Question 1

The people of Country X save 10 percent of their income,and the people of Country Y save 25 percent of their income.If these respective saving rates persist forever,will one country or the other enjoy a higher rate of income growth forever? Explain.

Accepted Answer

In the long run,a higher saving rate lea...

Question 2

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 D)
F) None of the above

Question 3

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

Question 4

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 5

Investment in

Accepted Answer

A)   physical capital,unlike investment in human capital,has an opportunity cost.
B)   physical capital,like investment in human capital,has an opportunity cost.
C)   human capital is particularly attractive because it involves no externalities.
D)   human capital has been shown to be relatively unimportant,relative to investment in physical capital,for a country's long-run economic success.E) A) and C)
F) B) and C)

Question 6

Suppose Turkey increases its saving rate.In the long run

Accepted Answer

A)   the growth rates of productivity and real GDP per person increase.
B)   productivity and real GDP per person increase.
C)   the growth rate of productivity increases,and real GDP per person increases.
D)   productivity increases,and the growth rate of real GDP per person increases.E) B) and D)
F) B) and C)

Question 7

Over the past 100 years,U.S.real GDP per person has doubled about every 35 years.If it continues to double every 35 years,then in 100 years U.S.real GDP per person will be about

Accepted Answer

A)   4 times higher than it is now.
B)   8 times higher than it is now.
C)   12 times higher than it is now.
D)   16 times higher than it is now.E) None of the above
F) A) and B)

Question 8

If an American-based firm opens and operates a service call center in Bulgaria,then it is engaging in

Accepted Answer

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

Question 9

Nathan owns a coffee kiosk.All of his employees work 8 hours per day.In 2009,he employed 5 people who produced a total of 900 cups of coffee each day.In 2010,he hired a sixth employee and production increased to 1188 cups of coffee each day.In Nathan's kiosk,productivity

Accepted Answer

A)   decreased by 2 percent.
B)   increased by 9 percent.
C)   increased by 10 percent.
D)   increased by 1.11 percent.E) None of the above
F) B) and C)

Question 10

In some East Asian countries,average income,as measured by real GDP per person,has recently grown at an average annual rate that implies output will double about every

Accepted Answer

A)   10 years.
B)   15 years.
C)   20 years.
D)   25 years.E) All of the above
F) None of the above

Question 11

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

Question 12

Assuming constant returns to scale,if two countries are otherwise the same,the one that is poorer grows faster.

Accepted Answer

A) True 
 B)False

Question 13

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) All of the above
F) A) and B)

Question 14

Last year the imaginary nation of Freedonia had a population of 2,700 and real GDP of 16,200,000.This year it had a population of 2,500 and real GDP of 14,640,000.What was the growth rate of real GDP per person between last year and this year?

Accepted Answer

A)   -2.4 percent
B)   -0.7 percent
C)   4.4 percent
D)   5.2 percentE) A) and D)
F) None of the above

Question 15

An increase in capital will increase real GNP per person

Accepted Answer

A)   more in a poor country than a rich country.The increase in real GNP per person will be larger if the addition to capital is from domestic rather than foreign investment.
B)   more in a poor country than a rich country.The increase in real GNP per person will be larger if the addition to capital is foreign rather than from domestic investment.
C)   less in a poor country than a rich country.The increase in real GNP per person will be larger if the addition to capital is from domestic rather than foreign investment.
D)   less in a poor country than a rich country.The increase in real GNP per person will be larger if the addition to capital is foreign rather than from domestic investment.E) None of the above
F) A) and D)

Question 16

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.E) C) and D)
F) B) and D)

Question 17

Average income has been stagnant for many years in

Accepted Answer

A)   Argentina.
B)   India.
C)   Senegal.
D)   All of the above are correct.E) All of the above
F) B) and C)

Question 18

Among the following countries,which one has the highest growth rate of real GDP per person over the last 100 years?

Accepted Answer

A)   India
B)   Bangladesh
C)   Argentina
D)   BrazilE) A) and B)
F) A) and C)

Question 19

If companies from foreign countries build and operate factories in China,then China's productivity

Accepted Answer

A)   and the wages of Chinese workers increase.
B)   increases but the wages of Chinese workers decrease.
C)   decreases but the wages of Chinese workers increase.
D)   and the wages of Chinese workers decrease.E) None of the above
F) A) and B)

Question 20

On a production function,as capital per worker increases,output per worker

Accepted Answer

A)   increases.This increase is larger at larger values of capital per worker.
B)   increases.This increase is smaller at larger values of capital per worker.
C)   decreases.This decrease is larger at larger value of capital per worker.
D)   decreases.This decrease is smaller at larger value of capital per worker.E) C) and D)
F) A) and C)

Exam 25: Production and Growth

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

Correct Answer
verified

If companies from foreign countries build and operate factories in China,then China's productivity

Correct Answer
verified

An increase in capital will increase real GNP per person

Correct Answer
verified

If an American-based firm opens and operates a service call center in Bulgaria,then it is engaging in

Correct Answer
verified

Last year the imaginary nation of Freedonia had a population of 2,700 and real GDP of 16,200,000.This year it had a population of 2,500 and real GDP of 14,640,000.What was the growth rate of real GDP per person between last year and this year?

Correct Answer
verified

The people of Country X save 10 percent of their income,and the people of Country Y save 25 percent of their income.If these respective saving rates persist forever,will one country or the other enjoy a higher rate of income growth forever? Explain.

Correct Answer
verified
In the long run,a higher saving rate lea...
View Answer

Over the past 100 years,U.S.real GDP per person has doubled about every 35 years.If it continues to double every 35 years,then in 100 years U.S.real GDP per person will be about

Correct Answer
verified

In some East Asian countries,average income,as measured by real GDP per person,has recently grown at an average annual rate that implies output will double about every

Correct Answer
verified

Average income has been stagnant for many years in

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Assuming constant returns to scale,if two countries are otherwise the same,the one that is poorer grows faster.

Correct Answer
verified

Which of the following is a determinant of productivity?

Correct Answer
verified

Suppose Turkey increases its saving rate.In the long run

Correct Answer
verified

Among the following countries,which one has the highest growth rate of real GDP per person over the last 100 years?

Correct Answer
verified

Nathan owns a coffee kiosk.All of his employees work 8 hours per day.In 2009,he employed 5 people who produced a total of 900 cups of coffee each day.In 2010,he hired a sixth employee and production increased to 1188 cups of coffee each day.In Nathan's kiosk,productivity

Correct Answer
verified

Investment in

Correct Answer
verified

Investment from abroad

Correct Answer
verified

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 Answer
verified

On a production function,as capital per worker increases,output per worker

Correct Answer
verified

Exam 25: Production and Growth

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

Correct AnswerverifiedShow Answer

If companies from foreign countries build and operate factories in China,then China's productivity

Correct AnswerverifiedShow Answer

An increase in capital will increase real GNP per person

Correct AnswerverifiedShow Answer

If an American-based firm opens and operates a service call center in Bulgaria,then it is engaging in

Correct AnswerverifiedShow Answer

Last year the imaginary nation of Freedonia had a population of 2,700 and real GDP of 16,200,000.This year it had a population of 2,500 and real GDP of 14,640,000.What was the growth rate of real GDP per person between last year and this year?

Correct AnswerverifiedShow Answer

The people of Country X save 10 percent of their income,and the people of Country Y save 25 percent of their income.If these respective saving rates persist forever,will one country or the other enjoy a higher rate of income growth forever? Explain.

Correct AnswerverifiedIn the long run,a higher saving rate lea...View AnswerShow Answer

Over the past 100 years,U.S.real GDP per person has doubled about every 35 years.If it continues to double every 35 years,then in 100 years U.S.real GDP per person will be about

Correct AnswerverifiedShow Answer

In some East Asian countries,average income,as measured by real GDP per person,has recently grown at an average annual rate that implies output will double about every

Correct AnswerverifiedShow Answer

Average income has been stagnant for many years in

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Assuming constant returns to scale,if two countries are otherwise the same,the one that is poorer grows faster.

Correct AnswerverifiedShow Answer

Which of the following is a determinant of productivity?

Correct AnswerverifiedShow Answer

Suppose Turkey increases its saving rate.In the long run

Correct AnswerverifiedShow Answer

Among the following countries,which one has the highest growth rate of real GDP per person over the last 100 years?

Correct AnswerverifiedShow Answer

Nathan owns a coffee kiosk.All of his employees work 8 hours per day.In 2009,he employed 5 people who produced a total of 900 cups of coffee each day.In 2010,he hired a sixth employee and production increased to 1188 cups of coffee each day.In Nathan's kiosk,productivity

Correct AnswerverifiedShow Answer

Investment in

Correct AnswerverifiedShow Answer

Investment from abroad

Correct AnswerverifiedShow Answer

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

On a production function,as capital per worker increases,output per worker

Correct AnswerverifiedShow Answer

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In the long run,a higher saving rate lea...
View Answer

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