Question 1

Which statement best defines productivity?

Accepted Answer

A)  Productivity is the ability of a company to generate profit. 
B)  Productivity is the quantity of goods and services that a nation can produce in a year. 
C)  Productivity is the quantity of goods or services that a worker can produce in one hour. 
D)  Productivity is the ability of a company to produce goods and services. 
A)  Productivity is the ability of a company to generate profit. 
B)  Productivity is the quantity of goods and services that a nation can produce in a year. 
C)  Productivity is the quantity of goods or services that a worker can produce in one hour. 
D)  Productivity is the ability of a company to produce goods and services.

Question 2

A puzzle: The share of GDP devoted to investment was similar for Canada and South Korea over the period 1960-1990. However, South Korea had a 7 percent growth rate of average annual income, while Canada had only a 2.5 percent growth rate. How can this be explained

Accepted Answer

The solution to the puzzle is based on t

Question 3

In the country of Krypton, the price of lead increased from $20 per kilogram to $22 per kilogram during a time when the overall price level increased by 6 percent. During this period, what happened to the real price of lead?

Accepted Answer

A)  It has increased by about 2 percent. 
B)  It has decreased by about 4 percent. 
C)  It has decreased by about 8 percent. 
D)  It has increased by about 10 percent. 
A)  It has increased by about 2 percent. 
B)  It has decreased by about 4 percent. 
C)  It has decreased by about 8 percent. 
D)  It has increased by about 10 percent.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Which list contains, in this order, natural resources, human capital, and physical capital?

Accepted Answer

A)  for a restaurant: the land where it stands; the things the kitchen; the freezers where the steaks are kept 
B)  for a furniture company: wood; the company cafeteria; saws 
C)  for a railroad: fuel; railroad engineers; railroad tracks 
D)  for an oil company: the oil it brings to surface; the rigs; the refineries using its oil 
A)  for a restaurant: the land where it stands; the things the kitchen; the freezers where the steaks are kept 
B)  for a furniture company: wood; the company cafeteria; saws 
C)  for a railroad: fuel; railroad engineers; railroad tracks 
D)  for an oil company: the oil it brings to surface; the rigs; the refineries using its oil

Question 6

There is some controversy concerning what the source of the Canadian productivity slowdown was in the period of 1974 to 1982. What is the most likely explanation?

Accepted Answer

A)  a decrease in the growth of human capital per person 
B)  capital wearing out so that capital per person fell 
C)  changes in technological progress 
D)  the continued depletion of natural resources 
A)  a decrease in the growth of human capital per person 
B)  capital wearing out so that capital per person fell 
C)  changes in technological progress 
D)  the continued depletion of natural resources

Question 7

Suppose that Poland undertakes policy to increase its saving rate. What will this policy most likely do?

Accepted Answer

A)  It will have no impact on GDP growth. 
B)  It will lead to somewhat higher GDP growth for a few years. 
C)  It will lead to substantially higher GDP growth for a period of several decades. 
D)  It will lead to a permanently higher growth rate. 
A)  It will have no impact on GDP growth. 
B)  It will lead to somewhat higher GDP growth for a few years. 
C)  It will lead to substantially higher GDP growth for a period of several decades. 
D)  It will lead to a permanently higher growth rate.

Question 8

Which has been happening to the market prices of most natural resources (adjusted for inflation)?

Accepted Answer

A)  They have been rising. 
B)  They have been stable or rising. 
C)  They have been stable or falling. 
D)  They have been falling. 
A)  They have been rising. 
B)  They have been stable or rising. 
C)  They have been stable or falling. 
D)  They have been falling.

Question 9

What do economists call the inputs used to produce goods and services?

Accepted Answer

A)  productivity indicators 
B)  capitalization producers 
C)  production functions 
D)  factors of production 
A)  productivity indicators 
B)  capitalization producers 
C)  production functions 
D)  factors of production

Question 10

If the production function for an economy had constant returns to scale, the labour force doubled, and all other inputs stayed the same, what would happen to real GDP?

Accepted Answer

A)  It would stay the same. 
B)  It would increase by 50 percent. 
C)  It would increase, but by something less than double. 
D)  It would double. 
A)  It would stay the same. 
B)  It would increase by 50 percent. 
C)  It would increase, but by something less than double. 
D)  It would double.

Question 11

Suppose that real GDP grew more in Country A than in Country B last year. What does this imply concerning productivity or standard of living?

Accepted Answer

A)  Country A must have a higher standard of living than country B. 
B)  Country A's productivity must have grown faster than country B's. 
C)  Country A must have a higher real GDP than Country B. 
D)  Country A's productivity must have been higher only if the population in the two countries grew at the same rate. 
A)  Country A must have a higher standard of living than country B. 
B)  Country A's productivity must have grown faster than country B's. 
C)  Country A must have a higher real GDP than Country B. 
D)  Country A's productivity must have been higher only if the population in the two countries grew at the same rate.

Question 12

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. What does this example illustrate about knowledge?

Accepted Answer

A)  It is generally a public good. 
B)  It is generally a societal good. 
C)  It is generally a private good. 
D)  It is generally a normal good. 
A)  It is generally a public good. 
B)  It is generally a societal good. 
C)  It is generally a private good. 
D)  It is generally a normal good.

Question 13

Which country had the slowest growth between 1870 and 2010?

Accepted Answer

A)  Germany 
B)  the United Kingdom 
C)  Canada 
D)  the United States 
A)  Germany 
B)  the United Kingdom 
C)  Canada 
D)  the United States

Question 14

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 15

Over the past century in Canada, by how much has real GDP per person grown?

Accepted Answer

A)  by about 1 percent per year 
B)  by about 2 percent per year 
C)  by about 4 percent per year 
D)  by about 8 percent per year 
A)  by about 1 percent per year 
B)  by about 2 percent per year 
C)  by about 4 percent per year 
D)  by about 8 percent per year

Question 16

If there are constant returns to scale, how is the production function written?

Accepted Answer

A)  xY = 2 x A F(L, K, H, N) 
B)  Y/L = A F(xL, xK, xH, xN) 
C)  Y/L = A F( 1, K/L, H/L, N/L) 
D)  xL = A F(1,Y, K, H, N) 
A)  xY = 2 x A F(L, K, H, N) 
B)  Y/L = A F(xL, xK, xH, xN) 
C)  Y/L = A F( 1, K/L, H/L, N/L) 
D)  xL = A F(1,Y, K, H, N)

Question 17

How is a nation's standard of living determined?

Accepted Answer

A)  by its productivity 
B)  by its gross domestic product 
C)  by its national income 
D)  by the size of its labour force 
A)  by its productivity 
B)  by its gross domestic product 
C)  by its national income 
D)  by the size of its labour force

Question 18

What is an effect of inward-oriented policies?

Accepted Answer

A)  They impede growth because they restrict investment. 
B)  They have generally increased productivity and growth in the countries that pursued them. 
C)  They promote production of goods and services; the country that adopts them can produce most efficiently. 
D)  They are likely to create more jobs for domestic workers. 
A)  They impede growth because they restrict investment. 
B)  They have generally increased productivity and growth in the countries that pursued them. 
C)  They promote production of goods and services; the country that adopts them can produce most efficiently. 
D)  They are likely to create more jobs for domestic workers.

Question 19

What is an example of a nonrenewable resource?

Accepted Answer

A)  coal 
B)  honey 
C)  livestock 
D)  a forest 
A)  coal 
B)  honey 
C)  livestock 
D)  a forest

Question 20

One reason that governments may find it useful to sponsor universities and basic research is that, to a large extent, knowledge is a public good.

Accepted Answer

A) True 
 B)False

Which statement best defines productivity?

A puzzle: The share of GDP devoted to investment was similar for Canada and South Korea over the period 1960-1990. However, South Korea had a 7 percent growth rate of average annual income, while Canada had only a 2.5 percent growth rate. How can this be explained

In the country of Krypton, the price of lead increased from $20 per kilogram to $22 per kilogram during a time when the overall price level increased by 6 percent. During this period, what happened to the real price of lead?

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

Which list contains, in this order, natural resources, human capital, and physical capital?

There is some controversy concerning what the source of the Canadian productivity slowdown was in the period of 1974 to 1982. What is the most likely explanation?

Suppose that Poland undertakes policy to increase its saving rate. What will this policy most likely do?

Which has been happening to the market prices of most natural resources (adjusted for inflation)?

What do economists call the inputs used to produce goods and services?

If the production function for an economy had constant returns to scale, the labour force doubled, and all other inputs stayed the same, what would happen to real GDP?

Suppose that real GDP grew more in Country A than in Country B last year. What does this imply concerning productivity or standard of living?

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. What does this example illustrate about knowledge?

Which country had the slowest growth between 1870 and 2010?

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

Over the past century in Canada, by how much has real GDP per person grown?

If there are constant returns to scale, how is the production function written?

How is a nation's standard of living determined?

What is an effect of inward-oriented policies?

What is an example of a nonrenewable resource?

One reason that governments may find it useful to sponsor universities and basic research is that, to a large extent, knowledge is a public good.

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

Filters

Exam 7: Production and Growth

Which statement best defines productivity?

A puzzle: The share of GDP devoted to investment was similar for Canada and South Korea over the period 1960-1990. However, South Korea had a 7 percent growth rate of average annual income, while Canada had only a 2.5 percent growth rate. How can this be explained

In the country of Krypton, the price of lead increased from $20 per kilogram to $22 per kilogram during a time when the overall price level increased by 6 percent. During this period, what happened to the real price of lead?

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

Which list contains, in this order, natural resources, human capital, and physical capital?

There is some controversy concerning what the source of the Canadian productivity slowdown was in the period of 1974 to 1982. What is the most likely explanation?

Suppose that Poland undertakes policy to increase its saving rate. What will this policy most likely do?

Which has been happening to the market prices of most natural resources (adjusted for inflation)?

What do economists call the inputs used to produce goods and services?

If the production function for an economy had constant returns to scale, the labour force doubled, and all other inputs stayed the same, what would happen to real GDP?

Suppose that real GDP grew more in Country A than in Country B last year. What does this imply concerning productivity or standard of living?

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. What does this example illustrate about knowledge?

Which country had the slowest growth between 1870 and 2010?

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

Over the past century in Canada, by how much has real GDP per person grown?

If there are constant returns to scale, how is the production function written?

How is a nation's standard of living determined?

What is an effect of inward-oriented policies?

What is an example of a nonrenewable resource?

One reason that governments may find it useful to sponsor universities and basic research is that, to a large extent, knowledge is a public good.

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Measuring a Nations Income

Measuring the Cost of Living

Saving, Investment, and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

Aggregate Demand and Aggregate Supply

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Five Debates Over Macroeconomic Policy

Filters