than in Bovina, and it is the same in Bovina and Aire.
D)   higher in Aire than in Bovina, and it is the same in Aire and Cartar.E) None of the above
F) A) and D)

Question 13

Human capital is the term economists use to refer to the knowledge and skills that workers acquire through education, training, and experience.

Accepted Answer

A) True 
 B)False

Question 14

National defense and knowledge are generally considered to be

Accepted Answer

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

Question 15

Ralph is a plumber. Which of the following are included in his human capital?

Accepted Answer

A)   the knowledge he learned on the job, and the tools he uses
B)   the knowledge he learned on the job, but not the tools he uses
C)   the tools he uses, but not the knowledge he learned on the job
D)   neither the knowledge he learned on the job nor the tools he usesE) A) and B)
F) A) and C)

Question 16

Which of the following best illustrates the human capital of a survivor stranded on an island?

Accepted Answer

A)   the fishing poles she has produced
B)   the invention of a better fishing lure
C)   the fresh fruit and fish on and around the island
D)   her previous training in a survival courseE) None of the above
F) B) and C)

Question 17

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

Question 18

All else equal, which of the following would tend to cause real GDP per person to rise?

Accepted Answer

A)   a change from inward-oriented policies to outward-oriented policies
B)   an increase in investment in human capital
C)   strengthening of property rights.
D)   All of the above are correct.E) A) and B)
F) C) and D)

Question 19

What is the difference between human capital and technology?

Accepted Answer

Technology is society's understanding of...

Question 20

Real Foods produced 400,000 cans of diced tomatoes last year and 460,000 cans of diced tomatoes this year. It employed the same number of labor hours each year. Real Foods' productivity

Accepted Answer

A)   decreased 13%.
B)   was unchanged.
C)   increased 13%.
D)   increased 15%.E) A) and D)
F) A) and C)

Exam 12: Production and Growth

Suppose that a country increased its saving rate. In the long run it would have

Correct Answer
verified

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

Correct Answer
verified

Real Foods produced 400,000 cans of diced tomatoes last year and 460,000 cans of diced tomatoes this year. It employed the same number of labor hours each year. Real Foods' productivity

Correct Answer
verified

Natural resources

Correct Answer
verified

Studies confirm that controlling for other variables such as the percentage of GDP devoted to investment, poor countries tend to grow at a faster rate than rich countries.

Correct Answer
verified

Ralph is a plumber. Which of the following are included in his human capital?

Correct Answer
verified

Consider three imaginary countries. In Aire, saving amounts to $4,000 and consumption amounts to $12,000; in Bovina, saving amounts to $3,000 and consumption amounts to $24,000; and in Cartar, saving amounts to $10,000 and consumption amounts to $50,000. The saving rate is

Correct Answer
verified

The inputs into production of goods and services that are provided by nature, such as land, rivers, and mineral deposits are called

Correct Answer
verified

Which of the following is an example of physical capital?

Correct Answer
verified

Human capital is the term economists use to refer to the knowledge and skills that workers acquire through education, training, and experience.

Correct Answer
verified

National defense and knowledge are generally considered to be

Correct Answer
verified

International data on the history of real GDP growth rates shows that over the last 120 years or so, rich countries got richer and poor countries got poorer.

Correct Answer
verified

In the production function Y = AFL,K,H,N), Y represents the quantity of output; L represents the quantity of labor; K represents the quantity of physical capital; and H represents the quantity of human capital. What does N represent?

Correct Answer
verified
N represen...
View Answer

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

Correct Answer
verified

What is the difference between human capital and technology?

Correct Answer
verified
Technology is society's understanding of...
View Answer

Mexico is

Correct Answer
verified

All else equal, which of the following would tend to cause real GDP per person to rise?

Correct Answer
verified

Correct Answer
verified

Which of the following nations experienced average rates of economic growth of less than 2 percent over the last 100 years or so?

Correct Answer
verified

Which of the following best illustrates the human capital of a survivor stranded on an island?

Correct Answer
verified

Exam 12: Production and Growth

Suppose that a country increased its saving rate. In the long run it would have

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Real Foods produced 400,000 cans of diced tomatoes last year and 460,000 cans of diced tomatoes this year. It employed the same number of labor hours each year. Real Foods' productivity

Correct AnswerverifiedShow Answer

Natural resources

Correct AnswerverifiedShow Answer

Studies confirm that controlling for other variables such as the percentage of GDP devoted to investment, poor countries tend to grow at a faster rate than rich countries.

Correct AnswerverifiedShow Answer

Ralph is a plumber. Which of the following are included in his human capital?

Correct AnswerverifiedShow Answer

Consider three imaginary countries. In Aire, saving amounts to $4,000 and consumption amounts to $12,000; in Bovina, saving amounts to $3,000 and consumption amounts to $24,000; and in Cartar, saving amounts to $10,000 and consumption amounts to $50,000. The saving rate is

Correct AnswerverifiedShow Answer

The inputs into production of goods and services that are provided by nature, such as land, rivers, and mineral deposits are called

Correct AnswerverifiedShow Answer

Which of the following is an example of physical capital?

Correct AnswerverifiedShow Answer

Human capital is the term economists use to refer to the knowledge and skills that workers acquire through education, training, and experience.

Correct AnswerverifiedShow Answer

National defense and knowledge are generally considered to be

Correct AnswerverifiedShow Answer

International data on the history of real GDP growth rates shows that over the last 120 years or so, rich countries got richer and poor countries got poorer.

Correct AnswerverifiedShow Answer

In the production function Y = AFL,K,H,N), Y represents the quantity of output; L represents the quantity of labor; K represents the quantity of physical capital; and H represents the quantity of human capital. What does N represent?

Correct AnswerverifiedN represen...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

What is the difference between human capital and technology?

Correct AnswerverifiedTechnology is society's understanding of...View AnswerShow Answer

Mexico is

Correct AnswerverifiedShow Answer

All else equal, which of the following would tend to cause real GDP per person to rise?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following nations experienced average rates of economic growth of less than 2 percent over the last 100 years or so?

Correct AnswerverifiedShow Answer

Which of the following best illustrates the human capital of a survivor stranded on an island?

Correct AnswerverifiedShow Answer

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N represen...
View Answer

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Correct Answer
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Technology is society's understanding of...
View Answer

Correct Answer
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Correct Answer
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