Question 1

According to studies using international data, an increase in the saving rate

Accepted Answer

A)   does not increase the growth rate of output.
B)   increases the growth rate of output for a few years.
C)   increases the growth rate of output for about a decade.
D)   increases the growth rate of output for several decades.

Question 2

How does the phenomenon of diminishing returns to capital explain the catch-up effect?

Accepted Answer

When an economy initially has a small am...

Question 3

In the equation for the production function Y/L represents

Accepted Answer

A)   productivity.
B)   output.
C)   the availability of natural resources.
D)   the amount of human capital.

Question 4

The key determinant of the standard of living in a country is

Accepted Answer

A)   the amount of goods and services produced from each hour of a worker's time.
B)   the total amount of goods and services produced within the country.
C)   the total amount of its physical capital.
D)   its growth rate of real GDP.

Question 5

Waldo works eight hours and produces 7 units of goods per hour. Emerson works six hours and produces 10 units of goods per hour.

Accepted Answer

A)   Waldo's productivity and output are greater than Emerson's.
B)   Waldo's productivity is greater than Emerson's but his output is less.
C)   Emerson's productivity and output are greater than Waldo's.
D)   Emerson's productivity is greater than Waldo's but his output is less.

Question 6

If over a short time a large number of teenagers become old enough to find employment and a much smaller number of people retire, then productivity

Accepted Answer

A)   and real GDP per person rise.
B)   rises but real GDP per person falls.
C)   falls but real GDP per person rises.
D)   and real GDP per person fall.

Question 7

Which of the following are residents of rich countries likely to have in greater quantities, or better quality, than residents of poor countries?

Accepted Answer

A)   housing
B)   healthcare
C)   life expectancy
D)   All of the above.

Question 8

Human capital is

Accepted Answer

A)   the same thing as technological knowledge.
B)   the same thing as labor.
C)   the tools and equipment operated by humans.
D)   knowledge and skills that workers have acquired.

Question 9

Japan is

Accepted Answer

A)   an advanced economy, and over the past century its rate of economic growth has been higher than that of the United States.
B)   an advanced economy, 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.

Question 10

The logic behind the catch-up effect is that

Accepted Answer

A)   workers in countries with low incomes will work more hours than workers in countries with high incomes.
B)   the capital stock in rich countries deteriorates at a higher rate because it already has a lot of capital.
C)   new capital adds more to production in a country that doesn't have much capital than in a country that already has much capital.
D)   None of the above is correct.

Question 11

Why is productivity related to the standard of living? In your answer be sure to explain what productivity and the standard of living mean. Make a list of things that determine labor productivity.

Accepted Answer

The standard of living is a measure of h...

Question 12

Other things the same, an economy's factors of production are likely to be used more effectively if there is an economywide respect for property rights.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following measures how the level of well-being in a country has changed over time?

Accepted Answer

A)   level of nominal GDP per person.
B)   growth rate of nominal GDP.
C)   growth rate of real GDP.
D)   growth rate of real GDP per person.

Question 14

In countries where women are discriminated against, policies that increase the likelihood of career success and educational opportunities for women are likely to decrease the birth rate.

Accepted Answer

A) True 
 B)False

Question 15

In 2011, Modern Electronics, Inc. produced 60,000 calculators, employing 80 workers, each of whom worked 8 hours per day. In 2012, the same firm produced 76,500 calculators, employing 85 workers, each of whom worked 10 hours per day. Productivity at Modern Electronics

Accepted Answer

A)   decreased by 4%
B)   remained constant.
C)   increased by 8.33%
D)   increased by 27.50%

Question 16

According to research by Robert Fogel, what proportion of the British population in 1780 was so malnourished that they could not perform manual labor?

Accepted Answer

A)   5 percent
B)   10 percent
C)   20 percent
D)   25 percent

Question 17

Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to compute the percentage increase in real GDP per person from 1993 to 2012.

Accepted Answer

Real GDP per person in 1993 wa...

Question 18

Which of the following statements is true?

Accepted Answer

A)   The quantity of natural resources per worker can influence productivity.
B)   Technological knowledge and human capital are closely related.
C)   Over long periods of time, the prices of most natural resources are stable or falling, relative to other prices.
D)   All of the above are correct.

Question 19

Over the period 1900-2010, which of the following countries experienced the highest average annual growth rate of real GDP per person?

Accepted Answer

A)   Brazil
B)   China
C)   India
D)   Pakistan

Question 20

Which of the following is an example of the "brain drain?"

Accepted Answer

A)   A country's most highly educated workers emigrate to rich countries.
B)   A country has such a poor educational system that human capital falls over time.
C)   The population of a country grows so fast that the educational system can't keep up.
D)   A country steals patented technology from another country.

Exam 25: Production and Growth

Japan is

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Which of the following are residents of rich countries likely to have in greater quantities, or better quality, than residents of poor countries?

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The key determinant of the standard of living in a country is

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Which of the following statements is true?

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Which of the following measures how the level of well-being in a country has changed over time?

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Waldo works eight hours and produces 7 units of goods per hour. Emerson works six hours and produces 10 units of goods per hour.

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Over the period 1900-2010, which of the following countries experienced the highest average annual growth rate of real GDP per person?

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Human capital is

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Why is productivity related to the standard of living? In your answer be sure to explain what productivity and the standard of living mean. Make a list of things that determine labor productivity.

Correct AnswerverifiedThe standard of living is a measure of h...View AnswerShow Answer

In 2011, Modern Electronics, Inc. produced 60,000 calculators, employing 80 workers, each of whom worked 8 hours per day. In 2012, the same firm produced 76,500 calculators, employing 85 workers, each of whom worked 10 hours per day. Productivity at Modern Electronics

Correct AnswerverifiedShow Answer

If over a short time a large number of teenagers become old enough to find employment and a much smaller number of people retire, then productivity

Correct AnswerverifiedShow Answer

According to research by Robert Fogel, what proportion of the British population in 1780 was so malnourished that they could not perform manual labor?

Correct AnswerverifiedShow Answer

In the equation for the production function Y/L represents

Correct AnswerverifiedShow Answer

Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to compute the percentage increase in real GDP per person from 1993 to 2012.

Correct AnswerverifiedReal GDP per person in 1993 wa...View AnswerShow Answer

How does the phenomenon of diminishing returns to capital explain the catch-up effect?

Correct AnswerverifiedWhen an economy initially has a small am...View AnswerShow Answer

The logic behind the catch-up effect is that

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In countries where women are discriminated against, policies that increase the likelihood of career success and educational opportunities for women are likely to decrease the birth rate.

Correct AnswerverifiedShow Answer

Other things the same, an economy's factors of production are likely to be used more effectively if there is an economywide respect for property rights.

Correct AnswerverifiedShow Answer

According to studies using international data, an increase in the saving rate

Correct AnswerverifiedShow Answer

Which of the following is an example of the "brain drain?"

Correct AnswerverifiedShow Answer

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The standard of living is a measure of h...
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Real GDP per person in 1993 wa...
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When an economy initially has a small am...
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