Question 1

The equipment and structures available to produce goods and services are called

Accepted Answer

A)  physical capital.
B)  human capital.
C)  the production function.
D)  technology.E) B) and D)
F) A) and C)

Question 2

Which of the following is correct?

Accepted Answer

A)  Although levels of real GDP per person vary substantially from country to country, the growth rate of real GDP per person is similar across countries.
B)  Productivity is not closely linked to government policies.
C)  The level of real GDP per person is a good gauge of economic prosperity, and the growth rate of real GDP per person is a good gauge of economic progress.
D)  Productivity may be measured by the growth rate of real GDP per person.E) C) and D)
F) B) and D)

Question 3

The catch-up effect says that countries with low income can grow faster than countries with higher income. However, in statistical studies that include many diverse countries we do not observe the catch-up-effect unless we control for other variables that affect productivity. Considering the determinants of productivity, list and explain some things that would tend to prohibit or limit a poor country's ability to catch up with the rich ones.

Accepted Answer

The argument that poor countries will te...

Question 4

Which of the following is not correct?

Accepted Answer

A)  Countries that have had higher output growth per person have typically done so without higher productivity growth.
B)  A country's standard of living and its productivity are closely related.
C)  Productivity refers to output produced per hour of work.
D)  Increases in productivity can be used to increase output or leisure.E) C) and D)
F) B) and C)

Question 5

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

Question 6

An increase in capital increases productivity only if it is purchased and operated by domestic residents.

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

Which of the following statements is true?

Accepted Answer

A)  Natural resources per worker influence productivity only when those natural resources are renewable.
B)  The prices of most natural resources are stable or falling relative to other prices.
C)  Technology requires greater use of natural resources.
D)  The terms human capital and technological knowledge are used interchangeably.E) A) and D)
F) A) and C)

Question 9

Compare and contrast the population theories of Malthus and Kremer.

Accepted Answer

The difference is that Malthus predicted...

Question 10

Japan 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) None of the above
F) A) and B)

Question 11

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 D)

Question 12

Consider the nations of India, Indonesia, and Japan. Over the past century, which of these three nations has experienced, by far, more rapid economic growth than the other two nations?

Accepted Answer

Japan's growth rate (2.65 perc...

Question 13

Suppose a country increases trade restrictions. This country would be pursing an

Accepted Answer

A)  inward policy, which most economists believe has beneficial effects on the economy.
B)  inward policy, which most economists believe has adverse effects on the economy.
C)  outward policy, which most economists believe has beneficial effects on the economy.
D)  outward policy, which most economists believe has adverse effects on the economy.E) None of the above
F) A) and D)

Question 14

In the fourteenth century it is estimated that deaths resulting from the bubonic plague reduced the population by about a third. Assuming diminishing returns, the decrease in population should have

Accepted Answer

A)  increased productivity and real GDP per person.
B)  increased productivity but decreased real GDP per person.
C)  increased real GDP per person, but decreased productivity.
D)  decreased productivity and real GDP per person.E) All of the above
F) C) and D)

Question 15

In the production function  , which symbol reflects the state of technology?

Accepted Answer

A)  A
B)  K
C)  H
D)  NE) B) and C)
F) A) and B)

Question 16

If natural resources had become scarcer, then we would expect their

Accepted Answer

A)  prices to have risen more than inflation as they have.
B)  prices to have risen more than inflation, but they have not.
C)  known quantities to have fallen as they have.
D)  known quantities to have fallen but they have not.E) B) and C)
F) A) and D)

Question 17

Explain the distinction between technological knowledge and human capital.

Accepted Answer

Technological knowledge refers...

Question 18

According to research by Robert Fogel, people in Britain grew taller because of

Accepted Answer

A)  genetics. However this increase in height had no effect on productivity.
B)  genetics. This increase in height is associated with higher productivity.
C)  higher caloric intake. However, this increase in height had no effect on productivity.
D)  higher caloric intake. This increase in height is associated with higher productivity.E) A) and C)
F) A) and B)

Question 19

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 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) All of the above
F) A) and C)

Exam 25: Production and Growth

Explain the distinction between technological knowledge and human capital.

Correct Answer
verified
Technological knowledge refers...
View Answer

The equipment and structures available to produce goods and services are called

Correct Answer
verified

Correct Answer
verified
The argument that poor countries will te...
View Answer

Which of the following is an example of human capital?

Correct Answer
verified

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

Correct Answer
verified

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 Answer
verified

Which of the following is correct?

Correct Answer
verified

Which of the following is not correct?

Correct Answer
verified

Suppose a country increases trade restrictions. This country would be pursing an

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

Consider the nations of India, Indonesia, and Japan. Over the past century, which of these three nations has experienced, by far, more rapid economic growth than the other two nations?

Correct Answer
verified
Japan's growth rate (2.65 perc...
View Answer

An increase in capital increases productivity only if it is purchased and operated by domestic residents.

Correct Answer
verified

Which of the following statements is true?

Correct Answer
verified

According to research by Robert Fogel, people in Britain grew taller because of

Correct Answer
verified

Japan is

Correct Answer
verified

If natural resources had become scarcer, then we would expect their

Correct Answer
verified

In the production function , which symbol reflects the state of technology?

Correct Answer
verified

In the fourteenth century it is estimated that deaths resulting from the bubonic plague reduced the population by about a third. Assuming diminishing returns, the decrease in population should have

Correct Answer
verified

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

Correct Answer
verified

Compare and contrast the population theories of Malthus and Kremer.

Correct Answer
verified
The difference is that Malthus predicted...
View Answer

Exam 25: Production and Growth

Explain the distinction between technological knowledge and human capital.

Correct AnswerverifiedTechnological knowledge refers...View AnswerShow Answer

The equipment and structures available to produce goods and services are called

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe argument that poor countries will te...View AnswerShow Answer

Which of the following is an example of human capital?

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

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

Which of the following is correct?

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Suppose a country increases trade restrictions. This country would be pursing an

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

Consider the nations of India, Indonesia, and Japan. Over the past century, which of these three nations has experienced, by far, more rapid economic growth than the other two nations?

Correct AnswerverifiedJapan's growth rate (2.65 perc...View AnswerShow Answer

An increase in capital increases productivity only if it is purchased and operated by domestic residents.

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

According to research by Robert Fogel, people in Britain grew taller because of

Correct AnswerverifiedShow Answer

Japan is

Correct AnswerverifiedShow Answer

If natural resources had become scarcer, then we would expect their

Correct AnswerverifiedShow Answer

In the production function , which symbol reflects the state of technology?

Correct AnswerverifiedShow Answer

In the fourteenth century it is estimated that deaths resulting from the bubonic plague reduced the population by about a third. Assuming diminishing returns, the decrease in population should have

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Compare and contrast the population theories of Malthus and Kremer.

Correct AnswerverifiedThe difference is that Malthus predicted...View AnswerShow Answer

Correct Answer
verified
Technological knowledge refers...
View Answer

Correct Answer
verified

Correct Answer
verified
The argument that poor countries will te...
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
Japan's growth rate (2.65 perc...
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
The difference is that Malthus predicted...
View Answer