Question 1

Suppose over the last five years that the price of recycled aluminum increased from $800 a ton to $900 a ton. Over the same time a measure of the overall price level increased from 120 to 138. The real price of recycled aluminum

Accepted Answer

A) increased, so it became scarcer 
B) increased, so it became less scarce 
C) decreased, so it became scarcer 
D) decreased, so it became less scarce

Question 2

Which of the following is an example of physical capital?

Accepted Answer

A) the available knowledge on how to make semiconductors 
B) a taxi-cab driver's knowledge of the fastest routes to take 
C) bulldozers, backhoes and other construction equipment 
D) All of the above are correct.

Question 3

In 1870, the richest country in the world was

Accepted Answer

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

Question 4

Which of the following is a determinant of productivity?

Accepted Answer

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

Question 5

Which of the following are residents of rich countries likely to have in greater quantities, or better quality, than residents of poor countries?

Accepted Answer

A) housing 
B) healthcare 
C) life expectancy 
D) All of the above.

Question 6

In the long run, a higher saving rate

Accepted Answer

A) cannot increase the capital stock. 
B) means that people must consume less in the future. 
C) increases the level of productivity. 
D) None of the above is correct.

Question 7

What word do we use to refer to the amount of goods and services produced for each hour of a worker's time?

Accepted Answer

The answer of What word do we use to refer...

Question 8

Which of the following correctly ranks the three countries, from highest to lowest, for percentage of college-age children in school?

Accepted Answer

A) United Kingdom, Mali, Mexico. 
B) Mexico, Mali, United Kingdom. 
C) United Kingdom, Mexico, Mali. 
D) Mali, Mexico, United Kingdom.

Question 9

Among the following countries, which one has the highest growth rate of real GDP per person over about the last 100 years?

Accepted Answer

A) Argentina 
B) Mexico 
C) the United Kingdom 
D) the United States

Question 10

What do we mean when we say that some technological knowledge is not proprietary?

Accepted Answer

The answer of What do we mean when we say...

Question 11

Outward-oriented policies

Accepted Answer

A) allow countries to take advantage of gains from trade. 
B) have generally led to high growth for the countries that pursued them. 
C) receive widespread support from economists. 
D) All of the above are correct.

Question 12

If companies from foreign countries build and operate factories in China, then China's productivity

Accepted Answer

A) and the wages of Chinese workers increase. 
B) increases but the wages of Chinese workers decrease. 
C) decreases but the wages of Chinese workers increase. 
D) and the wages of Chinese workers decrease.

Question 13

In what sense is capital accumulation costly to a society?

Accepted Answer

The answer of In what sense is capital accumulation costly...

Question 14

In which of the following cases can we be certain that a natural resource has become scarcer?

Accepted Answer

A) both the demand for the resource and the supply of the resource have increased 
B) both the demand for the resource and the supply of the resource have decreased 
C) demand for the resource is unchanged and the supply of the resource has increased 
D) the demand for the resource has decreased and the supply of the resource is unchanged

Question 15

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.

Accepted Answer

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 16

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

Accepted Answer

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

Question 17

Proprietary technology is knowledge that is

Accepted Answer

A) known but no longer used much. 
B) known, but only recently discovered. 
C) known mostly by only those in a certain profession. 
D) known only by the company that discovered it.

Question 18

Foreign saving is used for domestic investment when foreigners engage in

Accepted Answer

A) foreign direct investment. 
B) foreign portfolio investment. 
C) either foreign direct investment or foreign portfolio investment. 
D) None of the above is correct.

Question 19

A nation's standard of living is best measured by its

Accepted Answer

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

Question 20

Natural resources

Accepted Answer

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

Exam 25: Production and Growth