Question 1

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) A) and B)

Question 2

Economist Michael Kremer found that world growth rates fell as population increased.

Accepted Answer

A) True 
 B)False  False

Question 3

A leading environmental group recently published a report contending that humans are running a "resource deficit" because we are using natural resources faster than they can be regenerated.The group claims that this means that economic growth will eventually stop,and will even be reversed.An economist would

Accepted Answer

A)   agree with the report,and would point to rising natural resource prices as evidence.
B)   agree with the report,but wouldn't think it was important because growth will not slow down for several centuries.
C)   disagree with the report,in part because it ignores the mitigating effects of technological change.
D)   disagree with the report because labor and capital are the primary determinants of growth,and since they are plentiful,growth will not slow down.E) A) and B)
F) A) and C)

Question 4

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 productivityE) B) and D)
F) A) and B)

Question 5

Suppose U.S.-based Intel Corporation builds and operates a new computer chip factory in Ghana.Future production from such an investment would

Accepted Answer

A)   increase Ghanaian GDP more than it would increase Ghanaian GNP.
B)   increase Ghanaian GNP more than it would increase Ghanaian GDP.
C)   not affect Ghanaian GNP,but would increase Ghanaian GDP.
D)   have no affect on either Ghanaian GDP or GNP.E) B) and C)
F) A) and D)

Question 6

Which of the following statements is true?

Accepted Answer

A)   Productivity is calculated as hours worked divided by output produced.
B)   Americans have a higher standard of living than Indonesians because American workers are more productive than Indonesian workers.
C)   Both A and B are correct.
D)   None of the above are correct.E) All of the above
F) B) and C)

Question 7

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.E) B) and D)
F) A) and B) C

Question 8

Miller's Dairy produces 960 gallons of milk per day.Each milker at the dairy works 8 hours per day and produces the same number of gallons of milk per hour.If the Dairy's productivity is 12 gallons of milk per hour of labor,then how many milkers does the shop employ?

Accepted Answer

A)   8
B)   10
C)   80
D)   120E) A) and B)
F) None of the above

Question 9

In 2009,Angel Foods produced 300,000 bags of tortilla chips,employing 12,000 hours of labor.In 2010,Angel Foods produced 325,000 bags of tortilla chips,employing 13,000 hours of labor.Angel Food's productivity

Accepted Answer

A)   decreased by 2.1 percent.
B)   was unchanged.
C)   increased by 1.3 percent.
D)   increased by 2.3 percent.E) A) and B)
F) C) and D)

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Consider the nations of India,Indonesia,and Japan.Over the past century,which of these three nations has experienced,by far,more rapid economic growth than the other two nations?

Accepted Answer

Japan's growth rate (2.71 perc...

Question 12

Refer to Scenario 12-1.In the production function,which of the following represents technology?

Accepted Answer

A)   A
B)   K
C)   H
D)   NE) A) and D)
F) B) and C)

Question 13

Other things the same,if a country increased its saving rate,in 40 years or so it would likely have

Accepted Answer

A)   higher productivity,and a higher growth rate of real GDP.
B)   higher productivity,but not a higher growth rate of real GDP.
C)   the same productivity and growth of real GDP it began with.
D)   None of the above is correct.E) A) and B)
F) A) and C)

Question 14

Which of the following is an example of a nonrenewable resource?

Accepted Answer

A)   coal
B)   honey
C)   livestock
D)   All of the above are correct.E) None of the above
F) A) and B) A

Question 15

If the best educated and most skilled persons leave a country,then in the short term this country's human capital per worker

Accepted Answer

A)   and physical capital per worker will increase.
B)   and physical capital per worker will decrease.
C)   will increase but physical capital per worker will decrease.
D)   will decrease but physical capital per worker will increase.E) A) and B)
F) A) and C)

Question 16

Mary looks over reports on four of her workers.Jack made 25 baskets in 5 hours.Walter made 36 baskets in 6 hours.Rudy made 40 baskets in 10 hours.Sam made 22 baskets in four hours.Who has the greatest productivity?

Accepted Answer

A)   Jack
B)   Walter
C)   Rudy
D)   SamE) A) and B)
F) A) and C)

Question 17

Country A and country B both increase their capital stock by one unit.Output in country A increases by 15 while output in country B increases by 12.Other things the same,diminishing returns implies that country A is

Accepted Answer

A)   richer than Country B.If Country A adds another unit of capital,output will increase by more than 15 units.
B)   richer than Country B.If Country A adds another unit of capital,output will increase by less than 15 units.
C)   poorer than Country B.If Country A adds another unit of capital,output will increase by more than 15 units.
D)   poorer than Country B.If Country A adds another unit of capital,output will increase by less than 15 units.E) A) and B)
F) B) and C)

Question 18

The dictator of a certain country requires that companies planning to open or expand must pay a large fee to file an application one year prior to building new factories or expanding existing ones.Other things the same,in the long run this requirement would

Accepted Answer

A)   reduce real GDP per person and productivity.
B)   reduce real GDP per person but not productivity.
C)   reduce productivity but not real GDP per person.
D)   None of the above is correct.E) A) and B)
F) None of the above

Question 19

Suppose that an American opens and operates a recording studio in Poland.This is an example of

Accepted Answer

A)   foreign direct investment.American saving is used to finance Polish investment.
B)   foreign direct investment.American saving is used to finance American investment.
C)   foreign portfolio investment.American saving is used to finance Polish investment.
D)   foreign portfolio investment.American saving is used to finance American investment.E) B) and C)
F) A) and D)

Question 20

Two countries with the same saving rates must have the same growth rate of real GDP per person.

Accepted Answer

A) True 
 B)False

Exam 25: Production and Growth

Correct Answer
verified

Economist Michael Kremer found that world growth rates fell as population increased.

Correct Answer
verified
False

Correct Answer
verified

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

Correct Answer
verified

Suppose U.S.-based Intel Corporation builds and operates a new computer chip factory in Ghana.Future production from such an investment would

Correct Answer
verified

Which of the following statements is true?

Correct Answer
verified

Foreign saving is used for domestic investment when foreigners engage in

Correct Answer
verified
C

Miller's Dairy produces 960 gallons of milk per day.Each milker at the dairy works 8 hours per day and produces the same number of gallons of milk per hour.If the Dairy's productivity is 12 gallons of milk per hour of labor,then how many milkers does the shop employ?

Correct Answer
verified

In 2009,Angel Foods produced 300,000 bags of tortilla chips,employing 12,000 hours of labor.In 2010,Angel Foods produced 325,000 bags of tortilla chips,employing 13,000 hours of labor.Angel Food's productivity

Correct Answer
verified

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

Correct Answer
verified

Consider the nations of India,Indonesia,and Japan.Over the past century,which of these three nations has experienced,by far,more rapid economic growth than the other two nations?

Correct Answer
verified
Japan's growth rate (2.71 perc...
View Answer

Refer to Scenario 12-1.In the production function,which of the following represents technology?

Correct Answer
verified

Other things the same,if a country increased its saving rate,in 40 years or so it would likely have

Correct Answer
verified

Which of the following is an example of a nonrenewable resource?

Correct Answer
verified
A

If the best educated and most skilled persons leave a country,then in the short term this country's human capital per worker

Correct Answer
verified

Mary looks over reports on four of her workers.Jack made 25 baskets in 5 hours.Walter made 36 baskets in 6 hours.Rudy made 40 baskets in 10 hours.Sam made 22 baskets in four hours.Who has the greatest productivity?

Correct Answer
verified

Country A and country B both increase their capital stock by one unit.Output in country A increases by 15 while output in country B increases by 12.Other things the same,diminishing returns implies that country A is

Correct Answer
verified

The dictator of a certain country requires that companies planning to open or expand must pay a large fee to file an application one year prior to building new factories or expanding existing ones.Other things the same,in the long run this requirement would

Correct Answer
verified

Suppose that an American opens and operates a recording studio in Poland.This is an example of

Correct Answer
verified

Two countries with the same saving rates must have the same growth rate of real GDP per person.

Correct Answer
verified

Exam 25: Production and Growth

Correct AnswerverifiedShow Answer

Economist Michael Kremer found that world growth rates fell as population increased.

Correct AnswerverifiedFalse

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Suppose U.S.-based Intel Corporation builds and operates a new computer chip factory in Ghana.Future production from such an investment would

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Foreign saving is used for domestic investment when foreigners engage in

Correct AnswerverifiedC

Miller's Dairy produces 960 gallons of milk per day.Each milker at the dairy works 8 hours per day and produces the same number of gallons of milk per hour.If the Dairy's productivity is 12 gallons of milk per hour of labor,then how many milkers does the shop employ?

Correct AnswerverifiedShow Answer

In 2009,Angel Foods produced 300,000 bags of tortilla chips,employing 12,000 hours of labor.In 2010,Angel Foods produced 325,000 bags of tortilla chips,employing 13,000 hours of labor.Angel Food's productivity

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Consider the nations of India,Indonesia,and Japan.Over the past century,which of these three nations has experienced,by far,more rapid economic growth than the other two nations?

Correct AnswerverifiedJapan's growth rate (2.71 perc...View AnswerShow Answer

Refer to Scenario 12-1.In the production function,which of the following represents technology?

Correct AnswerverifiedShow Answer

Other things the same,if a country increased its saving rate,in 40 years or so it would likely have

Correct AnswerverifiedShow Answer

Which of the following is an example of a nonrenewable resource?

Correct AnswerverifiedA

If the best educated and most skilled persons leave a country,then in the short term this country's human capital per worker

Correct AnswerverifiedShow Answer

Mary looks over reports on four of her workers.Jack made 25 baskets in 5 hours.Walter made 36 baskets in 6 hours.Rudy made 40 baskets in 10 hours.Sam made 22 baskets in four hours.Who has the greatest productivity?

Correct AnswerverifiedShow Answer

Country A and country B both increase their capital stock by one unit.Output in country A increases by 15 while output in country B increases by 12.Other things the same,diminishing returns implies that country A is

Correct AnswerverifiedShow Answer

The dictator of a certain country requires that companies planning to open or expand must pay a large fee to file an application one year prior to building new factories or expanding existing ones.Other things the same,in the long run this requirement would

Correct AnswerverifiedShow Answer

Suppose that an American opens and operates a recording studio in Poland.This is an example of

Correct AnswerverifiedShow Answer

Two countries with the same saving rates must have the same growth rate of real GDP per person.

Correct AnswerverifiedShow Answer

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False

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C

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Correct Answer
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Japan's growth rate (2.71 perc...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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A

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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