Question 1

Other things the same, which of the following could explain an increase in productivity?

Accepted Answer

A)   either an increase in human capital or an increase in physical capital
B)   an increase in human capital but not an increase in physical capital
C)   an increase in physical capital but not an increase in human capital
D)   neither an increase in human capital nor an increase in physical capitalE) A) and D)
F) All of the above

Question 2

Suppose that in some country the price of silver increased from $30 per ounce to $31 per ounce during a time when the overall price level increased by 5 percent. During this period, the real price of silver

Accepted Answer

A)   increased.
B)   decreased.
C)   stayed the same.
D)   might have increased, decreased or stayed the same; more information is needed to be sure.E) A) and D)
F) B) and C)

Question 3

Which of the following is not an example of physical capital?

Accepted Answer

A)   a new factory building
B)   a delivery van
C)   the knowledge of workers
D)   the office chair in a lawyer's officeE) A) and B)
F) A) and C)

Question 4

Technological knowledge

Accepted Answer

A)   is the same thing as human capital.
B)   can be discovered but it can never be kept secret.
C)   is a determinant of productivity.
D)   does not play a role in the relationship that economists call the production function.E) A) and B)
F) All of the above

Question 5

If a country made it easier for people to establish and prove the ownership of their property, real GDP per person would likely rise.

Accepted Answer

A) True 
 B)False

Question 6

In a market economy, scarcity of resources is most clearly reflected in

Accepted Answer

A)   supply.
B)   demand.
C)   market prices.
D)   the stock of the resource.E) C) and D)
F) B) and C)

Question 7

Which of the following public policies would be least likely to result in more rapid economic growth for a poor or developing country?

Accepted Answer

A)   policies designed to promote economic development in coastal areas
B)   policies designed to foster strict enforcement of property rights
C)   policies designed to foster free trade
D)   inward-oriented policiesE) B) and C)
F) None of the above

Question 8

Which list contains, in this order, a country whose real GDP per person grew faster and one whose real GDP per person grew slower than real GDP per person in the U.S. over about the last 100 years?

Accepted Answer

A)   Bangladesh, India
B)   China, United Kingdom
C)   Japan, Brazil
D)   Pakistan, MexicoE) A) and D)
F) B) and C)

Question 9

In 2010, the imaginary nation of Mainland had a population of 6,000 and real GDP of 120,000. In 2011 the population was 6,200 and real GDP of 128,960. Over the year in question, real GDP per person in Mainland grew by

Accepted Answer

A)   2 percent, which is high compared to average U.S. growth over the last one-hundred years.
B)   2 percent, which is about the same as average U.S. growth over the last one-hundred years.
C)   4 percent, which is high compared to average U.S. growth over the last one-hundred years.
D)   4 percent, which is about the same as average U.S. growth over the last one-hundred years.E) A) and B)
F) A) and C)

Question 10

Patents turn new ideas into

Accepted Answer

A)   public goods, and increase the incentive to engage in research.
B)   public goods, but decrease the incentive to engage in research.
C)   private goods, and increase the incentive to engage in research.
D)   private goods, but decrease the incentive to engage in research.E) A) and B)
F) A) and C)

Question 11

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 12

Government corruption

Accepted Answer

A)   impedes the coordinating power of markets and discourages investment.
B)   impedes the coordinating power of markets but does not discourage investment.
C)   does not impede the coordinating power of markets, but does discourage investment.
D)   can neither impede the coordinating power of markets nor discourage investment.E) A) and B)
F) A) and C)

Question 13

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

Question 14

Increases in both human capital per worker and physical capital per worker increase productivity.

Accepted Answer

A) True 
 B)False

Question 15

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

Question 16

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

Question 17

A forest is an example of a nonrenewable resource.

Accepted Answer

A) True 
 B)False

Question 18

For a given year, productivity in a particular country is most closely matched with that country's

Accepted Answer

A)   level of real GDP over that year.
B)   level of real GDP divided by hours worked over that year.
C)   growth rate of real GDP divided by hours worked over that year.
D)   growth rate of real GDP per person over that year.E) B) and D)
F) All of the above

Question 19

Suppose that the U.S. undertakes a policy to increase its saving rate. This policy will likely

Accepted Answer

A)   have no impact on the growth rate of real GDP per person.
B)   decrease the growth of real GDP per person for a few years.
C)   increase the growth of real GDP per person for several decades.
D)   permanently increase the growth rate of real GDP per person.E) B) and C)
F) A) and C)

Question 20

Why does a nation's standard of living depend on property rights?

Accepted Answer

Property rights are an important prerequ...

Exam 17: Production and Growth

Which list contains, in this order, a country whose real GDP per person grew faster and one whose real GDP per person grew slower than real GDP per person in the U.S. over about the last 100 years?

Correct AnswerverifiedShow Answer

Why does a nation's standard of living depend on property rights?

Correct AnswerverifiedProperty rights are an important prerequ...View AnswerShow 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

If a country made it easier for people to establish and prove the ownership of their property, real GDP per person would likely rise.

Correct AnswerverifiedShow Answer

For a given year, productivity in a particular country is most closely matched with that country's

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

Technological knowledge

Correct AnswerverifiedShow Answer

Suppose that the U.S. undertakes a policy to increase its saving rate. This policy will likely

Correct AnswerverifiedShow Answer

Government corruption

Correct AnswerverifiedShow Answer

Patents turn new ideas into

Correct AnswerverifiedShow Answer

Which of the following is not an example of physical capital?

Correct AnswerverifiedShow Answer

Which of the following public policies would be least likely to result in more rapid economic growth for a poor or developing country?

Correct AnswerverifiedShow Answer

Suppose that in some country the price of silver increased from $30 per ounce to $31 per ounce during a time when the overall price level increased by 5 percent. During this period, the real price of silver

Correct AnswerverifiedShow Answer

In a market economy, scarcity of resources is most clearly reflected in

Correct AnswerverifiedShow Answer

A forest is an example of a nonrenewable resource.

Correct AnswerverifiedShow Answer

Other things the same, which of the following could explain an increase in productivity?

Correct AnswerverifiedShow Answer

In 2010, the imaginary nation of Mainland had a population of 6,000 and real GDP of 120,000. In 2011 the population was 6,200 and real GDP of 128,960. Over the year in question, real GDP per person in Mainland grew by

Correct AnswerverifiedShow Answer

Increases in both human capital per worker and physical capital per worker increase productivity.

Correct AnswerverifiedShow Answer

Suppose Turkey increases its saving rate. In the long run

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

Correct Answer
verified

Correct Answer
verified
Property rights are an important prerequ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified