Question 1

Dawn looks over reports on five of her workers. Carol made 25 baskets in 5 hours. Peter made 36 baskets in 6 hours. Rob made 40 baskets in 10 hours. Jack made 55 baskets in 10 hours. Darby made 22 baskets in 3 hours. Who has the greatest productivity?

Accepted Answer

A)  Darby
B)  Peter
C)  Rob
D)  JackE) All of the above
F) None of the above

Question 2

According to the traditional view of the production process, how does output per worker change when capital per worker increases?

Accepted Answer

A)  It increases. This increase is larger at larger values of capital per worker.
B)  It increases. This increase is smaller at larger values of capital per worker.
C)  It increases. This increase is the same at all values of capital per worker.
D)  It decreases. This decrease is larger at larger values of capital per worker.E) None of the above
F) B) and C)

Question 3

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)  strong private property rights
B)  tariffs and quotas
C)  encouraging foreign investment
D)  low population growthE) B) and C)
F) A) and C)

Question 4

Suppose 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. What kind of production function is this?

Accepted Answer

A)  decreasing returns to scale
B)  zero returns to scale
C)  constant returns to scale
D)  increasing returns to scaleE) None of the above
F) A) and B)

Question 5

What is the effect of a higher saving rate in the long run?

Accepted Answer

A)  It decreases the capital stock.
B)  People must consume less in the future.
C)  It increases productivity.
D)  It leads to higher growth in real GDP.E) All of the above
F) A) and C)

Question 6

Which of the following nations experienced average rates of economic growth of less than 2.0 percent between 1900 and 2006?

Accepted Answer

A)  Brazil
B)  Mexico
C)  China
D)  ArgentinaE) C) and D)
F) B) and D)

Question 7

International data on the history of real GDP growth rates show that the rich countries get richer and the poor countries get poorer.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

Accepted Answer

A)  A country with no or few domestic natural resources is destined to be poor.
B)  Differences in natural resources have virtually no role in explaining differences in standards of living.
C)  Some countries can be rich mostly because of their natural resources, and countries without natural resources need not be poor, but can never have very high standards of living.
D)  Abundant domestic natural resources may help make a country rich, but even countries with few natural resources can have high standards of living.E) All of the above
F) A) and B)

Question 9

What is the difference between human capital and technology?

Accepted Answer

Technology is society's understanding of...

Question 10

Which of the following is a direct determinant of productivity?

Accepted Answer

A)  human capital
B)  wage
C)  price of output
D)  unemployment rateE) B) and C)
F) A) and D)

Question 11

What is the average amount of goods and services produced from each hour of a worker's time called?

Accepted Answer

A)  per capita GDP
B)  per capita GNP
C)  productivity
D)  human capitalE) A) and D)
F) All of the above

Question 12

What is a production function? Write an equation for a typical production function, and explain what each of the terms represents.

Accepted Answer

A production function is a mathematical ...

Question 13

From 1966 to 1973, at what rate did Canadian productivity grow?

Accepted Answer

A)  2.3 percent
B)  2.5 percent
C)  1.8 percent
D)  1.3 percentE) B) and D)
F) B) and C)

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Last year, real GDP in Oceania was $620 billion and the population was 2.3 million. The year before, real GDP was $502.0 billion and the population was 2.0 million. What was the approximate growth rate of real GDP per person?

Accepted Answer

A)  16 percent
B)  13 percent
C)  10 percent
D)  7 percentE) A) and D)
F) A) and C)

Question 16

Based on historical data on the prices of natural resources, which of the following best describes how natural resources limit economic growth?

Accepted Answer

A)  Prices have been increasing, which shows that natural resources become scarcer and this impedes growth.
B)  Prices of natural resources have been fluctuating, which shows that there is no correlation between growth and natural resources.
C)  Prices of natural resources have been decreasing in constant dollars, which shows that natural resources are not scarcer than they were in the past, thus economic growth is not limited by natural resources.
D)  Prices do not show whether resources limit growth because the natural resources that economies use are not the same today as those in the past.E) None of the above
F) All of the above

Question 17

Tom works 6 hours a day and Jerry works 8 hours. Tom can produce 6 baskets of goods while Jerry can produce 7 baskets. Which of the following can we conclude?

Accepted Answer

A)  Tom's productivity is greater than Jerry's.
B)  Tom's and Jerry's productivities are equal because they both work one day.
C)  Tom's and Jerry's productivities cannot be compared.
D)  Tom's productivity is lower than Jerry's.E) B) and D)
F) B) and C)

Question 18

In 2010 real GDP in Latania was $750 billion and the population was 3 million. In 2011 real GDP was $990 billion and the population was 3.3 million. What was the approximate growth rate of real GDP per person?

Accepted Answer

A)  11 percent
B)  14 percent
C)  17 percent
D)  20 percentE) A) and B)
F) A) and C)

Question 19

Suppose that real GDP grew more in Country A than in Country B last year. Which of the following does this imply concerning productivity or standard of living?

Accepted Answer

A)  Country A must have a higher standard of living than country B.
B)  Country A's productivity must have grown faster than country B's.
C)  Country A must have a higher real GDP than Country B.
D)  Country A's productivity must have been higher only if the population in the two countries grew at the same rate.E) C) and D)
F) B) and D)

Question 20

The average person in a rich country, such as Germany, has income about ten times that of an average person in a poor country, such as Nigeria.

Accepted Answer

A) True 
 B)False

Exam 7: Production and Growth

Tom works 6 hours a day and Jerry works 8 hours. Tom can produce 6 baskets of goods while Jerry can produce 7 baskets. Which of the following can we conclude?

Correct Answer
verified

Suppose 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. What kind of production function is this?

Correct Answer
verified

Which of the following nations experienced average rates of economic growth of less than 2.0 percent between 1900 and 2006?

Correct Answer
verified

Dawn looks over reports on five of her workers. Carol made 25 baskets in 5 hours. Peter made 36 baskets in 6 hours. Rob made 40 baskets in 10 hours. Jack made 55 baskets in 10 hours. Darby made 22 baskets in 3 hours. Who has the greatest productivity?

Correct Answer
verified

The average person in a rich country, such as Germany, has income about ten times that of an average person in a poor country, such as Nigeria.

Correct Answer
verified

Last year, real GDP in Oceania was $620 billion and the population was 2.3 million. The year before, real GDP was $502.0 billion and the population was 2.0 million. What was the approximate growth rate of real GDP per person?

Correct Answer
verified

According to the traditional view of the production process, how does output per worker change when capital per worker increases?

Correct Answer
verified

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

Correct Answer
verified

From 1966 to 1973, at what rate did Canadian productivity grow?

Correct Answer
verified

What is the difference between human capital and technology?

Correct Answer
verified
Technology is society's understanding of...
View Answer

In 2010 real GDP in Latania was $750 billion and the population was 3 million. In 2011 real GDP was $990 billion and the population was 3.3 million. What was the approximate growth rate of real GDP per person?

Correct Answer
verified

Suppose that real GDP grew more in Country A than in Country B last year. Which of the following does this imply concerning productivity or standard of living?

Correct Answer
verified

Correct Answer
verified

Which of the following is a direct determinant of productivity?

Correct Answer
verified

What is a production function? Write an equation for a typical production function, and explain what each of the terms represents.

Correct Answer
verified
A production function is a mathematical ...
View Answer

What is the effect of a higher saving rate in the long run?

Correct Answer
verified

International data on the history of real GDP growth rates show that the rich countries get richer and the poor countries get poorer.

Correct Answer
verified

What is the average amount of goods and services produced from each hour of a worker's time called?

Correct Answer
verified

Based on historical data on the prices of natural resources, which of the following best describes how natural resources limit economic growth?

Correct Answer
verified

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

Correct Answer
verified

Exam 7: Production and Growth

Tom works 6 hours a day and Jerry works 8 hours. Tom can produce 6 baskets of goods while Jerry can produce 7 baskets. Which of the following can we conclude?

Correct AnswerverifiedShow Answer

Suppose 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. What kind of production function is this?

Correct AnswerverifiedShow Answer

Which of the following nations experienced average rates of economic growth of less than 2.0 percent between 1900 and 2006?

Correct AnswerverifiedShow Answer

Dawn looks over reports on five of her workers. Carol made 25 baskets in 5 hours. Peter made 36 baskets in 6 hours. Rob made 40 baskets in 10 hours. Jack made 55 baskets in 10 hours. Darby made 22 baskets in 3 hours. Who has the greatest productivity?

Correct AnswerverifiedShow Answer

The average person in a rich country, such as Germany, has income about ten times that of an average person in a poor country, such as Nigeria.

Correct AnswerverifiedShow Answer

Last year, real GDP in Oceania was $620 billion and the population was 2.3 million. The year before, real GDP was $502.0 billion and the population was 2.0 million. What was the approximate growth rate of real GDP per person?

Correct AnswerverifiedShow Answer

According to the traditional view of the production process, how does output per worker change when capital per worker increases?

Correct AnswerverifiedShow Answer

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

Correct AnswerverifiedShow Answer

From 1966 to 1973, at what rate did Canadian productivity grow?

Correct AnswerverifiedShow Answer

What is the difference between human capital and technology?

Correct AnswerverifiedTechnology is society's understanding of...View AnswerShow Answer

In 2010 real GDP in Latania was $750 billion and the population was 3 million. In 2011 real GDP was $990 billion and the population was 3.3 million. What was the approximate growth rate of real GDP per person?

Correct AnswerverifiedShow Answer

Suppose that real GDP grew more in Country A than in Country B last year. Which of the following does this imply concerning productivity or standard of living?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a direct determinant of productivity?

Correct AnswerverifiedShow Answer

What is a production function? Write an equation for a typical production function, and explain what each of the terms represents.

Correct AnswerverifiedA production function is a mathematical ...View AnswerShow Answer

What is the effect of a higher saving rate in the long run?

Correct AnswerverifiedShow Answer

International data on the history of real GDP growth rates show that the rich countries get richer and the poor countries get poorer.

Correct AnswerverifiedShow Answer

What is the average amount of goods and services produced from each hour of a worker's time called?

Correct AnswerverifiedShow Answer

Based on historical data on the prices of natural resources, which of the following best describes how natural resources limit economic growth?

Correct AnswerverifiedShow Answer

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

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

Correct Answer
verified
Technology is society's understanding of...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A production function is a mathematical ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified