Question 1

In one day Alpha Cabinet Company made 40 cabinets with 320 hours of labor. What was Alpha Cabinet Company's productivity?

Accepted Answer

A)   1/8 cabinet per hour
B)   8 hours per cabinet
C)   40 cabinets
D)   None of the above is correct.E) B) and C)
F) C) and D)

Question 2

A management professor discovers a way for corporate management to operate more efficiently. He publishes his findings in a journal. His findings are

Accepted Answer

A)   proprietary and common knowledge.
B)   common, but not proprietary, knowledge.
C)   proprietary, but not common, knowledge.
D)   neither proprietary nor common knowledge.E) A) and B)
F) A) and C)

Question 3

If a good has become more scarce, then we know for sure that

Accepted Answer

A)   the demand for it increased.
B)   the supply of it decreased.
C)   either the demand for it increased or the supply of it decreased.
D)   both the supply of it and the demand for it decreased.E) C) and D)
F) B) and D)

Question 4

Which of the following is an example of a produced factor of production?

Accepted Answer

A)   corn that is harvested from a field in Iowa
B)   workers who are hired at a coal mine in West Virginia
C)   skills that teachers in Texas acquire through continuing-education classes
D)   All of the above are correct.E) A) and C)
F) B) and C)

Question 5

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

Question 6

In 2012, the imaginary nation of Kanmiw had a population of 8,044 and real GDP of 36,198,000. In 2013 it had a population of 7,800 and real GDP of 35,880,000. What was the growth rate of real GDP per person in Kanmiw between 2012 and 2013?

Accepted Answer

A)   -2.2 percent
B)   -0.7 percent
C)   2.2 percent
D)   4.5 percentE) A) and C)
F) B) and C)

Question 7

Human capital is the

Accepted Answer

A)   knowledge and skills that workers acquire through education, training, and experience.
B)   stock of equipment and structures that is used to produce goods and services.
C)   total number of hours worked in an economy.
D)   same thing as technological knowledge.E) None of the above
F) A) and C)

Question 8

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) C) and D)
F) B) and C)

Question 9

The saws, lathes, and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called

Accepted Answer

A)   human capital.
B)   physical capital.
C)   natural resources.
D)   technological knowledge.E) B) and C)
F) None of the above

Question 10

In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 600,000. In 2011 it had a population of 5,200 and real GDP of 636,480. During 2011 real GDP per person in Bovina grew by

Accepted Answer

A)   2 percent, which is high compared to average U.S. growth over the last one-hundred years.
B)   2 percent, which is about the same as average U.S. growth over the last one-hundred years.
C)   4 percent, which is high compared to average U.S. growth over the last one-hundred years.
D)   4 percent, which is about the same as average U.S. growth over the last one-hundred years.E) C) and D)
F) B) and D)

Question 11

Which of the following is consistent with the catch-up effect?

Accepted Answer

A)   The United States had a higher growth rate before 1900 than after.
B)   After World War II the United States had lower growth rates than war-ravaged European countries.
C)   Although the United States has a relatively high level of output per person, its growth rate is rather modest compared to some countries.
D)   All of the above are correct.E) A) and B)
F) A) and C)

Question 12

Workland has a population of 10,000, of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods. Laborland has a population of 5,000, of whom 3,000 work 7 hours a day to produce a total of 105,000 final goods.

Accepted Answer

A)   Workland has higher productivity and higher real GDP per person than Laborland.
B)   Workland has higher productivity but lower real GDP per person than Laborland.
C)   Workland has lower productivity but higher real GDP per person than Laborland.
D)   Workland has lower productivity and lower real GDP per person than Laborland.E) A) and B)
F) A) and C)

Question 13

Suppose that there are diminishing returns to capital. Suppose also that two countries are the same except one has less capital and so less real GDP per person. Suppose that both increase their saving rate from 3 percent to 4 percent. In the long run

Accepted Answer

A)   both countries will have permanently higher growth rates of real GDP per person, and the growth rate will be higher in the country with more capital.
B)   both countries will have permanently higher growth rates of real GDP per person, and the growth rate will be higher in the country with less capital.
C)   both countries will have higher levels of real GDP per person, and the temporary increase in growth in the level of real GDP per person will have been greater in the country with more capital.
D)   both countries will have higher levels of real GDP per person, and the temporary increase in growth in the level of real GDP per person will have been greater in the country with less capital.E) All of the above
F) A) and C)

Question 14

Brazil gives cash payments to its poor citizens on the condition that those citizens' children stay in school. In terms of the determinants of productivity, how might this public policy contribute to higher productivity in Brazil?

Accepted Answer

This public policy aims to inc...

Question 15

In 2010, income per person in the United States was about 14 times that in India.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not correct?

Accepted Answer

A)   Across countries there are large differences in the average income per person. These differences are reflected in large differences in the quality of life.
B)   With a growth rate of about 2 percent per year, average income per person doubles about every 60 years.
C)   The ranking of countries by average income changes substantially over time.
D)   In some countries real income per person has changed very little over many years.E) B) and D)
F) A) and D)

Question 17

Nathan owns a bakery that bakes only cakes. All of his bakers work 8 hours per day. In 2011, he employed 5 bakers who produced a total of 200 cakes each day. In 2012, 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) A) and B)
F) All of the above

Question 18

In the production function Y = AF(L,K,H,N), Y represents the quantity of output; L represents the quantity of labor; K represents the quantity of physical capital; and H represents the quantity of human capital. What does N represent?

Accepted Answer

N represen...

Question 19

What are inward-oriented policies? Do most economists recommend these types of policies to poor countries?

Accepted Answer

Inward­oriented policies are i...

Question 20

Last year the imaginary country of Basova 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 Andovia had a population of 12,000, 8,000 people worked 8 hours a day, and produced a real GDP of $38,000,000. Which of the following is correct?

Accepted Answer

A)   Basova had higher productivity and higher real GDP per person.
B)   Andovia had the higher productivity and higher real GDP per person.
C)   Basova had the higher productivity while Andovia had the higher real GDP per person.
D)   Andovia had the higher productivity while Basova had the higher real GDP per person.E) A) and B)
F) C) and D)

Exam 25: Production and Growth

Which of the following is consistent with the catch-up effect?

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Brazil gives cash payments to its poor citizens on the condition that those citizens' children stay in school. In terms of the determinants of productivity, how might this public policy contribute to higher productivity in Brazil?

Correct Answer
verified
This public policy aims to inc...
View Answer

A management professor discovers a way for corporate management to operate more efficiently. He publishes his findings in a journal. His findings are

Correct Answer
verified

Workland has a population of 10,000, of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods. Laborland has a population of 5,000, of whom 3,000 work 7 hours a day to produce a total of 105,000 final goods.

Correct Answer
verified

In 2012, the imaginary nation of Kanmiw had a population of 8,044 and real GDP of 36,198,000. In 2013 it had a population of 7,800 and real GDP of 35,880,000. What was the growth rate of real GDP per person in Kanmiw between 2012 and 2013?

Correct Answer
verified

Human capital is the

Correct Answer
verified

Suppose that there are diminishing returns to capital. Suppose also that two countries are the same except one has less capital and so less real GDP per person. Suppose that both increase their saving rate from 3 percent to 4 percent. In the long run

Correct Answer
verified

Which of the following is not correct?

Correct Answer
verified

What are inward-oriented policies? Do most economists recommend these types of policies to poor countries?

Correct Answer
verified
Inwardoriented policies are i...
View Answer

Nathan owns a bakery that bakes only cakes. All of his bakers work 8 hours per day. In 2011, he employed 5 bakers who produced a total of 200 cakes each day. In 2012, he employed 6 bakers who produced a total of 249 cakes each day. The bakery's productivity

Correct Answer
verified

In one day Alpha Cabinet Company made 40 cabinets with 320 hours of labor. What was Alpha Cabinet Company's productivity?

Correct Answer
verified

The saws, lathes, and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called

Correct Answer
verified

In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 600,000. In 2011 it had a population of 5,200 and real GDP of 636,480. During 2011 real GDP per person in Bovina grew by

Correct Answer
verified

Which of the following statements is not correct?

Correct Answer
verified

Which of the following is an example of a produced factor of production?

Correct Answer
verified

If a good has become more scarce, then we know for sure that

Correct Answer
verified

In the production function Y = AF(L,K,H,N), Y represents the quantity of output; L represents the quantity of labor; K represents the quantity of physical capital; and H represents the quantity of human capital. What does N represent?

Correct Answer
verified
N represen...
View Answer

In 2010, income per person in the United States was about 14 times that in India.

Correct Answer
verified

Exam 25: Production and Growth

Which of the following is consistent with the catch-up effect?

Correct AnswerverifiedShow 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

Correct AnswerverifiedShow Answer

Brazil gives cash payments to its poor citizens on the condition that those citizens' children stay in school. In terms of the determinants of productivity, how might this public policy contribute to higher productivity in Brazil?

Correct AnswerverifiedThis public policy aims to inc...View AnswerShow Answer

A management professor discovers a way for corporate management to operate more efficiently. He publishes his findings in a journal. His findings are

Correct AnswerverifiedShow Answer

Workland has a population of 10,000, of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods. Laborland has a population of 5,000, of whom 3,000 work 7 hours a day to produce a total of 105,000 final goods.

Correct AnswerverifiedShow Answer

In 2012, the imaginary nation of Kanmiw had a population of 8,044 and real GDP of 36,198,000. In 2013 it had a population of 7,800 and real GDP of 35,880,000. What was the growth rate of real GDP per person in Kanmiw between 2012 and 2013?

Correct AnswerverifiedShow Answer

Human capital is the

Correct AnswerverifiedShow Answer

Suppose that there are diminishing returns to capital. Suppose also that two countries are the same except one has less capital and so less real GDP per person. Suppose that both increase their saving rate from 3 percent to 4 percent. In the long run

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

What are inward-oriented policies? Do most economists recommend these types of policies to poor countries?

Correct AnswerverifiedInward­oriented policies are i...View AnswerShow Answer

Nathan owns a bakery that bakes only cakes. All of his bakers work 8 hours per day. In 2011, he employed 5 bakers who produced a total of 200 cakes each day. In 2012, he employed 6 bakers who produced a total of 249 cakes each day. The bakery's productivity

Correct AnswerverifiedShow Answer

In one day Alpha Cabinet Company made 40 cabinets with 320 hours of labor. What was Alpha Cabinet Company's productivity?

Correct AnswerverifiedShow Answer

The saws, lathes, and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called

Correct AnswerverifiedShow Answer

In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 600,000. In 2011 it had a population of 5,200 and real GDP of 636,480. During 2011 real GDP per person in Bovina grew by

Correct AnswerverifiedShow Answer

Which of the following statements is not correct?

Correct AnswerverifiedShow Answer

Which of the following is an example of a produced factor of production?

Correct AnswerverifiedShow Answer

If a good has become more scarce, then we know for sure that

Correct AnswerverifiedShow Answer

In the production function Y = AF(L,K,H,N), Y represents the quantity of output; L represents the quantity of labor; K represents the quantity of physical capital; and H represents the quantity of human capital. What does N represent?

Correct AnswerverifiedN represen...View AnswerShow Answer

In 2010, income per person in the United States was about 14 times that in India.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
This public policy aims to inc...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Inwardoriented policies are i...
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
N represen...
View Answer

Correct Answer
verified