Question 1

Allied Business Consultants employs five researchers that each work 8 hour days.In one day the researchers prepare 60 reports for its 10 largest clients.What was Allied Business Consultants' productivity?

Accepted Answer

A)   1.5 reports per hour
B)   6 reports per client
C)   7.5 reports per hour
D)   60 reportsE) A) and B)
F) All of the above

Question 2

If there are constant returns to scale,the production function can be written as

Accepted Answer

A)   xY = 2xAF(L,K,H,N) .
B)   Y/L = A F(xL,xK,xH,xN) .
C)   Y/L = A F( 1,K/L,H/L,N/L) .
D)   L = AF(Y,K,H,N) .E) None of the above
F) A) and B)

Question 3

Over the period 1870-2008,the United States experienced an average annual growth rate of real GDP per person of about 4 percent per year.

Accepted Answer

A) True 
 B)False

Question 4

Assuming diminishing returns,

Accepted Answer

A)   the increase in output growth from an increase in the saving rate rises over time,and that,other things the same,rich countries should grow faster than poor ones.
B)   the increase in output growth from an increase in the saving rate falls over time,and that,other things the same,rich countries should grow faster than poor ones.
C)   the increase in output growth from an increase in the saving rate rises over time,and that,other things the same,poor countries should grow faster than rich ones.
D)   the increase in output growth from an increase in the saving rate falls over time,and that,other things the same,poor countries should grow faster than rich ones.E) A) and B)
F) C) and D)

Question 5

Economists generally believe that policies such as reducing barriers to trade are likely to foster economic growth.

Accepted Answer

A) True 
 B)False

Question 6

Phoenix furniture uses 10 workers,each working eight hours,to produce 80 rocking chairs.What is Phoenix's productivity?

Accepted Answer

A)   80 rocking chairs
B)   10 rocking chairs per hour
C)   1 rocking chair per hour
D)   1 hour per rocking chairE) None of the above
F) B) and C)

Question 7

"When workers already have a large quantity of capital to use in producing goods and services,giving them an additional unit of capital increases their productivity only slightly." This statement

Accepted Answer

A)   represents an unconventional view of the production process.
B)   is an assertion that capital is subject to increasing returns.
C)   is made under the assumption that the quantities of human capital,natural resources,and technology are being held constant.
D)   All of the above are correct.E) C) and D)
F) B) and C)

Question 8

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

Question 10

Technological knowledge refers to

Accepted Answer

A)   human capital.
B)   available information on how to produce things.
C)   resources expended transmitting society's understanding to the labor force.
D)   All of the above are technological knowledge.E) C) and D)
F) None of the above

Question 11

Which of the following would increase productivity?

Accepted Answer

A)   an increase in the physical capital stock per worker
B)   an increase in human capital per worker
C)   an increase in natural resources per worker
D)   All of the above are correct.E) None of the above
F) A) and C)

Question 12

Which of the following statements is correct? In 2008,

Accepted Answer

A)   real income per person in the U.S.was about 8 times that in China.
B)   real income per person in China was about 2 times that in India in 2008.
C)   the typical resident of India had less real income than the typical resident of England in 1870.
D)   All of the above are correct.E) B) and D)
F) C) and D)

Question 13

Which of the following is human capital?

Accepted Answer

A)   textbooks
B)   hand held power tools
C)   understanding how to repair cars
D)   All of the above are correct.E) None of the above
F) A) and B)

Question 14

Suppose over the last year that the price of recycled aluminum increased from $800 a ton to $900 a ton.Over the same time a measure of the overall price level increased from 120 to 130.The price of recycled aluminum increased by

Accepted Answer

A)   less than inflation,but this doesn't necessarily mean it became scarcer.
B)   less than inflation,and this means it became scarcer.
C)   more than inflation,and this means it became scarcer.
D)   more than inflation,but this doesn't necessarily mean that it become scarcer.E) A) and B)
F) All of the above

Question 15

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) None of the above
F) A) and B)

Question 16

Human capital is

Accepted Answer

A)   the same thing as technological knowledge.
B)   the same thing as labor.
C)   the tools and equipment operated by humans.
D)   knowledge and skills that workers have acquired.E) All of the above
F) A) and B)

Question 17

Average income has been stagnant for many years in

Accepted Answer

A)   Gabon.
B)   Ireland.
C)   Singapore.
D)   All of the above are correct.E) C) and D)
F) All of the above

Question 18

Table 17-1.
Athens and Troy both produce only ribs and baked potatoes.
 
-Refer to Table 17-1.Which of the following is correct?

Accepted Answer

A)   Both real GDP and real GDP per person are higher in Athens than Troy.
B)   Real GDP is higher in Athens while real GDP per person is higher in Troy
C)   Real GDP is higher in Troy while real GDP per person is higher in Athens.
D)   Both real GDP and real GDP per person are higher in Troy than Athens.E) B) and C)
F) A) and D)

Question 19

Which of the following is not correct?

Accepted Answer

A)   China allows only one child per family and couples that violate this rule are subject to substantial fines.
B)   In developed countries,population growth is consistently about 3 percent per year; in developing countries it is consistently about 5 percent per year.
C)   Educational attainment tends to be lowest in countries with the highest population growth.
D)   Economists generally believe that a country that decreases a high population growth rate can increase its economic growth rate.E) A) and D)
F) C) and D)

Question 20

Inward-oriented policies

Accepted Answer

A)   include imposing tariffs and other trade restrictions.
B)   have generally increased productivity and growth in the countries that pursued them.
C)   promote the production of goods and services that the country produces most efficiently.
D)   All of the above are correct.E) B) and C)
F) C) and D)

Exam 17: Production and Growth

Which of the following is not correct?

Correct AnswerverifiedShow Answer

Allied Business Consultants employs five researchers that each work 8 hour days.In one day the researchers prepare 60 reports for its 10 largest clients.What was Allied Business Consultants' productivity?

Correct AnswerverifiedShow Answer

Which of the following is human capital?

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Phoenix furniture uses 10 workers,each working eight hours,to produce 80 rocking chairs.What is Phoenix's productivity?

Correct AnswerverifiedShow Answer

Average income has been stagnant for many years in

Correct AnswerverifiedShow Answer

Over the period 1870-2008,the United States experienced an average annual growth rate of real GDP per person of about 4 percent per year.

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

Which of the following statements is correct? In 2008,

Correct AnswerverifiedShow Answer

If there are constant returns to scale,the production function can be written as

Correct AnswerverifiedShow Answer

Suppose over the last year that the price of recycled aluminum increased from $800 a ton to $900 a ton.Over the same time a measure of the overall price level increased from 120 to 130.The price of recycled aluminum increased by

Correct AnswerverifiedShow Answer

"When workers already have a large quantity of capital to use in producing goods and services,giving them an additional unit of capital increases their productivity only slightly." This statement

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Assuming diminishing returns,

Correct AnswerverifiedShow Answer

Table 17-1. Athens and Troy both produce only ribs and baked potatoes. -Refer to Table 17-1.Which of the following is correct?

Correct AnswerverifiedShow Answer

Technological knowledge refers to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Economists generally believe that policies such as reducing barriers to trade are likely to foster economic growth.

Correct AnswerverifiedShow Answer

Inward-oriented policies

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Which of the following would increase productivity?

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Human capital is

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