Question 1

If per capita real income grows by 2 percent per year, then it will double in approximately 20 years.

Accepted Answer

A) True 
 B)False

Question 2

Compare and contrast the population theories of Malthus and Kremer.

Accepted Answer

The difference is that Malthus predicted...

Question 3

Scenario 25-1. An economy's production form takes the form Y = AFL, K, H, N) .
-Refer to Scenario 25-1. In the production function, which of the following represents technology?

Accepted Answer

A)   A
B)   K
C)   H
D)   NE) A) and C)
F) B) and C)

Question 4

"Market prices give no reason to believe that natural resources are a limit to economic growth." Explain this statement.

Accepted Answer

If the world were running out of natural...

Question 5

The equipment and structures available to produce goods and services are called

Accepted Answer

A)   physical capital.
B)   human capital.
C)   the production function.
D)   technology.E) C) and D)
F) A) and B)

Question 6

Matt is going to college to become a pharmacist. What he learns about existing information increases

Accepted Answer

A)   both technological knowledge and human capital.
B)   technological knowledge but not human capital.
C)   human capital but not technological knowledge.
D)   neither technological knowledge nor human capital.E) None of the above
F) A) and B)

Question 7

Which of the following statements is true?

Accepted Answer

A)   Productivity is calculated as hours worked divided by output produced.
B)   Americans have a higher standard of living than Indonesians because American workers are more productive than Indonesian workers.
C)   Both A and B are correct.
D)   None of the above are correct.E) B) and D)
F) All of the above

Question 8

Which of the following statements is correct?

Accepted Answer

A)   In 1870, real income per person was higher in the United States than in any other country at that time.
B)   Over about the last 100 years India experienced significantly higher growth of real income per person than did the United States.
C)   Over about the last 100 years the United States experienced significantly higher growth of real income per person than did Japan.
D)   None of the above are correct.E) B) and C)
F) C) and D)

Question 9

Dilbert's Incorporated produced 6,000,000 units of software in 2010. At the start of 2011 the pointy­haired 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) None of the above
F) B) and C)

Question 10

If it could increase its growth rates slightly, a country with low income would catch up with rich countries in about ten years.

Accepted Answer

A) True 
 B)False

Question 11

Investment from abroad

Accepted Answer

A)   is a way for poor countries to learn the state-of-the-art technologies developed and used in richer countries.
B)   is viewed by economists as a way to increase growth.
C)   often requires removing restrictions that governments have imposed on foreign ownership of domestic capital.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 12

Of the following countries, which grew most slowly, in terms of real GDP per person, over about the last 120 years?

Accepted Answer

A)   Brazil
B)   Mexico
C)   China
D)   United StatesE) C) and D)
F) A) and D)

Question 13

Which of the following statements is correct?

Accepted Answer

A)   Productivity is a determinant of human capital per worker.
B)   Technological knowledge is a determinant of productivity.
C)   Human capital and technological knowledge are the same thing.
D)   All of the above are correct.E) B) and D)
F) All of the above

Question 14

If an American-based firm opens and operates a factory in China, then it is engaging in

Accepted Answer

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

Question 15

Journey Motorcycles produced 100 motorcycles using 50 workers who each worked 8 hours a day. Journey's productivity was 1/4.

Accepted Answer

A) True 
 B)False

Question 16

A nation's standard of living is determined by

Accepted Answer

A)   the percentage of its GDP that is accounted for by government purchases.
B)   the quantity of natural resources with which it is endowed.
C)   the productivity of its workers.
D)   factors and events that are beyond the nation's control.E) B) and C)
F) A) and D)

Question 17

All else equal, if there are diminishing returns, then if a country raised its capital by 100 units last year and by 100 units this year,

Accepted Answer

A)   the increase in output was greater for this year than last year.
B)   the increase in output was greater last year than this year.
C)   the increase in output is the same in both years.
D)   None of the above is necessarily correct.E) A) and C)
F) A) and B)

Question 18

In the fourteenth century it is estimated that deaths resulting from the bubonic plague reduced the population by about a third. Assuming diminishing returns, the decrease in population should have

Accepted Answer

A)   increased productivity and real GDP per person.
B)   increased productivity but decreased real GDP per person.
C)   increased real GDP per person, but decreased productivity.
D)   decreased productivity and real GDP per person.E) None of the above
F) All of the above

Question 19

Educated people may generate ideas that increase production. These ideas

Accepted Answer

A)   produce a return to society from education that is greater than the return to the individual.
B)   could justify government subsides for education.
C)   are external benefits of education.
D)   All of the above are correct.E) A) and C)
F) B) and D)

Question 20

What particularly important role do courts play in a market economy?

Accepted Answer

Courts enforce prope...

Exam 12: Production and Growth

Dilbert's Incorporated produced 6,000,000 units of software in 2010. At the start of 2011 the pointy­haired 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

If per capita real income grows by 2 percent per year, then it will double in approximately 20 years.

Correct AnswerverifiedShow Answer

The equipment and structures available to produce goods and services are called

Correct AnswerverifiedShow Answer

Compare and contrast the population theories of Malthus and Kremer.

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

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

In the fourteenth century it is estimated that deaths resulting from the bubonic plague reduced the population by about a third. Assuming diminishing returns, the decrease in population should have

Correct AnswerverifiedShow Answer

"Market prices give no reason to believe that natural resources are a limit to economic growth." Explain this statement.

Correct AnswerverifiedIf the world were running out of natural...View AnswerShow Answer

What particularly important role do courts play in a market economy?

Correct AnswerverifiedCourts enforce prope...View AnswerShow Answer

Investment from abroad

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Matt is going to college to become a pharmacist. What he learns about existing information increases

Correct AnswerverifiedShow Answer

Educated people may generate ideas that increase production. These ideas

Correct AnswerverifiedShow Answer

A nation's standard of living is determined by

Correct AnswerverifiedShow Answer

Of the following countries, which grew most slowly, in terms of real GDP per person, over about the last 120 years?

Correct AnswerverifiedShow Answer

All else equal, if there are diminishing returns, then if a country raised its capital by 100 units last year and by 100 units this year,

Correct AnswerverifiedShow Answer

If it could increase its growth rates slightly, a country with low income would catch up with rich countries in about ten years.

Correct AnswerverifiedShow Answer

If an American-based firm opens and operates a factory in China, then it is engaging in

Correct AnswerverifiedShow Answer

Journey Motorcycles produced 100 motorcycles using 50 workers who each worked 8 hours a day. Journey's productivity was 1/4.

Correct AnswerverifiedShow Answer

Scenario 25-1. An economy's production form takes the form Y = AFL, K, H, N) . -Refer to Scenario 25-1. In the production function, which of the following represents technology?

Correct AnswerverifiedShow Answer

Dilbert's Incorporated produced 6,000,000 units of software in 2010. At the start of 2011 the pointyhaired 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
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The difference is that Malthus predicted...
View Answer

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Correct Answer
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Correct Answer
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If the world were running out of natural...
View Answer

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Courts enforce prope...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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