Question 1

Each day Sonja works 8 hours and produces 8 units of goods and services.Emma works 10 hours each day and produces 9 units of goods and services.It follows that

Accepted Answer

A)   Sonja's productivity is higher than Emma's.
B)   Emma's productivity is higher than Sonja's.
C)   Emma's income per hour will be higher than Sonja's.
D)   Sonja's income per day will be higher than Emma's.E) A) and D)
F) All of the above

Question 2

Suppose that there are diminishing returns to capital.Suppose also that two countries are the same except one has more capital per worker and so it has more real GDP per worker than the other.Finally,suppose that the saving rate in both countries increases from 4 percent to 7 percent.Over the next ten years we would expect that

Accepted Answer

A)   the growth rate will not change in either country.
B)   the country that started with less capital per worker will grow faster.
C)   the country that started with more capital per worker will grow faster.
D)   both countries will grow and at the same higher rate.E) A) and B)
F) All of the above

Question 3

Other things the same,if a country raises its saving rate,when is growth of real GDP per person higher?

Accepted Answer

A)   as the economy moves toward the long run and in the long run.
B)   as the economy moves toward the long run,but not in the long run.
C)   in the long run,but not as the economy moves toward the long run.
D)   neither as the economy moves toward the long run,nor in the long run.E) A) and D)
F) B) and C)

Question 4

Which of the following statements is not correct?

Accepted Answer

A)   The catch-up effect is based on the assumption of diminishing returns to capital.
B)   Investment in poor countries by citizens of rich countries is one way poor countries can learn new technologies.
C)   Malthus argued that charity and government aid was an effective way to reduce poverty.
D)   Peace and justice are keys to growth.E) C) and D)
F) A) and B)

Question 5

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.E) A) and C)
F) All of the above

Question 6

A country's human capital increases

Accepted Answer

A)   if its workers become better educated or healthier.
B)   only if its workers become better educated.
C)   only if its workers become healthier.
D)   None of the above is correct.E) B) and C)
F) None of the above

Question 7

Last year real GDP per person in the imaginary nation of Olympus was 4,500.The year before it was 4,250.By about what percentage did Olympian real GDP per person grow during the period?

Accepted Answer

A)   4.6 percent
B)   5.2 percent
C)   5.9 percent
D)   6.5 percentE) A) and C)
F) A) and D)

Question 8

Studies confirm that controlling for other variables such as the percentage of GDP devoted to investment,poor countries tend to grow at a faster rate than rich countries.

Accepted Answer

A) True 
 B)False

Question 9

The logic behind the catch-up effect is that

Accepted Answer

A)   workers in countries with low incomes will work more hours than workers in countries with high incomes.
B)   the capital stock in rich countries deteriorates at a higher rate because it already has a lot of capital.
C)   new capital adds more to production in a country that doesn't have much capital than in a country that already has much capital.
D)   None of the above is correct.E) All of the above
F) None of the above

Question 10

Because of its effect on the amount of capital per worker,in the short term an increase in the working population is likely to

Accepted Answer

A)   raise productivity.Other things the same,this increase will be larger in a poor country.
B)   raise productivity.Other things the same,this increase will be larger in a rich country.
C)   reduce productivity.Other things the same,this decrease will be larger in a poor country.
D)   reduce productivity.Other things the same,this decrease will be larger in a rich country.E) A) and B)
F) A) and C)

Question 11

Over the period 1960-1991,

Accepted Answer

A)   South Korea had a higher growth rate than the United States because it had a higher ratio of investment to GDP.
B)   the United States had a higher growth rate than South Korea because it had a higher ratio of investment to GDP.
C)   South Korea had a higher growth rate than the United States even though it had a similar ratio of investment to GDP.
D)   the United States had a higher growth rate than South Korea even though it had a similar ratio of investment to real GDP.E) B) and C)
F) A) and D)

Question 12

Which of the following is correct?

Accepted Answer

A)   Although levels of real GDP per person vary substantially from country to country,the growth rate of real GDP per person is similar across countries.
B)   Productivity is not closely linked to government policies.
C)   The level of real GDP per person is a good gauge of economic prosperity,and the growth rate of real GDP per person is a good gauge of economic progress.
D)   Productivity may be measured by the growth rate of real GDP per person.E) None of the above
F) B) and C)

Question 13

In 2008,income per person in the United States was about 16 times that in India.

Accepted Answer

A) True 
 B)False

Question 14

A professor at a university finds a way to reduce the costs of producing automobile glass.The method is very easy for anyone to copy.A company develops a substance which prevents eyeglasses from smudging.It receives a patent on the formula.Which of these are common technological knowledge?

Accepted Answer

A)   the method to reduce costs of producing automobile glass,and the formula for the substance that prevents smudging
B)   the method to reduce costs of producing automobile glass,but not the formula for the substance that prevents smudging
C)   the formula for the substance that prevents smudging,but not the method to reduce costs of producing automobile glass
D)   neither the method to reduce costs of producing automobile glass nor the formula for the substance that prevents smudgingE) C) and D)
F) A) and C)

Question 15

Compare and contrast the population theories of Malthus and Kremer.

Accepted Answer

The difference is that Malthus predicted...

Question 16

Evidence shows that other things the same,poor countries grow

Accepted Answer

A)   faster than rich countries.However,no country that was poor in 1870 is now rich.
B)   faster than rich countries.In fact,some countries that were poor in 1870 are now rich.
C)   slower than rich countries.In fact,no country that was poor in 1870 is now rich.
D)   slower than rich countries.However,some countries that were poor in 1870 are now rich.E) None of the above
F) A) and B)

Question 17

Which of the following is not correct?

Accepted Answer

A)   Countries that have had higher output growth per person have typically done so without higher productivity growth.
B)   A country's standard of living and its productivity are closely related.
C)   Productivity refers to output produced per hour of work.
D)   Increases in productivity can be used to increase output or leisure.E) A) and B)
F) A) and C)

Exam 17: Production and Growth

Each day Sonja works 8 hours and produces 8 units of goods and services.Emma works 10 hours each day and produces 9 units of goods and services.It follows that

Correct Answer
verified

The logic behind the catch-up effect is that

Correct Answer
verified

Over the period 1960-1991,

Correct Answer
verified

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

Correct Answer
verified

Studies confirm that controlling for other variables such as the percentage of GDP devoted to investment,poor countries tend to grow at a faster rate than rich countries.

Correct Answer
verified

Other things the same,if a country raises its saving rate,when is growth of real GDP per person higher?

Correct Answer
verified

Which of the following statements is not correct?

Correct Answer
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Evidence shows that other things the same,poor countries grow

Correct Answer
verified

A country's human capital increases

Correct Answer
verified

Because of its effect on the amount of capital per worker,in the short term an increase in the working population is likely to

Correct Answer
verified

Which of the following is not correct?

Correct Answer
verified

Which of the following is correct?

Correct Answer
verified

Correct Answer
verified

A professor at a university finds a way to reduce the costs of producing automobile glass.The method is very easy for anyone to copy.A company develops a substance which prevents eyeglasses from smudging.It receives a patent on the formula.Which of these are common technological knowledge?

Correct Answer
verified

In 2008,income per person in the United States was about 16 times that in India.

Correct Answer
verified

Compare and contrast the population theories of Malthus and Kremer.

Correct Answer
verified
The difference is that Malthus predicted...
View Answer

Last year real GDP per person in the imaginary nation of Olympus was 4,500.The year before it was 4,250.By about what percentage did Olympian real GDP per person grow during the period?

Correct Answer
verified

Exam 17: Production and Growth

Each day Sonja works 8 hours and produces 8 units of goods and services.Emma works 10 hours each day and produces 9 units of goods and services.It follows that

Correct AnswerverifiedShow Answer

The logic behind the catch-up effect is that

Correct AnswerverifiedShow Answer

Over the period 1960-1991,

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Studies confirm that controlling for other variables such as the percentage of GDP devoted to investment,poor countries tend to grow at a faster rate than rich countries.

Correct AnswerverifiedShow Answer

Other things the same,if a country raises its saving rate,when is growth of real GDP per person higher?

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

Evidence shows that other things the same,poor countries grow

Correct AnswerverifiedShow Answer

A country's human capital increases

Correct AnswerverifiedShow Answer

Because of its effect on the amount of capital per worker,in the short term an increase in the working population is likely to

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A professor at a university finds a way to reduce the costs of producing automobile glass.The method is very easy for anyone to copy.A company develops a substance which prevents eyeglasses from smudging.It receives a patent on the formula.Which of these are common technological knowledge?

Correct AnswerverifiedShow Answer

In 2008,income per person in the United States was about 16 times that in India.

Correct AnswerverifiedShow Answer

Compare and contrast the population theories of Malthus and Kremer.

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

Last year real GDP per person in the imaginary nation of Olympus was 4,500.The year before it was 4,250.By about what percentage did Olympian real GDP per person grow during the period?

Correct AnswerverifiedShow Answer

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The difference is that Malthus predicted...
View Answer

Correct Answer
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