Question 1

In medieval Europe an important technological advance was the use of the padded horse collar for plowing. Once this idea was thought of, other people used it. This illustrates that knowledge is generally a

Accepted Answer

A)   public good.
B)   societal good.
C)   private good.
D)   normal good.E) A) and D)
F) B) and C)

Question 2

Which of the following countries had the highest growth rate over about the last 100 years?

Accepted Answer

A)   Japan
B)   China
C)   Germany
D)   United StatesE) A) and B)
F) A) and C)

Question 3

In what sense is it likely that geography has an effect on a country's rate of economic growth?

Accepted Answer

Countries with natural seaport...

Question 4

An increase in a country's saving rate permanently raises its productivity.

Accepted Answer

A) True 
 B)False

Question 5

In the long run, an increase in the saving rate

Accepted Answer

A)   doesn't change the level of productivity or income.
B)   raises the levels of both productivity and income.
C)   raises the level of productivity but not the level of income.
D)   raises the level of income but not the level of productivity.E) A) and B)
F) B) and C)

Question 6

Productivity is the

Accepted Answer

A)   key determinant of living standards, and growth in productivity is the key determinant of growth in living standards.
B)   key determinant of living standards, but growth in productivity is not the key determinant of growth in living standards.
C)   not the key determinant of living standards, but growth in productivity is the key determinant of growth in living standards.
D)   not the key determinant of living standards, and growth in productivity is not the key determinant of growth in living standards.E) A) and B)
F) B) and C)

Question 7

In 1870, the richest country in the world was

Accepted Answer

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

Question 8

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) A) and B)
F) C) and D)

Question 9

Indonesians, for example, have a lower standard of living than Americans because they have a lower level of productivity.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is correct?

Accepted Answer

A)   Although levels of real GDP per person vary substantially from country to country, the growth rate of real GDP per person is similar across countries.
B)   Productivity is not closely linked to government policies.
C)   The level of real GDP per person is a good gauge of economic prosperity, and the growth rate of real GDP per person is a good gauge of economic progress.
D)   Productivity may be measured by the growth rate of real GDP per person.E) B) and C)
F) B) and D)

Question 11

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 12

Petroleum is an example of a nonrenewable resource.

Accepted Answer

A) True 
 B)False

Question 13

Technological knowledge refers to

Accepted Answer

A)   human capital.
B)   available information on how to produce things.
C)   resources expended transmitting society's understanding to the labor force.
D)   All of the above are technological knowledge.E) A) and B)
F) A) and D)

Question 14

Your company discovers a better way to produce mousetraps, but your better methods are not apparent from the mousetraps themselves. Your knowledge of how to more efficiently produce mousetraps is

Accepted Answer

A)   common technological knowledge.
B)   common, but not technological, knowledge.
C)   proprietary technological knowledge.
D)   proprietary, but not technological, knowledge.E) All of the above
F) A) and C)

Question 15

In determining living standards, productivity plays a key role

Accepted Answer

A)   for individuals, but not for nations.
B)   for nations, but not for individuals.
C)   for both nations and individuals.
D)   for neither nations nor individuals.E) A) and D)
F) A) and C)

Question 16

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 17

A basic principle of economics is that a country's standard of living depends on its

Accepted Answer

A)   quantity of physical capital.
B)   abundance of natural resources.
C)   ability to produce goods and services.
D)   ability to thrive economically without having to interact with other countries.E) B) and D)
F) All of the above

Question 18

Which of the following is an example of human capital?

Accepted Answer

A)   a student loan
B)   knowledge learned from reading books
C)   training videos for new corporate employees
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 19

Which of the following is a determinant of productivity?

Accepted Answer

A)   human capital per worker
B)   physical capital per worker
C)   natural resources per worker
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 20

The catch-up effect refers to the idea that

Accepted Answer

A)   saving will always catch-up with investment spending.
B)   it is easier for a country to grow fast and so catch-up if it starts out relatively poor.
C)   population eventually catches-up with increased output.
D)   if investment spending is low, increased saving will help investment to "catch-up."E) B) and C)
F) None of the above

Exam 25: Production and Growth

The catch-up effect refers to the idea that

Correct AnswerverifiedShow Answer

Your company discovers a better way to produce mousetraps, but your better methods are not apparent from the mousetraps themselves. Your knowledge of how to more efficiently produce mousetraps is

Correct AnswerverifiedShow Answer

In the long run, an increase in the saving rate

Correct AnswerverifiedShow Answer

Which of the following countries had the highest growth rate over about the last 100 years?

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

Which of the following is an example of human capital?

Correct AnswerverifiedShow Answer

Petroleum is an example of a nonrenewable resource.

Correct AnswerverifiedShow Answer

In medieval Europe an important technological advance was the use of the padded horse collar for plowing. Once this idea was thought of, other people used it. This illustrates that knowledge is generally a

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

In determining living standards, productivity plays a key role

Correct AnswerverifiedShow Answer

Which of the following is correct?

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Productivity is the

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

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In what sense is it likely that geography has an effect on a country's rate of economic growth?

Correct AnswerverifiedCountries with natural seaport...View AnswerShow Answer

Indonesians, for example, have a lower standard of living than Americans because they have a lower level of productivity.

Correct AnswerverifiedShow Answer

An increase in a country's saving rate permanently raises its productivity.

Correct AnswerverifiedShow Answer

A basic principle of economics is that a country's standard of living depends on its

Correct AnswerverifiedShow Answer

Technological knowledge refers to

Correct AnswerverifiedShow Answer

In 1870, the richest country in the world was

Correct AnswerverifiedShow Answer

Which of the following is a determinant of productivity?

Correct AnswerverifiedShow Answer

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Countries with natural seaport...
View Answer

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