Question 1

Educational attainment tends to be

Accepted Answer

A)  low in countries with high population growth.
B)  low in countries with low population growth.
C)  high in countries with high population growth.
D)  None of the above are true.E) None of the above
F) A) and B)

Question 2

Which country has had a higher growth rate than the U.S. over about the last 120 years?

Accepted Answer

A)  India
B)  Mexico
C)  United Kingdom
D)  PakistanE) B) and D)
F) B) and C)

Question 3

What term do we use to refer to the understanding of the best ways to produce goods and services?

Accepted Answer

The term i...

Question 4

Upland has a population of 15,000, of whom 9,000 work 8 hours a day to produce real output of $342,000. Lowland has a population of 8,000, of whom 7,000 work 7 hours a day to produce real output of $171,500.

Accepted Answer

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

Question 5

​If real income per person was $47,210 in the U.S. in 2010, and $55,860 in 2014, what was the annual growth rate over this time period?

Accepted Answer

A)  ​4.29 percent per year
B)  ​1.83 percent per year
C)  ​8.45 percent per year
D)  ​1.18 percent per yearE) B) and C)
F) A) and B)

Question 6

Consider three imaginary countries. In Aziria, saving amounts to $3,000 and consumption amounts to $7,000; in Graniva, saving amounts to $2,000 and consumption amounts to $8,000; and in Tanistan, saving amounts to $4,500 and consumption amounts to $10,500. The saving rate is

Accepted Answer

A)  higher in Aziria than in Tanistan, and it is higher in Tanistan than in Graniva.
B)  higher in Graniva than in Tanistan, and it is higher in Tanistan than in Aziria.
C)  higher in Tanistan than in Graniva, and it is the same in Graniva and Aziria.
D)  higher in Aziria than in Graniva, and it is the same in Aziria and Tanistan.E) A) and C)
F) None of the above

Question 7

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

Question 8

In order for the standard of living within a country to be enhanced over time, which of the following is essential?

Accepted Answer

A)  The role of the country's government in the economy must become larger.
B)  The population of the country must increase.
C)  More domestic natural resources must be discovered and used.
D)  The level of productivity must increase.E) B) and C)
F) None of the above

Question 9

Because of __________, an increase in the saving rate leads to higher growth of income and productivity only for a while.

Accepted Answer

The answer of Because of __________, an increase in the...

Question 10

In recent decades Americans have increased their purchase of stocks of foreign-based companies. The Americans who have bought these stocks were engaged in

Accepted Answer

A)  foreign portfolio investment.
B)  indirect domestic investment.
C)  foreign direct investment.
D)  foreign indirect investment.E) B) and D)
F) None of the above

Question 11

Economists generally agree on the role the government should play in promoting productivity and economic growth.

Accepted Answer

A) True 
 B)False

Question 12

In 2014, the typical Bangladeshi had about

Accepted Answer

A)  more than half the real income of a typical American a century ago.
B)  the same real income of a typical American a century ago.
C)  2 times as much real income as that of a typical American a century ago.
D)  4 times as much real income as that of a typical American a century ago.E) C) and D)
F) A) and D)

Question 13

Scenario 25-1. An economy's production form takes the form Y = AF(L, K, H, N) .
-Refer to Scenario 25-1. In the production function, which of the following represents technology?

Accepted Answer

A)  A
B)  K
C)  H
D)  NE) C) and D)
F) A) and B)

Question 14

Gramp's Potato Chips produces 2560 bags of potato chips a day. Each employee at Gramp's works 8 hours. If the company's productivity is 20 bags per hour, how many people does Gramp's employ?

Accepted Answer

A)  8
B)  16
C)  24
D)  None of the above is correct.E) A) and B)
F) B) and C)

Question 15

In 2010, Acme Foods produced 300,000 bags of pretzels, employing 12,000 hours of labor. In 2011, it produced 322,000 bags of pretzels, employing 14,000 hours of labor. Acme Foods productivity

Accepted Answer

A)  decreased by 8%.
B)  was unchanged.
C)  increased by 6.8%.
D)  increased by 7.3%.E) B) and D)
F) C) and D)

Question 16

Which of the following pairs of terms refer to the same thing?

Accepted Answer

A)  "capital" and "physical capital"
B)  "technological knowledge" and "human capital"
C)  "standard of living" and "human capital"
D)  "standard of living" and "productivity"E) All of the above
F) A) and C)

Question 17

Which of the following are human capital and physical capital, respectively?

Accepted Answer

A)  for a brick layer: her bricks and her tools
B)  for a gas station: the pumps and the cash register
C)  for a restaurant: the chefs' knowledge about preparing food and the equipment in the kitchen
D)  for a medical office: the building and the doctors' knowledge of medicineE) A) and B)
F) B) and C)

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Other things the same, which of the following could explain an increase in productivity?

Accepted Answer

A)  either an increase in human capital or an increase in physical capital
B)  an increase in human capital but not an increase in physical capital
C)  an increase in physical capital but not an increase in human capital
D)  neither an increase in human capital nor an increase in physical capitalE) B) and C)
F) C) and D)

Question 20

Which of the following was NOT a result of the BRAC anti-poverty program in Bangladesh?

Accepted Answer

A)  Improved mental health
B)  Higher income levels a year after the program ended
C)  ​Improved female empowerment
D)  Large increases in income of over 10 percentE) A) and B)
F) A) and C)

Exam 25: Production and Growth

In 2014, the typical Bangladeshi had about

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Gramp's Potato Chips produces 2560 bags of potato chips a day. Each employee at Gramp's works 8 hours. If the company's productivity is 20 bags per hour, how many people does Gramp's employ?

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

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Which of the following pairs of terms refer to the same thing?

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Educational attainment tends to be

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Scenario 25-1. An economy's production form takes the form Y = AF(L, K, H, N) . -Refer to Scenario 25-1. In the production function, which of the following represents technology?

Correct AnswerverifiedShow Answer

Economists generally agree on the role the government should play in promoting productivity and economic growth.

Correct AnswerverifiedShow Answer

In 2010, Acme Foods produced 300,000 bags of pretzels, employing 12,000 hours of labor. In 2011, it produced 322,000 bags of pretzels, employing 14,000 hours of labor. Acme Foods productivity

Correct AnswerverifiedShow Answer

Because of __________, an increase in the saving rate leads to higher growth of income and productivity only for a while.

Correct AnswerverifiedShow Answer

In recent decades Americans have increased their purchase of stocks of foreign-based companies. The Americans who have bought these stocks were engaged in

Correct AnswerverifiedShow Answer

Which of the following are human capital and physical capital, respectively?

Correct AnswerverifiedShow Answer

Upland has a population of 15,000, of whom 9,000 work 8 hours a day to produce real output of $342,000. Lowland has a population of 8,000, of whom 7,000 work 7 hours a day to produce real output of $171,500.

Correct AnswerverifiedShow Answer

Consider three imaginary countries. In Aziria, saving amounts to $3,000 and consumption amounts to $7,000; in Graniva, saving amounts to $2,000 and consumption amounts to $8,000; and in Tanistan, saving amounts to $4,500 and consumption amounts to $10,500. The saving rate is

Correct AnswerverifiedShow Answer

In order for the standard of living within a country to be enhanced over time, which of the following is essential?

Correct AnswerverifiedShow Answer

Which country has had a higher growth rate than the U.S. over about the last 120 years?

Correct AnswerverifiedShow Answer

Which of the following was NOT a result of the BRAC anti-poverty program in Bangladesh?

Correct AnswerverifiedShow Answer

Other things the same, which of the following could explain an increase in productivity?

Correct AnswerverifiedShow Answer

​If real income per person was $47,210 in the U.S. in 2010, and $55,860 in 2014, what was the annual growth rate over this time period?

Correct AnswerverifiedShow Answer

Technological knowledge refers to

Correct AnswerverifiedShow Answer

What term do we use to refer to the understanding of the best ways to produce goods and services?

Correct AnswerverifiedThe term i...View AnswerShow Answer

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If real income per person was $47,210 in the U.S. in 2010, and $55,860 in 2014, what was the annual growth rate over this time period?

Correct Answer
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