Question 1

Once an idea enters society's pool of knowledge,the idea becomes a

Accepted Answer

A)   societal good.
B)   private good.
C)   public good.
D)   proprietary good.E) B) and D)
F) B) and C)

Question 2

The equipment and structures available to produce goods and services are called

Accepted Answer

A)   physical capital.
B)   human capital.
C)   the production function.
D)   technology.E) B) and D)
F) B) and C)

Question 3

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 4

Which of the following is an observation made by economist Michael Kremer?

Accepted Answer

A)   World growth rates increased as the population increased.
B)   Technological progress allows for increasing population because of advances in agriculture.
C)   World population is growing so rapidly that soon it will outstrip natural resources and our standard of living will decline.
D)   All of the above are observations made by Kremer.E) None of the above
F) A) and B)

Question 5

Figure 17-1.On the horizontal axis,K/L represents capital (K) per worker (L) .On the vertical axis,Y/L represents output (Y) per worker (L) . 
-Refer to Figure 17-1.The curve becomes flatter as the amount of capital per worker increases because of

Accepted Answer

A)   increasing returns to capital.
B)   increasing returns to labor.
C)   diminishing returns to capital.
D)   diminishing returns to labor.E) B) and D)
F) A) and D)

Question 6

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

Question 7

The president of a poor country has announced that he will implement the following measures which he claims are designed to increase growth: 1.Reduce corruption in the legal system; 2.Reduce reliance on market forces because they allocate goods and services in an unfair manner; 3.Restrict investment in domestic industries by foreigners because they take some of the profits out of the country; 4.Encourage trade with neighboring countries; and 5.Increase the fraction of GDP devoted to consumption.How many of these measures will have a positive effect on growth?

Accepted Answer

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

Question 8

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

Accepted Answer

A)   tin
B)   petroleum
C)   gold
D)   All of the above are correct.E) A) and B)
F) All of the above

Question 9

Which of the following items plays a role in determining productivity?

Accepted Answer

A)   physical capital
B)   natural resources
C)   technological knowledge
D)   All of the above are correct.E) A) and D)
F) All of the above

Question 10

Constant returns to scale is the point on a production function where increasing inputs will no longer increase output.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is correct?

Accepted Answer

A)   In 1870,real income per person was higher in the United Kingdom than in any other country at that time.
B)   Between 1870 and 2008,India experienced significantly higher growth of real income per person than did the United States.
C)   Between 1870 and 2008,the United States experienced significantly higher growth of real income per person than did Canada.
D)   All of the above are correct.E) A) and B)
F) All of the above

Question 12

The opening of a new American-owned factory in Algeria would tend to increase Algeria's GDP more than it increases Algeria's GNP because

Accepted Answer

A)   some of the income from the factory accrues to people who do not live in Algeria.
B)   gross domestic product is income earned within a country by both residents and nonresidents,whereas gross national product is the income earned by residents of a country while producing both at home and abroad.
C)   all of the income from the factory is included in Algeria's GDP.
D)   All of the above are correct.E) A) and C)
F) A) and B)

Question 13

Which of the following countries had the lowest level of real GDP per person in 2008?

Accepted Answer

A)   Bangladesh
B)   Indonesia
C)   Mexico
D)   ChinaE) B) and C)
F) None of the above

Question 14

Suppose Turkey increases its saving rate.In the long run

Accepted Answer

A)   the growth rates of productivity and real GDP per person increase.
B)   productivity and real GDP per person increase.
C)   the growth rate of productivity increases,and real GDP per person increases.
D)   productivity increases,and the growth rate of real GDP per person increases.E) A) and D)
F) B) and C)

Question 15

The population growth rate tends to be higher in developed countries than in developing countries.

Accepted Answer

A) True 
 B)False

Question 16

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

Question 17

Fretonia and Libstien are the same except Fretonia has a larger capital stock.Both countries undertake policies that raise their saving rates to the same higher level.We would expect that

Accepted Answer

A)   both countries would have permanent increases in their growth rates,but the increase would initially be larger in Fretonia.
B)   both countries would have permanent increases in their growth rates,but the increase would initially be smaller in Fretonia.
C)   both countries would have temporary increases in their growth rates,but the increase would be larger in Fretonia.
D)   both countries would have temporary increases in their growth rates,but the increase would be smaller in Fretonia.E) A) and C)
F) B) and C)

Question 18

If Country A produces 7,000 units of goods and services using 700 hours of labor,and if Country B produces 5,500 units of goods and services using 500 units of labor,then productivity is lower in Country A than in Country B.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following can be measured by the level of real GDP per person?

Accepted Answer

A)   productivity and the standard of living
B)   productivity but not the standard of living
C)   the standard of living but not productivy
D)   neither the standard of living nor productivityE) All of the above
F) A) and B)

Question 20

Which of the following statements about inputs is correct?

Accepted Answer

A)   A forest is an example of a natural resource; it is also an example of a renewable resource.
B)   There is no distinction between human capital and technological knowledge.
C)   Human capital is a non-produced factor of production.
D)   Physical capital is a non-produced factor of production.E) A) and B)
F) A) and C)

Exam 17: Production and Growth

Suppose Turkey increases its saving rate.In the long run

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

Which of the following is an observation made by economist Michael Kremer?

Correct Answer
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Which of the following can be measured by the level of real GDP per person?

Correct Answer
verified

Which of the following statements about inputs is correct?

Correct Answer
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Which of the following is correct?

Correct Answer
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Figure 17-1.On the horizontal axis,K/L represents capital (K) per worker (L) .On the vertical axis,Y/L represents output (Y) per worker (L) . -Refer to Figure 17-1.The curve becomes flatter as the amount of capital per worker increases because of

Correct Answer
verified

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

Correct Answer
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Correct Answer
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Which of the following items plays a role in determining productivity?

Correct Answer
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Which of the following statements is correct?

Correct Answer
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Foreign saving is used for domestic investment when foreigners engage in

Correct Answer
verified

Fretonia and Libstien are the same except Fretonia has a larger capital stock.Both countries undertake policies that raise their saving rates to the same higher level.We would expect that

Correct Answer
verified

If Country A produces 7,000 units of goods and services using 700 hours of labor,and if Country B produces 5,500 units of goods and services using 500 units of labor,then productivity is lower in Country A than in Country B.

Correct Answer
verified

The equipment and structures available to produce goods and services are called

Correct Answer
verified

The opening of a new American-owned factory in Algeria would tend to increase Algeria's GDP more than it increases Algeria's GNP because

Correct Answer
verified

The population growth rate tends to be higher in developed countries than in developing countries.

Correct Answer
verified

Once an idea enters society's pool of knowledge,the idea becomes a

Correct Answer
verified

Which of the following countries had the lowest level of real GDP per person in 2008?

Correct Answer
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Constant returns to scale is the point on a production function where increasing inputs will no longer increase output.

Correct Answer
verified

Exam 17: Production and Growth

Suppose Turkey increases its saving rate.In the long run

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is an observation made by economist Michael Kremer?

Correct AnswerverifiedShow Answer

Which of the following can be measured by the level of real GDP per person?

Correct AnswerverifiedShow Answer

Which of the following statements about inputs is correct?

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Figure 17-1.On the horizontal axis,K/L represents capital (K) per worker (L) .On the vertical axis,Y/L represents output (Y) per worker (L) . -Refer to Figure 17-1.The curve becomes flatter as the amount of capital per worker increases because of

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following items plays a role in determining productivity?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Foreign saving is used for domestic investment when foreigners engage in

Correct AnswerverifiedShow Answer

Fretonia and Libstien are the same except Fretonia has a larger capital stock.Both countries undertake policies that raise their saving rates to the same higher level.We would expect that

Correct AnswerverifiedShow Answer

If Country A produces 7,000 units of goods and services using 700 hours of labor,and if Country B produces 5,500 units of goods and services using 500 units of labor,then productivity is lower in Country A than in Country B.

Correct AnswerverifiedShow Answer

The equipment and structures available to produce goods and services are called

Correct AnswerverifiedShow Answer

The opening of a new American-owned factory in Algeria would tend to increase Algeria's GDP more than it increases Algeria's GNP because

Correct AnswerverifiedShow Answer

The population growth rate tends to be higher in developed countries than in developing countries.

Correct AnswerverifiedShow Answer

Once an idea enters society's pool of knowledge,the idea becomes a

Correct AnswerverifiedShow Answer

Which of the following countries had the lowest level of real GDP per person in 2008?

Correct AnswerverifiedShow Answer

Constant returns to scale is the point on a production function where increasing inputs will no longer increase output.

Correct AnswerverifiedShow Answer

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