Question 1

The dictator of Turan has recently begun to arbitrarily seize farms belonging to his political opponents, and he has given the farms to his friends. His friends don't know much about farming. The courts in Turan have ruled that the seizures are illegal, but the dictator has ignored the rulings. Other things equal, we would expect that the growth rate in Turan will

Accepted Answer

A)   fall temporarily, but will return to where it was when the new owners learn how to farm.
B)   increase because the total amount of human capital in the country will increase as the new owners learn how to farm.
C)   fall and remain lower for a long time.
D)   not be affected unless widespread civil disorder or civil war results.E) A) and B)
F) B) and D)

Question 2

Scenario 25-1. An economy's production form takes the form Y = AF(L, K, H, N) .
-Refer to Scenario 25-1. If the production function has the constant-returns-to-scale property, then it can be rewritten as

Accepted Answer

A)   Y/L = AF(1, K/L, H/L, N/L) 
B)   Y/L = AF(L, 1, H/L, N/L) 
C)   Y/L = AF(L, K/L, 1, N/L) 
D)   Y/L = AF(L, K/L, H/L, 1) E) C) and D)
F) None of the above

Question 3

Real Foods produced 400,000 cans of diced tomatoes last year and 460,000 cans of diced tomatoes this year. It employed the same number of labor hours each year. Real Foods' productivity

Accepted Answer

A)   decreased 13%.
B)   was unchanged.
C)   increased 13%.
D)   increased 15%.E) A) and D)
F) None of the above

Question 4

Economist Robert Fogel focused on which of the following factors as one determinant of long-run economic growth?

Accepted Answer

A)   education
B)   research and development
C)   nutrition
D)   trade restrictionsE) A) and B)
F) A) and C)

Question 5

Suppose that an American opens and operates a candy factory in Finland. This is an example of

Accepted Answer

A)   foreign direct investment. American saving is used to finance Finish investment.
B)   foreign direct investment. American saving is used to finance American investment.
C)   foreign portfolio investment. American saving is used to finance Finish investment.
D)   foreign portfolio investment. American saving is used to finance American investment.E) A) and B)
F) C) and D)

Question 6

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 D)

Question 7

For a given year, productivity in a particular country is most closely matched with that country's

Accepted Answer

A)   level of real GDP over that year.
B)   level of real GDP divided by hours worked over that year.
C)   growth rate of real GDP divided by hours worked over that year.
D)   growth rate of real GDP per person over that year.E) All of the above
F) A) and B)

Question 8

Which of the following statements is correct?

Accepted Answer

A)   In an economy-wide sense, property rights are an important prerequisite for the price system to work.
B)   Property rights give people the ability to exercise authority over the resources they own.
C)   Based on the available evidence, the existence of well-established and well-enforced property rights appears to be associated with an enhanced standard of living.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 9

If a Japanese company opens a new factory in South Korea, it makes

Accepted Answer

A)   foreign direct investment. The factory will make a bigger impact on South Korea's GDP than on its GNP.
B)   foreign direct investment. The factory will make a bigger impact on South Korea's GNP than on its GDP.
C)   foreign portfolio investment. The factory will make a bigger impact on South Korea's GDP than on its GNP.
D)   foreign portfolio investment. The factory will make a bigger impact on South Korea's GNP than on its GDP.E) All of the above
F) A) and C)

Question 10

As of 2010, using real GDP per person as a measure, we would classify

Accepted Answer

A)   the United States and Mexico as advanced economies and Bangladesh as a middle-income country.
B)   Canada as an advanced economy, Mexico as a middle-income country, and Pakistan as a poor country.
C)   Japan and India as advanced economies and Mexico as a poor country.
D)   Japan as an advanced economy, the United Kingdom as a middle-income country, and Argentina as a poor country.E) All of the above
F) None of the above

Question 11

Matt is going to college to become a pharmacist. 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.E) B) and D)
F) B) and C)

Question 12

Which of the following is correct?

Accepted Answer

A)   If developing countries limit career and educational opportunities for women, birth rates are likely to be lower.
B)   Growth rates in developed and developing countries are nearly the same.
C)   Historically, in periods where the rate of population growth was high, so was the rate of growth in world real GDP per person.
D)   None of the above is correct.E) A) and D)
F) A) and C)

Question 13

If companies from foreign countries build and operate factories in China, then China's productivity

Accepted Answer

A)   and the wages of Chinese workers increase.
B)   increases but the wages of Chinese workers decrease.
C)   decreases but the wages of Chinese workers increase.
D)   and the wages of Chinese workers decrease.E) A) and B)
F) A) and C)

Question 14

If it could increase its growth rates slightly, a country with low income would catch up with rich countries in about ten years.

Accepted Answer

A) True 
 B)False

Question 15

During the past century the average growth rate of U.S. real GDP per person implies that it doubled, on average, about every

Accepted Answer

A)   100 years.
B)   70 years.
C)   35 years.
D)   25 years.E) B) and C)
F) A) and B)

Question 16

Which of the following statements is correct?

Accepted Answer

A)   Growth of productivity is the main determinant of growth in living standards.
B)   Common knowledge and proprietary technology are both important for the economy's production of goods and services.
C)   The terms capital and physical capital refer to the same thing.
D)   All of the above are correct.E) None of the above
F) B) and C)

Question 17

A country that made its courts less corrupt and its government more stable would likely see its standard of living rise.

Accepted Answer

A) True 
 B)False

Question 18

When a country eliminates tariffs and other trade restrictions, intending to promote economic growth, it is pursuing_______-oriented policies.

Accepted Answer

The answer of When a country eliminates tariffs and other...

Question 19

Research suggests that taller workers tend to earn more income than shorter workers. What does this suggest about the relationship between workers' height and their productivity?

Accepted Answer

If taller workers' earnings ar...

Question 20

Some data that at first might seem puzzling: The share of GDP devoted to investment was similar for the United States and South Korea from 1960-1991. However, during these same years South Korea had a 6 percent growth rate of average annual income per person, while the United States had only a 2 percent growth rate. If the saving rates were the same, why were the growth rates so different?

Accepted Answer

The explanation is based on the concept ...

Exam 25: Production and Growth

If it could increase its growth rates slightly, a country with low income would catch up with rich countries in about ten years.

Correct Answer
verified

Research suggests that taller workers tend to earn more income than shorter workers. What does this suggest about the relationship between workers' height and their productivity?

Correct Answer
verified
If taller workers' earnings ar...
View Answer

When a country eliminates tariffs and other trade restrictions, intending to promote economic growth, it is pursuing_______-oriented policies.

Correct Answer
verified

Economist Robert Fogel focused on which of the following factors as one determinant of long-run economic growth?

Correct Answer
verified

Correct Answer
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The explanation is based on the concept ...
View Answer

Matt is going to college to become a pharmacist. What he learns about existing information increases

Correct Answer
verified

For a given year, productivity in a particular country is most closely matched with that country's

Correct Answer
verified

Correct Answer
verified

Scenario 25-1. An economy's production form takes the form Y = AF(L, K, H, N) . -Refer to Scenario 25-1. If the production function has the constant-returns-to-scale property, then it can be rewritten as

Correct Answer
verified

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

Which of the following statements is correct?

Correct Answer
verified

If companies from foreign countries build and operate factories in China, then China's productivity

Correct Answer
verified

Which of the following is correct?

Correct Answer
verified

Suppose that an American opens and operates a candy factory in Finland. This is an example of

Correct Answer
verified

As of 2010, using real GDP per person as a measure, we would classify

Correct Answer
verified

If a Japanese company opens a new factory in South Korea, it makes

Correct Answer
verified

Real Foods produced 400,000 cans of diced tomatoes last year and 460,000 cans of diced tomatoes this year. It employed the same number of labor hours each year. Real Foods' productivity

Correct Answer
verified

A country that made its courts less corrupt and its government more stable would likely see its standard of living rise.

Correct Answer
verified

During the past century the average growth rate of U.S. real GDP per person implies that it doubled, on average, about every

Correct Answer
verified

Exam 25: Production and Growth

If it could increase its growth rates slightly, a country with low income would catch up with rich countries in about ten years.

Correct AnswerverifiedShow Answer

Research suggests that taller workers tend to earn more income than shorter workers. What does this suggest about the relationship between workers' height and their productivity?

Correct AnswerverifiedIf taller workers' earnings ar...View AnswerShow Answer

When a country eliminates tariffs and other trade restrictions, intending to promote economic growth, it is pursuing_______-oriented policies.

Correct AnswerverifiedShow Answer

Economist Robert Fogel focused on which of the following factors as one determinant of long-run economic growth?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe explanation is based on the concept ...View AnswerShow Answer

Matt is going to college to become a pharmacist. What he learns about existing information increases

Correct AnswerverifiedShow Answer

For a given year, productivity in a particular country is most closely matched with that country's

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Scenario 25-1. An economy's production form takes the form Y = AF(L, K, H, N) . -Refer to Scenario 25-1. If the production function has the constant-returns-to-scale property, then it can be rewritten as

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

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

If companies from foreign countries build and operate factories in China, then China's productivity

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Suppose that an American opens and operates a candy factory in Finland. This is an example of

Correct AnswerverifiedShow Answer

As of 2010, using real GDP per person as a measure, we would classify

Correct AnswerverifiedShow Answer

If a Japanese company opens a new factory in South Korea, it makes

Correct AnswerverifiedShow Answer

Real Foods produced 400,000 cans of diced tomatoes last year and 460,000 cans of diced tomatoes this year. It employed the same number of labor hours each year. Real Foods' productivity

Correct AnswerverifiedShow Answer

A country that made its courts less corrupt and its government more stable would likely see its standard of living rise.

Correct AnswerverifiedShow Answer

During the past century the average growth rate of U.S. real GDP per person implies that it doubled, on average, about every

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
If taller workers' earnings ar...
View Answer

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verified

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verified

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verified
The explanation is based on the concept ...
View Answer

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verified

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