Question 1

Country A has twice as many workers as Country B. Country A also has twice as much physical capital, twice as much human capital, and access to twice as many natural resources as Country B. Assuming constant-returns to scale, which of the following is higher in Country A?

Accepted Answer

A)   both output per worker and productivity
B)   output per worker but not productivity
C)   productivity but not output per worker
D)   neither productivity nor output per workerE) C) and D)
F) All of the above

Question 2

If the price of a good has risen over time,

Accepted Answer

A)   it must have become more scarce.
B)   it must have become less scarce.
C)   it has become more scarce only if the price adjusted for inflation has risen.
D)   it has become less scarce only if the price adjusted for inflation has risen.E) None of the above
F) A) and B)

Question 3

Over the last 140 years or so, on average Canada's real GDP per­person grew faster than that of the U.K.

Accepted Answer

A) True 
 B)False

Question 4

In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 500,000. In 2011 it had a population of 5,100 and real GDP of 520,200. During 2011 real GDP per person in Bovina grew by

Accepted Answer

A)   2 percent, which is high compared to average U.S. growth over the last one-hundred years.
B)   2 percent, which is about the same as average U.S. growth over the last one-hundred years.
C)   4 percent, which is high compared to average U.S. growth over the last one-hundred years.
D)   4 percent, which is about the same as average U.S. growth over the last one-hundred years.E) B) and D)
F) A) and B)

Question 5

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 B)
F) None of the above

Question 6

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 7

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

Question 8

Last year real GDP per person in the imaginary nation of Olympus was 4,250. The year before it was 4,100. By about what percentage did Olympian real GDP per person grow during the period?

Accepted Answer

A)   1.6 percent
B)   2.5 percent
C)   3.7 percent
D)   6 percentE) A) and D)
F) A) and B)

Question 9

Petroleum is an example of a nonrenewable resource.

Accepted Answer

A) True 
 B)False

Question 10

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) None of the above
F) All of the above

Question 11

The average income in a rich country, such as the United States or Japan, is more than

Accepted Answer

A)   3 times, but less than 5 times, the average income in a poor country, such as Indonesia or Nigeria.
B)   5 times, but less than 10 times, the average income in a poor country, such as Indonesia or Nigeria.
C)   10 times, but less than 20 times, the average income in a poor country, such as Indonesia or Nigeria.
D)   more than 20 times the average income in a poor country, such as Indonesia or Nigeria.E) B) and D)
F) All of the above

Question 12

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) A) and B)

Question 13

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

Accepted Answer

A)   India
B)   Mexico
C)   South Korea
D)   ZimbabweE) A) and D)
F) A) and C)

Question 14

The dictator of Turan has recently begun to arbitrarily seize farms belonging to his political opponents, and he has given the farms to his friends. His friends don't know much about farming. The courts in Turan have ruled that the seizures are illegal, but the dictator has ignored the rulings. Other things equal, we would expect that the growth rate in Turan will

Accepted Answer

A)   fall temporarily, but will return to where it was when the new owners learn how to farm.
B)   increase because the total amount of human capital in the country will increase as the new owners learn how to farm.
C)   fall and remain lower for a long time.
D)   not be affected unless widespread civil disorder or civil war results.E) A) and D)
F) None of the above

Question 15

Susan and Calvin paint houses. Susan consistently paints about 400 square feet of a house's exterior per hour, while Calvin consistently paints about 300 square feet per hour. Susan's exceeds that of Calvin.

Accepted Answer

The answer of Susan and Calvin paint houses. Susan consistently...

Question 16

Other things the same, if a country raises its saving rate, when is productivity growth higher?

Accepted Answer

A)   as the economy moves toward the long run and in the long run.
B)   as the economy moves toward the long run, but not in the long run.
C)   in the long run, but not as the economy moves toward the long run.
D)   neither as the economy moves toward the long run, nor in the long run.E) A) and C)
F) A) and D)

Question 17

Which of the following countries had the highest growth rate over about the last 100 years?

Accepted Answer

A)   Japan
B)   China
C)   Germany
D)   United StatesE) B) and C)
F) A) and D)

Question 18

Which of the following is a good gauge of economic progress?

Accepted Answer

A)   the level of real GDP per person, but not the growth rate of real GDP per person
B)   the level of real GDP per person and the growth rate of real GDP per person
C)   the growth rate of real GDP per person, but not the level of real GDP per person
D)   neither the level nor the growth rate of real GDP per personE) All of the above
F) B) and D)

Question 19

In 2012, the imaginary nation of Kanmiw had a population of 8,044 and real GDP of 36,198,000. In 2013 it had a population of 7,800 and real GDP of 35,880,000. What was the growth rate of real GDP per person in Kanmiw between 2012 and 2013?

Accepted Answer

A)   -2.2 percent
B)   -0.7 percent
C)   2.2 percent
D)   4.5 percentE) None of the above
F) A) and D)

Question 20

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

Exam 12: Production and Growth

If the price of a good has risen over time,

Correct Answer
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The average income in a rich country, such as the United States or Japan, is more than

Correct Answer
verified

Petroleum is an example of a nonrenewable resource.

Correct Answer
verified

In 2012, the imaginary nation of Kanmiw had a population of 8,044 and real GDP of 36,198,000. In 2013 it had a population of 7,800 and real GDP of 35,880,000. What was the growth rate of real GDP per person in Kanmiw between 2012 and 2013?

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

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

Correct Answer
verified

Country A has twice as many workers as Country B. Country A also has twice as much physical capital, twice as much human capital, and access to twice as many natural resources as Country B. Assuming constant-returns to scale, which of the following is higher in Country A?

Correct Answer
verified

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

Correct Answer
verified

Japan is

Correct Answer
verified

Over the last 140 years or so, on average Canada's real GDP perperson grew faster than that of the U.K.

Correct Answer
verified

Susan and Calvin paint houses. Susan consistently paints about 400 square feet of a house's exterior per hour, while Calvin consistently paints about 300 square feet per hour. Susan's exceeds that of Calvin.

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

Last year real GDP per person in the imaginary nation of Olympus was 4,250. The year before it was 4,100. By about what percentage did Olympian real GDP per person grow during the period?

Correct Answer
verified

Other things the same, if a country raises its saving rate, when is productivity growth higher?

Correct Answer
verified

Which of the following countries had the highest growth rate over about the last 100 years?

Correct Answer
verified

Which of the following is a good gauge of economic progress?

Correct Answer
verified

In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 500,000. In 2011 it had a population of 5,100 and real GDP of 520,200. During 2011 real GDP per person in Bovina grew by

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

Exam 12: Production and Growth

If the price of a good has risen over time,

Correct AnswerverifiedShow Answer

The average income in a rich country, such as the United States or Japan, is more than

Correct AnswerverifiedShow Answer

Petroleum is an example of a nonrenewable resource.

Correct AnswerverifiedShow Answer

In 2012, the imaginary nation of Kanmiw had a population of 8,044 and real GDP of 36,198,000. In 2013 it had a population of 7,800 and real GDP of 35,880,000. What was the growth rate of real GDP per person in Kanmiw between 2012 and 2013?

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

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

Correct AnswerverifiedShow Answer

Country A has twice as many workers as Country B. Country A also has twice as much physical capital, twice as much human capital, and access to twice as many natural resources as Country B. Assuming constant-returns to scale, which of the following is higher in Country A?

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?

Correct AnswerverifiedShow Answer

Japan is

Correct AnswerverifiedShow Answer

Over the last 140 years or so, on average Canada's real GDP per­person grew faster than that of the U.K.

Correct AnswerverifiedShow Answer

Susan and Calvin paint houses. Susan consistently paints about 400 square feet of a house's exterior per hour, while Calvin consistently paints about 300 square feet per hour. Susan's exceeds that of Calvin.

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

Last year real GDP per person in the imaginary nation of Olympus was 4,250. The year before it was 4,100. By about what percentage did Olympian real GDP per person grow during the period?

Correct AnswerverifiedShow Answer

Other things the same, if a country raises its saving rate, when is productivity growth higher?

Correct AnswerverifiedShow Answer

Which of the following countries had the highest growth rate over about the last 100 years?

Correct AnswerverifiedShow Answer

Which of the following is a good gauge of economic progress?

Correct AnswerverifiedShow Answer

In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 500,000. In 2011 it had a population of 5,100 and real GDP of 520,200. During 2011 real GDP per person in Bovina grew by

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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

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Correct Answer
verified

Over the last 140 years or so, on average Canada's real GDP perperson grew faster than that of the U.K.

Correct Answer
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Correct Answer
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Correct Answer
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