Question 1

The catch-up effect says that countries with low income can grow faster than countries with higher income. However, in statistical studies that include many diverse countries we do not observe the catch-up-effect unless we control for other variables that affect productivity. Considering the determinants of productivity, list and explain some things that would tend to prohibit or limit a poor country's ability to catch up with the rich ones.

Accepted Answer

The answer of The catch-up effect says that countries with...

Question 2

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 3

Studies have found that there is a relationship between height and productivity. Briefly explain.

Accepted Answer

The answer of Studies have found that there is a...

Question 4

Which one of the factors of production originates as an output from the production process, and is subsequently used as an input into the production process?

Accepted Answer

The answer of Which one of the factors of production...

Question 5

What is the relationship between education and human capital?

Accepted Answer

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

Question 6

Real GDP per person in rich countries, such as Germany, is sometimes more than 10 times that of poor countries like India.

Accepted Answer

A) True 
 B)False

Question 7

Consider the nations of China, Japan, and the United States. Over the past century, which of these nations has progressed, in an economic sense, more rapidly than the other two nations?

Accepted Answer

The answer of Consider the nations of China, Japan, and...

Question 8

Industrial machinery is an example of

Accepted Answer

A) a factor of production that in the past was an output from the production process. 
B) technological knowledge. 
C) a production function. 
D) an item which always has the property called constant returns to scale.

Question 9

The behavior of market prices over time indicates that natural resources are

Accepted Answer

A) a limit to economic growth. 
B) unrelated to economic growth. 
C) not a limit to economic growth. 
D) the major determinant of productivity.

Question 10

Over the last 140 years or so, on average Canada's real GDP per-person grew faster than that of the U.K.

Accepted Answer

A) True 
 B)False

Question 11

If Country A produces 7,000 units of goods and services using 700 hours of labor, and if Country B produces 5,500 units of goods and services using 500 units of labor, then productivity is lower in Country A than in Country B.

Accepted Answer

A) True 
 B)False

Question 12

John and Miguel are fishermen. When they go fishing, John consistently catches 2 or 3 fish per hour, while Miguel consistently catches 5 or 6 fish per hour. Miguel's __________ exceeds that of John.

Accepted Answer

The answer of John and Miguel are fishermen. When they...

Question 13

Increases in both human capital per worker and physical capital per worker increase productivity.

Accepted Answer

A) True 
 B)False

Question 14

Suppose Japanese-based Toshiba Corporation builds and operates a new computer factory in the United States. Future production from such an investment will

Accepted Answer

A) increase U.S.GNP more than it increases U.S.GDP. 
B) increase U.S.GDP more than it increases U.S.GNP. 
C) have no affect on U.S.GNP, but will increase U.S.GDP. 
D) have no affect on U.S.GNP or GDP.

Question 15

An organization that tries to encourage the flow of investment from advanced countries to poor countries is the

Accepted Answer

A) World Bank. 
B) Organization of Less Developed Countries. 
C) Alliance of Developing Countries. 
D) International Development Alliance.

Question 16

Consider the production function Y=2F(L,K,H,N). Suppose F(12, 10, 9, 7) = 100 and F(24, 20, 18, 14) = 180. Does the production function have the property of constant returns to scale? Why or why not?

Accepted Answer

The answer of Consider the production function Y=2F(L,K,H,N). Suppose F(12,...

Question 17

Which of the following is correct?

Accepted Answer

A) Countries with the highest growth rates over the last 120 years are the ones that had the highest level of real GDP 120 years ago. 
B) Most countries have had little fluctuation around their average growth rates during the past 120 years. 
C) The ranking of countries by income changes little over time. 
D) Even though Japan had a higher growth rate of real GDP per person than the United States over the last 120 years, it's level of real GDP per person is less than that of the United States.

Question 18

Out of the following economic statistics, which is the best measure of economic prosperity?

Accepted Answer

A) The level of real GDP 
B) The growth rate of real GDP 
C) The level of nominal GDP 
D) The price level

Question 19

Foreign direct investment and domestic investment have the same effect on all measures of economic prosperity.

Accepted Answer

A) True 
 B)False

Question 20

Figure 25-2
​  ​
-Refer to Figure 25-2. "When the amount of capital per worker increases by one unit, a poor country experiences a greater benefit than does a rich country." Does the figure illustrate this notion? Briefly explain.

Accepted Answer

The answer of Figure 25-2
​  ​
-Refer to Figure 25-2....

Exam 25: Production and Growth

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

Studies have found that there is a relationship between height and productivity. Briefly explain.

Which one of the factors of production originates as an output from the production process, and is subsequently used as an input into the production process?

What is the relationship between education and human capital?

Real GDP per person in rich countries, such as Germany, is sometimes more than 10 times that of poor countries like India.

Consider the nations of China, Japan, and the United States. Over the past century, which of these nations has progressed, in an economic sense, more rapidly than the other two nations?

Industrial machinery is an example of

The behavior of market prices over time indicates that natural resources are

Over the last 140 years or so, on average Canada's real GDP per-person grew faster than that of the U.K.

If Country A produces 7,000 units of goods and services using 700 hours of labor, and if Country B produces 5,500 units of goods and services using 500 units of labor, then productivity is lower in Country A than in Country B.

John and Miguel are fishermen. When they go fishing, John consistently catches 2 or 3 fish per hour, while Miguel consistently catches 5 or 6 fish per hour. Miguel's __________ exceeds that of John.

Increases in both human capital per worker and physical capital per worker increase productivity.

Suppose Japanese-based Toshiba Corporation builds and operates a new computer factory in the United States. Future production from such an investment will

An organization that tries to encourage the flow of investment from advanced countries to poor countries is the

Consider the production function Y=2F(L,K,H,N). Suppose F(12, 10, 9, 7) = 100 and F(24, 20, 18, 14) = 180. Does the production function have the property of constant returns to scale? Why or why not?

Which of the following is correct?

Out of the following economic statistics, which is the best measure of economic prosperity?

Foreign direct investment and domestic investment have the same effect on all measures of economic prosperity.

Figure 25-2 -Refer to Figure 25-2. "When the amount of capital per worker increases by one unit, a poor country experiences a greater benefit than does a rich country." Does the figure illustrate this notion? Briefly explain.

Exam 25: Production and Growth

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

Studies have found that there is a relationship between height and productivity. Briefly explain.

Which one of the factors of production originates as an output from the production process, and is subsequently used as an input into the production process?

What is the relationship between education and human capital?

Real GDP per person in rich countries, such as Germany, is sometimes more than 10 times that of poor countries like India.

Consider the nations of China, Japan, and the United States. Over the past century, which of these nations has progressed, in an economic sense, more rapidly than the other two nations?

Industrial machinery is an example of

The behavior of market prices over time indicates that natural resources are

Over the last 140 years or so, on average Canada's real GDP per-person grew faster than that of the U.K.

If Country A produces 7,000 units of goods and services using 700 hours of labor, and if Country B produces 5,500 units of goods and services using 500 units of labor, then productivity is lower in Country A than in Country B.

John and Miguel are fishermen. When they go fishing, John consistently catches 2 or 3 fish per hour, while Miguel consistently catches 5 or 6 fish per hour. Miguel's __________ exceeds that of John.

Increases in both human capital per worker and physical capital per worker increase productivity.

Suppose Japanese-based Toshiba Corporation builds and operates a new computer factory in the United States. Future production from such an investment will

An organization that tries to encourage the flow of investment from advanced countries to poor countries is the

Consider the production function Y=2F(L,K,H,N). Suppose F(12, 10, 9, 7) = 100 and F(24, 20, 18, 14) = 180. Does the production function have the property of constant returns to scale? Why or why not?

Which of the following is correct?

Out of the following economic statistics, which is the best measure of economic prosperity?

Foreign direct investment and domestic investment have the same effect on all measures of economic prosperity.

Figure 25-2 ​ ​ -Refer to Figure 25-2. "When the amount of capital per worker increases by one unit, a poor country experiences a greater benefit than does a rich country." Does the figure illustrate this notion? Briefly explain.

Figure 25-2 -Refer to Figure 25-2. "When the amount of capital per worker increases by one unit, a poor country experiences a greater benefit than does a rich country." Does the figure illustrate this notion? Briefly explain.