Question 1

In the United States,as measured by real GDP per person,average income is about how many times as high as average income a century ago?

Accepted Answer

A)  2
B)  4
C)  6
D)  8E) A) and C)
F) None of the above

Question 2

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 3

Which of the following is a renewable natural resource?

Accepted Answer

A)  timber
B)  coal
C)  gold
D)  All of the above are correct.E) A) and C)
F) None of the above

Question 4

Real GDP per person is $20,000 in Meridian,$15,000 in Articland,and $5,000 in Equitorial.Saving per person is $1,000 in all three countries.Other things equal,we would expect that

Accepted Answer

A)  all three countries will grow at the same rate.
B)  Meridian will grow the fastest.
C)  Articland will grow the fastest.
D)  Equitorial will grow the fastest.E) A) and B)
F) A) and C)

Question 5

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 6

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 B)
F) B) and C)

Question 7

In a market economy,we know that a resource has become scarcer when

Accepted Answer

A)  its price rises relative to other prices.
B)  it is non-renewable and some of it is used.
C)  people search for substitutes.
D)  All of the above are correct.E) C) and D)
F) None of the above

Question 8

Which of the following would increase productivity?

Accepted Answer

A)  an increase in the physical capital stock per worker
B)  an increase in human capital per worker
C)  an increase in natural resources per worker
D)  All of the above are correct.E) B) and D)
F) C) and D)

Question 9

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.E) C) and D)
F) A) and D)

Question 10

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 11

The traditional view of the production process is that capital is subject to

Accepted Answer

A)  diminishing returns, so that other things the same real GDP in poor countries should grow at a faster rate than in rich countries.
B)  diminishing returns, so that other things the same real GDP in poor countries should grow at a slower rate than in rich countries.
C)  increasing returns, so that other things the same real GDP in poor countries should grow at a faster rate than in rich countries.
D)  increasing returns, so that other things the same real GDP in poor countries should grow at a slower rate than in rich countries.E) A) and C)
F) A) and B)

Question 12

A nation's standard of living is measured by its

Accepted Answer

A)  real GDP.
B)  real GDP per person.
C)  nominal GDP.
D)  nominal GDP per person.E) B) and D)
F) B) and C)

Question 13

The traditional view of the production process is that capital is subject to

Accepted Answer

A)  constant returns.
B)  increasing returns.
C)  diminishing returns.
D)  diminishing returns for low levels of capital, and increasing returns for high levels of capital.E) All of the above
F) A) and D)

Question 14

In the US each additional year of schooling has historically raised a person's wage on average by about

Accepted Answer

A)  5%.In less developed countries the gap between the wages of educated and uneducated workers is smaller.
B)  10%.In less developed countries the gap between the wages of educated and uneducated workers is smaller.
C)  5%.In less developed countries the gap between the wages of educated and uneducated workers is larger.
D)  10%.In less developed countries the gap between the wages of educated and uneducated workers is larger.E) A) and D)
F) A) and C)

Question 15

The Economic Development Minister of a country has a list of things she thinks may explain her country's low growth of real GDP per person relative to other countries.She asks you to pick the one you think most likely explains her country's low growth.Which of the following contributes to low growth?

Accepted Answer

A)  poorly enforced property rights.
B)  outward oriented trade policies.
C)  policies that permit foreign investment.
D)  All of the above are correct.E) A) and B)
F) A) and C)

Question 16

Economists generally believe that inward-oriented policies are more likely to foster growth than outward oriented policies.

Accepted Answer

A) True 
 B)False

Question 17

Foreign saving is used for domestic investment when foreigners engage in

Accepted Answer

A)  foreign direct investment.
B)  foreign portfolio investment.
C)  either foreign direct investment or foreign portfolio investment.
D)  None of the above is correct.E) A) and B)
F) B) and C)

Question 18

Real GDP per person

Accepted Answer

A)  minus real GDP per person from the previous period equals the growth rate of real GDP per person.
B)  provides more meaningful comparisons across time and countries than real GDP.
C)  provides a less useful measure of the standard of living than nominal GDP per person.
D)  All of the above are correct.E) B) and C)
F) A) and B)

Question 19

In countries where women are discriminated against,policies that increase their career and educational opportunities are likely to decrease the birth rate.

Accepted Answer

A) True 
 B)False

Question 20

Productivity can be found as number of hours worked divided by output.

Accepted Answer

A) True 
 B)False

Exam 25: Production and Growth

Real GDP per person

Correct Answer
verified

Real GDP per person is $20,000 in Meridian,$15,000 in Articland,and $5,000 in Equitorial.Saving per person is $1,000 in all three countries.Other things equal,we would expect that

Correct Answer
verified

Which of the following would increase productivity?

Correct Answer
verified

Productivity can be found as number of hours worked divided by output.

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

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 Answer
verified

Foreign saving is used for domestic investment when foreigners engage in

Correct Answer
verified

The traditional view of the production process is that capital is subject to

Correct Answer
verified

Inward-oriented policies

Correct Answer
verified

A nation's standard of living is measured by its

Correct Answer
verified

In countries where women are discriminated against,policies that increase their career and educational opportunities are likely to decrease the birth rate.

Correct Answer
verified

The traditional view of the production process is that capital is subject to

Correct Answer
verified

In the United States,as measured by real GDP per person,average income is about how many times as high as average income a century ago?

Correct Answer
verified

Which of the following is a renewable natural resource?

Correct Answer
verified

In a market economy,we know that a resource has become scarcer when

Correct Answer
verified

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

Correct Answer
verified

In the US each additional year of schooling has historically raised a person's wage on average by about

Correct Answer
verified

Correct Answer
verified

Economists generally believe that inward-oriented policies are more likely to foster growth than outward oriented policies.

Correct Answer
verified

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

Correct Answer
verified

Exam 25: Production and Growth

Real GDP per person

Correct AnswerverifiedShow Answer

Real GDP per person is $20,000 in Meridian,$15,000 in Articland,and $5,000 in Equitorial.Saving per person is $1,000 in all three countries.Other things equal,we would expect that

Correct AnswerverifiedShow Answer

Which of the following would increase productivity?

Correct AnswerverifiedShow Answer

Productivity can be found as number of hours worked divided by output.

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

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

Foreign saving is used for domestic investment when foreigners engage in

Correct AnswerverifiedShow Answer

The traditional view of the production process is that capital is subject to

Correct AnswerverifiedShow Answer

Inward-oriented policies

Correct AnswerverifiedShow Answer

A nation's standard of living is measured by its

Correct AnswerverifiedShow Answer

In countries where women are discriminated against,policies that increase their career and educational opportunities are likely to decrease the birth rate.

Correct AnswerverifiedShow Answer

The traditional view of the production process is that capital is subject to

Correct AnswerverifiedShow Answer

In the United States,as measured by real GDP per person,average income is about how many times as high as average income a century ago?

Correct AnswerverifiedShow Answer

Which of the following is a renewable natural resource?

Correct AnswerverifiedShow Answer

In a market economy,we know that a resource has become scarcer when

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

In the US each additional year of schooling has historically raised a person's wage on average by about

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Economists generally believe that inward-oriented policies are more likely to foster growth than outward oriented policies.

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

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