Question 1

Measured in 2010 dollars, real GDP per person in the United States in 2010 was about

Accepted Answer

A)   $37,000.
B)   $47,000.
C)   $57,000.
D)   $67,000.E) B) and D)
F) None of the above

Question 2

If your firm's production function has constant returns to scale, then if you double all your inputs, your firm's output will

Accepted Answer

A)   double and productivity will rise.
B)   double but productivity will not change.
C)   more than double and productivity will rise.
D)   more then double but productivity will not change.E) B) and D)
F) A) and C)

Question 3

Historical trends in the prices of most natural resources compared to prices of other goods indicate that most natural resources have become scarcer over time.

Accepted Answer

A) True 
 B)False

Question 4

In 1870, the richest country in the world was

Accepted Answer

A)   Germany.
B)   Japan
C)   the United Kingdom.
D)   the United States.E) C) and D)
F) B) and C)

Question 5

Countries that grew the fastest over the last 100 or so years had average growth rates of real income per person of about

Accepted Answer

A)   1.5 percent per year.
B)   2.0 percent per year.
C)   2.5 percent per year.
D)   3.0 percent per year.E) None of the above
F) All of the above

Question 6

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 input ...

Question 7

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 2.65 perce...

Question 8

In the equation for the production function H/L represents

Accepted Answer

A)   natural resources per worker.
B)   human capital per worker.
C)   output per worker.
D)   physical capital per worker.E) A) and B)
F) A) and C)

Question 9

"Market prices give no reason to believe that natural resources are a limit to economic growth." Explain this statement.

Accepted Answer

If the world were running out of natural...

Question 10

Which of the following lists contains, in this order, natural resources, human capital, and physical capital?

Accepted Answer

A)   For a restaurant: the land the restaurant was built on, the money it borrowed to buy supplies, the freezers where the chops and steaks are kept.
B)   For a furniture company: wood, the skills and knowledge of its workers, saws.
C)   For a railroad: fuel, railroad engines, railroad tracks.
D)   None of the above is correct.E) None of the above
F) A) and B)

Question 11

An understanding of the best ways to produce goods and services is called

Accepted Answer

A)   human capital.
B)   physical capital.
C)   technology.
D)   productivity.E) All of the above
F) A) and D)

Question 12

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) A) and C)
F) B) and C)

Question 13

When Americans invest in Russia, the income of Russians that is, Russian GNP) rises by more than production in Russia that is, Russian GDP).

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Country A has twice as many workers as Country B. Country A also has twice as much physical capital, twice as much human capital, and access to twice as many natural resources as Country B. Assuming constant-returns to scale, which of the following is higher in Country A?

Accepted Answer

A)   both output per worker and productivity
B)   output per worker but not productivity
C)   productivity but not output per worker
D)   neither productivity nor output per workerE) A) and B)
F) None of the above

Question 16

"When workers acquire tools, they become more productive." This statement reflects the general fact that is a determinant of productivity.

Accepted Answer

physical c...

Question 17

An increase in capital will increase real GNP per person

Accepted Answer

A)   more in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is from domestic rather than foreign investment.
B)   more in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is foreign rather than from domestic investment.
C)   less in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is from domestic rather than foreign investment.
D)   less in a poor country than a rich country. The increase in real GNP per person will be larger if the addition to capital is foreign rather than from domestic investment.E) All of the above
F) A) and D)

Question 18

In the United States in 2010 real GDP per person was about $47,000, while in some poor countries real GDP per person was less than $5,000.

Accepted Answer

A) True 
 B)False

Question 19

In a particular production process, if the quantities of all inputs used are increased by 60%, then the quantity of output increases by 60% as well. This means that

Accepted Answer

A)   the production process cannot be enhanced by technological advances.
B)   no mathematical representation of the relevant production function can be formulated.
C)   the relevant production function has the limits-to-growth property.
D)   the relevant production function has constant-returns-to-scale.E) A) and C)
F) B) and C)

Question 20

Measured in 2010 dollars, real GDP per person in the United States in 2010 was about 14 times that in

Accepted Answer

A)   China.
B)   India.
C)   Indonesia.
D)   Pakistan.E) A) and D)
F) A) and C)

Exam 17: Production and Growth

Measured in 2010 dollars, real GDP per person in the United States in 2010 was about

Correct AnswerverifiedShow Answer

In the United States in 2010 real GDP per person was about $47,000, while in some poor countries real GDP per person was less than $5,000.

Correct AnswerverifiedShow Answer

"Market prices give no reason to believe that natural resources are a limit to economic growth." Explain this statement.

Correct AnswerverifiedIf the world were running out of natural...View AnswerShow Answer

Measured in 2010 dollars, real GDP per person in the United States in 2010 was about 14 times that in

Correct AnswerverifiedShow Answer

Country A has twice as many workers as Country B. Country A also has twice as much physical capital, twice as much human capital, and access to twice as many natural resources as Country B. Assuming constant-returns to scale, which of the following is higher in Country A?

Correct AnswerverifiedShow Answer

An increase in capital will increase real GNP per person

Correct AnswerverifiedShow Answer

In the equation for the production function H/L represents

Correct AnswerverifiedShow Answer

"When workers acquire tools, they become more productive." This statement reflects the general fact that is a determinant of productivity.

Correct Answerverifiedphysical c...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

If your firm's production function has constant returns to scale, then if you double all your inputs, your firm's output will

Correct AnswerverifiedShow Answer

Historical trends in the prices of most natural resources compared to prices of other goods indicate that most natural resources have become scarcer over time.

Correct AnswerverifiedShow Answer

In a particular production process, if the quantities of all inputs used are increased by 60%, then the quantity of output increases by 60% as well. This means that

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 2.65 perce...View AnswerShow Answer

Countries that grew the fastest over the last 100 or so years had average growth rates of real income per person of about

Correct AnswerverifiedShow Answer

Which of the following lists contains, in this order, natural resources, human capital, and physical capital?

Correct AnswerverifiedShow Answer

In 1870, the richest country in the world was

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

When Americans invest in Russia, the income of Russians that is, Russian GNP) rises by more than production in Russia that is, Russian GDP).

Correct AnswerverifiedShow Answer

An understanding of the best ways to produce goods and services is called

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedThe input ...View AnswerShow Answer

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If the world were running out of natural...
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physical c...
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Japan's growth rate 2.65 perce...
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The input ...
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