Question 1

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

Question 2

Economists differ in their views of the role of the government in promoting economic growth. At the very least, the government should

Accepted Answer

A)   lend support to the invisible hand by maintaining property rights and political stability.
B)   limit foreign investment to industries that don't already exist in the country.
C)   impose trade restrictions to protect the interests of domestic producers and consumers.
D)   subsidize key industries.E) A) and B)
F) A) and D)

Question 3

Some poor countries appear to be falling behind rather than catching up with rich countries. Which of the following could explain the failure of a poor county to catch up?

Accepted Answer

A)   The poor country has outward-oriented trade policies.
B)   The poor country allows foreign direct investment.
C)   The poor country has poorly developed property rights.
D)   All of the above are correct.E) A) and C)
F) C) and D)

Question 4

In some countries it is time consuming and costly to establish ownership of property. Reforms to reduce these costs would likely

Accepted Answer

A)   have no affect on either real GDP nor productivity
B)   raise real GDP and productivity.
C)   raise real GDP but not productivity.
D)   raise productivity but not real GDP.E) B) and D)
F) All of the above

Question 5

Hit-It produces 320 baseball bats per day using 2 workers who each work 8 hours per day. What is Hit­It's productivity?

Accepted Answer

A)   320 baseball bats
B)   160 baseball bats per hour
C)   20 baseball bats per hour
D)   None of the above is correct.E) B) and C)
F) A) and C)

Question 6

Productivity is defined as the quantity of

Accepted Answer

A)   labor required to produce a nation's GDP.
B)   labor required to produce one unit of goods and services.
C)   goods and services produced from each unit of labor input.
D)   goods and services produced per unit of time.E) B) and D)
F) C) and D)

Question 7

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

Question 8

Two countries with the same saving rates must have the same growth rate of real GDP per person.

Accepted Answer

A) True 
 B)False

Question 9

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Accepted Answer

A)   most economists do not regard the availability of natural resources as a determinant of productivity.
B)   the quantity of natural resources does not enter into any production function.
C)   inflation-adjusted prices of most natural resources have been stable or fallen over time.
D)   inflation-adjusted prices of most natural resources have risen over time.E) C) and D)
F) A) and D)

Question 10

Over the last 140 years or so, on average Canada's real GDP per­person grew faster than that of the U.K.

Accepted Answer

A) True 
 B)False

Question 11

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

Question 12

Suppose that an American company opens and operates a restaurant in Ireland. This is an example of

Accepted Answer

A)   foreign direct investment. American saving is used to finance Irish investment.
B)   foreign direct investment. American saving is used to finance American investment.
C)   foreign portfolio investment. American saving is used to finance Irish investment.
D)   foreign portfolio investment. American saving is used to finance American investment.E) A) and D)
F) B) and C)

Question 13

Consider three imaginary countries. In Aire, saving amounts to $4,000 and consumption amounts to $12,000; in Bovina, saving amounts to $3,000 and consumption amounts to $24,000; and in Cartar, saving amounts to $10,000 and consumption amounts to $50,000. The saving rate is

Accepted Answer

A)   higher in Aire than in Cartar, and it is higher in Cartar than in Bovina.
B)   higher in Cartar than in Aire, and it is higher in Aire than in Bovina.
C)   higher in Cartar than in Bovina, and it is the same in Bovina and Aire.
D)   higher in Aire than in Bovina, and it is the same in Aire and Cartar.E) None of the above
F) A) and C)

Question 14

Country A has twice as many workers as Country B. Country A also has twice as much physical capital, twice as much human capital, and access to twice as many natural resources as Country B. Assuming constant-returns to scale, which of the following is higher in Country A?

Accepted Answer

A)   both output per worker and productivity
B)   output per worker but not productivity
C)   productivity but not output per worker
D)   neither productivity nor output per workerE) A) and B)
F) A) and C)

Question 15

A country experiencing a growth rate of 12% per year can go from being one of the poorest to one of the richest in how many generations?

Accepted Answer

A)   one
B)   two
C)   three
D)   fourE) B) and C)
F) B) and D)

Question 16

You sell cupcakes. One day you double the time you spend and double all your inputs, and make twice as many cupcakes. Your cupcake production function has

Accepted Answer

A)   decreasing returns to scale.
B)   zero returns to scale.
C)   constant returns to scale.
D)   increasing returns to scale.E) A) and D)
F) C) and D)

Question 17

Despite its status as one of the richest countries in the world, Japan

Accepted Answer

A)   has a very low level of productivity.
B)   has few natural resources.
C)   has very little human capital.
D)   engages in a relatively small amount of international trade.E) C) and D)
F) B) and D)

Question 18

Which of the following statements is correct?

Accepted Answer

A)   In the late 1800s, real GDP per person was higher in the United Kingdom than in the United States.
B)   In 2010, real GDP per person was higher in the United Kingdom than in the United States.
C)   The average annual growth rate of real GDP was higher in the United Kingdom than in the United States between the late 1800s and 2010.
D)   All of the above are correct.E) All of the above
F) B) and C)

Question 19

Senator Noitall says that in order to help poor countries develop, the United States should: 1. Encourage poor countries to allow U.S. and other foreign firms to build and operate businesses in their country; 2. Reduce or eliminate subsidizes to U.S. producers when poor countries have a comparative advantage producing those goods the U.S. subsidizes; 3. Work to promote political stability in poor countries; and 4. Reduce poor countries reliance on market forces in their economies. How many of these ideas are likely to help poor countries grow?

Accepted Answer

A)   1
B)   2
C)   3
D)   4E) B) and D)
F) All of the above

Question 20

"Market prices give no reason to believe that natural resources are a limit to economic growth." Explain this statement.

Accepted Answer

If the world were running out of natural...

Exam 25: Production and Growth

In some countries it is time consuming and costly to establish ownership of property. Reforms to reduce these costs would likely

Correct Answer
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Hit-It produces 320 baseball bats per day using 2 workers who each work 8 hours per day. What is HitIt's productivity?

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
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Two countries with the same saving rates must have the same growth rate of real GDP per person.

Correct Answer
verified

Consider three imaginary countries. In Aire, saving amounts to $4,000 and consumption amounts to $12,000; in Bovina, saving amounts to $3,000 and consumption amounts to $24,000; and in Cartar, saving amounts to $10,000 and consumption amounts to $50,000. The saving rate is

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
verified

Country A has twice as many workers as Country B. Country A also has twice as much physical capital, twice as much human capital, and access to twice as many natural resources as Country B. Assuming constant-returns to scale, which of the following is higher in Country A?

Correct Answer
verified

Over the last 140 years or so, on average Canada's real GDP perperson grew faster than that of the U.K.

Correct Answer
verified

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Correct Answer
verified

Despite its status as one of the richest countries in the world, Japan

Correct Answer
verified

Suppose that an American company opens and operates a restaurant in Ireland. This is an example of

Correct Answer
verified

Correct Answer
verified

Some poor countries appear to be falling behind rather than catching up with rich countries. Which of the following could explain the failure of a poor county to catch up?

Correct Answer
verified

A country experiencing a growth rate of 12% per year can go from being one of the poorest to one of the richest in how many generations?

Correct Answer
verified

Economists differ in their views of the role of the government in promoting economic growth. At the very least, the government should

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

"Market prices give no reason to believe that natural resources are a limit to economic growth." Explain this statement.

Correct Answer
verified
If the world were running out of natural...
View Answer

Productivity is defined as the quantity of

Correct Answer
verified

You sell cupcakes. One day you double the time you spend and double all your inputs, and make twice as many cupcakes. Your cupcake production function has

Correct Answer
verified

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 Answer
verified

Exam 25: Production and Growth

In some countries it is time consuming and costly to establish ownership of property. Reforms to reduce these costs would likely

Correct AnswerverifiedShow Answer

Hit-It produces 320 baseball bats per day using 2 workers who each work 8 hours per day. What is Hit­It's productivity?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Two countries with the same saving rates must have the same growth rate of real GDP per person.

Correct AnswerverifiedShow Answer

Consider three imaginary countries. In Aire, saving amounts to $4,000 and consumption amounts to $12,000; in Bovina, saving amounts to $3,000 and consumption amounts to $24,000; and in Cartar, saving amounts to $10,000 and consumption amounts to $50,000. The saving rate is

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

Country A has twice as many workers as Country B. Country A also has twice as much physical capital, twice as much human capital, and access to twice as many natural resources as Country B. Assuming constant-returns to scale, which of the following is higher in Country A?

Correct AnswerverifiedShow Answer

Over the last 140 years or so, on average Canada's real GDP per­person grew faster than that of the U.K.

Correct AnswerverifiedShow Answer

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Correct AnswerverifiedShow Answer

Despite its status as one of the richest countries in the world, Japan

Correct AnswerverifiedShow Answer

Suppose that an American company opens and operates a restaurant in Ireland. This is an example of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Some poor countries appear to be falling behind rather than catching up with rich countries. Which of the following could explain the failure of a poor county to catch up?

Correct AnswerverifiedShow Answer

A country experiencing a growth rate of 12% per year can go from being one of the poorest to one of the richest in how many generations?

Correct AnswerverifiedShow Answer

Economists differ in their views of the role of the government in promoting economic growth. At the very least, the government should

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

"Market prices give no reason to believe that natural resources are a limit to economic growth." Explain this statement.

Correct AnswerverifiedIf the world were running out of natural...View AnswerShow Answer

Productivity is defined as the quantity of

Correct AnswerverifiedShow Answer

You sell cupcakes. One day you double the time you spend and double all your inputs, and make twice as many cupcakes. Your cupcake production function has

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

Correct Answer
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Hit-It produces 320 baseball bats per day using 2 workers who each work 8 hours per day. What is HitIt's productivity?

Correct Answer
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Over the last 140 years or so, on average Canada's real GDP perperson grew faster than that of the U.K.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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If the world were running out of natural...
View Answer

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