Question 1

In the U.S.,each additional year of schooling has historically raised a person's wage on average by about

Accepted Answer

A)   2 percent.
B)   5 percent.
C)   10 percent.
D)   15 percent.E) A) and B)
F) A) and C)

Question 2

Incentives for parents to send their children to school,such as small monthly payments to parents if their children have regular attendance,appear to increase school attendance.

Accepted Answer

A) True 
 B)False

Question 3

Both Arnold and Will work 10 hours a day.Arnold can produce six baskets of goods per hour while Will can produce four baskets of the same goods per hour.It follows that Arnold's

Accepted Answer

A)   productivity is greater than Will's.
B)   output is greater than Will's.
C)   standard of living is higher than Will's.
D)   All of the above are correct.E) None of the above
F) A) and B)

Question 4

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 5

Real Foods produced 400,000 cans of diced tomatoes in 2009 and 460,000 cans of diced tomatoes in 2010.It employed the same number of labor hours each year.Real Foods' productivity

Accepted Answer

A)   decreased 13 percent.
B)   was unchanged.
C)   increased 13 percent.
D)   increased 15 percent.E) A) and B)
F) A) and C)

Question 6

The catch-up effect refers to the idea that

Accepted Answer

A)   saving will always catch-up with investment spending.
B)   it is easier for a country to grow fast and so catch-up if it starts out relatively poor.
C)   population eventually catches-up with increased output.
D)   if investment spending is low,increased saving will help investment to "catch-up."E) None of the above
F) All of the above

Question 7

Productivity is the amount of goods and services

Accepted Answer

A)   an economy produces.It is not linked to a nation's economic policies.
B)   an economy produces.It is linked to a nation's economic policies.
C)   produced for each hour of a worker's time.It is not linked to a nation's economic policies.
D)   produced for each hour of a worker's time.It is linked to a nation's economic policies.E) All of the above
F) A) and B)

Question 8

Popeye produces 20 cans of spinach in 8 hours.Wimpy produces 15 hamburgers in 10 hours.If each hamburger trades for 1.5 cans of spinach,then

Accepted Answer

A)   Popeye's production and productivity are greater than Wimpy's.
B)   Popeye's production is greater than Wimpy's,but his productivity is less.
C)   Wimpy's production and productivity are greater than Popeye's.
D)   Wimpy's production is greater than Popeye's,but his productivity is less.E) B) and C)
F) A) and D)

Question 9

Use the data on U.S.real GDP below to compute real GDP per person for each year.Then use these numbers to compute the percentage increase in real GDP per person from 1987 to 2005.

Accepted Answer

Real GDP per person in 1987 wa...

Question 10

Over the last 100 years which of the following had growth rates higher than that of the United States?

Accepted Answer

A)   the United Kingdom
B)   India
C)   Mexico
D)   None of the above is correct.E) All of the above
F) A) and B)

Question 11

If a Brazilian.company opens a new factory in Peru,it makes

Accepted Answer

A)   foreign direct investment.The factory will make a bigger impact on Peru's GDP than on its GNP.
B)   foreign direct investment.The factory will make a bigger impact on Peru's GNP than on its GDP.
C)   foreign portfolio investment.The factory will make a bigger impact on Peru's GDP than on its GNP.
D)   foreign portfolio investment.The factory will make a bigger impact on Peru's GNP than on its GDP.E) B) and D)
F) B) and C)

Question 12

Which of the following is human capital?

Accepted Answer

A)   a student loan
B)   understanding how to use a company's accounting software
C)   training videos for new corporate employees
D)   All of the above are correct.E) All of the above
F) B) and D)

Question 13

In the United States,as measured by real GDP per person,average income is about how many times as high as average income a century ago?

Accepted Answer

A)   2
B)   4
C)   6
D)   8E) B) and D)
F) A) and B)

Question 14

Ryan plans on going to go to study engineering.What he learns about existing information increases

Accepted Answer

A)   both technological knowledge and human capital.
B)   technological knowledge but not human capital.
C)   human capital but not technological knowledge.
D)   neither technological knowledge nor human capital.E) A) and C)
F) B) and C)

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 B)
F) A) and C)

Question 16

In medieval Europe an important technological advance was the use of the padded horse collar for plowing.Once this idea was thought of,other people used it.This illustrates that knowledge is generally a

Accepted Answer

A)   public good.
B)   societal good.
C)   private good.
D)   normal good.E) B) and D)
F) B) and C)

Question 17

When Chile experiences investment from abroad,it experiences,as a result,

Accepted Answer

A)   an increase in productivity.
B)   a decrease in Gross National Product (GNP) .
C)   lower wages for Chilean workers.
D)   None of the above is correct.E) None of the above
F) B) and C)

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

In addition to investment in physical and human capital,what other public policies might a country adopt to increase productivity?

Accepted Answer

In addition to investment in physical an...

Question 20

Which of the following is an example of a renewable natural resource?

Accepted Answer

A)   fish
B)   soybeans
C)   wood
D)   All of the above are correct.E) None of the above
F) B) and C)

Exam 17: Production and Growth

In medieval Europe an important technological advance was the use of the padded horse collar for plowing.Once this idea was thought of,other people used it.This illustrates that knowledge is generally a

Correct AnswerverifiedShow Answer

Which of the following is human capital?

Correct AnswerverifiedShow Answer

Popeye produces 20 cans of spinach in 8 hours.Wimpy produces 15 hamburgers in 10 hours.If each hamburger trades for 1.5 cans of spinach,then

Correct AnswerverifiedShow Answer

Both Arnold and Will work 10 hours a day.Arnold can produce six baskets of goods per hour while Will can produce four baskets of the same goods per hour.It follows that Arnold's

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the United States,as measured by real GDP per person,average income is about how many times as high as average income a century ago?

Correct AnswerverifiedShow Answer

Productivity is the amount of goods and services

Correct AnswerverifiedShow Answer

Incentives for parents to send their children to school,such as small monthly payments to parents if their children have regular attendance,appear to increase school attendance.

Correct AnswerverifiedShow Answer

Which of the following is an example of a renewable natural resource?

Correct AnswerverifiedShow Answer

When Chile experiences investment from abroad,it experiences,as a result,

Correct AnswerverifiedShow Answer

Use the data on U.S.real GDP below to compute real GDP per person for each year.Then use these numbers to compute the percentage increase in real GDP per person from 1987 to 2005.

Correct AnswerverifiedReal GDP per person in 1987 wa...View AnswerShow 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

Real Foods produced 400,000 cans of diced tomatoes in 2009 and 460,000 cans of diced tomatoes in 2010.It employed the same number of labor hours each year.Real Foods' productivity

Correct AnswerverifiedShow Answer

Over the last 100 years which of the following had growth rates higher than that of the United States?

Correct AnswerverifiedShow Answer

The catch-up effect refers to the idea that

Correct AnswerverifiedShow Answer

Ryan plans on going to go to study engineering.What he learns about existing information increases

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

In the U.S.,each additional year of schooling has historically raised a person's wage on average by about

Correct AnswerverifiedShow Answer

If a Brazilian.company opens a new factory in Peru,it makes

Correct AnswerverifiedShow Answer

In addition to investment in physical and human capital,what other public policies might a country adopt to increase productivity?

Correct AnswerverifiedIn addition to investment in physical an...View AnswerShow Answer

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Real GDP per person in 1987 wa...
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In addition to investment in physical an...
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