Question 1

Among the following countries, which one has the highest level of real GDP per person but the lowest growth rate of real GDP per person over a very long period of time?

Accepted Answer

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

Question 2

If a country increases its saving rate, which of the following permanently grow at a higher rate?

Accepted Answer

A) productivity and real GDP per person 
B) productivity but not real GDP per person 
C) real GDP per person but not productivity 
D) neither real GDP per person nor productivity

Question 3

The average income in a rich country, such as the United States or Japan, is more than

Accepted Answer

A) 3 times, but less than 5 times, the average income in a poor country, such as Indonesia or Nigeria. 
B) 5 times, but less than 10 times, the average income in a poor country, such as Indonesia or Nigeria. 
C) 10 times, but less than 20 times, the average income in a poor country, such as Indonesia or Nigeria. 
D) more than 20 times the average income in a poor country, such as Indonesia or Nigeria.

Question 4

If the number of workers in an economy doubled, all other inputs stayed the same, and there were constant returns to scale, productivity would

Accepted Answer

A) fall to less than one-half of its former value. 
B) fall, but it would still be greater than one-half of its former value. 
C) stay the same. 
D) rise but less than double.

Question 5

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

Accepted Answer

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 6

After adjusting for inflation, over time the prices of most natural resources have been

Accepted Answer

A) steady or falling, meaning that our ability to conserve them is growing more rapidly than their supplies are dwindling. 
B) steady or falling, meaning that their supplies are dwindling more rapidly than our ability to conserve them is growing. 
C) rising, meaning that our ability to conserve them is growing more rapidly than their supplies are dwindling. 
D) rising, meaning that their supplies are dwindling more rapidly than our ability to conserve them is growing.

Question 7

Which of the following is an example of a produced factor of production?

Accepted Answer

A) corn that is harvested from a field in Iowa 
B) workers who are hired at a coal mine in West Virginia 
C) skills that teachers in Texas acquire through continuing-education classes 
D) All of the above are correct.

Question 8

Petroleum is an example of a nonrenewable resource.

Accepted Answer

A) True 
 B)False

Question 9

​In order to promote growth in living standards, policymakers must

Accepted Answer

A) protect property rights. 
B) maintain political stability. 
C) ​encourage the accumulation of factors of production. 
D) ​All of the above

Question 10

As capital per worker rises, output per worker rises. However, this increase in output per worker is smaller at smaller levels of existing capital per worker.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

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 12

Which of the following statements is correct?

Accepted Answer

A) Productivity is a determinant of human capital per worker. 
B) Technological knowledge is a determinant of productivity. 
C) Human capital and technological knowledge are the same thing. 
D) All of the above are correct.

Question 13

In the past there have been violent protests against the World Bank and the World Trade Organization. The protesters argued that these institutions promote free trade and also encourage corporations in rich countries to invest in poor countries. The protesters contended that these practices make rich countries richer and poor countries poorer. An economist would

Accepted Answer

A) disagree with the protesters because these practices will help make both rich and poor countries richer. 
B) disagree with the protesters about free trade, but would agree with the protesters about corporate investment. 
C) disagree with the protesters about corporate investment, but would agree with the protesters about free trade. 
D) agree with the protesters.

Question 14

Journey Motorcycles produced 100 motorcycles using 50 workers who each worked 8 hours a day. Journey's productivity was 1/4.

Accepted Answer

A) True 
 B)False

Question 15

Other things the same, a country that increases its savings rate will have

Accepted Answer

A) higher future capital and higher future real GDP per person. 
B) higher future capital but not higher future real GDP per person. 
C) higher future real GDP per person but not higher future capital. 
D) neither higher future capital nor higher future real GDP per person.

Question 16

What is the relationship between education and human capital?

Accepted Answer

The answer of What is the relationship between education and...

Question 17

In the United States in 2014 real GDP per person was about $56,000, while in some poor countries real GDP per person was less than $5,000.

Accepted Answer

A) True 
 B)False

Question 18

Other things the same, if a country raises its saving rate, then in the long run

Accepted Answer

A) both the level and growth rate of real GDP are unchanged. 
B) the level of real GDP is higher but the growth rate of real GDP is unchanged. 
C) both the level and growth rate of real GDP are higher. 
D) None of the above are correct.

Question 19

Some economists argue that it is possible to raise the standard of living by reducing population growth. As an economist interested in incentives rather than coercion, what kind of policy would you recommend to slow population growth?

Accepted Answer

The answer of Some economists argue that it is possible...

Question 20

Which of the following would increase productivity?

Accepted Answer

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

Exam 25: Production and Growth

Among the following countries, which one has the highest level of real GDP per person but the lowest growth rate of real GDP per person over a very long period of time?

If a country increases its saving rate, which of the following permanently grow at a higher rate?

The average income in a rich country, such as the United States or Japan, is more than

If the number of workers in an economy doubled, all other inputs stayed the same, and there were constant returns to scale, productivity would

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

After adjusting for inflation, over time the prices of most natural resources have been

Which of the following is an example of a produced factor of production?

Petroleum is an example of a nonrenewable resource.

​In order to promote growth in living standards, policymakers must

As capital per worker rises, output per worker rises. However, this increase in output per worker is smaller at smaller levels of existing capital per worker.

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

Which of the following statements is correct?

Journey Motorcycles produced 100 motorcycles using 50 workers who each worked 8 hours a day. Journey's productivity was 1/4.

Other things the same, a country that increases its savings rate will have

What is the relationship between education and human capital?

In the United States in 2014 real GDP per person was about $56,000, while in some poor countries real GDP per person was less than $5,000.

Other things the same, if a country raises its saving rate, then in the long run

Some economists argue that it is possible to raise the standard of living by reducing population growth. As an economist interested in incentives rather than coercion, what kind of policy would you recommend to slow population growth?

Which of the following would increase productivity?

In order to promote growth in living standards, policymakers must