Question 1

Some data that at first might seem puzzling: The share of GDP devoted to investment was similar for the United States and South Korea from 1960-1991. However, during these same years South Korea had a 6 percent growth rate of average annual income per person, while the United States had only a 2 percent growth rate. If the saving rates were the same, why were the growth rates so different?

Accepted Answer

The explanation is based on the concept ...

Question 2

An increase in the saving rate permanently increases the growth rate of real GDP per person.

Accepted Answer

A) True 
 B)False

Question 3

In 2009, Modern Electronics, Inc. produced 60,000 calculators, employing 80 workers, each of whom worked 8 hours per day. In 2010, the same firm produced 76,500 calculators, employing 85 workers, each of whom worked 10 hours per day. Productivity at Modern Electronics

Accepted Answer

A)   decreased by 4%
B)   remained constant.
C)   increased by 8.33%
D)   increased by 27.50%E) All of the above
F) None of the above

Question 4

Which of the following is an example of a renewable natural resource?

Accepted Answer

A)   the knowledge possessed by scientists
B)   carpenters' labor services
C)   lumber
D)   All of the above are correct.E) None of the above
F) C) and D)

Question 5

Last year the imaginary country of Bahkan had a population of 10,000, 6,000 people worked 8 hours a day and produced a real GDP of $30,000,000. The imaginary country of San Andreo had a population of 15,000, 8,000 people worked 7 hours a day and produced a real GDP of $33,000,000. Which of the following is correct?

Accepted Answer

A)   Bahkan had the higher productivity and the higher real GDP per person.
B)   San Andreo had the higher productivity and the higher real GDP per person.
C)   Bahkan had the higher productivity while San Andreo had the higher real GDP per person.
D)   San Andreo had the higher productivity while Bahkan had the higher real GDP per person.E) B) and C)
F) All of the above

Question 6

Nathan owns a coffee kiosk. All of his employees work 8 hours per day. In 2009, he employed 5 people who produced a total of 900 cups of coffee each day. In 2010, he hired a sixth employee and production increased to 1188 cups of coffee each day. In Nathan's kiosk, productivity

Accepted Answer

A)   decreased by 2 percent.
B)   increased by 9 percent.
C)   increased by 10 percent.
D)   increased by 1.11 percent.E) None of the above
F) A) and B)

Question 7

In countries where women are discriminated against, policies that increase the likelihood of career success and educational opportunities for women are likely to decrease the birth rate.

Accepted Answer

A) True 
 B)False

Question 8

Ralph is a plumber. Which of the following are included in his physical capital?

Accepted Answer

A)   the knowledge he learned on the job, and the tools he uses
B)   the knowledge he learned on the job, but not the tools he uses
C)   the tools he uses, but not the knowledge he learned on the job
D)   neither the knowledge he learned on the job nor the tools he usesE) A) and D)
F) None of the above

Question 9

The traditional view of the production process is that capital is subject to

Accepted Answer

A)   constant returns.
B)   increasing returns.
C)   diminishing returns.
D)   diminishing returns for low levels of capital, and increasing returns for high levels of capital.E) A) and D)
F) A) and C)

Question 10

Nathan owns a bakery that bakes only cakes. All of his bakers work 8 hours per day. In 2009, he employed 5 bakers who produced a total of 200 cakes each day. In 2010, he employed 6 bakers who produced a total of 249 cakes each day. The bakery's productivity

Accepted Answer

A)   decreased by 2.33%.
B)   increased by 2.33%.
C)   increased by 3.75%.
D)   increased by 24.50%.E) C) and D)
F) All of the above

Question 11

The one variable that stands out as the most significant explanation of large variations in living standards around the world is

Accepted Answer

A)   productivity.
B)   population.
C)   preferences.
D)   prices.E) C) and D)
F) A) and B)

Question 12

Other things the same, which of the following would increase productivity?

Accepted Answer

A)   an increase in either human or physical capital
B)   an increase in human capital but not an increase in physical capital
C)   an increase in physical capital but not an increase in human capital
D)   neither an increase in human capital nor an increase in physical capitalE) A) and D)
F) None of the above

Question 13

Assuming constant returns to scale, if two countries are otherwise the same, the one that is poorer grows faster.

Accepted Answer

A) True 
 B)False

Question 14

Since 1870 Canadian and U.S real GDP per person grew from below to above that in the United Kingdom. The explanation for this is likely that productivity grew faster in Canada and the U.S. than in the United Kingdom.

Accepted Answer

A) True 
 B)False

Question 15

An organization that tries to encourage the flow of investment 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.E) A) and D)
F) B) and D)

Question 16

In determining living standards, productivity plays a key role

Accepted Answer

A)   for individuals, but not for nations.
B)   for nations, but not for individuals.
C)   for both nations and individuals.
D)   for neither nations nor individuals.E) A) and B)
F) All of the above

Question 17

The traditional view of the production process is that capital is subject to

Accepted Answer

A)   diminishing returns, so that other things the same, real GDP in poor countries should grow at a faster rate than in rich countries.
B)   diminishing returns, so that other things the same, real GDP in poor countries should grow at a slower rate than in rich countries.
C)   increasing returns, so that other things the same, real GDP in poor countries should grow at a faster rate than in rich countries.
D)   increasing returns, so that other things the same, real GDP in poor countries should grow at a slower rate than in rich countries.E) All of the above
F) B) and D)

Exam 7: Production and Growth

Correct Answer
verified

The traditional view of the production process is that capital is subject to

Correct Answer
verified

Correct Answer
verified
The explanation is based on the concept ...
View Answer

In determining living standards, productivity plays a key role

Correct Answer
verified

Nathan owns a coffee kiosk. All of his employees work 8 hours per day. In 2009, he employed 5 people who produced a total of 900 cups of coffee each day. In 2010, he hired a sixth employee and production increased to 1188 cups of coffee each day. In Nathan's kiosk, productivity

Correct Answer
verified

Since 1870 Canadian and U.S real GDP per person grew from below to above that in the United Kingdom. The explanation for this is likely that productivity grew faster in Canada and the U.S. than in the United Kingdom.

Correct Answer
verified

In 2009, Modern Electronics, Inc. produced 60,000 calculators, employing 80 workers, each of whom worked 8 hours per day. In 2010, the same firm produced 76,500 calculators, employing 85 workers, each of whom worked 10 hours per day. Productivity at Modern Electronics

Correct Answer
verified

Nathan owns a bakery that bakes only cakes. All of his bakers work 8 hours per day. In 2009, he employed 5 bakers who produced a total of 200 cakes each day. In 2010, he employed 6 bakers who produced a total of 249 cakes each day. The bakery's productivity

Correct Answer
verified

The traditional view of the production process is that capital is subject to

Correct Answer
verified

The one variable that stands out as the most significant explanation of large variations in living standards around the world is

Correct Answer
verified

Ralph is a plumber. Which of the following are included in his physical capital?

Correct Answer
verified

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

Correct Answer
verified

An increase in the saving rate permanently increases the growth rate of real GDP per person.

Correct Answer
verified

Which of the following is an example of a renewable natural resource?

Correct Answer
verified

In countries where women are discriminated against, policies that increase the likelihood of career success and educational opportunities for women are likely to decrease the birth rate.

Correct Answer
verified

Other things the same, which of the following would increase productivity?

Correct Answer
verified

Assuming constant returns to scale, if two countries are otherwise the same, the one that is poorer grows faster.

Correct Answer
verified

Exam 7: Production and Growth

Correct AnswerverifiedShow Answer

The traditional view of the production process is that capital is subject to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe explanation is based on the concept ...View AnswerShow Answer

In determining living standards, productivity plays a key role

Correct AnswerverifiedShow Answer

Nathan owns a coffee kiosk. All of his employees work 8 hours per day. In 2009, he employed 5 people who produced a total of 900 cups of coffee each day. In 2010, he hired a sixth employee and production increased to 1188 cups of coffee each day. In Nathan's kiosk, productivity

Correct AnswerverifiedShow Answer

Since 1870 Canadian and U.S real GDP per person grew from below to above that in the United Kingdom. The explanation for this is likely that productivity grew faster in Canada and the U.S. than in the United Kingdom.

Correct AnswerverifiedShow Answer

In 2009, Modern Electronics, Inc. produced 60,000 calculators, employing 80 workers, each of whom worked 8 hours per day. In 2010, the same firm produced 76,500 calculators, employing 85 workers, each of whom worked 10 hours per day. Productivity at Modern Electronics

Correct AnswerverifiedShow Answer

Nathan owns a bakery that bakes only cakes. All of his bakers work 8 hours per day. In 2009, he employed 5 bakers who produced a total of 200 cakes each day. In 2010, he employed 6 bakers who produced a total of 249 cakes each day. The bakery's productivity

Correct AnswerverifiedShow Answer

The traditional view of the production process is that capital is subject to

Correct AnswerverifiedShow Answer

The one variable that stands out as the most significant explanation of large variations in living standards around the world is

Correct AnswerverifiedShow Answer

Ralph is a plumber. Which of the following are included in his physical capital?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An increase in the saving rate permanently increases the growth rate of real GDP per person.

Correct AnswerverifiedShow Answer

Which of the following is an example of a renewable natural resource?

Correct AnswerverifiedShow Answer

In countries where women are discriminated against, policies that increase the likelihood of career success and educational opportunities for women are likely to decrease the birth rate.

Correct AnswerverifiedShow Answer

Other things the same, which of the following would increase productivity?

Correct AnswerverifiedShow Answer

Assuming constant returns to scale, if two countries are otherwise the same, the one that is poorer grows faster.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The explanation is based on the concept ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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