Question 1

Which of the following are human capital and physical capital, respectively?

Accepted Answer

A)   for a brick layer: her bricks and her tools
B)   for a gas station: the pumps and the cash register
C)   for a restaurant: the chefs' knowledge about preparing food and the equipment in the kitchen
D)   for a medical office: the building and the doctors' knowledge of medicineE) None of the above
F) A) and C)

Question 2

Other things the same, if a country raises its saving rate, then in the long run

Accepted Answer

A)   both the level and growth rate of real GDP are unchanged.
B)   the level of real GDP is higher but the growth rate of real GDP is unchanged.
C)   both the level and growth rate of real GDP are higher.
D)   None of the above are correct.E) A) and D)
F) A) and B)

Question 3

Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over about the last 120 years?

Accepted Answer

A)   Germany and Japan
B)   Indonesia and Bangladesh
C)   the United States and Argentina
D)   Mexico and PakistanE) A) and B)
F) A) and C)

Question 4

Real GDP per person in rich countries, such as Germany, is sometimes more than 10 times that of poor countries like India.

Accepted Answer

A) True 
 B)False

Question 5

Country A had a population of 2,000, of whom 1,300 worked an average of 8 hours a day and had a productivity of 5.Country B had a population of 2,500, of whom 1,700 worked 8 hours a day and had productivity of 4. Country

Accepted Answer

A)   A had the higher level of real GDP and real GDP per person.
B)   A had the higher level of real GDP and Country B had the higher level of real GDP per person
C)   B had the higher level of real GDP and Country A had the higher level of real GDP per person
D)   B had the higher level of real GDP and real GDP per person.E) C) and D)
F) B) and C)

Question 6

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) C) and D)

Question 7

Patents turn new ideas into

Accepted Answer

A)   public goods, and increase the incentive to engage in research.
B)   public goods, but decrease the incentive to engage in research.
C)   private goods, and increase the incentive to engage in research.
D)   private goods, but decrease the incentive to engage in research.E) A) and B)
F) A) and C)

Question 8

Over the period 1890-2010, Japan experienced a 2.65 percent average annual growth rate of real GDP per person.

Accepted Answer

A) True 
 B)False

Question 9

Over the period 1900­2010, Brazil's rate of economic growth exceeded that of China.

Accepted Answer

A) True 
 B)False

Question 10

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) A) and B)
F) A) and C)

Question 11

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) B) and D)

Question 12

Which of the following is correct?

Accepted Answer

A)   There is no debate about the effects of higher population growth on economic growth.
B)   Natural resources clearly place limits on growth; there is simply no way to reduce either the amount or type of natural resources needed to produce goods.
C)   How much an increase in capital increases a country's output is independent of that country's current level of capital.
D)   Economists argue that outward rather than inward policies are likely to promote economic growth.E) B) and D)
F) C) and D)

Question 13

Which of the following is an example of a produced factor of production?

Accepted Answer

A)   corn that is harvested from a field in Iowa
B)   workers who are hired at a coal mine in West Virginia
C)   skills that teachers in Texas acquire through continuing-education classes
D)   All of the above are correct.E) B) and C)
F) A) and D)

Question 14

Which of the following best describes the response of output as time passes to an increase in the saving rate?

Accepted Answer

A)   The growth rate of output does not change.
B)   The growth rate of output increases and gets even larger as time passes.
C)   The growth rate of output increases and does not change as time passes.
D)   The growth rate of output increases, but diminishes to its former level as time passes.E) A) and D)
F) None of the above

Question 15

In 2012, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its real GDP per person grew by about 1.94%. Which of the following sets of growth rates is consistent with this growth in real GDP per person?

Accepted Answer

A)   3% population growth and 4% real GDP growth
B)   3% population growth and 5% real GDP growth
C)   6% population growth and 4% real GDP growth
D)   6% population growth and 5% real GDP growthE) A) and B)
F) A) and C)

Question 16

If your company opens and operates a branch in a foreign country, your company engages in foreign direct investment.

Accepted Answer

A) True 
 B)False

Question 17

Over the last ten years productivity grew faster in Mapoli than in Romeria while the population and total hours worked remained the same in both countries. It follows that

Accepted Answer

A)   real GDP per person grew faster in Mapoli than in Romeria.
B)   real GDP per person must be higher in Mapoli than in Romeria.
C)   the standard of living must be higher in Mapoli than in Romeria.
D)   All of the above are correct.E) None of the above
F) A) and B)

Question 18

If a country increases its saving rate, which of the following permanently grow at a higher rate?

Accepted Answer

A)   productivity and real GDP per person
B)   productivity but not real GDP per person
C)   real GDP per person but not productivity
D)   neither real GDP per person nor productivityE) A) and B)
F) All of the above

Question 19

Apple founder Steve Jobs received patents on many of his ideas. While the patents existed, his ideas were

Accepted Answer

A)   public goods and proprietary knowledge.
B)   public goods but not proprietary knowledge.
C)   private goods and proprietary knowledge.
D)   private goods but not proprietary knowledge.E) A) and C)
F) B) and D)

Question 20

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Accepted Answer

A)   most economists do not regard the availability of natural resources as a determinant of productivity.
B)   the quantity of natural resources does not enter into any production function.
C)   inflation-adjusted prices of most natural resources have been stable or fallen over time.
D)   inflation-adjusted prices of most natural resources have risen over time.E) A) and B)
F) C) and D)

Exam 12: Production and Growth

If a country increases its saving rate, which of the following permanently grow at a higher rate?

Correct AnswerverifiedShow Answer

Which of the following best describes the response of output as time passes to an increase in the saving rate?

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Which of the following is an example of a produced factor of production?

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Over the period 1900­2010, Brazil's rate of economic growth exceeded that of China.

Correct AnswerverifiedShow Answer

Over the last ten years productivity grew faster in Mapoli than in Romeria while the population and total hours worked remained the same in both countries. It follows that

Correct AnswerverifiedShow Answer

Over the period 1890-2010, Japan experienced a 2.65 percent average annual growth rate of real GDP per person.

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

Which of the following is correct?

Correct AnswerverifiedShow Answer

In 2012, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its real GDP per person grew by about 1.94%. Which of the following sets of growth rates is consistent with this growth in real GDP per person?

Correct AnswerverifiedShow Answer

Inward-oriented policies

Correct AnswerverifiedShow Answer

Which of the following are human capital and physical capital, respectively?

Correct AnswerverifiedShow Answer

Other things the same, if a country raises its saving rate, then in the long run

Correct AnswerverifiedShow Answer

Apple founder Steve Jobs received patents on many of his ideas. While the patents existed, his ideas were

Correct AnswerverifiedShow Answer

Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over about the last 120 years?

Correct AnswerverifiedShow Answer

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Correct AnswerverifiedShow Answer

Patents turn new ideas into

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Country A had a population of 2,000, of whom 1,300 worked an average of 8 hours a day and had a productivity of 5.Country B had a population of 2,500, of whom 1,700 worked 8 hours a day and had productivity of 4. Country

Correct AnswerverifiedShow Answer

Real GDP per person in rich countries, such as Germany, is sometimes more than 10 times that of poor countries like India.

Correct AnswerverifiedShow Answer

If your company opens and operates a branch in a foreign country, your company engages in foreign direct investment.

Correct AnswerverifiedShow Answer

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Over the period 19002010, Brazil's rate of economic growth exceeded that of China.

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