Question 1

Thomas Malthus argued that

Accepted Answer

A) population growth in the future would be subject to diminishing returns. 
B) an ever increasing population is constrained only by the food supply, resulting in chronic famines. 
C) technological progress will continuously generate improvements in productivity and living standards. 
D) labour is the only true factor of production. 
E) private charities and government aid will improve the welfare of the poor. 
A) population growth in the future would be subject to diminishing returns. 
B) an ever increasing population is constrained only by the food supply, resulting in chronic famines. 
C) technological progress will continuously generate improvements in productivity and living standards. 
D) labour is the only true factor of production. 
E) private charities and government aid will improve the welfare of the poor.

Question 2

Suppose everyone working the land in Exland knows the usefulness of investing in land irrigation systems.Those who work the land may choose not to invest in these profitable irrigation systems as long as

Accepted Answer

A) the investment is too expensive. 
B) the natural climate, such as abundant rain, makes the irrigation projects unnecessary. 
C) their property rights, with respect to the land, are subject to change. 
D) the government dictates the choice of investment. 
A) the investment is too expensive. 
B) the natural climate, such as abundant rain, makes the irrigation projects unnecessary. 
C) their property rights, with respect to the land, are subject to change. 
D) the government dictates the choice of investment.

Question 3

In addition to investment in physical and human capital, what other public policies might a country adopt to increase productivity?

Accepted Answer

In addition to investment in physical an

Question 4

Which of the following expenditures to enhance productivity is most likely to convey a positive externality?

Accepted Answer

A) FNB buys a new computer. 
B) Lebo pays her university tuition fees. 
C) SASOL leases a new oil field. 
D) General Motors buys a new drill press. 
A) FNB buys a new computer. 
B) Lebo pays her university tuition fees. 
C) SASOL leases a new oil field. 
D) General Motors buys a new drill press.

Question 5

Poor countries often have a difficult time attracting foreign direct investment funds because

Accepted Answer

A) wages are low in poor countries. 
B) investment risks are quite low in poor countries, so rates of return are low. 
C) property rights are not protected, so investors fear their property may be confiscated. 
D) All of the above are correct. 
A) wages are low in poor countries. 
B) investment risks are quite low in poor countries, so rates of return are low. 
C) property rights are not protected, so investors fear their property may be confiscated. 
D) All of the above are correct.

Question 6

Some economists argue that it is possible to raise the standard of living by reducing population growth.As an economist interested in incentives rather than coercion, what kind of policy would you recommend to slow population growth?

Accepted Answer

Since bearing a child has an opportunity

Question 7

Why is productivity related to the standard of living? In your answer be sure to explain what productivity and standard of living mean.Make a list of things that determine labour productivity.

Accepted Answer

The standard of living is a measure of h

Question 8

South Africa should grow faster than Lesotho because South Africa has a larger economy.

Accepted Answer

A) True 
 B)False

Question 9

If a production function exhibits constant returns to scale, then doubling all of the inputs doubles output.

Accepted Answer

A) True 
 B)False

Question 10

How do outward-oriented policies affect a nation's productivity?

Accepted Answer

Most economists believe that poor nation

Question 11

Which of the following represents a productivity-enhancing investment in human capital?

Accepted Answer

A) A new labour-saving technology. 
B) A new health clinic. 
C) A new factory that will employ 1 000 workers. 
D) An increase in fringe benefits, such as paid vacations and overtime pay. 
A) A new labour-saving technology. 
B) A new health clinic. 
C) A new factory that will employ 1 000 workers. 
D) An increase in fringe benefits, such as paid vacations and overtime pay.

Question 12

The opportunity cost of growth is

Accepted Answer

A) a reduction in current investment. 
B) a reduction in current consumption. 
C) a reduction in taxes. 
D) a reduction in current saving. 
A) a reduction in current investment. 
B) a reduction in current consumption. 
C) a reduction in taxes. 
D) a reduction in current saving.

Question 13

Once a country is wealthy,

Accepted Answer

A) it no longer needs any human capital. 
B) capital becomes more productive due to the "catch-up effect." 
C) None of these answers. 
D) it may be harder for it to grow quickly because of the diminishing returns to capital. 
E) it is nearly impossible for it to become relatively poorer. 
A) it no longer needs any human capital. 
B) capital becomes more productive due to the "catch-up effect." 
C) None of these answers. 
D) it may be harder for it to grow quickly because of the diminishing returns to capital. 
E) it is nearly impossible for it to become relatively poorer.

Question 14

In poorer countries, some investments in human capital may not be made because

Accepted Answer

A) of shortages of water and other natural resources. 
B) families need their children to work, to grow food, and/or to earn income. 
C) investment in physical capital is more important. 
D) they rarely lead to long-term economic growth. 
A) of shortages of water and other natural resources. 
B) families need their children to work, to grow food, and/or to earn income. 
C) investment in physical capital is more important. 
D) they rarely lead to long-term economic growth.

Question 15

When a nation has very little GDP per capita,

Accepted Answer

A) it is doomed to being relatively poor forever. 
B) None of these answers. 
C) an increase in capital will likely have little impact on output. 
D) it has the potential to grow relatively quickly due to the "catch-up-effect." 
E) it must be a small nation. 
A) it is doomed to being relatively poor forever. 
B) None of these answers. 
C) an increase in capital will likely have little impact on output. 
D) it has the potential to grow relatively quickly due to the "catch-up-effect." 
E) it must be a small nation.

Question 16

The opportunity cost of additional growth is that someone must forego current consumption.

Accepted Answer

A) True 
 B)False

Question 17

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 18

Human capital refers to human-made capital such as tools and machinery, as opposed to natural capital such as rivers and timber.

Accepted Answer

A) True 
 B)False

Question 19

Our standard of living is most closely related to

Accepted Answer

A) how hard we work. 
B) our supply of capital, because everything of value is produced by machinery. 
C) our productivity, because our income is equal to what we produce. 
D) our supply of natural resources, because they limit production. 
A) how hard we work. 
B) our supply of capital, because everything of value is produced by machinery. 
C) our productivity, because our income is equal to what we produce. 
D) our supply of natural resources, because they limit production.

Question 20

An increase in the capital stock causes labour productivity to

Accepted Answer

A) decrease and the standard of living to increase. 
B) increase and the standard of living to increase. 
C) decrease and the standard of living to decrease. 
D) increase while the standard of living remains constant. 
A) decrease and the standard of living to increase. 
B) increase and the standard of living to increase. 
C) decrease and the standard of living to decrease. 
D) increase while the standard of living remains constant.

Thomas Malthus argued that

Suppose everyone working the land in Exland knows the usefulness of investing in land irrigation systems.Those who work the land may choose not to invest in these profitable irrigation systems as long as

In addition to investment in physical and human capital, what other public policies might a country adopt to increase productivity?

Which of the following expenditures to enhance productivity is most likely to convey a positive externality?

Poor countries often have a difficult time attracting foreign direct investment funds because

Some economists argue that it is possible to raise the standard of living by reducing population growth.As an economist interested in incentives rather than coercion, what kind of policy would you recommend to slow population growth?

Why is productivity related to the standard of living? In your answer be sure to explain what productivity and standard of living mean.Make a list of things that determine labour productivity.

South Africa should grow faster than Lesotho because South Africa has a larger economy.

If a production function exhibits constant returns to scale, then doubling all of the inputs doubles output.

How do outward-oriented policies affect a nation's productivity?

Which of the following represents a productivity-enhancing investment in human capital?

The opportunity cost of growth is

Once a country is wealthy,

In poorer countries, some investments in human capital may not be made because

When a nation has very little GDP per capita,

The opportunity cost of additional growth is that someone must forego current consumption.

What is a production function? Write an equation for a typical production function, and explain what each of the terms represents.

Human capital refers to human-made capital such as tools and machinery, as opposed to natural capital such as rivers and timber.

Our standard of living is most closely related to

An increase in the capital stock causes labour productivity to

What Is Economics

Thinking Like an Economist

Measuring a Nations Well-Being

Measuring the Cost of Living

Unemployment

Saving, Investment and the Financial System

The Basic Tools of Finance

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Business Cycles

Keynesian Economics and the Is-Lm Analysis

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short Run Trade-Off Between Inflation and Unemployment

Supply Side Policies

The Financial Crisis and Sovereign Debt

Common Currency Areas and European Monetary Union

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Exam 5: Production and Growth

Thomas Malthus argued that

Suppose everyone working the land in Exland knows the usefulness of investing in land irrigation systems.Those who work the land may choose not to invest in these profitable irrigation systems as long as

In addition to investment in physical and human capital, what other public policies might a country adopt to increase productivity?

Which of the following expenditures to enhance productivity is most likely to convey a positive externality?

Poor countries often have a difficult time attracting foreign direct investment funds because

Some economists argue that it is possible to raise the standard of living by reducing population growth.As an economist interested in incentives rather than coercion, what kind of policy would you recommend to slow population growth?

Why is productivity related to the standard of living? In your answer be sure to explain what productivity and standard of living mean.Make a list of things that determine labour productivity.

South Africa should grow faster than Lesotho because South Africa has a larger economy.

If a production function exhibits constant returns to scale, then doubling all of the inputs doubles output.

How do outward-oriented policies affect a nation's productivity?

Which of the following represents a productivity-enhancing investment in human capital?

The opportunity cost of growth is

Once a country is wealthy,

In poorer countries, some investments in human capital may not be made because

When a nation has very little GDP per capita,

The opportunity cost of additional growth is that someone must forego current consumption.

What is a production function? Write an equation for a typical production function, and explain what each of the terms represents.

Human capital refers to human-made capital such as tools and machinery, as opposed to natural capital such as rivers and timber.

Our standard of living is most closely related to

An increase in the capital stock causes labour productivity to

What Is Economics

Thinking Like an Economist

Measuring a Nations Well-Being

Measuring the Cost of Living

Unemployment

Saving, Investment and the Financial System

The Basic Tools of Finance

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

Business Cycles

Keynesian Economics and the Is-Lm Analysis

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short Run Trade-Off Between Inflation and Unemployment

Supply Side Policies

The Financial Crisis and Sovereign Debt

Common Currency Areas and European Monetary Union

Filters