Question 1

Which of the following lists contains, in this order, natural resources, human capital, and physical capital?

Accepted Answer

A)  For a restaurant: the land the restaurant was built on, the things the Chef learned at Cooking School, the freezers where the chops and steaks are kept.
B)  For a furniture company: wood, the company cafeteria, saws.
C)  For a railroad: fuel, railroad engines, railroad tracks.
D)  None of the above is correct.

Question 2

Phoenix furniture uses 10 workers, each working eight hours, to produce 80 rocking chairs. What is Phoenix's productivity?

Accepted Answer

A)  80 rocking chairs
B)  10 rocking chairs per hour
C)  1 rocking chair per hour
D)  1 hour per rocking chair

Question 3

If the price of a good has risen over time,

Accepted Answer

A)  it must have become more scarce.
B)  it must have become less scarce.
C)  it has become more scarce only if the price adjusted for inflation has risen.
D)  it has become less scarce only if the price adjusted for inflation has risen.

Question 4

Proprietary technology is technology that is

Accepted Answer

A)  widely used because it is easy to learn.
B)  widely used because the government subsidizes its use.
C)  not widely used because people could, but have not, taken the time to learn how to apply it.
D)  not widely used because it is known or controlled only by the company that discovered it.

Question 5

An increase in capital will increase real GNP per person

Accepted Answer

A)  more in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is from domestic rather than foreign investment.
B)  more in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is foreign rather than from domestic investment.
C)  less in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is from domestic rather than foreign investment.
D)  less in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is foreign rather than from domestic investment.

Question 6

Foreign direct investment and domestic investment have the same effect on all measures of economic prosperity.

Accepted Answer

A) True 
 B)False

Question 7

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 8

If an economy with constant returns to scale were to double its physical capital stock, its available natural resources, and its human capital, but leave the size of the labor force the same,

Accepted Answer

A)  its output would stay the same and so would its productivity.
B)  its output and productivity would increase, but less than double.
C)  its output and productivity would increase by more than double.
D)  None of the above is correct.

Question 9

In 2009, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its real GDP grew by about 1.98%. Which of the following sets of growth rates is consistent with this growth in real GDP?

Accepted Answer

A)  1% population growth and 3% real GDP growth
B)  3% population growth and 1% real GDP growth
C)  3% population growth and 6% real GDP growth
D)  6% population growth and 3% real GDP growth

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Some economists argue that it is possible to raise the standard of living by reducing population growth. As an economist interested in incentives rather than coercion, what kind of policy would you recommend to slow population growth?

Accepted Answer

Since bearing a child has an opportunity...

Question 12

If a Brazilian. company opens a new factory in Peru, it makes

Accepted Answer

A)  foreign direct investment. The factory will make a bigger impact on Peru's GDP than on its GNP.
B)  foreign direct investment. The factory will make a bigger impact on Peru's GNP than on its GDP.
C)  foreign portfolio investment. The factory will make a bigger impact on Peru's GDP than on its GNP.
D)  foreign portfolio investment. The factory will make a bigger impact on Peru's GNP than on its GDP.

Question 13

If a country increases its saving rate in the long run

Accepted Answer

A)  K/L and productivity will be higher.
B)  K/L will be higher but productivity will not be higher.
C)  K/L will not be higher but productivity will be higher.
D)  neither K/L nor productivity will be higher.

Question 14

In 2009, the imaginary nation of Florastan had a population of 8,300 and real GDP of 190,900. Florastan had 5% growth in real GDP per person. In 2010 it had a population of 8,400. What was real GDP in Florastan in 2010?

Accepted Answer

A)  200,445
B)  202,860
C)  198,059
D)  None of the above is correct.

Question 15

Technological knowledge refers to

Accepted Answer

A)  human capital.
B)  available information on how to produce things.
C)  resources expended transmitting society's understanding to the labor force.
D)  All of the above are technological knowledge.

Question 16

Inward-oriented policies

Accepted Answer

A)  are generally supported by economists.
B)  are primarily concerned with the development of human capital.
C)  in some ways are like prohibiting the use of certain technologies.
D)  All of the above are correct.

Question 17

Ryan plans on going to go to study engineering. What he learns about existing information increases

Accepted Answer

A)  both technological knowledge and human capital.
B)  technological knowledge but not human capital.
C)  human capital but not technological knowledge.
D)  neither technological knowledge nor human capital.

Question 18

Country A experienced a growth rate of real GDP per person of 0.5 percent per year throughout the 1900's. In view of other countries' experiences, country A's growth was

Accepted Answer

A)  exceptionally high.
B)  moderately high.
C)  moderately low.
D)  exceptionally low.

Question 19

You bake cookies. One day you double the time you spend, double the number of chocolate chips, flour, eggs, and all your other inputs, and bake twice as many cookies. Your cookie 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.

Question 20

Human capital is the term economists use to refer to the knowledge and skills that workers acquire through education, training, and experience.

Accepted Answer

A) True 
 B)False

Exam 12: Production and Growth

Human capital is the term economists use to refer to the knowledge and skills that workers acquire through education, training, and experience.

Correct AnswerverifiedShow Answer

If a country increases its saving rate in the long run

Correct AnswerverifiedShow Answer

Foreign direct investment and domestic investment have the same effect on all measures of economic prosperity.

Correct AnswerverifiedShow Answer

An increase in capital will increase real GNP per person

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

If a Brazilian. company opens a new factory in Peru, it makes

Correct AnswerverifiedShow Answer

You bake cookies. One day you double the time you spend, double the number of chocolate chips, flour, eggs, and all your other inputs, and bake twice as many cookies. Your cookie production function has

Correct AnswerverifiedShow Answer

Which of the following lists contains, in this order, natural resources, human capital, and physical capital?

Correct AnswerverifiedShow Answer

Some economists argue that it is possible to raise the standard of living by reducing population growth. As an economist interested in incentives rather than coercion, what kind of policy would you recommend to slow population growth?

Correct AnswerverifiedSince bearing a child has an opportunity...View AnswerShow Answer

Phoenix furniture uses 10 workers, each working eight hours, to produce 80 rocking chairs. What is Phoenix's productivity?

Correct AnswerverifiedShow Answer

In 2009, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its real GDP grew by about 1.98%. Which of the following sets of growth rates is consistent with this growth in real GDP?

Correct AnswerverifiedShow Answer

Country A experienced a growth rate of real GDP per person of 0.5 percent per year throughout the 1900's. In view of other countries' experiences, country A's growth was

Correct AnswerverifiedShow Answer

Technological knowledge refers to

Correct AnswerverifiedShow Answer

If the price of a good has risen over time,

Correct AnswerverifiedShow Answer

Proprietary technology is technology that is

Correct AnswerverifiedShow Answer

If an economy with constant returns to scale were to double its physical capital stock, its available natural resources, and its human capital, but leave the size of the labor force the same,

Correct AnswerverifiedShow Answer

Inward-oriented policies

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In 2009, the imaginary nation of Florastan had a population of 8,300 and real GDP of 190,900. Florastan had 5% growth in real GDP per person. In 2010 it had a population of 8,400. What was real GDP in Florastan in 2010?

Correct AnswerverifiedShow Answer

Ryan plans on going to go to study engineering. What he learns about existing information increases

Correct AnswerverifiedShow 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
Since bearing a child has an opportunity...
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