Question 1

Although growth rates across countries vary some, rankings of countries by income remain pretty much the same over time.

Accepted Answer

A) True 
 B)False

Question 2

An increase in a country's saving rate permanently raises its productivity.

Accepted Answer

A) True 
 B)False

Question 3

Suppose that a new government is elected in Eurnesia. The new government takes steps toward improving the court system and reducing government corruption. The citizens of Eurnesia find these efforts credible and outsiders believe these changes will be effective and long lasting. These changes will probably

Accepted Answer

A)  raise real GDP per person and productivity in Eurnesia.
B)  raise real GDP per person but not productivity in Eurnesia.
C)  raise productivity but not real GDP per person in Eurnesia.
D)  raise neither productivity nor real GDP per person in Eurnesia.E) A) and D)
F) C) and D)

Question 4

Electronics firms may be able to get patents on their ideas. Doing so makes their ideas

Accepted Answer

A)  private goods rather than public goods. This gives people more incentive to engage in research.
B)  private goods rather than public goods. This gives people less incentive to engage in research.
C)  public goods rather than private goods. This gives people more incentive to engage in research.
D)  public goods rather than private goods. This gives people more incentive to engage in private research.E) B) and C)
F) None of the above

Question 5

Technological knowledge

Accepted Answer

A)  is the same thing as human capital.
B)  can be discovered but it can never be kept secret.
C)  is a determinant of productivity.
D)  does not play a role in the relationship that economists call the production function.E) B) and D)
F) B) and C)

Question 6

Countries with high population growth rates tend to have lower levels of educational attainment.

Accepted Answer

A) True 
 B)False

Question 7

Economists differ in their views of the role of the government in promoting economic growth. At the very least, the government should

Accepted Answer

A)  lend support to the invisible hand by maintaining property rights and political stability.
B)  limit foreign investment to industries that don't already exist in the country.
C)  impose trade restrictions to protect the interests of domestic producers and consumers.
D)  subsidize key industries.E) A) and D)
F) A) and B)

Question 8

In 2009, the imaginary nation of Florastan had a population of 8,044 and real GDP of 36,198,000. In 2010 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 Florastan between 2009 and 2010?

Accepted Answer

A)  -2.2 percent
B)  -0.7 percent
C)  2.2 percent
D)  4.5 percentE) A) and C)
F) None of the above

Question 9

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

Question 10

Average income has been stagnant for many years in

Accepted Answer

A)  Argentina.
B)  India.
C)  Senegal.
D)  All of the above are correct.E) B) and D)
F) A) and B)

Question 11

Scenario 12-1. An economy's production form takes the form Y = AF(L, K, H, N) .
-Refer to Scenario 12-1. If the production function has the constant-returns-to-scale property, then it is possible that the specific form of the production function is

Accepted Answer

A)  Y = 4L + 2K + 3H + N
B)  Y = (L + K + H + N) /4
C)   Y=2(LKHN) 1/4Y = 2 ( L K H N )  ^ { 1 / 4 }Y=2(LKHN) 1/4 
D)   Y=4L3K4HNY = 4 \sqrt { L ^ { 3 } K ^ { 4 } H N }Y=4L3K4HNc-2.7,0,-7.17,-2.7,-13.5,-8c-5.8,-5.3,-9.5,-10,-9.5,-14c0,-2,0.3,-3.3,1,-4c1.3,-2.7,23.83,-20.7,67.5,-54c44.2,-33.3,65.8,-50.3,66.5,-51c1.3,-1.3,3,-2,5,-2c4.7,0,8.7,3.3,12,10s173,378,173,378c0.7,0,35.3,-71,104,-213c68.7,-142,137.5,-285,206.5,-429c69,-144,104.5,-217.7,106.5,-221l0 -0c5.3,-9.3,12,-14,20,-14H400000v40H845.2724s-225.272,467,-225.272,467s-235,486,-235,486c-2.7,4.7,-9,7,-19,7c-6,0,-10,-1,-12,-3s-194,-422,-194,-422s-65,47,-65,47zM834 80h400000v40h-400000z'/>​E) B) and C)
F) All of the above

Question 12

International data on real GDP per person gives us a sense of how standards of living vary across countries.

Accepted Answer

A) True 
 B)False

Question 13

Given that a country's real output has increased, in which of the following cases can we be sure that its productivity also has increased?

Accepted Answer

A)  The total number of hours worked rose.
B)  The total number of hours worked stayed the same.
C)  The total number of hours worked fell.
D)  Both b and c are correct.E) B) and C)
F) A) and B)

Question 14

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 D)
F) B) and D)

Question 15

Perry accumulated a lot of mathematical skills while in high school, college, and graduate school. Economists include these skills as part of Perry's

Accepted Answer

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

Question 16

Productivity

Accepted Answer

A)  is nearly the same across countries, and so provides no help explaining differences in the standard of living across countries.
B)  explains very little of the differences in the standard of living across countries.
C)  explains some, but not most of the differences in the standard of living across countries.
D)  explains most of the differences in the standard of living across countries.E) All of the above
F) B) and C)

Question 17

Two countries are the same, except one is poorer. Assuming the traditional assumption about the production function is made there are

Accepted Answer

A)  diminishing returns to capital so the poor country grows slower.
B)  increasing returns to capital so the poor country grows slower.
C)  diminishing returns to capital so the poor country grows faster.
D)  increasing returns to capital so the poor country grows faster.E) A) and B)
F) B) and C)

Question 18

Other things the same, if a country raises its saving rate, when is productivity growth 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 B)
F) A) and C)

Question 19

Economists differ in their views of the role of the government in promoting economic growth. A controversial idea is that government should

Accepted Answer

A)  lend support to the invisible hand by maintaining property rights and political stability.
B)  lower barriers and impediments to free trade.
C)  encourage capital formation.
D)  target and subsidize specific industries important for technological progress.E) A) and B)
F) All of the above

Question 20

The traditional view of the production process is that capital is subject to

Accepted Answer

A)  constant returns.
B)  increasing returns.
C)  diminishing returns.
D)  diminishing returns for low levels of capital, and increasing returns for high levels of capital.E) C) and D)
F) B) and D)

Exam 12: Production and Growth

The traditional view of the production process is that capital is subject to

Correct Answer
verified

Given that a country's real output has increased, in which of the following cases can we be sure that its productivity also has increased?

Correct Answer
verified

An increase in a country's saving rate permanently raises its productivity.

Correct Answer
verified

Although growth rates across countries vary some, rankings of countries by income remain pretty much the same over time.

Correct Answer
verified

Correct Answer
verified

Scenario 12-1. An economy's production form takes the form Y = AF(L, K, H, N) . -Refer to Scenario 12-1. If the production function has the constant-returns-to-scale property, then it is possible that the specific form of the production function is

Correct Answer
verified

In 2009, the imaginary nation of Florastan had a population of 8,044 and real GDP of 36,198,000. In 2010 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 Florastan between 2009 and 2010?

Correct Answer
verified

International data on real GDP per person gives us a sense of how standards of living vary across countries.

Correct Answer
verified

Two countries are the same, except one is poorer. Assuming the traditional assumption about the production function is made there are

Correct Answer
verified

Average income has been stagnant for many years in

Correct Answer
verified

Economists differ in their views of the role of the government in promoting economic growth. A controversial idea is that government should

Correct Answer
verified

Electronics firms may be able to get patents on their ideas. Doing so makes their ideas

Correct Answer
verified

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

Correct Answer
verified

Perry accumulated a lot of mathematical skills while in high school, college, and graduate school. Economists include these skills as part of Perry's

Correct Answer
verified

Productivity

Correct Answer
verified

Other things the same, if a country raises its saving rate, when is productivity growth higher?

Correct Answer
verified

Economists differ in their views of the role of the government in promoting economic growth. At the very least, the government should

Correct Answer
verified

Countries with high population growth rates tend to have lower levels of educational attainment.

Correct Answer
verified

In the equation for the production function H/L represents

Correct Answer
verified

Technological knowledge

Correct Answer
verified

Exam 12: Production and Growth

The traditional view of the production process is that capital is subject to

Correct AnswerverifiedShow Answer

Given that a country's real output has increased, in which of the following cases can we be sure that its productivity also has increased?

Correct AnswerverifiedShow Answer

An increase in a country's saving rate permanently raises its productivity.

Correct AnswerverifiedShow Answer

Although growth rates across countries vary some, rankings of countries by income remain pretty much the same over time.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Scenario 12-1. An economy's production form takes the form Y = AF(L, K, H, N) . -Refer to Scenario 12-1. If the production function has the constant-returns-to-scale property, then it is possible that the specific form of the production function is

Correct AnswerverifiedShow Answer

In 2009, the imaginary nation of Florastan had a population of 8,044 and real GDP of 36,198,000. In 2010 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 Florastan between 2009 and 2010?

Correct AnswerverifiedShow Answer

International data on real GDP per person gives us a sense of how standards of living vary across countries.

Correct AnswerverifiedShow Answer

Two countries are the same, except one is poorer. Assuming the traditional assumption about the production function is made there are

Correct AnswerverifiedShow Answer

Average income has been stagnant for many years in

Correct AnswerverifiedShow Answer

Economists differ in their views of the role of the government in promoting economic growth. A controversial idea is that government should

Correct AnswerverifiedShow Answer

Electronics firms may be able to get patents on their ideas. Doing so makes their ideas

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Perry accumulated a lot of mathematical skills while in high school, college, and graduate school. Economists include these skills as part of Perry's

Correct AnswerverifiedShow Answer

Productivity

Correct AnswerverifiedShow Answer

Other things the same, if a country raises its saving rate, when is productivity growth higher?

Correct AnswerverifiedShow Answer

Economists differ in their views of the role of the government in promoting economic growth. At the very least, the government should

Correct AnswerverifiedShow Answer

Countries with high population growth rates tend to have lower levels of educational attainment.

Correct AnswerverifiedShow Answer

In the equation for the production function H/L represents

Correct AnswerverifiedShow Answer

Technological knowledge

Correct AnswerverifiedShow Answer

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