Question 1

Other things the same, domestic investment will increase a country's real GDP by more than foreign investment.

Accepted Answer

A) True 
 B)False

Question 2

Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to compute the percentage increase in real GDP per person from 1993 to 2012.

Accepted Answer

Real GDP per person in 1993 wa...

Question 3

A leading environmental group recently published a report contending that humans are running a "resource deficit" because we are using natural resources faster than they can be regenerated. The group claims that this means that economic growth will eventually stop, and will even be reversed. An economist would

Accepted Answer

A)   agree with the report, and would point to rising natural resource prices as evidence.
B)   agree with the report, but wouldn't think it was important because growth will not slow down for several centuries.
C)   disagree with the report, in part because it ignores the mitigating effects of technological change.
D)   disagree with the report because labor and capital are the primary determinants of growth, and since they are plentiful, growth will not slow down.E) B) and C)
F) A) and C)

Question 4

Over the period 1900-2010, which of the following countries experienced the highest average annual growth rate of real GDP per person?

Accepted Answer

A)   Brazil
B)   China
C)   India
D)   PakistanE) B) and C)
F) A) and C)

Question 5

A management professor discovers a way for corporate management to operate more efficiently. He publishes his findings in a journal. His findings are

Accepted Answer

A)   proprietary and common knowledge.
B)   common, but not proprietary, knowledge.
C)   proprietary, but not common, knowledge.
D)   neither proprietary nor common knowledge.E) A) and B)
F) A) and C)

Question 6

In medieval Europe an important technological advance was the use of the padded horse collar for plowing. Once this idea was thought of, other people used it. This illustrates that knowledge is generally a

Accepted Answer

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

Question 7

Given that a country's real output has increased, in which of the following cases can we be sure that its productivity also has increased?

Accepted Answer

A)   The total number of hours worked rose.
B)   The total number of hours worked stayed the same.
C)   The total number of hours worked fell.
D)   Both b and c are correct.E) None of the above
F) A) and D)

Question 8

If a production function has constant returns to scale, then if all inputs double so does production.

Accepted Answer

A) True 
 B)False

Question 9

Consider the nations of Canada, the United Kingdom, and the United States. Since 1870, which of these nations has progressed, in an economic sense, more slowly than the other two nations?

Accepted Answer

The United Kingdom's growth ra...

Question 10

In the long run, a higher saving rate

Accepted Answer

A)   cannot increase the capital stock.
B)   means that people must consume less in the future.
C)   increases the level of productivity.
D)   None of the above is correct.E) All of the above
F) None of the above

Question 11

Your company discovers a better way to produce mousetraps, but your better methods are not apparent from the mousetraps themselves. Your knowledge of how to more efficiently produce mousetraps is

Accepted Answer

A)   common technological knowledge.
B)   common, but not technological, knowledge.
C)   proprietary technological knowledge.
D)   proprietary, but not technological, knowledge.E) A) and B)
F) B) and C)

Question 12

Other things the same, higher population growth

Accepted Answer

A)   raises the amount of physical capital per worker and there is some evidence that it raises the pace of technological progress.
B)   raises the amount of physical capital per worker, but there is some evidence that it reduces the pace of technological progress.
C)   reduces the amount of physical capital per worker, but there is some evidence that it raises the pace of technological progress.
D)   reduces the amount of physical capital per worker and there is some evidence that it reduces the pace of technological progress.E) A) and D)
F) All of the above

Question 13

On a production function, as capital per worker increases, output per worker

Accepted Answer

A)   increases. This increase is larger at larger values of capital per worker.
B)   increases. This increase is smaller at larger values of capital per worker.
C)   decreases. This decrease is larger at larger value of capital per worker.
D)   decreases. This decrease is smaller at larger value of capital per worker.E) All of the above
F) B) and C)

Question 14

The United Kingdom is

Accepted Answer

A)   an advanced economy, and over the past century its rate of economic growth has been higher than that of the United States.
B)   an advanced economy, and over the past century its rate of economic growth has been lower than that of the United States.
C)   a middle-income country, and over the past century its rate of economic growth has been higher than that of the United States.
D)   a middle-income country, and over the past century its rate of economic growth has been lower than that of the United States.E) B) and D)
F) A) and B)

Question 15

Among the following countries, which one has the highest growth rate of real GDP per person over about the last 100 years?

Accepted Answer

A)   Argentina
B)   Mexico
C)   the United Kingdom
D)   the United StatesE) C) and D)
F) B) and C)

Question 16

What particularly important role do courts play in a market economy?

Accepted Answer

Courts enforce prope...

Question 17

Upland has a population of 15,000, of whom 9,000 work 8 hours a day to produce real output of $342,000. Lowland has a population of 8,000, of whom 7,000 work 7 hours a day to produce real output of $171,500.

Accepted Answer

A)   Upland has higher productivity and higher real GDP per person than Lowland.
B)   Upland has higher productivity but lower real GDP per person than Lowland.
C)   Upland has lower productivity but higher real GDP per person than Lowland.
D)   Upland has lower productivity and lower real GDP per person than Lowland.E) B) and D)
F) None of the above

Question 18

Countries with more than 80 percent of their population living within 100 kilometers of a coast will have an average GDP per person that is

Accepted Answer

A)   around four times a country with less than 20 percent of the population living near the coast.
B)   around ten times a country with less than 20 percent of the population living near the coast.
C)   around twenty times a country with less than 20 percent of the population living near the coast.
D)   around fifty times a country with less than 20 percent of the population living near the coast.E) B) and C)
F) None of the above

Question 19

In 2012, the imaginary nation of Dorados had a population of 8,000 and real GDP of 3,000,000. During the year its real GDP grew by about 2.9%. Which of the following sets of growth rates is consistent with this growth in real GDP?

Accepted Answer

A)   2% population growth and 6% real GDP growth
B)   6% population growth and 2% real GDP growth
C)   4% population growth and 7% real GDP growth
D)   7% population growth and 4% real GDP growthE) A) and C)
F) A) and D)

Question 20

National defense and knowledge are generally considered to be

Accepted Answer

A)   private goods.
B)   public goods.
C)   proprietary goods.
D)   societal goods.E) C) and D)
F) All of the above

Exam 17: Production and Growth

Other things the same, higher population growth

Correct Answer
verified

Countries with more than 80 percent of their population living within 100 kilometers of a coast will have an average GDP per person that is

Correct Answer
verified

Upland has a population of 15,000, of whom 9,000 work 8 hours a day to produce real output of $342,000. Lowland has a population of 8,000, of whom 7,000 work 7 hours a day to produce real output of $171,500.

Correct Answer
verified

Consider the nations of Canada, the United Kingdom, and the United States. Since 1870, which of these nations has progressed, in an economic sense, more slowly than the other two nations?

Correct Answer
verified
The United Kingdom's growth ra...
View Answer

What particularly important role do courts play in a market economy?

Correct Answer
verified
Courts enforce prope...
View Answer

Among the following countries, which one has the highest growth rate of real GDP per person over about the last 100 years?

Correct Answer
verified

National defense and knowledge are generally considered to be

Correct Answer
verified

Correct Answer
verified

Other things the same, domestic investment will increase a country's real GDP by more than foreign investment.

Correct Answer
verified

Your company discovers a better way to produce mousetraps, but your better methods are not apparent from the mousetraps themselves. Your knowledge of how to more efficiently produce mousetraps is

Correct Answer
verified

Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to compute the percentage increase in real GDP per person from 1993 to 2012.

Correct Answer
verified
Real GDP per person in 1993 wa...
View Answer

On a production function, as capital per worker increases, output per worker

Correct Answer
verified

If a production function has constant returns to scale, then if all inputs double so does production.

Correct Answer
verified

Given that a country's real output has increased, in which of the following cases can we be sure that its productivity also has increased?

Correct Answer
verified

Over the period 1900-2010, which of the following countries experienced the highest average annual growth rate of real GDP per person?

Correct Answer
verified

A management professor discovers a way for corporate management to operate more efficiently. He publishes his findings in a journal. His findings are

Correct Answer
verified

In medieval Europe an important technological advance was the use of the padded horse collar for plowing. Once this idea was thought of, other people used it. This illustrates that knowledge is generally a

Correct Answer
verified

In 2012, the imaginary nation of Dorados had a population of 8,000 and real GDP of 3,000,000. During the year its real GDP grew by about 2.9%. Which of the following sets of growth rates is consistent with this growth in real GDP?

Correct Answer
verified

In the long run, a higher saving rate

Correct Answer
verified

The United Kingdom is

Correct Answer
verified

Exam 17: Production and Growth

Other things the same, higher population growth

Correct AnswerverifiedShow Answer

Countries with more than 80 percent of their population living within 100 kilometers of a coast will have an average GDP per person that is

Correct AnswerverifiedShow Answer

Upland has a population of 15,000, of whom 9,000 work 8 hours a day to produce real output of $342,000. Lowland has a population of 8,000, of whom 7,000 work 7 hours a day to produce real output of $171,500.

Correct AnswerverifiedShow Answer

Consider the nations of Canada, the United Kingdom, and the United States. Since 1870, which of these nations has progressed, in an economic sense, more slowly than the other two nations?

Correct AnswerverifiedThe United Kingdom's growth ra...View AnswerShow Answer

What particularly important role do courts play in a market economy?

Correct AnswerverifiedCourts enforce prope...View AnswerShow Answer

Among the following countries, which one has the highest growth rate of real GDP per person over about the last 100 years?

Correct AnswerverifiedShow Answer

National defense and knowledge are generally considered to be

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Other things the same, domestic investment will increase a country's real GDP by more than foreign investment.

Correct AnswerverifiedShow Answer

Your company discovers a better way to produce mousetraps, but your better methods are not apparent from the mousetraps themselves. Your knowledge of how to more efficiently produce mousetraps is

Correct AnswerverifiedShow Answer

Use the data on U.S. real GDP below to compute real GDP per person for each year. Then use these numbers to compute the percentage increase in real GDP per person from 1993 to 2012.

Correct AnswerverifiedReal GDP per person in 1993 wa...View AnswerShow Answer

On a production function, as capital per worker increases, output per worker

Correct AnswerverifiedShow Answer

If a production function has constant returns to scale, then if all inputs double so does production.

Correct AnswerverifiedShow Answer

Given that a country's real output has increased, in which of the following cases can we be sure that its productivity also has increased?

Correct AnswerverifiedShow Answer

Over the period 1900-2010, which of the following countries experienced the highest average annual growth rate of real GDP per person?

Correct AnswerverifiedShow Answer

A management professor discovers a way for corporate management to operate more efficiently. He publishes his findings in a journal. His findings are

Correct AnswerverifiedShow Answer

In medieval Europe an important technological advance was the use of the padded horse collar for plowing. Once this idea was thought of, other people used it. This illustrates that knowledge is generally a

Correct AnswerverifiedShow Answer

In 2012, the imaginary nation of Dorados had a population of 8,000 and real GDP of 3,000,000. During the year its real GDP grew by about 2.9%. Which of the following sets of growth rates is consistent with this growth in real GDP?

Correct AnswerverifiedShow Answer

In the long run, a higher saving rate

Correct AnswerverifiedShow Answer

The United Kingdom is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The United Kingdom's growth ra...
View Answer

Correct Answer
verified
Courts enforce prope...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Real GDP per person in 1993 wa...
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