Question 1

Over the period 1890-2010, Japan experienced a 2.65 percent average annual growth rate of real GDP per person.

Accepted Answer

A) True 
 B)False

Question 2

An understanding of the best ways to produce goods and services is called

Accepted Answer

A)   human capital.
B)   physical capital.
C)   technology.
D)   productivity.E) B) and D)
F) B) and C)

Question 3

In recent decades, economic growth has been much more rapid in South Korea than in the United States. What is the likely explanation for this fact?

Accepted Answer

The likely explanati...

Question 4

Economists generally believe that policies such as reducing barriers to trade are likely to foster economic growth.

Accepted Answer

A) True 
 B)False

Question 5

Last year the imaginary nation of Panglossia had real GDP of 400 billion. This year it had real GDP of 472.5 billion. Which of the following changes in population is consistent with a 5 percent growth rate of real GDP per person over the last year?

Accepted Answer

A)   The population decreased from 75 million to 72 million.
B)   The population decreased from 60 million to 50 million.
C)   The population increased from 70 million to 80 million.
D)   The population increased from 80 million to 90 million.E) B) and C)
F) A) and D)

Question 6

Country A experienced a growth rate of real GDP per person of 0.5 percent per year throughout the 1900's. In view of other countries' experiences, country A's growth was

Accepted Answer

A)   exceptionally high.
B)   moderately high.
C)   moderately low.
D)   exceptionally low.E) B) and C)
F) A) and D)

Question 7

Megan is a landscaper. Which of the following are included in her physical capital?

Accepted Answer

A)   her knowledge of landscaping learned in college and her landscaping equipment
B)   her knowledge of landscaping learned in college, but not her landscaping equipment
C)   her landscaping equipment, but not her knowledge of landscaping learned in college
D)   neither her knowledge of landscaping learned in college nor her landscaping equipmentE) A) and C)
F) B) and D)

Question 8

Journey Motorcycles produced 100 motorcycles using 50 workers who each worked 8 hours a day. Journey's productivity was 1/4.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Over the past century in the United States, real GDP per person has grown, on average, by about

Accepted Answer

A)   1 percent per year.
B)   2 percent per year.
C)   3 percent per year.
D)   5 percent per year.E) A) and C)
F) All of the above

Question 11

A rapid increase in the number of workers, other things the same, is likely in the short term to

Accepted Answer

A)   raise real GDP per person, but decrease real GDP.
B)   decrease both real GDP and real GDP per person.
C)   raise both real GDP and real GDP per person.
D)   raise real GDP, but decrease real GDP per person.E) All of the above
F) A) and B)

Question 12

Although growth rates across countries vary some, rankings of countries by income remain pretty much the same over time.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements is correct?

Accepted Answer

A)   Productivity is a determinant of human capital per worker.
B)   Technological knowledge is a determinant of productivity.
C)   Human capital and technological knowledge are the same thing.
D)   All of the above are correct.E) None of the above
F) B) and C)

Question 14

Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,275 a ton. Over the same time a measure of the overall price level increased from 150 to 156. The price of iron ore increased by

Accepted Answer

A)   less than inflation, so it became less scarce.
B)   less than inflation, so it became more scarce.
C)   more than inflation, so it became more scarce.
D)   more than inflation, so it became less scarce.E) A) and B)
F) A) and C)

Question 15

If a production function has the property called , then doubling all inputs causes the amount of output to double as well.

Accepted Answer

constant r...

Question 16

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 D)
F) C) and D)

Question 17

Accumulating capital

Accepted Answer

A)   requires that society sacrifice consumption goods in the present.
B)   allows society to consume more in the present.
C)   decreases saving rates.
D)   involves no tradeoffs.E) B) and C)
F) All of the above

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) All of the above
F) B) and D)

Question 19

All else equal, which of the following would tend to cause real GDP per person to rise?

Accepted Answer

A)   a change from outward-oriented policies to inward-oriented policies
B)   an increase in investment in human capital
C)   a weakening of property rights
D)   All of the above are correct.E) C) and D)
F) None of the above

Question 20

Which of the following will increase a country's real GDP per person?

Accepted Answer

A)   imposing restrictions on foreign trade and foreign investment
B)   imposing restrictions on foreign trade and reducing restrictions on foreign investment
C)   reducing restrictions on foreign trade and imposing restrictions on foreign investment
D)   reducing restrictions on foreign trade and foreign investmentE) A) and D)
F) None of the above

Exam 25: Production and Growth

Economists generally believe that policies such as reducing barriers to trade are likely to foster economic growth.

Correct Answer
verified

Last year the imaginary nation of Panglossia had real GDP of 400 billion. This year it had real GDP of 472.5 billion. Which of the following changes in population is consistent with a 5 percent growth rate of real GDP per person over the last year?

Correct Answer
verified

Which of the following will increase a country's real GDP per person?

Correct Answer
verified

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

Correct Answer
verified

If a production function has the property called , then doubling all inputs causes the amount of output to double as well.

Correct Answer
verified
constant r...
View Answer

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

Correct Answer
verified

Journey Motorcycles produced 100 motorcycles using 50 workers who each worked 8 hours a day. Journey's productivity was 1/4.

Correct Answer
verified

Megan is a landscaper. Which of the following are included in her physical capital?

Correct Answer
verified

Which of the following statements is correct?

Correct Answer
verified

Over the past century in the United States, real GDP per person has grown, on average, by about

Correct Answer
verified

Country A experienced a growth rate of real GDP per person of 0.5 percent per year throughout the 1900's. In view of other countries' experiences, country A's growth was

Correct Answer
verified

Although growth rates across countries vary some, rankings of countries by income remain pretty much the same over time.

Correct Answer
verified

In recent decades, economic growth has been much more rapid in South Korea than in the United States. What is the likely explanation for this fact?

Correct Answer
verified
The likely explanati...
View Answer

Accumulating capital

Correct Answer
verified

A rapid increase in the number of workers, other things the same, is likely in the short term to

Correct Answer
verified

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

An understanding of the best ways to produce goods and services is called

Correct Answer
verified

Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,275 a ton. Over the same time a measure of the overall price level increased from 150 to 156. The price of iron ore increased by

Correct Answer
verified

Over the period 1890-2010, Japan experienced a 2.65 percent average annual growth rate of real GDP per person.

Correct Answer
verified

All else equal, which of the following would tend to cause real GDP per person to rise?

Correct Answer
verified

Exam 25: Production and Growth

Economists generally believe that policies such as reducing barriers to trade are likely to foster economic growth.

Correct AnswerverifiedShow Answer

Last year the imaginary nation of Panglossia had real GDP of 400 billion. This year it had real GDP of 472.5 billion. Which of the following changes in population is consistent with a 5 percent growth rate of real GDP per person over the last year?

Correct AnswerverifiedShow Answer

Which of the following will increase a country's real GDP per person?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If a production function has the property called , then doubling all inputs causes the amount of output to double as well.

Correct Answerverifiedconstant r...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

Journey Motorcycles produced 100 motorcycles using 50 workers who each worked 8 hours a day. Journey's productivity was 1/4.

Correct AnswerverifiedShow Answer

Megan is a landscaper. Which of the following are included in her physical capital?

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

Over the past century in the United States, real GDP per person has grown, on average, by about

Correct AnswerverifiedShow Answer

Country A experienced a growth rate of real GDP per person of 0.5 percent per year throughout the 1900's. In view of other countries' experiences, country A's growth was

Correct AnswerverifiedShow Answer

Although growth rates across countries vary some, rankings of countries by income remain pretty much the same over time.

Correct AnswerverifiedShow Answer

In recent decades, economic growth has been much more rapid in South Korea than in the United States. What is the likely explanation for this fact?

Correct AnswerverifiedThe likely explanati...View AnswerShow Answer

Accumulating capital

Correct AnswerverifiedShow Answer

A rapid increase in the number of workers, other things the same, is likely in the short term to

Correct AnswerverifiedShow Answer

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

An understanding of the best ways to produce goods and services is called

Correct AnswerverifiedShow Answer

Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,275 a ton. Over the same time a measure of the overall price level increased from 150 to 156. The price of iron ore increased by

Correct AnswerverifiedShow Answer

Over the period 1890-2010, Japan experienced a 2.65 percent average annual growth rate of real GDP per person.

Correct AnswerverifiedShow Answer

All else equal, which of the following would tend to cause real GDP per person to rise?

Correct AnswerverifiedShow Answer

Correct Answer
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constant r...
View Answer

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The likely explanati...
View Answer

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

Correct Answer
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Correct Answer
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