Question 1

As of 2008, using real GDP per person as a measure, we would classify

Accepted Answer

A)  the United States and Mexico as advanced economies and Bangladesh as a middle-income country.
B)  Canada as an advanced economy, Mexico as a middle-income country, and Pakistan as a poor country.
C)  Japan and India as advanced economies and Mexico as a poor country.
D)  Japan as an advanced economy, the United Kingdom as a middle-income country, and Argentina as a poor country.E) B) and C)
F) All of the above

Question 2

Which of the following countries benefited significantly from the catch-up effect in the last half of the twentieth century?

Accepted Answer

A)  Ethiopia
B)  the United States
C)  Canada
D)  South KoreaE) All of the above
F) B) and C)

Question 3

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

Accepted Answer

A)  coal
B)  honey
C)  livestock
D)  All of the above are correct.E) C) and D)
F) All of the above

Question 4

Which of the following are human capital and physical capital, respectively?

Accepted Answer

A)  for an accounting firm: the accountants' knowledge of tax laws and computer software
B)  for a grocery store: grocery carts and shelving
C)  for a school: chalkboard and desks
D)  for a library: the building and the reference librarians' knowledge of the InternetE) B) and C)
F) A) and B)

Question 5

Which of the following correctly ranks the three countries, from highest to lowest, for percentage of high-school age children in school?

Accepted Answer

A)  United Kingdom, Mali, Mexico.
B)  Mexico, Mali, United Kingdom.
C)  United Kingdom, Mexico, Mali.
D)  Mali, Mexico, United Kingdom.E) B) and C)
F) A) and D)

Question 6

The dictator of Turan has recently begun to arbitrarily seize farms belonging to his political opponents, and he has given the farms to his friends. His friends don't know much about farming. The courts in Turan have ruled that the seizures are illegal, but the dictator has ignored the rulings. Other things equal, we would expect that the growth rate in Turan will

Accepted Answer

A)  fall temporarily, but will return to where it was when the new owners learn how to farm.
B)  increase because the total amount of human capital in the country will increase as the new owners learn how to farm.
C)  fall and remain lower for a long time.
D)  not be affected unless widespread civil disorder or civil war results.E) All of the above
F) None of the above

Question 7

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) None of the above
F) A) and B)

Question 8

Greg's Ice Cream produces 1120 gallons of ice cream per day. Each employed works seven hours and has productivity of 20 gallons an hour. How many employees does Greg's employ?

Accepted Answer

A)  160
B)  56
C)  8
D)  None of the above is correct.E) A) and B)
F) A) and C)

Question 9

Other things the same, another unit of capital will increase output by more in a poor country than in a rich country.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over the last 100 or so years?

Accepted Answer

A)  Germany and Japan
B)  Indonesia and the United Kingdom
C)  the United States and Japan
D)  Mexico and PakistanE) A) and B)
F) None of the above

Question 11

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

Question 12

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 13

All else equal, which of the following would tend to cause real GDP per person to rise?

Accepted Answer

A)  a change from outward-oriented policies to inward-oriented policies
B)  an increase in investment in human capital
C)  a weakening of property rights
D)  All of the above are correct.E) All of the above
F) None of the above

Question 14

The Economic Development Minister of a country has a list of things she thinks may explain her country's low growth of real GDP per person relative to other countries. She asks you to pick the one you think most likely explains her country's low growth. Which of the following contributes to low growth?

Accepted Answer

A)  poorly enforced property rights
B)  outward-oriented trade policies
C)  policies that permit foreign investment
D)  All of the above are correct.E) B) and D)
F) All of the above

Question 15

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 B)
F) B) and C)

Question 16

Other things the same, if a country raises its saving rate, then in the long run

Accepted Answer

A)  both the level and growth rate of real GDP are unchanged.
B)  the level of real GDP is higher but the growth rate of real GDP is unchanged.
C)  both the level and growth rate of real GDP are higher.
D)  None of the above are correct.E) A) and B)
F) None of the above

Question 17

"When workers already have a large quantity of capital to use in producing goods and services, giving them an additional unit of capital increases their productivity only slightly." This statement

Accepted Answer

A)  represents an unconventional view of the production process.
B)  is an assertion that capital is subject to increasing returns.
C)  is made under the assumption that the quantities of human capital, natural resources, and technology are being held constant.
D)  All of the above are correct.E) A) and C)
F) B) and D)

Question 18

Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,300 a ton. Over the same time a measure of the overall price level increased from 168 to 187. The price of iron ore increased by

Accepted Answer

A)  less than inflation, and this means it became relatively less scarce.
B)  less than inflation, and this means it became scarcer.
C)  more than inflation, and this means it became scarcer.
D)  more than inflation, but this doesn't necessarily mean that it become scarcer.E) B) and C)
F) A) and D)

Question 19

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

Accepted Answer

A)  A country with no or few domestic natural resources is destined to be poor.
B)  Differences in natural resources have virtually no role in explaining differences in standards of living.
C)  Some countries can be rich mostly because of their natural resources and countries without natural resources need not be poor, but can never have very high standards of living.
D)  Abundant domestic natural resources may help make a country rich, but even countries with few natural resources can have high standards of living.E) All of the above
F) B) and C)

Question 20

Last year the imaginary country of Bahkan had a population of 10,000, 6,000 people worked 8 hours a day and produced a real GDP of $30,000,000. The imaginary country of San Andreo had a population of 15,000, 8,000 people worked 7 hours a day and produced a real GDP of $33,000,000. Which of the following is correct?

Accepted Answer

A)  Bahkan had the higher productivity and the higher real GDP per person.
B)  San Andreo had the higher productivity and the higher real GDP per person.
C)  Bahkan had the higher productivity while San Andreo had the higher real GDP per person.
D)  San Andreo had the higher productivity while Bahkan had the higher real GDP per person.E) All of the above
F) B) and C)

Exam 12: Production and Growth

Correct Answer
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Greg's Ice Cream produces 1120 gallons of ice cream per day. Each employed works seven hours and has productivity of 20 gallons an hour. How many employees does Greg's employ?

Correct Answer
verified

All else equal, which of the following would tend to cause real GDP per person to rise?

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

Other things the same, if a country raises its saving rate, then in the long run

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

Which of the following are human capital and physical capital, respectively?

Correct Answer
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Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over the last 100 or so years?

Correct Answer
verified

As of 2008, using real GDP per person as a measure, we would classify

Correct Answer
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Correct Answer
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Which of the following is an example of a nonrenewable resource?

Correct Answer
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Correct Answer
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Which of the following correctly ranks the three countries, from highest to lowest, for percentage of high-school age children in school?

Correct Answer
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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

Other things the same, another unit of capital will increase output by more in a poor country than in a rich country.

Correct Answer
verified

Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,300 a ton. Over the same time a measure of the overall price level increased from 168 to 187. The price of iron ore increased by

Correct Answer
verified

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

Correct Answer
verified

"When workers already have a large quantity of capital to use in producing goods and services, giving them an additional unit of capital increases their productivity only slightly." This statement

Correct Answer
verified

In the long run, an increase in the saving rate

Correct Answer
verified

Which of the following countries benefited significantly from the catch-up effect in the last half of the twentieth century?

Correct Answer
verified

Exam 12: Production and Growth

Correct AnswerverifiedShow Answer

Greg's Ice Cream produces 1120 gallons of ice cream per day. Each employed works seven hours and has productivity of 20 gallons an hour. How many employees does Greg's employ?

Correct AnswerverifiedShow Answer

All else equal, which of the following would tend to cause real GDP per person to rise?

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

Other things the same, if a country raises its saving rate, then in the long run

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

Which of the following are human capital and physical capital, respectively?

Correct AnswerverifiedShow Answer

Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over the last 100 or so years?

Correct AnswerverifiedShow Answer

As of 2008, using real GDP per person as a measure, we would classify

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following correctly ranks the three countries, from highest to lowest, for percentage of high-school age children in school?

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

Other things the same, another unit of capital will increase output by more in a poor country than in a rich country.

Correct AnswerverifiedShow Answer

Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,300 a ton. Over the same time a measure of the overall price level increased from 168 to 187. The price of iron ore increased by

Correct AnswerverifiedShow Answer

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

Correct AnswerverifiedShow Answer

"When workers already have a large quantity of capital to use in producing goods and services, giving them an additional unit of capital increases their productivity only slightly." This statement

Correct AnswerverifiedShow Answer

In the long run, an increase in the saving rate

Correct AnswerverifiedShow Answer

Which of the following countries benefited significantly from the catch-up effect in the last half of the twentieth century?

Correct AnswerverifiedShow Answer

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