Question 1

Holding the amount of capital constant, if firms increase the amount of labour they use, output increases at a diminishing rate, and this is the definition of:

Accepted Answer

A)  diminishing marginal productivity of labour
B)  diminishing marginal utility of labour
C)  marginal revenue product of labour
D)  marginal product of labourE) A) and B)
F) A) and C)

Question 2

Economists believe that governments that encourage research and development through their policies do it through which of the following methods?

Accepted Answer

A)  protecting infant industries from overseas investment, public research funding
B)  a patent system, university research funding, conferring intellectual property rights
C)  a patent system, consumer subsidies, research funding
D)  decreased migration, intellectual property rights, government research fundingE) A) and B)
F) A) and C)

Question 3

Given a production function Y = AF(L, K, H, N) , where Y is the quantity of output, L is the quantity of labour, H is the quantity of human capital and N is the quantity of natural resources, what does A represent?

Accepted Answer

A)  Productivity growth
B)  The physical capital per worker
C)  The level of available production technology
D)  Technological growthE) C) and D)
F) B) and D)

Question 4

Which of the following countries have a history of providing political stability and property rights to international firms?

Accepted Answer

A)  Italy, Australia, New Zealand
B)  Japan, Australia, The United Arab Emirates
C)  Malaysia, Congo and South Africa
D)  Australia, Cameroon, The United Arab EmiratesE) A) and B)
F) C) and D) B

Question 5

The catch-up effect is the idea that:

Accepted Answer

A)  savings will always 'catch up' with investment spending
B)  other countries aid relatively poor countries so as to 'catch them up'
C)  it is easier for a country to grow fast if it starts out relatively poor
D)  if investment spending is low, increased savings will help investment to 'catch up'E) B) and D)
F) A) and C) C

Question 6

In some East Asian countries, such as Hong Kong, Singapore and Taiwan, average income has risen about ____ per cent per year in recent decades.

Accepted Answer

A)  minus four per cent
B)  seven per cent
C)  minus seven per cent
D)  18 per centE) C) and D)
F) None of the above

Question 7

Using the rule of 70, calculate approximately how many years it would take for a country's real per-capita GDP to double if the growth rate is:
a.one per cent
b.two per cent
c.3.5 per cent
d.10 per cent
e.14 per cent

Accepted Answer

a.70 years
b.35 year...

Question 8

If one of the primary factors of production is held constant, two-dimensional production functions typically have a curved shape that reflects the ____________ of the factor that is being allowed to vary.

Accepted Answer

A)  increasing rate of saving
B)  diminishing marginal productivity
C)  increasing nominal GDP
D)  diminishing marginal utilityE) C) and D)
F) B) and C)

Question 9

Labour alone cannot produce sustained economic growth.

Accepted Answer

A) True 
 B)False

Question 10

Why is improving education important for technological progress?

Accepted Answer

If education can be improved, ...

Question 11

Inward orientation policies, such as those in India between 1947 and 1993 have tended to:

Accepted Answer

A)  maximise consumer benefit
B)  create a highly efficient use of production resources
C)  limit growth opportunities
D)  enable large amounts of tariff-free tradeE) All of the above
F) None of the above

Question 12

Which of the following statements is correct?

Accepted Answer

A)  Technological knowledge is the society's understanding about how the world works, whereas human capital refers to the resources spent transmitting this understanding to the labour force
B)  Human capital is the society's understanding about how the world works, whereas technological knowledge refers to the resources spent transmitting this understanding to the labour force
C)  Technological knowledge is the bridge that links physical and natural resources to human capital
D)  Technological knowledge is the society's understanding about human capitalE) B) and C)
F) A) and C)

Question 13

Firms bring in combinations of labour and capital to produce output.How much output can be produced from a given combination of labour and capital depends on: if the production function of a country has constant returns to scale and all input of the country has increased by 100 per cent, then its output would increase by:

Accepted Answer

A)  mineral resources, raw materials availability and other production specifics
B)  primary factors of production
C)  capital stock, education and the skills of the work force
D)  the state of technology, managerial expertise, the skills of the work force and other factorsE) None of the above
F) A) and B)

Question 14

Technological knowledge enables improved productivity.

Accepted Answer

A) True 
 B)False  True

Question 15

The amount of goods and services produced from each hour of a worker's time is called:

Accepted Answer

A)  output
B)  productivity
C)  work quality
D)  worker efficiencyE) C) and D)
F) B) and D)

Question 16

The education and training of workers is called

Accepted Answer

A)  technological change
B)  technological progress
C)  human capital
D)  increasing returns to labourE) A) and B)
F) None of the above

Question 17

Countries that devote a small share of GDP to investment, such as New Zealand, tend to have:

Accepted Answer

A)  high growth rates
B)  stable growth rates
C)  low growth rates
D)  very cyclical growth ratesE) B) and C)
F) C) and D)

Question 18

An improvement in technology between two dates is called

Accepted Answer

A)  innovation
B)  inventory investment
C)  invention
D)  technological processE) B) and D)
F) A) and B)

Question 19

Natural resources:

Accepted Answer

A)  are inputs provided by nature
B)  are inputs such as land, rivers and mineral deposits
C)  take two forms - renewable and non-renewable
D)  all of the above
E)  only B and CF) A) and B)
G) B) and D)

Question 20

Technological progress does not depend on:

Accepted Answer

A)  the quality of the education system
B)  the intellectual capabilities of the population
C)  the investment in research and development
D)  the availability of natural resourcesE) C) and D)
F) B) and C)

Exam 26: Production and Growth

Holding the amount of capital constant, if firms increase the amount of labour they use, output increases at a diminishing rate, and this is the definition of:

Correct Answer
verified

Economists believe that governments that encourage research and development through their policies do it through which of the following methods?

Correct Answer
verified

Given a production function Y = AF(L, K, H, N) , where Y is the quantity of output, L is the quantity of labour, H is the quantity of human capital and N is the quantity of natural resources, what does A represent?

Correct Answer
verified

Which of the following countries have a history of providing political stability and property rights to international firms?

Correct Answer
verified
B

The catch-up effect is the idea that:

Correct Answer
verified
C

In some East Asian countries, such as Hong Kong, Singapore and Taiwan, average income has risen about ____ per cent per year in recent decades.

Correct Answer
verified

Using the rule of 70, calculate approximately how many years it would take for a country's real per-capita GDP to double if the growth rate is: a.one per cent b.two per cent c.3.5 per cent d.10 per cent e.14 per cent

Correct Answer
verified
a.70 years
b.35 year...
View Answer

If one of the primary factors of production is held constant, two-dimensional production functions typically have a curved shape that reflects the ____________ of the factor that is being allowed to vary.

Correct Answer
verified

Labour alone cannot produce sustained economic growth.

Correct Answer
verified

Why is improving education important for technological progress?

Correct Answer
verified
If education can be improved, ...
View Answer

Inward orientation policies, such as those in India between 1947 and 1993 have tended to:

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

Correct Answer
verified

Technological knowledge enables improved productivity.

Correct Answer
verified
True

The amount of goods and services produced from each hour of a worker's time is called:

Correct Answer
verified

The education and training of workers is called

Correct Answer
verified

Countries that devote a small share of GDP to investment, such as New Zealand, tend to have:

Correct Answer
verified

An improvement in technology between two dates is called

Correct Answer
verified

Natural resources:

Correct Answer
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Technological progress does not depend on:

Correct Answer
verified

Exam 26: Production and Growth

Holding the amount of capital constant, if firms increase the amount of labour they use, output increases at a diminishing rate, and this is the definition of:

Correct AnswerverifiedShow Answer

Economists believe that governments that encourage research and development through their policies do it through which of the following methods?

Correct AnswerverifiedShow Answer

Given a production function Y = AF(L, K, H, N) , where Y is the quantity of output, L is the quantity of labour, H is the quantity of human capital and N is the quantity of natural resources, what does A represent?

Correct AnswerverifiedShow Answer

Which of the following countries have a history of providing political stability and property rights to international firms?

Correct AnswerverifiedB

The catch-up effect is the idea that:

Correct AnswerverifiedC

In some East Asian countries, such as Hong Kong, Singapore and Taiwan, average income has risen about ____ per cent per year in recent decades.

Correct AnswerverifiedShow Answer

Using the rule of 70, calculate approximately how many years it would take for a country's real per-capita GDP to double if the growth rate is: a.one per cent b.two per cent c.3.5 per cent d.10 per cent e.14 per cent

Correct Answerverifieda.70 yearsb.35 year...View AnswerShow Answer

If one of the primary factors of production is held constant, two-dimensional production functions typically have a curved shape that reflects the ____________ of the factor that is being allowed to vary.

Correct AnswerverifiedShow Answer

Labour alone cannot produce sustained economic growth.

Correct AnswerverifiedShow Answer

Why is improving education important for technological progress?

Correct AnswerverifiedIf education can be improved, ...View AnswerShow Answer

Inward orientation policies, such as those in India between 1947 and 1993 have tended to:

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Technological knowledge enables improved productivity.

Correct AnswerverifiedTrue

The amount of goods and services produced from each hour of a worker's time is called:

Correct AnswerverifiedShow Answer

The education and training of workers is called

Correct AnswerverifiedShow Answer

Countries that devote a small share of GDP to investment, such as New Zealand, tend to have:

Correct AnswerverifiedShow Answer

An improvement in technology between two dates is called

Correct AnswerverifiedShow Answer

Natural resources:

Correct AnswerverifiedShow Answer

Technological progress does not depend on:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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B

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C

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a.70 years
b.35 year...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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If education can be improved, ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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True

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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