Deck 25: Production and Growth

Question 1

Real GDP per person in poor countries like Pakistan and Bangladesh is

A)much more than twice as high as it was in the US in 1870.
B)about twice as high as it was in the US in 1870.
C)about the same as it was in the US in 1870.
D)less that it was in the US in 1870.

Answer 1

D

Question 2

A nation's standard of living is measured by its

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

Answer 2

B

Question 3

During the past century the average growth rate of U.S.real GDP per person implies that it doubled about every

A)100 years on average.
B)70 years.
C)35 years.
D)25 years.

Answer 3

C

Question 4

Average income has been stagnant for many years in

A)Ireland.
B)Singapore.
C)Ethiopia.
D)All of the above are correct.

Question 5

Countries that grew the fastest over the last 100 years had growth rates of about

A)0.5 percent.
B)1.5 percent.
C)2.0 percent.
D)2.5 percent.

Question 6

In some East Asian countries,average income,as measured by real GDP per person,has recently grown at an average annual rate that implies output should double about every

A)10 years.
B)15 years.
C)20 years.
D)25 years.

Question 7

In the length of one generation,which of the following countries has gone from being among the poorest countries in the world to being among the richest?

A)Chad
B)Ethiopia
C)India
D)South Korea

Question 8

In recent decades,average income in some East Asian countries,such as South Korea,Singapore,and Taiwan,has risen about

A)2 percent per year.
B)4 percent per year.
C)7 percent per year.
D)10 percent per year.

Question 9

Income in developing countries like India and Indonesia

A)is less than 1/7th of that in developed countries like Japan and the United States.
B)is about 1/5th of that in developed countries like Japan and the United States.
C)is about 1/3 of that in developed countries like Japan and the United States.
D)is about 1/2 of that in developed countries like Japan and the United States.

Question 10

In 2003,the typical Bangladeshi had how many times the income of the typical American a century ago?

A)1/4
B)1/2
C)2/3
D)1

Question 11

If one wants to know how the material well-being of the average person has changed over time in a given country,one should look at the

A)level of real GDP.
B)growth rate of nominal GDP.
C)growth rate of real GDP.
D)growth rate of real GDP per person.

Question 12

The level of real GDP person

A)differs widely across countries, but the growth rate of real GDP per person is similar across countries.
B)is very similar across countries, but the growth rate of real GDP per person differs widely across countries.
C)and the growth rate of real GDP per person are similar across countries.
D)and the growth rate of real GDP per person vary widely across countries.

Question 13

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

A)1 percent per year.
B)2 percent per year.
C)3 percent per year.
D)4 percent per year.

Question 14

Which of the following countries,had the highest growth rate over the last 100 years?

A)Brazil
B)Germany
C)Canada
D)United States

Question 15

In the United States,as measured by real GDP per person,average income is about how many times as high as average income a century ago?

A)2
B)4
C)6
D)8

Question 16

Over the last century,US real GDP per person grew at a rate of about

A)2% per year, so that it is now 2 times as high as it was a century ago.
B)2% per year, so that it is now 8 times as high as it was a century ago.
C)4% per year, so that it is now 2 times as high as it was a century ago.
D)4% per year, so that it is now 8 times as high as it was a century ago.

Question 17

Real GDP per person

A)minus real GDP per person from the previous period equals the growth rate of real GDP per person.
B)provides more meaningful comparisons across time and countries than real GDP.
C)provides a less useful measure of the standard of living than nominal GDP per person.
D)All of the above are correct.

Question 18

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

A)3.5 percent per year, which implies a doubling about every 20 years.
B)2 percent per year, which implies a doubling about every 35 years.
C)4 percent per year, which implies a doubling about every 17.5 years.
D)None of the above is correct.

Question 19

Of the following countries which grew the slowest over the last 100 years?

A)Brazil
B)Mexico
C)China
D)United States

Question 20

Over the past 100 years,U.S.real GDP per person has doubled about every 35 years.If in the next 100 years it doubles every 25 years,then a century from now U.S.real GDP per person will be

A)4 times higher than it is now.
B)8 times higher than it is now.
C)12 times higher than it is now.
D)16 times higher than it is now.

Question 21

The average amount of goods and services produced from each hour of a worker's time is called

A)per capita GDP
B)per capita GNP
C)productivity
D)human capital

Question 22

Which of the following does the level of real GDP measure?

A)total real income
B)productivity
C)the standard of living
D)All of the above are correct.

Question 23

Which of the following is correct?

A)Although levels of real GDP per person vary substantially from country to country, the growth rate of real GDP per person is similar across countries.
B)Productivity is not closely linked to government policies.
C)The level of real GDP per person is a good gauge of economic prosperity, and the growth rate of real GDP per person is a good gauge of economic progress.
D)Productivity may be measured by the growth rate of real GDP per person.

Question 24

Over the last 100 years which of the following had growth rates higher than that of the United States?

A)the United Kingdom
B)Bangladesh
C)Brazil
D)None of the above is correct.

Question 25

A nation's standard of living is determined by

A)its productivity.
B)its gross domestic product.
C)its national income.
D)how much it has relative to others.

Question 26

In 2004,Freedonia had a population of 2,700 and real GDP of about 11,610,000.In 2005 it had a population of 2,500 and real GDP of about 10,000,000.What was the approximate growth rate of real GDP per person in Freedonia between 2004 and 2005?

A)7.5 percent
B)12.5 percent
C)20.5 percent
D)35.5 percent

Question 27

In 1870,the richest country in the world was

A)the United States.
B)Spain.
C)the United Kingdom.
D)Germany.

Question 28

Productivity

A)is nearly the same across countries, and so provides no help explaining differences in the standard of living across countries.
B)explains very little of the differences in the standard of living across countries.
C)explains some, but not most of the differences in the standard of living across countries.
D)explains most of the differences in the standard of living across countries.

Question 29

Which of the following is correct?

A)Over the last 100 years Japan had a higher average growth rate than the United States.It follows that the standard of living in Japan is greater than in the United States.
B)The typical person in Bangladesh today has about the same real income as a typical American 100 years ago.
C)The typical citizen of China today has about half as much real income as the typical American today.
D)None of the above is correct.

Question 30

In 2004 Empira had a population of 5,000 and real GDP of 500,000.In 2005 it had a population of 5,100 and real GDP of about 520,200.So,real GDP per person in Empira grew at about

A)2%, which is high compared to average US growth over the last one-hundred years.
B)2%, which is about the same as average US growth over the last one-hundred years.
C)4% which is high compared to average US growth over the last one-hundred years.
D)4% which is about the same as average US growth over the last one-hundred years.

Question 31

Which of the following is correct?

A)Countries with the highest growth rates over the last 100 years are the ones that had the highest level of real GDP 100 years ago.
B)Most countries have had little fluctuation around their average growth rates during the past 100 years.
C)The ranking of countries by income changes substantially over time.
D)Over the last 100 years, Japan had the highest real GDP growth rate, and now has the highest real GDP per person.

Question 32

Last year real GDP in Oceania was 561.0 billion and the population was 2.2 million.The year before real GDP was 500.0 billion and the population was 2.0 million.What was the approximate growth rate of real GDP per person?

A)12 percent
B)10 percent
C)4 percent
D)2 percent

Question 33

Which of the following is correct?

A)If a relatively poor country had grown at 3.5 percent per year for the last 100 years, it would be a relatively rich country today.
B)International data on the history of the growth of real GDP per person shows that the rich countries get richer and the poor countries get poorer.
C)In the United States, average income today is about four times as high as average income a century ago.
D)All of the above are correct.

Question 34

Countries that have lower levels of real GDP per person than the US,

A)tend to have growth rates that are higher than that of the US.
B)tend to have growth rates that are about the same as the US.
C)tend to have growth rates that are lower than that of the US.
D)have growth rates that are higher than the US in some cases and lower in other cases.

Question 35

In 2004 real GDP in Latania was 750 billion and the population was 3 million.In 2005 real GDP was 907.5 billion and the population was 3.3 million.What was the approximate growth rate of real GDP per person?

A)10 percent
B)14 percent
C)17 percent
D)21 percent

Question 36

Which list contains,in this order,a country whose real GDP per person grew faster and one whose real GDP per person grew slower than the US over the last 100 years?

A)China, Pakistan
B)United Kingdom, China
C)Pakistan, Argentina
D)Argentina, Japan

Question 37

Which of the following nations experienced average rates of economic growth of less than 2.0 percent over the last 100 years?

A)Bangladesh
B)Pakistan
C)United Kingdom
D)All of the above are correct.

Question 38

Last year real GDP per person in Olympus was 4,500.The year before it was 4,250.What was the growth rate of real GDP per person?

A)5.6 percent
B)5.9 percent
C)6.5 percent
D)None of the above are correct to the nearest tenth.

Question 39

Last year Panglossia had real GDP of 3000 billion.This year it had real GDP of 3116 billion.Which of the following values of population would be consistent with a 2.5% growth rate of real GDP per person?

A)The population fell from 76 million to 75 million.
B)The population rose from 75 million to 76 million.
C)The population fell from 80 million to 78 million.
D)The population rose from 80 million to 78 million.

Question 40

Productivity is most closely matched with a country's

A)Level of real GDP.
B)Level of real GDP divided by hours worked.
C)Growth rate of real GDP divided by hours worked.
D)Growth rate of real GDP per person.

Question 41

Dilbert's Incorporated produced 6,000,000 units of software in 2005.At the start of 2006 pointy-haired boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units.Based on these numbers what happened to productivity?

A)It fell by about 16.7%.
B)It stayed the same.
C)It rose by about 16.7%.
D)It rose by about 40%.

Question 42

Libeteria has a population of 10,000,of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods.Despotvanyla has a population of 5,000,of whom 4,000 work 12 hours a day to produce a total of 120,000 final goods.

A)Libeteria has higher productivity and higher real GDP per person than Despotvanyla.
B)Libeteria has higher productivity but lower real GDP per person than Despotvanyla.
C)Libeteria has lower productivity but higher real GDP per person than Despotvanyla.
D)Libeteria has lower productivity and lower real GDP per person than Despotvanyla.

Question 43

Mary looks over reports on four of her workers.Jack made 25 baskets in 5 hours.Walter made 36 baskets in 6 hours.Rudy made 40 baskets in 10 hours.Sam made 22 baskets in four hours.Who has the greatest productivity?

A)Jack
B)Walter
C)Rudy
D)Sam

Question 44

Waldo works eight hours and produces 7 units of goods per hour.Emerson works six hours and produces 10 units of goods per hour.

A)Waldo's productivity and output are greater than Emerson's.
B)Waldo's productivity is greater than Emerson's but his output is less.
C)Emerson's productivity and output are greater than Waldo's.
D)Emerson's productivity is greater than Waldo's but his output is less.

Question 45

Cedar Valley Furniture uses 5 workers working 8 hours to produce 80 rocking chairs.What is the productivity of these workers?

A)2 chairs per hour.
B)1 hour per chair.
C)80 chairs.
D)None of the above is correct.

Question 46

The Peapod Restaurant uses all of the following to produce vegetarian meals.Which of them is an example of physical capital?

A)The owner's knowledge of how to prepare vegetarian entrees.
B)The money in the owner's account at the bank she borrowed money from.
C)The tables and chairs in the restaurant.
D)The land the restaurant was built on.

Question 47

Which of the following is not correct?

A)Countries that have had higher output growth per person have typically done so without higher productivity growth.
B)A country's standard of living and its productivity are closely related.
C)Productivity refers to output produced per hour of work.
D)Increases in productivity can be used to increase output or leisure.

Question 48

Real Foods produced 300,000 boxes of organic spiral noodles in 2004 and produced 360,000 boxes in 2005.They used the same total hours of work in each year.In 2005 their productivity

A)fell.
B)was the same as in 2004.
C)rose 20%.
D)rose 30%.

Question 49

Which of the following is a determinant of productivity?

A)human capital per worker
B)physical capital per worker
C)natural resources per worker
D)All of the above are correct.

Question 50

In one day Alpha Cabinet Company made 40 cabinets with 320 hours of labor.What was their productivity?

A)1/8 cabinet per hour
B)8 hours per cabinet
C)40 cabinets
D)None of the above is correct.

Question 51

The inputs used to produce goods and services are also called

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

Question 52

Which of the following is a correct way to measure productivity?

A)divide the number of hours worked by output
B)divide output by the number of hours worked
C)compute output growth
D)divide the change in output by the change in number of hours worked

Question 53

Which of the following is true?

A)Productivity is hours worked divided by output produced.
B)Americans have a higher standard of living than Indonesians because American workers are more productive than Indonesian workers.
C)Trends in the market prices of most resources indicate that they have become increasingly scarce over time.
D)All of the above are correct.

Question 54

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2004.At the start of 2005 the pointy-haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000.These numbers indicate that productivity

A)fell by 4%.
B)fell by 20%.
C)rose by 12%.
D)rose by 20%.

Question 55

Which of the following would not be considered physical capital?

A)a new factory building
B)a computer used to help Mercury Delivery Service keep track of its orders
C)on-the-job training
D)a desk used in an accountant's office

Question 56

The equipment and structures available to produce goods and services are called

A)physical capital.
B)human capital.
C)the production function.
D)technology.

Question 57

The saws,lathes,and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called

A)human capital.
B)physical capital.
C)natural resources.
D)technological knowledge.

Question 58

Consider two countries.Country A has a population of 1,000,of whom 800 work 8 hours a day to make 128,000 final goods.Country B has a population of 2,000 of whom 1,800 work 6 hours a day to make 270,000 final goods

A)Country A has higher productivity and higher real GDP per person than country B.
B)Country A has lower productivity and lower real GDP per person than country B.
C)Country A has higher productivity, but lower real GDP per person than country B.
D)Country B has lower productivity, but higher real GDP per person than country B.

Question 59

The key determinant of a person's standard of living in a country is

A)the amount of goods and services produced from each hour of a worker's time.
B)the total amount of goods and services produced within the country.
C)the total amount of its physical capital.
D)its growth rate of real GDP.

Question 60

Both Tom and Jerry work eight hours a day.Tom can produce six baskets of goods per hour while Jerry can produce four baskets of the same goods per hour.It follows that Tom's

A)productivity is greater than Jerry's.
B)output is greater than Jerry's.
C)standard of living is higher than Jerry's.
D)All of the above are correct.

Question 61

In a market economy,the real,or inflation adjusted,price of a resource measures its

A)contribution to revenue.
B)relative scarcity.
C)productivity.
D)contribution to efficiency.

Question 62

Which of the following would be human capital and physical capital respectively?

A)for an accounting firm, the accountants knowledge of tax laws and computer software
B)for a grocery store, grocery carts and shelving
C)for a school, chalkboard and desks
D)for a library, the building and the reference librarians' knowledge of the Internet

Question 63

Which of the following is human capital?

A)textbooks
B)hand held power tools
C)understanding how to repair cars
D)All of the above are correct.

Question 64

If the price of a good has risen over time,

A)it must have become more scarce.
B)it must have become less scarce.
C)it has become more scarce only if the price adjusted for inflation has risen.
D)it has become less scarce only if the price adjusted for inflation has risen.

Question 65

Which of the following is an example of a renewable resources?

A)fish
B)iron
C)petroleum
D)All of the above are correct.

Question 66

Which of the following would be considered physical capital?

A)the pizza oven at the Liquidity Preferences Tavern
B)rivers on which goods are transported
C)the skills and knowledge of a barber
D)All of the above are correct.

Question 67

Which of the following is an example of a nonrenewable resource?

A)coal
B)honey
C)livestock
D)All of the above are correct.

Question 68

Which of the following lists contains,in this order,natural resources,human capital,and physical capital?

A)For a restaurant: the land the restaurant was built on, the things the Chef learned at Cooking School, the freezers where the chops and steaks are kept.
B)For a furniture company: wood, the company cafeteria, saws.
C)For a railroad: fuel, railroad engines, railroad tracks.
D)None of the above is correct.

Question 69

Which of the following is a part of your Economics professor's human capital?

A)the things she learned at some prestigious university
B)her copy of Mankiw's text
C)her chalk holder
D)All of the above are correct.

Question 70

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

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

Question 71

Which of the following best illustrates the human capital of a survivor stranded on an island?

A)The fishing poles she has produced.
B)The invention of a better fishing lure.
C)The fresh fruit and fish on and around the island.
D)Her previous training in a survival course.

Question 72

Which of the following is a renewable natural resource?

A)timber
B)coal
C)gold
D)All of the above are correct.

Question 73

The inputs into production of goods and services that are provided by nature,such as land,rivers,and mineral deposits are called

A)physical capital.
B)natural resources.
C)human capital.
D)technological knowledge.

Question 74

Natural resources

A)are inputs provided by nature.
B)are inputs such as land, rivers, and mineral deposits.
C)take two forms: renewable and nonrenewable.
D)All of the above are correct.

Question 75

Which of the following is considered human capital?

A)knowledge acquired from early childhood education programs
B)knowledge acquired from grade school
C)knowledge acquired from on-the-job training
D)All of the above are correct.

Question 76

Human capital is the

A)knowledge and skills that workers acquire through education, training, and experience.
B)stock of equipment and structures that is used to produce goods and services.
C)total number of hours worked in an economy.
D)same thing as technological knowledge.

Question 77

Which of the following is physical capital?

A)the strength of workers
B)the knowledge of workers
C)financial assets like cash and bonds
D)the equipment in a factory

Question 78

Which of the following is considered human capital?

A)the comfortable chair in your dorm room where you read economics texts
B)the amount you get paid each week to work at the library
C)the things you have learned this semester
D)any capital goods that require a human to be present to operate

Question 79

In a market economy,we know that a resource has become scarcer when

A)its price rises relative to other prices.
B)it is non-renewable and some of it is used.
C)people search for substitutes.
D)All of the above are correct.

Question 80

Which of the following is human capital?

A)a student loan
B)understanding how to use a company's accounting software
C)training videos for new corporate employees
D)All of the above are correct.