Question 1

Drug companies can usually obtain patents on new drugs.Which goods do patents turn new ideas into?

Accepted Answer

A)  private goods,which increase the incentive to engage in research 
B)  private goods,which decrease the incentive to engage in research 
C)  public goods,which increase the incentive to engage in research 
D)  public goods,which decrease the incentive to engage in research 
A)  private goods,which increase the incentive to engage in research 
B)  private goods,which decrease the incentive to engage in research 
C)  public goods,which increase the incentive to engage in research 
D)  public goods,which decrease the incentive to engage in research

Question 2

Compare and contrast the population theories of Malthus and Kremer.

Accepted Answer

The difference is that Malthus predicted

Question 3

A country without a lot of domestic natural resources can have a high standard of living.

Accepted Answer

A) True 
 B)False

Question 4

Sydney Seger is a nurse.What is a part of her human capital?

Accepted Answer

A)  her emergency room experience 
B)  the computer she uses 
C)  the software she uses to record patient information 
D)  the amount of time she spends with her patients 
A)  her emergency room experience 
B)  the computer she uses 
C)  the software she uses to record patient information 
D)  the amount of time she spends with her patients

Question 5

As measured by real GDP per person,approximately how much higher is average income in Canada today than it was a century ago?

Accepted Answer

A)  8 times higher 
B)  10 times higher 
C)  12 times higher 
D)  14 times higher 
A)  8 times higher 
B)  10 times higher 
C)  12 times higher 
D)  14 times higher

Question 6

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 7

A management professor discovers a way for corporate management to operate more efficiently.He publishes his findings in a journal.How are his findings best defined?

Accepted Answer

A)  proprietary knowledge,because only who the person pays for the journal has access to the findings 
B)  common knowledge,because scientific publications are not subject to copyright 
C)  proprietary knowledge,because the discoverer has intellectual property rights over the findings 
D)  common knowledge,because all are free to use the findings 
A)  proprietary knowledge,because only who the person pays for the journal has access to the findings 
B)  common knowledge,because scientific publications are not subject to copyright 
C)  proprietary knowledge,because the discoverer has intellectual property rights over the findings 
D)  common knowledge,because all are free to use the findings

Question 8

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 9

The purpose of this problem is to make you acquainted with Statistics Canada's website.Open http: / / www.statcan.gc.ca / start-debut-eng.html and look for Economic Accounts,then open the link "Gross domestic product" page.Open "Summary tables," then open the table "Real gross domestic product,expenditure-based,by province and territory."

Accepted Answer

After opening the Statistics Canada webs

Question 10

The economic development minister of a country has a list of things she thinks may explain her country's low growth of real GDP per person relative to other countries.She asks you to pick the one you think most likely explains her country's low growth.What contributes to low growth?

Accepted Answer

A)  strong private property rights 
B)  tariffs and quotas 
C)  encouraging foreign investment 
D)  low population growth 
A)  strong private property rights 
B)  tariffs and quotas 
C)  encouraging foreign investment 
D)  low population growth

Question 11

If the productivity slowdown had not occurred in 1973,the income of the average Canadian today would be about 70 percent higher.

Accepted Answer

A) True 
 B)False

Question 12

What is an externality aspect of education?

Accepted Answer

A)  Education produces a return to society that is greater than the return to the individual. 
B)  Education produces a return to society that is less than the return to the individual. 
C)  Education produces costs to society that are greater than the costs to the individual. 
D)  Education produces costs to the individual that are greater than the costs to society. 
A)  Education produces a return to society that is greater than the return to the individual. 
B)  Education produces a return to society that is less than the return to the individual. 
C)  Education produces costs to society that are greater than the costs to the individual. 
D)  Education produces costs to the individual that are greater than the costs to society.

Question 13

In a market economy,what is scarcity of resources most clearly reflected in?

Accepted Answer

A)  supply 
B)  demand 
C)  market prices 
D)  the stock of the resource 
A)  supply 
B)  demand 
C)  market prices 
D)  the stock of the resource

Question 14

How does income per person in Canada compare with income per person in China and Pakistan?

Accepted Answer

A)  It is about 4 times that in China and 8 times that in Pakistan. 
B)  It is about 12 times that in China and 10 times that in Pakistan. 
C)  It is about 10 times that in China and 13 times that in Pakistan. 
D)  It is about 18 times that in China and 16 times that in Pakistan. 
A)  It is about 4 times that in China and 8 times that in Pakistan. 
B)  It is about 12 times that in China and 10 times that in Pakistan. 
C)  It is about 10 times that in China and 13 times that in Pakistan. 
D)  It is about 18 times that in China and 16 times that in Pakistan.

Question 15

What does diminishing returns to capital imply?

Accepted Answer

A)  Capital produces fewer goods as it ages. 
B)  The value of new technology decreases over time. 
C)  Increases in the capital stock eventually decrease output. 
D)  Increases in the capital stock increase output by ever smaller amounts. 
A)  Capital produces fewer goods as it ages. 
B)  The value of new technology decreases over time. 
C)  Increases in the capital stock eventually decrease output. 
D)  Increases in the capital stock increase output by ever smaller amounts.

Question 16

On average,by how much does each year of schooling raise a person's wage in Canada?

Accepted Answer

A)  about 5 percent 
B)  about 10 percent 
C)  about 15 percent 
D)  about 20 percent 
A)  about 5 percent 
B)  about 10 percent 
C)  about 15 percent 
D)  about 20 percent

Question 17

In the traditional view,which production process is considered when studying economic growth?

Accepted Answer

A)  constant returns 
B)  increasing returns 
C)  diminishing returns 
D)  diminishing returns for low levels of capital,and increasing returns for high levels of capital 
A)  constant returns 
B)  increasing returns 
C)  diminishing returns 
D)  diminishing returns for low levels of capital,and increasing returns for high levels of capital

Question 18

A leading environmental group recently published a report contending that humans are running a "resource deficit" because we are using natural resources faster than they can be regenerated.The group claims that this means that economic growth will eventually stop,and will even be reversed.How would an economist respond to this report?

Accepted Answer

A)  An economist would agree with the report,and would point to rising natural resource prices as evidence. 
B)  An economist would agree with the report,but wouldn't think it was important because emerging markets are likely to discover additional natural resources. 
C)  An economist would disagree with the report,in part because it ignores the mitigating effects of technological change. 
D)  An economist would disagree with the report because labour and capital are the primary determinants of growth,and since they are plentiful,growth will not slow down. 
A)  An economist would agree with the report,and would point to rising natural resource prices as evidence. 
B)  An economist would agree with the report,but wouldn't think it was important because emerging markets are likely to discover additional natural resources. 
C)  An economist would disagree with the report,in part because it ignores the mitigating effects of technological change. 
D)  An economist would disagree with the report because labour and capital are the primary determinants of growth,and since they are plentiful,growth will not slow down.

Question 19

What is the source of most technological progress?

Accepted Answer

A)  private research by firms and individual inventors 
B)  private research by firms and government 
C)  government research 
D)  government-sponsored research by universities 
A)  private research by firms and individual inventors 
B)  private research by firms and government 
C)  government research 
D)  government-sponsored research by universities

Question 20

According to economic historian Robert Fogel,what proportion of the British population in 1780 was so malnourished that they could not perform manual labour?

Accepted Answer

A)  15 percent 
B)  20 percent 
C)  30 percent 
D)  40 percent 
A)  15 percent 
B)  20 percent 
C)  30 percent 
D)  40 percent

Drug companies can usually obtain patents on new drugs.Which goods do patents turn new ideas into?

Compare and contrast the population theories of Malthus and Kremer.

A country without a lot of domestic natural resources can have a high standard of living.

Sydney Seger is a nurse.What is a part of her human capital?

As measured by real GDP per person,approximately how much higher is average income in Canada today than it was a century ago?

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

A management professor discovers a way for corporate management to operate more efficiently.He publishes his findings in a journal.How are his findings best defined?

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

The economic development minister of a country has a list of things she thinks may explain her country's low growth of real GDP per person relative to other countries.She asks you to pick the one you think most likely explains her country's low growth.What contributes to low growth?

If the productivity slowdown had not occurred in 1973,the income of the average Canadian today would be about 70 percent higher.

What is an externality aspect of education?

In a market economy,what is scarcity of resources most clearly reflected in?

How does income per person in Canada compare with income per person in China and Pakistan?

What does diminishing returns to capital imply?

On average,by how much does each year of schooling raise a person's wage in Canada?

In the traditional view,which production process is considered when studying economic growth?

What is the source of most technological progress?

According to economic historian Robert Fogel,what proportion of the British population in 1780 was so malnourished that they could not perform manual labour?

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

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Exam 7: Production and Growth

Drug companies can usually obtain patents on new drugs.Which goods do patents turn new ideas into?

Compare and contrast the population theories of Malthus and Kremer.

A country without a lot of domestic natural resources can have a high standard of living.

Sydney Seger is a nurse.What is a part of her human capital?

As measured by real GDP per person,approximately how much higher is average income in Canada today than it was a century ago?

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

A management professor discovers a way for corporate management to operate more efficiently.He publishes his findings in a journal.How are his findings best defined?

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

The economic development minister of a country has a list of things she thinks may explain her country's low growth of real GDP per person relative to other countries.She asks you to pick the one you think most likely explains her country's low growth.What contributes to low growth?

If the productivity slowdown had not occurred in 1973,the income of the average Canadian today would be about 70 percent higher.

What is an externality aspect of education?

In a market economy,what is scarcity of resources most clearly reflected in?

How does income per person in Canada compare with income per person in China and Pakistan?

What does diminishing returns to capital imply?

On average,by how much does each year of schooling raise a person's wage in Canada?

In the traditional view,which production process is considered when studying economic growth?

What is the source of most technological progress?

According to economic historian Robert Fogel,what proportion of the British population in 1780 was so malnourished that they could not perform manual labour?

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