Question 1

Thomas Malthus's predictions turned out to be wrong due to

Accepted Answer

A)   technological advances such as those during the Industrial Revolution.
B)   smaller populations now than in the time of Malthus.
C)   the effects of brain-drain.
D)   unlimited natural resources.E) A) and D)
F) A) and C)

Question 2

In 2009 Buckeye Brewing produced 1,000 bottles of ginger ale each day.It employed 10 workers each working 8 hours a day.In 2010 it produced 960 bottles of ginger ale each day employing 8 workers who worked 8 hours each day.Productivity at Buckeye Brewing

Accepted Answer

A)   increased by 20%.
B)   increased by 16.67%.
C)   decreased by 1.67%.
D)   decreased by 40%.E) A) and D)
F) All of the above

Question 3

Which of the following statements is true?

Accepted Answer

A)   Productivity is calculated as hours worked divided by output produced.
B)   Americans have a higher standard of living than Indonesians because American workers are more productive than Indonesian workers.
C)   Both A and B are correct.
D)   None of the above are correct.E) A) and B)
F) All of the above

Question 4

Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,300 a ton.Over the same time a measure of the overall price level increased from 168 to 187.The price of iron ore increased by

Accepted Answer

A)   less than inflation,and this means it became relatively less scarce.
B)   less than inflation,and this means it became scarcer.
C)   more than inflation,and this means it became scarcer.
D)   more than inflation,but this doesn't necessarily mean that it become scarcer.E) A) and B)
F) A) and C)

Question 5

In recent decades,average income in some East Asian countries,such as South Korea,Singapore,and Taiwan,has risen about

Accepted Answer

A)   2 percent per year.
B)   4 percent per year.
C)   7 percent per year.
D)   10 percent per year.E) All of the above
F) A) and D)

Question 6

Productivity is defined as the quantity of

Accepted Answer

A)   labor required to produce a nation's GDP.
B)   labor required to produce one unit of goods and services.
C)   goods and services produced from each unit of labor input.
D)   goods and services produced per unit of time.E) A) and C)
F) A) and B)

Question 7

In a particular production process,if the quantities of all inputs used are increased by 60 percent,then the quantity of output increases by 60 percent as well.This means that

Accepted Answer

A)   the production process cannot be enhanced by technological advances.
B)   no mathematical representation of the relevant production function can be formulated.
C)   the relevant production function has the limits-to-growth property.
D)   the relevant production function has the constant-returns-to-scale property.E) A) and D)
F) A) and C)

Question 8

An organization that tries to encourage the flow of investment to poor countries is the

Accepted Answer

A)   World Bank.
B)   Organization of Less Developed Countries.
C)   Alliance of Developing Countries.
D)   International Development Alliance.E) B) and C)
F) A) and D)

Question 9

Roughly what percentage of growth in real GDP per person in Britain between 1790 and 1980 was accounted for by improved nutrition according to the estimates of Robert Fogel?

Accepted Answer

A)   30 percent
B)   20 percent
C)   10 percent
D)   5 percentE) B) and D)
F) C) and D)

Question 10

Industrial machinery is an example of

Accepted Answer

A)   a factor of production that in the past was an output from the production process.
B)   physical capital.
C)   something that influences productivity.
D)   All of the above are correct.E) A) and B)
F) None of the above

Question 11

If one wants to know how the material well-being of the average person has changed over time in a given country,one should look at the

Accepted Answer

A)   level of real GDP.
B)   growth rate of nominal GDP.
C)   growth rate of real GDP.
D)   growth rate of real GDP per person.E) A) and B)
F) A) and C)

Question 12

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

Accepted Answer

A)   real GDP per person must be higher in Oceania than in Freedonia.
B)   real GDP per person grew faster in Oceania than in Freedonia.
C)   the standard of living must be higher in Oceania than in Freedonia.
D)   All of the above are correct.E) B) and C)
F) All of the above

Question 13

Country A and country B are the same except country A currently has a lower level of capital.Assuming diminishing returns,if both countries increase their capital by 100 units and other factors that determine output are unchanged,then

Accepted Answer

A)   output in country A increases by more than in country B.
B)   output in country A increases by the same amount as in country B.
C)   output in country A increases by less than in country B.
D)   None of the above is necessarily correct.E) B) and D)
F) All of the above

Question 14

Productivity can be computed as the number of hours worked divided by output.

Accepted Answer

A) True 
 B)False

Question 15

Alexis and Tara both mine salt.Alexis mines 400 pounds in 40 hours.Tara mines 300 pounds in 20 hours.Which of the following is correct?

Accepted Answer

A)   Alexis's productivity is greater than Tara's.This difference could be explained by Alexis having more physical capital than Tara.
B)   Alexis's productivity is greater than Tara's.This difference cannot be explained by a difference in the physical capital each has.
C)   Tara's productivity is greater than Alexis's.This difference could be explained by Tara having more physical capital than Alexis.
D)   Tara's productivity is greater than Alexis's.This difference cannot be explained by a difference in the physical capital each has.E) All of the above
F) A) and D)

Question 16

In 2009,the imaginary nation of Florastan had a population of 8,300 and real GDP of 190,900.Florastan had 5% growth in real GDP per person.In 2010 it had a population of 8,400.What was real GDP in Florastan in 2010?

Accepted Answer

A)   200,445
B)   202,860
C)   198,059
D)   None of the above is correct.E) B) and C)
F) A) and B)

Question 17

The average income in a rich country

Accepted Answer

A)   is about 5 times that in a poor country.Further,people in rich countries have longer life expectancy.
B)   is about 5 times that in a poor country.However,people in rich countries have about the same life expectancy as those in poor countries.
C)   is more than ten times that in a poor country.Further,people in rich countries have longer life expectancy.
D)   is more than ten times that in poor country.However,people in rich countries have about the same life expectancy as those in poor countries.E) A) and C)
F) All of the above

Question 18

In which of the following cases can we be certain that a natural resource has become scarcer?

Accepted Answer

A)   both the demand for the resource and the supply of the resource have increased.
B)   both the demand for the resource and the supply of the resource have decreased.
C)   the demand for the resource has increased and the supply has decreased.
D)   the demand for the resource has decreased and the supply has increased.E) All of the above
F) None of the above

Question 19

If a country's saving rate declined,then other things the same,in the long run the country would have

Accepted Answer

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

Question 20

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 ...

Exam 17: Production and Growth

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

Alexis and Tara both mine salt.Alexis mines 400 pounds in 40 hours.Tara mines 300 pounds in 20 hours.Which of the following is correct?

Correct AnswerverifiedShow Answer

If one wants to know how the material well-being of the average person has changed over time in a given country,one should look at the

Correct AnswerverifiedShow Answer

In which of the following cases can we be certain that a natural resource has become scarcer?

Correct AnswerverifiedShow Answer

In a particular production process,if the quantities of all inputs used are increased by 60 percent,then the quantity of output increases by 60 percent as well.This means that

Correct AnswerverifiedShow Answer

Productivity is defined as the quantity of

Correct AnswerverifiedShow Answer

In 2009,the imaginary nation of Florastan had a population of 8,300 and real GDP of 190,900.Florastan had 5% growth in real GDP per person.In 2010 it had a population of 8,400.What was real GDP in Florastan in 2010?

Correct AnswerverifiedShow Answer

Thomas Malthus's predictions turned out to be wrong due to

Correct AnswerverifiedShow Answer

In 2009 Buckeye Brewing produced 1,000 bottles of ginger ale each day.It employed 10 workers each working 8 hours a day.In 2010 it produced 960 bottles of ginger ale each day employing 8 workers who worked 8 hours each day.Productivity at Buckeye Brewing

Correct AnswerverifiedShow Answer

If a country's saving rate declined,then other things the same,in the long run the country would have

Correct AnswerverifiedShow Answer

Industrial machinery is an example of

Correct AnswerverifiedShow Answer

An organization that tries to encourage the flow of investment to poor countries is the

Correct AnswerverifiedShow Answer

Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,300 a ton.Over the same time a measure of the overall price level increased from 168 to 187.The price of iron ore increased by

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

The average income in a rich country

Correct AnswerverifiedShow Answer

Productivity can be computed as the number of hours worked divided by output.

Correct AnswerverifiedShow Answer

Country A and country B are the same except country A currently has a lower level of capital.Assuming diminishing returns,if both countries increase their capital by 100 units and other factors that determine output are unchanged,then

Correct AnswerverifiedShow Answer

Roughly what percentage of growth in real GDP per person in Britain between 1790 and 1980 was accounted for by improved nutrition according to the estimates of Robert Fogel?

Correct AnswerverifiedShow Answer

In recent decades,average income in some East Asian countries,such as South Korea,Singapore,and Taiwan,has risen about

Correct AnswerverifiedShow Answer

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A production function is a mathematical ...
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