Question 1

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

Accepted Answer

A)  physical capital.
B)  human capital.
C)  the production function.
D)  technology.E) None of the above
F) A) and D)

Question 2

If over a short time there is an increase in the number of people retired and a decrease in the number of people working, then productivity

Accepted Answer

A)  and real GDP per person rise.
B)  rises but real GDP per person falls.
C)  falls and real GDP per person rises.
D)  and real GDP per person fall.E) A) and B)
F) A) and C)

Question 3

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 4

Human capital is the

Accepted Answer

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

Question 5

According to some estimates, over the last two decades China has had an annual average growth rate of about 12 percent.

Accepted Answer

A) True 
 B)False

Question 6

A country's standard of living depends on its ability to produce goods and services.

Accepted Answer

A) True 
 B)False

Question 7

The majority of economists believe that future innovations will not be transformational enough to sustain high economic growth rates in the U.S. and western Europe.

Accepted Answer

A) True 
 B)False

Question 8

When a country eliminates tariffs and other trade restrictions, intending to promote economic growth, it is pursuing _______-oriented policies.

Accepted Answer

The answer of When a country eliminates tariffs and other...

Question 9

Over the period 1900-2014, Brazil's rate of economic growth exceeded that of China.

Accepted Answer

A) True 
 B)False

Question 10

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 11

Compare and contrast the population theories of Malthus and Kremer.

Accepted Answer

The difference is that Malthus predicted...

Question 12

The same size decrease in the amount of capital stock per worker will cause output per worker to fall by more in a country with a relatively high level of capital per worker than in a country with a relatively low level of capital per worker.

Accepted Answer

A) True 
 B)False

Question 13

Figure 25-2
​  ​
-Refer to Figure 25-2. Does the figure represent the idea that the amount of capital per worker influences the amount of output per worker, or does the figure represent the idea that the amount of output per worker influences the amount of capital per worker?

Accepted Answer

The figure represents the idea...

Question 14

All else equal, if there are diminishing returns, then which of the following is true if a country increases its capital by one unit?

Accepted Answer

A)  Output will rise by more than it did when the previous unit was added.
B)  Output will fall by more than it did when the previous unit was added.
C)  Output will rise but by less than it did when the previous unit was added.
D)  Output will fall but by less then it did when the previous unit was added.E) A) and B)
F) B) and C)

Question 15

Keira is a farmer. Which of the following are included in her human capital?

Accepted Answer

A)  Her seed drill and what she's learned from experience
B)  Her seed drill but not what she's learned from experience
C)  What she's learned from experience but not her seed drill
D)  Neither her seed drill nor what she's learned from experienceE) A) and D)
F) A) and C)

Question 16

How do outward-oriented policies affect a nation's productivity?

Accepted Answer

Most economists believe that poor nation...

Question 17

Figure 25-2
​  ​
-Refer to Figure 25-2. In order for the figure to make sense, do we have to assume that capital is the only determinant of output? Briefly explain.

Accepted Answer

No, we do not have to assume that capita...

Question 18

A country that made its courts less corrupt and its government more stable would likely see its standard of living rise.

Accepted Answer

A) True 
 B)False

Question 19

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 20

If a country has a higher level of productivity than another, then it also has a higher level of real GDP.

Accepted Answer

A) True 
 B)False

Exam 25: Production and Growth

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

Correct AnswerverifiedShow Answer

If a country has a higher level of productivity than another, then it also has a higher level of real GDP.

Correct AnswerverifiedShow Answer

A country that made its courts less corrupt and its government more stable would likely see its standard of living rise.

Correct AnswerverifiedShow Answer

Compare and contrast the population theories of Malthus and Kremer.

Correct AnswerverifiedThe difference is that Malthus predicted...View AnswerShow Answer

Keira is a farmer. Which of the following are included in her human capital?

Correct AnswerverifiedShow Answer

According to some estimates, over the last two decades China has had an annual average growth rate of about 12 percent.

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

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.

Correct AnswerverifiedShow Answer

If over a short time there is an increase in the number of people retired and a decrease in the number of people working, then productivity

Correct AnswerverifiedShow Answer

Figure 25-2 ​ ​ -Refer to Figure 25-2. Does the figure represent the idea that the amount of capital per worker influences the amount of output per worker, or does the figure represent the idea that the amount of output per worker influences the amount of capital per worker?

Correct AnswerverifiedThe figure represents the idea...View AnswerShow Answer

Human capital is the

Correct AnswerverifiedShow Answer

A country's standard of living depends on its ability to produce goods and services.

Correct AnswerverifiedShow Answer

All else equal, if there are diminishing returns, then which of the following is true if a country increases its capital by one unit?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When a country eliminates tariffs and other trade restrictions, intending to promote economic growth, it is pursuing _______-oriented policies.

Correct AnswerverifiedShow Answer

How do outward-oriented policies affect a nation's productivity?

Correct AnswerverifiedMost economists believe that poor nation...View AnswerShow Answer

The same size decrease in the amount of capital stock per worker will cause output per worker to fall by more in a country with a relatively high level of capital per worker than in a country with a relatively low level of capital per worker.

Correct AnswerverifiedShow Answer

Figure 25-2 ​ ​ -Refer to Figure 25-2. In order for the figure to make sense, do we have to assume that capital is the only determinant of output? Briefly explain.

Correct AnswerverifiedNo, we do not have to assume that capita...View AnswerShow Answer

Over the period 1900-2014, Brazil's rate of economic growth exceeded that of China.

Correct AnswerverifiedShow Answer

The majority of economists believe that future innovations will not be transformational enough to sustain high economic growth rates in the U.S. and western Europe.

Correct AnswerverifiedShow Answer

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The difference is that Malthus predicted...
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Figure 25-2 -Refer to Figure 25-2. Does the figure represent the idea that the amount of capital per worker influences the amount of output per worker, or does the figure represent the idea that the amount of output per worker influences the amount of capital per worker?

Correct Answer
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The figure represents the idea...
View Answer

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Most economists believe that poor nation...
View Answer

Correct Answer
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Figure 25-2 -Refer to Figure 25-2. In order for the figure to make sense, do we have to assume that capital is the only determinant of output? Briefly explain.

Correct Answer
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No, we do not have to assume that capita...
View Answer

Correct Answer
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Correct Answer
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