Question 1

Suppose Canadian-based Bombardier builds and operates a new factory in Mexico.What would the future production from such an investment do?

Accepted Answer

A)  increase Mexico's GDP more than it would increase Mexico's GNP 
B)  increase Mexico's GNP more than it would increase Mexico's GDP 
C)  not affect Mexico's GNP,but it would increase Mexico's GDP 
D)  not affect Mexico's GDP,but it would increase Mexico's GNP 
A)  increase Mexico's GDP more than it would increase Mexico's GNP 
B)  increase Mexico's GNP more than it would increase Mexico's GDP 
C)  not affect Mexico's GNP,but it would increase Mexico's GDP 
D)  not affect Mexico's GDP,but it would increase Mexico's GNP

Question 2

In Canada real GDP per person is over $40,000,while in poor countries real GDP per person may be less than $5000.

Accepted Answer

A) True 
 B)False

Question 3

The average person in a rich country,such as Germany,has income about ten times that of an average person in a poor country,such as Indonesia.

Accepted Answer

A) True 
 B)False

Question 4

Your company discovers a better way to produce vacuum cleaners,but your better methods are not apparent from the vacuums themselves.What kind of knowledge is this?

Accepted Answer

A)  common technological knowledge 
B)  common,but not technological,knowledge 
C)  proprietary technological knowledge 
D)  proprietary,but not technological,knowledge 
A)  common technological knowledge 
B)  common,but not technological,knowledge 
C)  proprietary technological knowledge 
D)  proprietary,but not technological,knowledge

Question 5

Suppose you bake cupcakes.One day,you double the time you spend baking and double the sugar,flour,eggs,and all the other inputs in order to bake twice as many cupcakes.What kind of production function is this?

Accepted Answer

A)  decreasing returns to scale 
B)  zero returns to scale 
C)  constant returns to scale 
D)  increasing returns to scale 
A)  decreasing returns to scale 
B)  zero returns to scale 
C)  constant returns to scale 
D)  increasing returns to scale

Question 6

In countries where women are discriminated against,policies that increase their career and educational opportunities are likely to increase the birth rate.

Accepted Answer

A) True 
 B)False

Question 7

Which terms refers to the relationship between the quantity of output created and the quantity of inputs needed to create it?

Accepted Answer

A)  the capital accumulation function 
B)  technological knowledge 
C)  the production function 
D)  human capital 
A)  the capital accumulation function 
B)  technological knowledge 
C)  the production function 
D)  human capital

Question 8

What is generally an opportunity cost of investment in human capital?

Accepted Answer

A)  future job security 
B)  forgone wages at present 
C)  increased earning potential 
D)  the cost of tuition during the years of school 
A)  future job security 
B)  forgone wages at present 
C)  increased earning potential 
D)  the cost of tuition during the years of school

Question 9

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 10

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 11

If your firm has constant returns to scale,what would happen to your firm's output if you doubled all your inputs?

Accepted Answer

A)  It would not change. 
B)  It would increase,but by less than double. 
C)  It would double. 
D)  It would more than double. 
A)  It would not change. 
B)  It would increase,but by less than double. 
C)  It would double. 
D)  It would more than double.

Question 12

What is the most appropriate measure of a nation's standard of living?

Accepted Answer

A)  real GDP 
B)  real GDP per person 
C)  nominal GDP 
D)  nominal GDP per person 
A)  real GDP 
B)  real GDP per person 
C)  nominal GDP 
D)  nominal GDP per person

Question 13

What is a direct determinant of productivity?

Accepted Answer

A)  human capital 
B)  wage 
C)  price of natural resources 
D)  unemployment rate 
A)  human capital 
B)  wage 
C)  price of natural resources 
D)  unemployment rate

Question 14

In a market economy,what does the real,or inflation-adjusted,price of a resource measure?

Accepted Answer

A)  contribution to revenue 
B)  relative scarcity 
C)  relative importance 
D)  contribution to efficiency 
A)  contribution to revenue 
B)  relative scarcity 
C)  relative importance 
D)  contribution to efficiency

Question 15

How does income in developing countries like Pakistan and Bangladesh compare with that in Japan and Canada?

Accepted Answer

A)  It's about 1 / 10 or less of that in developed countries like Japan and Canada. 
B)  It's about 1 / 8 of that in developed countries like Japan and Canada. 
C)  It's about 1 / 4 of that in developed countries like Japan and Canada. 
D)  It's about 1 / 3 to 1 / 2 of that in developed countries like Japan and Canada. 
A)  It's about 1 / 10 or less of that in developed countries like Japan and Canada. 
B)  It's about 1 / 8 of that in developed countries like Japan and Canada. 
C)  It's about 1 / 4 of that in developed countries like Japan and Canada. 
D)  It's about 1 / 3 to 1 / 2 of that in developed countries like Japan and Canada.

Question 16

According to Malthus's view,what is a consequence of increased population?

Accepted Answer

A)  increased GDP per person 
B)  more people imply more ideas and more labour force,which promotes growth 
C)  depletion of productive resources and lower standards of living 
D)  increase in productivity in the food sector,which is necessary to support the increase in population 
A)  increased GDP per person 
B)  more people imply more ideas and more labour force,which promotes growth 
C)  depletion of productive resources and lower standards of living 
D)  increase in productivity in the food sector,which is necessary to support the increase in population

Question 17

Which of the following would be considered physical capital?

Accepted Answer

A)  the cappuccino machine at the Garden of Eat'n Cafe 
B)  soy beans used to make soy milk 
C)  the skills and knowledge of a barber 
D)  the number of hours people spend in the gym 
A)  the cappuccino machine at the Garden of Eat'n Cafe 
B)  soy beans used to make soy milk 
C)  the skills and knowledge of a barber 
D)  the number of hours people spend in the gym

Question 18

Tom works 6 hours a day and Jerry works 8 hours.Tom can produce 6 baskets of goods while Jerry can produce 7 baskets.What can we conclude?

Accepted Answer

A)  Tom's productivity is greater than Jerry's. 
B)  Tom's and Jerry's productivities are equal because they both work one day. 
C)  Tom's and Jerry's productivities cannot be compared. 
D)  Tom's productivity is lower than Jerry's. 
A)  Tom's productivity is greater than Jerry's. 
B)  Tom's and Jerry's productivities are equal because they both work one day. 
C)  Tom's and Jerry's productivities cannot be compared. 
D)  Tom's productivity is lower than Jerry's.

Question 19

Which statement best explains the importance of real GDP per person?

Accepted Answer

A)  It is a useful measure of economic growth. 
B)  It is a useful measure of the health of citizens. 
C)  It is a useful measure of the cost of living. 
D)  It is a useful measure of well-being. 
A)  It is a useful measure of economic growth. 
B)  It is a useful measure of the health of citizens. 
C)  It is a useful measure of the cost of living. 
D)  It is a useful measure of well-being.

Question 20

What is a valid policy to use for increasing the rate of economic growth?

Accepted Answer

A)  reduce reliance on market forces because they allocate goods and services in an unfair manner 
B)  encourage trade with neighbouring countries 
C)  increase the fraction of GDP devoted to consumption 
D)  restrict investment in domestic industries by foreigners because they take some of the profits out of the country 
A)  reduce reliance on market forces because they allocate goods and services in an unfair manner 
B)  encourage trade with neighbouring countries 
C)  increase the fraction of GDP devoted to consumption 
D)  restrict investment in domestic industries by foreigners because they take some of the profits out of the country

Suppose Canadian-based Bombardier builds and operates a new factory in Mexico.What would the future production from such an investment do?

In Canada real GDP per person is over $40,000,while in poor countries real GDP per person may be less than $5000.

The average person in a rich country,such as Germany,has income about ten times that of an average person in a poor country,such as Indonesia.

Your company discovers a better way to produce vacuum cleaners,but your better methods are not apparent from the vacuums themselves.What kind of knowledge is this?

Suppose you bake cupcakes.One day,you double the time you spend baking and double the sugar,flour,eggs,and all the other inputs in order to bake twice as many cupcakes.What kind of production function is this?

In countries where women are discriminated against,policies that increase their career and educational opportunities are likely to increase the birth rate.

Which terms refers to the relationship between the quantity of output created and the quantity of inputs needed to create it?

What is generally an opportunity cost of investment in human capital?

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

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

If your firm has constant returns to scale,what would happen to your firm's output if you doubled all your inputs?

What is the most appropriate measure of a nation's standard of living?

What is a direct determinant of productivity?

In a market economy,what does the real,or inflation-adjusted,price of a resource measure?

How does income in developing countries like Pakistan and Bangladesh compare with that in Japan and Canada?

According to Malthus's view,what is a consequence of increased population?

Which of the following would be considered physical capital?

Tom works 6 hours a day and Jerry works 8 hours.Tom can produce 6 baskets of goods while Jerry can produce 7 baskets.What can we conclude?

Which statement best explains the importance of real GDP per person?

What is a valid policy to use for increasing the rate of economic growth?

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

Suppose Canadian-based Bombardier builds and operates a new factory in Mexico.What would the future production from such an investment do?

In Canada real GDP per person is over $40,000,while in poor countries real GDP per person may be less than $5000.

The average person in a rich country,such as Germany,has income about ten times that of an average person in a poor country,such as Indonesia.

Your company discovers a better way to produce vacuum cleaners,but your better methods are not apparent from the vacuums themselves.What kind of knowledge is this?

Suppose you bake cupcakes.One day,you double the time you spend baking and double the sugar,flour,eggs,and all the other inputs in order to bake twice as many cupcakes.What kind of production function is this?

In countries where women are discriminated against,policies that increase their career and educational opportunities are likely to increase the birth rate.

Which terms refers to the relationship between the quantity of output created and the quantity of inputs needed to create it?

What is generally an opportunity cost of investment in human capital?

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

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

If your firm has constant returns to scale,what would happen to your firm's output if you doubled all your inputs?

What is the most appropriate measure of a nation's standard of living?

What is a direct determinant of productivity?

In a market economy,what does the real,or inflation-adjusted,price of a resource measure?

How does income in developing countries like Pakistan and Bangladesh compare with that in Japan and Canada?

According to Malthus's view,what is a consequence of increased population?

Which of the following would be considered physical capital?

Tom works 6 hours a day and Jerry works 8 hours.Tom can produce 6 baskets of goods while Jerry can produce 7 baskets.What can we conclude?

Which statement best explains the importance of real GDP per person?

What is a valid policy to use for increasing the rate of economic growth?

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