Question 1

A country experiencing a growth rate of 8% per year can go from being one of the poorest to one of the richest in

Accepted Answer

A)  one generation.In the last couple of decades China's growth rate has been higher than 8%.
B)  one generation.However,in the last couple of decades not even China's growth rate has been this high.
C)  three generations.In the last couple of decades China's growth rate has been higher than 8%.
D)  three generations.However,in the last couple of decades not even China's growth rate has been this high.E) B) and D)
F) B) and C)

Question 2

In a market economy,the real,or inflation-adjusted,price of a resource measures its

Accepted Answer

A)  contribution to revenue.
B)  relative scarcity.
C)  productivity.
D)  contribution to efficiency.E) C) and D)
F) None of the above

Question 3

Countries that pursued outward-oriented policies in the 20th century

Accepted Answer

A)  experienced lower rates of economic growth than did countries that pursued inward-oriented policies.
B)  experienced higher levels of political instability than did countries that pursued inward-oriented policies.
C)  include Singapore,South Korea,and Taiwan.
D)  All of the above are correct.E) A) and C)
F) None of the above

Question 4

Country A has a population of 1,000,of whom 800 work 8 hours a day to make 128,000 final goods.Country B has a population of 2,000,of whom 1,800 work 6 hours a day to make 270,000 final goods.

Accepted Answer

A)  Country A has higher productivity and higher real GDP per person than country B.
B)  Country A has lower productivity and lower real GDP per person than country B.
C)  Country A has higher productivity,but lower real GDP per person than country B.
D)  Country B has lower productivity,but higher real GDP per person than country B.E) A) and B)
F) A) and C)

Question 5

Educational attainment tends to be

Accepted Answer

A)  low in countries with high population growth.
B)  low in countries with low population growth.
C)  high in countries with high population growth.
D)  None of the above are true.E) All of the above
F) C) and D)

Question 6

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

Question 7

Which of the following is a good gauge of economic progress?

Accepted Answer

A)  the level of real GDP per person,but not the growth rate of real GDP per person
B)  the level of real GDP per person and the growth rate of real GDP per person
C)  the growth rate of real GDP per person,but not the level of real GDP per person
D)  neither the level nor the growth rate of real GDP per personE) A) and B)
F) A) and C)

Question 8

Which of the following is indicated by the data on real income per person for various countries over the past 100 or so years?

Accepted Answer

A)  If,in a relatively poor country,real income per person had grown by 3.5 percent per year for the last 100 years,it would be a relatively rich country today.
B)  Rich countries became richer and poor countries became poorer.
C)  In the United States,real income per person today is about four times as high as it was 100 years ago.
D)  All of the above are correct.E) All of the above
F) B) and D)

Question 9

Compare and contrast the population theories of Malthus and Kremer.

Accepted Answer

The difference is that Malthus predicted...

Question 10

Strike Out Bowling Balls produces 800 bowling balls per day using 2 workers who each work 8 hours per day.What is Strike Out's productivity?

Accepted Answer

A)  800 bowling balls
B)  100 bowling balls per hour
C)  50 bowling balls per hour
D)  None of the above is correct.E) A) and C)
F) A) and B)

Question 11

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 12

Economists differ in their views of the role of the government in promoting economic growth.A controversial idea is that government should

Accepted Answer

A)  lend support to the invisible hand by maintaining property rights and political stability.
B)  lower barriers and impediments to free trade.
C)  encourage capital formation.
D)  target and subsidize specific industries important for technological progress.E) None of the above
F) A) and B)

Question 13

Human capital is the

Accepted Answer

A)  knowledge and skills that workers acquire through education,training,and experience.
B)  stock of equipment and structures that is used to produce goods and services.
C)  total number of hours worked in an economy.
D)  same thing as technological knowledge.E) B) and C)
F) A) and C)

Question 14

All else equal,if there are diminishing returns,then if a country raised its capital by 100 units last year and by 100 units this year,

Accepted Answer

A)  the increase in output was greater for this year than last year.
B)  the increase in output was greater last year than this year.
C)  the increase in output is the same in both years.
D)  None of the above is necessarily correct.E) All of the above
F) A) and B)

Question 15

If they could increase their growth rates slightly,countries with low income would catch up with rich countries in about ten years.

Accepted Answer

A) True 
 B)False

Question 16

Figure 12-1. 
-Refer to Figure 12-1.The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

Accepted Answer

A)  In the long run,a higher saving rate leads to a higher level of productivity.
B)  In the long run,a higher saving rate leads to a higher level of income.
C)  In the long run,a higher saving rate leads to neither a higher growth rate of productivity nor a higher growth rate of income.
D)  All of the above are correct.E) B) and C)
F) C) and D)

Question 17

Which of the following is correct?

Accepted Answer

A)  Over the last 100 years Japan had a higher average growth rate than the United States.It follows that,today,the standard of living in Japan is higher than in the United States.
B)  The typical person in Bangladesh today has about twice the real income of a typical American 100 years ago.
C)  The typical citizen of China today has about one-half as much real income as the typical citizen of America today.
D)  None of the above is correct.E) B) and D)
F) C) and D)

Question 18

The slope of the production function with capital per worker on the horizontal axis and output per worker on the vertical axis

Accepted Answer

A)  is positive and gets steeper as capital per worker rises.
B)  is positive and gets flatter as capital per worker rises.
C)  is negative and gets steeper as capital per worker rises.
D)  is negative and gets flatter as capital per worker rises.E) B) and C)
F) C) and D)

Question 19

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2008.At the start of 2009 the pointy-haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000.These numbers indicate that productivity

Accepted Answer

A)  fell by 4%.
B)  fell by 20%.
C)  rose by 12%.
D)  rose by 20%.E) B) and D)
F) All of the above

Question 20

Although growth rates across countries vary some,rankings of countries by income remain pretty much the same over time.

Accepted Answer

A) True 
 B)False

Exam 25: Production and Growth

Educational attainment tends to be

Correct AnswerverifiedShow Answer

Which of the following is correct?

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Economists differ in their views of the role of the government in promoting economic growth.A controversial idea is that government should

Correct AnswerverifiedShow Answer

Compare and contrast the population theories of Malthus and Kremer.

Correct AnswerverifiedThe difference is that Malthus predicted...View AnswerShow Answer

In a market economy,the real,or inflation-adjusted,price of a resource measures its

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If they could increase their growth rates slightly,countries with low income would catch up with rich countries in about ten years.

Correct AnswerverifiedShow Answer

Although growth rates across countries vary some,rankings of countries by income remain pretty much the same over time.

Correct AnswerverifiedShow Answer

All else equal,if there are diminishing returns,then if a country raised its capital by 100 units last year and by 100 units this year,

Correct AnswerverifiedShow Answer

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2008.At the start of 2009 the pointy-haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000.These numbers indicate that productivity

Correct AnswerverifiedShow Answer

Figure 12-1. -Refer to Figure 12-1.The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

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Countries that pursued outward-oriented policies in the 20th century

Correct AnswerverifiedShow Answer

Which of the following is a good gauge of economic progress?

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

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A country experiencing a growth rate of 8% per year can go from being one of the poorest to one of the richest in

Correct AnswerverifiedShow Answer

Strike Out Bowling Balls produces 800 bowling balls per day using 2 workers who each work 8 hours per day.What is Strike Out's productivity?

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Country A has a population of 1,000,of whom 800 work 8 hours a day to make 128,000 final goods.Country B has a population of 2,000,of whom 1,800 work 6 hours a day to make 270,000 final goods.

Correct AnswerverifiedShow Answer

The slope of the production function with capital per worker on the horizontal axis and output per worker on the vertical axis

Correct AnswerverifiedShow Answer

Which of the following is indicated by the data on real income per person for various countries over the past 100 or so years?

Correct AnswerverifiedShow Answer

Human capital is the

Correct AnswerverifiedShow Answer

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The difference is that Malthus predicted...
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