Question 1

Studies confirm that controlling for other variables such as the percentage of GDP devoted to investment, poor countries tend to grow at a faster rate than rich countries.

Accepted Answer

A) True 
 B)False

Question 2

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 ...

Question 3

In some East Asian countries, average income, as measured by real GDP per person, has recently grown at an average annual rate that implies output will double about every

Accepted Answer

A)   10 years.
B)   15 years.
C)   20 years.
D)   25 years.E) A) and B)
F) C) and D)

Question 4

Proprietary technology is knowledge that is

Accepted Answer

A)   known but no longer used much.
B)   known, but only recently discovered.
C)   known mostly by only those in a certain profession.
D)   known only by the company that discovered it.E) A) and D)
F) None of the above

Question 5

Which of the following is an example of a nonrenewable natural resource?

Accepted Answer

A)   tin
B)   petroleum
C)   gold
D)   All of the above are correct.E) None of the above
F) A) and B)

Question 6

Measured in 2010 dollars, real GDP per person in the United States in 2010 was about 14 times that in

Accepted Answer

A)   China.
B)   India.
C)   Indonesia.
D)   Pakistan.E) A) and D)
F) B) and D)

Question 7

Increases in both human capital per worker and physical capital per worker increase productivity.

Accepted Answer

A) True 
 B)False

Question 8

Is physical capital a produced factor of production? Is human capital a produced factor of production?

Accepted Answer

Both physical capita...

Question 9

You and your friend work together for 4 hours to produce a total of 8 bookcases. What is productivity?

Accepted Answer

A)   16 bookcases
B)   8 bookcases
C)   2 bookcases per hour
D)   1 bookcase per hourE) A) and D)
F) A) and B)

Question 10

Why does a nation's standard of living depend on property rights?

Accepted Answer

Property rights are an important prerequ...

Question 11

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) None of the above

Question 12

Human capital is the term economists use to refer to the knowledge and skills that workers acquire through education, training, and experience.

Accepted Answer

A) True 
 B)False

Question 13

Why do we refer to physical capital as a produced factor of production?

Accepted Answer

Physical capital originates as...

Question 14

Figure 25-1 
-Refer to Figure 21-1. In what way is the figure relevant to the catch-up effect?

Accepted Answer

The catch-up effect is observed when a r...

Question 15

Dilbert's Incorporated produced 6,000,000 units of software in 2010. At the start of 2011 the pointy­haired boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units. These number indicate that productivity

Accepted Answer

A)   fell by about 16.7%.
B)   stayed the same.
C)   rose by about 16.7%.
D)   rose by about 40%.E) B) and D)
F) B) and C)

Question 16

Explain the distinction between technological knowledge and human capital.

Accepted Answer

Technological knowledge refers...

Question 17

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

Accepted Answer

A)   foreign portfolio investment.
B)   foreign financial investment.
C)   foreign direct investment.
D)   indirect foreign investment.E) All of the above
F) None of the above

Question 18

Which of the following is true?

Accepted Answer

A)   Kremer argued that with greater population, society would generate more ideas so that growth of real GDP per person could continue. Malthus argued that increasing population would outstrip agricultural production.
B)   Kremer argued that increases in population would reduce the amount of human and physical capital per worker so that eventually the standard of living would decline. Malthus argued that increases in technology would allow increased output growth so that even with population growth, society would enjoy a higher standard of living.
C)   Malthus argued that with greater population, society would generate more ideas so that growth of real GDP per person could continue. Kremer argued that increasing population would outstrip agricultural production.
D)   Malthus argued that increases in population would reduce the amount of human and physical capital per worker so that eventually the standard of living would decline. Kremer argued that increases in technology would allow increased output growth so that even with population growth, society would enjoy a higher standard of living.E) A) and B)
F) All of the above

Question 19

In 2010, Acme Foods produced 300,000 bags of pretzels, employing 12,000 hours of labor. In 2011, it produced 322,000 bags of pretzels, employing 14,000 hours of labor. Acme Foods productivity

Accepted Answer

A)   decreased by 8%.
B)   was unchanged.
C)   increased by 6.8%.
D)   increased by 7.3%.E) None of the above
F) A) and C)

Question 20

Countries that pursued outward-oriented policies in the 20th century

Accepted Answer

A)   experienced lower rates of economic growth than did countries that pursued inward-oriented policies.
B)   experienced higher levels of political instability than did countries that pursued inward-oriented policies.
C)   include Singapore, South Korea, and Taiwan.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Exam 25: Production and Growth

Explain the distinction between technological knowledge and human capital.

Correct AnswerverifiedTechnological knowledge refers...View AnswerShow Answer

Is physical capital a produced factor of production? Is human capital a produced factor of production?

Correct AnswerverifiedBoth physical capita...View AnswerShow Answer

Why does a nation's standard of living depend on property rights?

Correct AnswerverifiedProperty rights are an important prerequ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

You and your friend work together for 4 hours to produce a total of 8 bookcases. What is productivity?

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

Increases in both human capital per worker and physical capital per worker increase productivity.

Correct AnswerverifiedShow Answer

Which of the following is an example of a nonrenewable natural resource?

Correct AnswerverifiedShow Answer

Which of the following is true?

Correct AnswerverifiedShow Answer

Why do we refer to physical capital as a produced factor of production?

Correct AnswerverifiedPhysical capital originates as...View AnswerShow Answer

In 2010, Acme Foods produced 300,000 bags of pretzels, employing 12,000 hours of labor. In 2011, it produced 322,000 bags of pretzels, employing 14,000 hours of labor. Acme Foods productivity

Correct AnswerverifiedShow Answer

Countries that pursued outward-oriented policies in the 20th century

Correct AnswerverifiedShow Answer

Studies confirm that controlling for other variables such as the percentage of GDP devoted to investment, poor countries tend to grow at a faster rate than rich countries.

Correct AnswerverifiedShow Answer

Proprietary technology is knowledge that is

Correct AnswerverifiedShow Answer

Figure 25-1 -Refer to Figure 21-1. In what way is the figure relevant to the catch-up effect?

Correct AnswerverifiedThe catch-up effect is observed when a r...View AnswerShow Answer

Dilbert's Incorporated produced 6,000,000 units of software in 2010. At the start of 2011 the pointy­haired boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units. These number indicate that productivity

Correct AnswerverifiedShow Answer

Human capital is the term economists use to refer to the knowledge and skills that workers acquire through education, training, and experience.

Correct AnswerverifiedShow Answer

Measured in 2010 dollars, real GDP per person in the United States in 2010 was about 14 times that in

Correct AnswerverifiedShow Answer

In some East Asian countries, average income, as measured by real GDP per person, has recently grown at an average annual rate that implies output will double about every

Correct AnswerverifiedShow Answer

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

Correct Answer
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Technological knowledge refers...
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Correct Answer
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Both physical capita...
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Correct Answer
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Property rights are an important prerequ...
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Physical capital originates as...
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified
The catch-up effect is observed when a r...
View Answer

Dilbert's Incorporated produced 6,000,000 units of software in 2010. At the start of 2011 the pointyhaired boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units. These number indicate that productivity

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A production function is a mathematical ...
View Answer