Question 1

Other things the same,which of the following could explain an increase in productivity?

Accepted Answer

A)   either an increase in human capital or an increase in physical capital
B)   an increase in human capital but not an increase in physical capital
C)   an increase in physical capital but not an increase in human capital
D)   neither an increase in human capital nor an increase in physical capitalE) None of the above
F) A) and B)

Question 2

You bake cookies.One day you double the time you spend,double the number of chocolate chips,flour,eggs,and all your other inputs,and bake twice as many cookies.Your cookie production function has

Accepted Answer

A)   decreasing returns to scale.
B)   zero returns to scale.
C)   constant returns to scale.
D)   increasing returns to scale.E) A) and B)
F) A) and C)

Question 3

Which of the following is an example of a nonrenewable natural resource?

Accepted Answer

A)   tin
B)   petroleum
C)   gold
D)   All of the above are correct.E) A) and C)
F) C) and D)

Question 4

Studies have found that there is a relationship between height and productivity.Briefly explain.

Accepted Answer

Studies show that taller worke...

Question 5

The opening of a new American-owned factory in Algeria would tend to increase Algeria's GDP more than it increases Algeria's GNP because

Accepted Answer

A)   some of the income from the factory accrues to people who do not live in Algeria.
B)   gross domestic product is income earned within a country by both residents and nonresidents,whereas gross national product is the income earned by residents of a country while producing both at home and abroad.
C)   all of the income from the factory is included in Algeria's GDP.
D)   All of the above are correct.E) All of the above
F) B) and D)

Question 6

The traditional view of the production process is that capital is subject to

Accepted Answer

A)   constant returns.
B)   increasing returns.
C)   diminishing returns.
D)   diminishing returns for low levels of capital,and increasing returns for high levels of capital.E) All of the above
F) None of the above

Question 7

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 8

The average income in a rich country

Accepted Answer

A)   is about 5 times that in a poor country.Further,people in rich countries have longer life expectancy.
B)   is about 5 times that in a poor country.However,people in rich countries have about the same life expectancy as those in poor countries.
C)   is more than ten times that in a poor country.Further,people in rich countries have longer life expectancy.
D)   is more than ten times that in poor country.However,people in rich countries have about the same life expectancy as those in poor countries.E) All of the above
F) A) and B)

Question 9

Measured in 2008 dollars,real GDP per person in the United States in 2008 was about 8 times that of

Accepted Answer

A)   China.
B)   Canada.
C)   Japan.
D)   Germany.E) A) and D)
F) B) and D)

Question 10

All else equal,if there are diminishing returns,then what happens to productivity if both capital and labor increase?

Accepted Answer

A)   Productivity will definitely fall.
B)   Productivity will definitely be unchanged.
C)   Productivity will definitely rise.
D)   None of the above are necessarily correct.E) B) and D)
F) None of the above

Question 11

Country A experienced a growth rate of real GDP per person of 4 percent per year throughout the 1900's.In view of other countries' experiences during this time country A's growth was

Accepted Answer

A)   exceptionally high.
B)   moderately high.
C)   moderately low.
D)   exceptionally low.E) All of the above
F) B) and D)

Question 12

In 2009,the imaginary nation of Florastan had a population of 8,044 and real GDP of 36,198,000.In 2010 it had a population of 7,800 and real GDP of 35,880,000.What was the growth rate of real GDP per person in Florastan between 2009 and 2010?

Accepted Answer

A)   -2.2 percent
B)   -0.7 percent
C)   2.2 percent
D)   4.5 percentE) B) and C)
F) C) and D)

Question 13

Which of the following would be considered physical capital?

Accepted Answer

A)   the refrigerators at Uncle Bob's restaurant
B)   rivers on which goods are transported
C)   the skills and knowledge of a lawyer
D)   All of the above are correct.E) A) and D)
F) B) and D)

Question 14

Real GDP per person in rich countries,such as Germany,is sometimes more than 10 times that of poor countries like India.

Accepted Answer

A) True 
 B)False

Question 15

Suppose that real GDP grew more in Country A than in Country B last year.

Accepted Answer

A)   Country A must have a higher standard of living than country B.
B)   Country A's productivity must have grown faster than country B's.
C)   Both of the above are correct.
D)   None of the above are correct.E) B) and C)
F) A) and D)

Question 16

National defense and knowledge are generally considered to be

Accepted Answer

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

Question 17

Since 1870 Canadian and U.S real GDP per person grew from below to above that in the United Kingdom.The explanation for this is likely that productivity grew faster in Canada and the U.S.than in the United Kingdom.

Accepted Answer

A) True 
 B)False

Question 18

If a country has a higher level of productivity than another,then it also has a higher level of real GDP.

Accepted Answer

A) True 
 B)False

Question 19

The president of a poor country has announced that he will implement the following measures which he claims are designed to increase growth: 1.Reduce corruption in the legal system;2.Reduce reliance on market forces because they allocate goods and services in an unfair manner;3.Restrict investment in domestic industries by foreigners because they take some of the profits out of the country;4.Encourage trade with neighboring countries;and 5.Increase the fraction of GDP devoted to consumption.How many of these measures will have a positive effect on growth?

Accepted Answer

A)   1
B)   2
C)   3
D)   4E) B) and C)
F) C) and D)

Question 20

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)

Exam 25: Production and Growth

The average income in a rich country

Correct Answer
verified

Studies have found that there is a relationship between height and productivity.Briefly explain.

Correct Answer
verified
Studies show that taller worke...
View Answer

Which of the following would be considered physical capital?

Correct Answer
verified

In 2009,the imaginary nation of Florastan had a population of 8,044 and real GDP of 36,198,000.In 2010 it had a population of 7,800 and real GDP of 35,880,000.What was the growth rate of real GDP per person in Florastan between 2009 and 2010?

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

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

Correct Answer
verified

Other things the same,which of the following could explain an increase in productivity?

Correct Answer
verified

The traditional view of the production process is that capital is subject to

Correct Answer
verified

All else equal,if there are diminishing returns,then what happens to productivity if both capital and labor increase?

Correct Answer
verified

Measured in 2008 dollars,real GDP per person in the United States in 2008 was about 8 times that of

Correct Answer
verified

The opening of a new American-owned factory in Algeria would tend to increase Algeria's GDP more than it increases Algeria's GNP because

Correct Answer
verified

You bake cookies.One day you double the time you spend,double the number of chocolate chips,flour,eggs,and all your other inputs,and bake twice as many cookies.Your cookie production function has

Correct Answer
verified

Which of the following is an example of a nonrenewable natural resource?

Correct Answer
verified

Suppose that real GDP grew more in Country A than in Country B last year.

Correct Answer
verified

If a country has a higher level of productivity than another,then it also has a higher level of real GDP.

Correct Answer
verified

Since 1870 Canadian and U.S real GDP per person grew from below to above that in the United Kingdom.The explanation for this is likely that productivity grew faster in Canada and the U.S.than in the United Kingdom.

Correct Answer
verified

National defense and knowledge are generally considered to be

Correct Answer
verified

Real GDP per person in rich countries,such as Germany,is sometimes more than 10 times that of poor countries like India.

Correct Answer
verified

Country A experienced a growth rate of real GDP per person of 4 percent per year throughout the 1900's.In view of other countries' experiences during this time country A's growth was

Correct Answer
verified

Exam 25: Production and Growth

The average income in a rich country

Correct AnswerverifiedShow Answer

Studies have found that there is a relationship between height and productivity.Briefly explain.

Correct AnswerverifiedStudies show that taller worke...View AnswerShow Answer

Which of the following would be considered physical capital?

Correct AnswerverifiedShow Answer

In 2009,the imaginary nation of Florastan had a population of 8,044 and real GDP of 36,198,000.In 2010 it had a population of 7,800 and real GDP of 35,880,000.What was the growth rate of real GDP per person in Florastan between 2009 and 2010?

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

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

Correct AnswerverifiedShow Answer

Other things the same,which of the following could explain an increase in productivity?

Correct AnswerverifiedShow Answer

The traditional view of the production process is that capital is subject to

Correct AnswerverifiedShow Answer

All else equal,if there are diminishing returns,then what happens to productivity if both capital and labor increase?

Correct AnswerverifiedShow Answer

Measured in 2008 dollars,real GDP per person in the United States in 2008 was about 8 times that of

Correct AnswerverifiedShow Answer

The opening of a new American-owned factory in Algeria would tend to increase Algeria's GDP more than it increases Algeria's GNP because

Correct AnswerverifiedShow Answer

You bake cookies.One day you double the time you spend,double the number of chocolate chips,flour,eggs,and all your other inputs,and bake twice as many cookies.Your cookie production function has

Correct AnswerverifiedShow Answer

Which of the following is an example of a nonrenewable natural resource?

Correct AnswerverifiedShow Answer

Suppose that real GDP grew more in Country A than in Country B last year.

Correct AnswerverifiedShow Answer

If a country has a higher level of productivity than another,then it also has a higher level of real GDP.

Correct AnswerverifiedShow Answer

Since 1870 Canadian and U.S real GDP per person grew from below to above that in the United Kingdom.The explanation for this is likely that productivity grew faster in Canada and the U.S.than in the United Kingdom.

Correct AnswerverifiedShow Answer

National defense and knowledge are generally considered to be

Correct AnswerverifiedShow Answer

Real GDP per person in rich countries,such as Germany,is sometimes more than 10 times that of poor countries like India.

Correct AnswerverifiedShow Answer

Country A experienced a growth rate of real GDP per person of 4 percent per year throughout the 1900's.In view of other countries' experiences during this time country A's growth was

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Studies show that taller worke...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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