Question 1

The slope of the production function with capital per worker on the horizontal axis and output per worker on the vertical axis

Accepted Answer

A)   is positive and gets steeper as capital per worker rises.
B)   is positive and gets flatter as capital per worker rises.
C)   is negative and gets steeper as capital per worker rises.
D)   is negative and gets flatter as capital per worker rises.E) A) and D)
F) All of the above

Question 2

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

Question 3

Which of the following statements is correct?

Accepted Answer

A)   In the late 1800s, real GDP per person was higher in the United Kingdom than in the United States.
B)   In 2010, real GDP per person was higher in the United Kingdom than in the United States.
C)   The average annual growth rate of real GDP was higher in the United Kingdom than in the United States between the late 1800s and 2010.
D)   All of the above are correct.E) B) and D)
F) A) and B)

Question 4

Inventors often obtain patents on new products and processes, thereby turning new ideas into

Accepted Answer

A)   private goods and increasing the incentive to engage in research.
B)   private goods but decreasing the incentive to engage in research.
C)   public goods and increasing the incentive to engage in research.
D)   public goods but decreasing the incentive to engage in research.E) C) and D)
F) None of the above

Question 5

Which of the following would increase productivity?

Accepted Answer

A)   an increase in the physical capital stock per worker
B)   an increase in human capital per worker
C)   an increase in natural resources per worker
D)   All of the above are correct.E) All of the above
F) A) and B)

Question 6

Which of the following are residents of rich countries likely to have in greater quantities, or better quality, than residents of poor countries?

Accepted Answer

A)   housing
B)   healthcare
C)   life expectancy
D)   All of the above.E) A) and C)
F) None of the above

Question 7

Country A and country B both increase their capital stock by one unit. Output in country A increases by 10 while output in country B increases by 8. Other things the same, diminishing returns implies that country A is

Accepted Answer

A)   richer than Country B. If Country A adds another unit of capital, output will increase by more than 10 units.
B)   richer than Country B. If Country A adds another unit of capital, output will increase by less than 10 units.
C)   poorer than Country B. If Country A adds another unit of capital, output will increase by more than 10 units.
D)   poorer than Country B. If Country A adds another unit of capital, output will increase by less than 10 units.E) B) and C)
F) A) and B)

Question 8

In a market economy, we know that a resource has become scarcer when

Accepted Answer

A)   its price rises relative to other prices.
B)   it is non-renewable and some of it is used.
C)   people search for substitutes.
D)   All of the above are correct.E) None of the above
F) A) and B)

Question 9

Suppose a U.S. automaker builds and operates a new factory in Italy. Future production from such an investment will

Accepted Answer

A)   increase Italian GDP more than it increases Italian GNP.
B)   increase Italian GNP more than it increases Italian GDP.
C)   have no affect on Italian GNP, but will increase Italian GDP.
D)   have no affect on either Italian GDP or GNP.E) B) and C)
F) A) and D)

Question 10

What term do we use to refer to the understanding of the best ways to produce goods and services?

Accepted Answer

The term i...

Question 11

In which of the following countries has economic growth been sufficiently high that income would double every ten years?

Accepted Answer

A)   Singapore
B)   Nigeria
C)   India
D)   IndonesiaE) B) and C)
F) All of the above

Question 12

Over the period 1870-2010, the United States experienced an average annual growth rate of real GDP per person of about 4 percent per year.

Accepted Answer

A) True 
 B)False

Question 13

Gramp's Potato Chips produces 2560 bags of potato chips a day. Each employee at Gramp's works 8 hours. If the company's productivity is 20 bags per hour, how many people does Gramp's employ?

Accepted Answer

A)   8
B)   16
C)   24
D)   None of the above is correct.E) A) and B)
F) B) and D)

Question 14

Educational attainment tends to be

Accepted Answer

A)   low in countries with high population growth.
B)   low in countries with low population growth.
C)   high in countries with high population growth.
D)   None of the above are true.E) B) and D)
F) B) and C)

Question 15

Scenario 25-1. An economy's production form takes the form Y = AFL, K, H, N) .
-Refer to Scenario 25-1. K represents the quantity of

Accepted Answer

A)   human capital only.
B)   physical capital only.
C)   human capital and physical capital combined.
D)   nonrenewable natural resources.E) A) and B)
F) A) and D)

Question 16

If an American-based firm opens and operates a new clothing factory in Honduras, then it is engaging in

Accepted Answer

A)   foreign portfolio investment.
B)   foreign financial investment.
C)   foreign direct investment.
D)   indirect foreign investment.E) A) and B)
F) B) and C)

Question 17

Scenario 25-1. An economy's production form takes the form Y = AFL, K, H, N) .
-Refer to Scenario 25-1. In the production function, which of the following represents technology?

Accepted Answer

A)   A
B)   K
C)   H
D)   NE) All of the above
F) B) and C)

Question 18

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 B)
F) A) and C)

Question 19

Which of the following is an example of human capital?

Accepted Answer

A)   textbooks
B)   hand held power tools
C)   knowing how to repair cars
D)   All of the above are correct.E) B) and C)
F) C) and D)

Question 20

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

Accepted Answer

A)   for an accounting firm: the accountants' knowledge of tax laws and computer software
B)   for a grocery store: grocery carts and shelving
C)   for a school: chalkboard and desks
D)   for a library: the building and the reference librarians' knowledge of the InternetE) None of the above
F) B) and C)

Exam 17: Production and Growth

Over the period 1870-2010, the United States experienced an average annual growth rate of real GDP per person of about 4 percent per year.

Correct AnswerverifiedShow Answer

Which of the following are residents of rich countries likely to have in greater quantities, or better quality, than residents of poor countries?

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Inventors often obtain patents on new products and processes, thereby turning new ideas into

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Scenario 25-1. An economy's production form takes the form Y = AFL, K, H, N) . -Refer to Scenario 25-1. In the production function, which of the following represents technology?

Correct AnswerverifiedShow Answer

If an American-based firm opens and operates a new clothing factory in Honduras, then it is engaging in

Correct AnswerverifiedShow Answer

Educational attainment tends to be

Correct AnswerverifiedShow Answer

Scenario 25-1. An economy's production form takes the form Y = AFL, K, H, N) . -Refer to Scenario 25-1. K represents the quantity of

Correct AnswerverifiedShow Answer

The slope of the production function with capital per worker on the horizontal axis and output per worker on the vertical axis

Correct AnswerverifiedShow Answer

In which of the following countries has economic growth been sufficiently high that income would double every ten years?

Correct AnswerverifiedShow Answer

In a market economy, we know that a resource has become scarcer when

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Suppose a U.S. automaker builds and operates a new factory in Italy. Future production from such an investment will

Correct AnswerverifiedShow Answer

Country A and country B both increase their capital stock by one unit. Output in country A increases by 10 while output in country B increases by 8. Other things the same, diminishing returns implies that country A is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What term do we use to refer to the understanding of the best ways to produce goods and services?

Correct AnswerverifiedThe term i...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is an example of human capital?

Correct AnswerverifiedShow Answer

Which of the following would increase productivity?

Correct AnswerverifiedShow Answer

Gramp's Potato Chips produces 2560 bags of potato chips a day. Each employee at Gramp's works 8 hours. If the company's productivity is 20 bags per hour, how many people does Gramp's employ?

Correct AnswerverifiedShow Answer

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The term i...
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