Question 1

Cedar Valley Furniture uses 5 workers working 8 hours to produce 80 rocking chairs.What is the productivity of these workers?

Accepted Answer

A)  2 chairs per hour
B)  1 chair per hour
C)  80 chairs
D)  10 chairs per dayE) B) and C)
F) A) and B)

Question 2

Which of the following is an example of the "brain drain"?

Accepted Answer

A)  A country's most highly educated workers immigrate to rich countries.
B)  A country has such a poor educational system that knowledge is lost over time.
C)  A country's population grows so fast that the educational system can't keep up.
D)  A country steals patented technology from another country.E) B) and C)
F) None of the above

Question 3

What is a production function? Write an equation for a typical production function,and explain what each of the terms represents.

Accepted Answer

A production function is a mathematical ...

Question 4

Read the article "What Makes a Nation Rich?" by Daron Acemoglu in your textbook,and write a one-page summary of the article (Times New Roman,size 12,double spaced).(You can find some guidelines on how to write a summary here: http://goo.gl/CncBb.)

Accepted Answer

The summary should be concise and it sho...

Question 5

Recently there have been violent protests against the World Bank and the World Trade Organization.The protesters argue that these institutions promote free trade and also encourage corporations in rich countries to invest in poor countries.The protesters contend that these practices make rich countries richer and poor countries poorer.How would economists feel about these protesters' views?

Accepted Answer

A)  They would disagree with the protesters because these practices will help make both rich and poor countries richer.
B)  They would disagree with the protesters about free trade, but would agree with the protesters about corporate investment.
C)  They would disagree with the protesters about corporate investment, but would agree with the protesters about free trade.
D)  They would disagree with the protesters about free trade and corporations, but would agree that these institutions are not necessary.E) B) and C)
F) C) and D)

Question 6

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 7

The following is a comment to the article "Are jobs obsolete?" by Douglas Rushkoff,Special to CNN September 7,2011 (http://goo.gl/0aUXL):
Karaya: "We are at the point where the growth of human population becomes liability rather than asset.Higher sustainable standards of living can be maintained with much less population,and population growth actually can lead to humankind decline - just by depletion of environmental resources alone."
Karaya's comment implies that lower population would actually increase standards of living due to advances in technology.What do theories of growth have to say about the effect of population increase on economic prosperity? Is there a connection between a country's population,its technology,and its standard of living? What kind of information would you need to try to answer this question? How would an answer to this question look like?

Accepted Answer

Students may have various opinions on th...

Question 8

According to Malthus's view,which of the following is a consequence of increased population?

Accepted Answer

A)  increased GDP per person
B)  more people imply more ideas and more labour force, which promotes growth
C)  depletion of productive resources and lower standards of living
D)  increase in productivity in the food sector, which is necessary to support the increase in populationE) B) and C)
F) All of the above

Question 9

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

Accepted Answer

A)  A country with few or no domestic natural resources is destined to be poor.
B)  Differences in natural resources have virtually no role in explaining differences in standards of living.
C)  Some countries can be rich mostly because of their natural resources, and countries without natural resources need not be poor, but can never have very high standards of living.
D)  Abundant domestic natural resources may help make a country rich, but even countries with few natural resources can have high standards of living.E) B) and D)
F) B) and C)

Question 10

From 1966 to 1973,at what rate did Canadian productivity grow?

Accepted Answer

A)  2.5 percent
B)  2.3 percent
C)  1.8 percent
D)  1.3 percentE) B) and D)
F) B) and C)

Question 11

In countries where women are discriminated against,policies that increase their career and educational opportunities are likely to increase the birth rate.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following has been happening to the market prices of most natural resources (adjusted for inflation) ?

Accepted Answer

A)  They have been rising.
B)  They have been stable or rising.
C)  They have been stable or falling.
D)  They have been falling.E) B) and D)
F) A) and D)

Question 13

Your company discovers a better way to produce mousetraps,but your better methods are not apparent from the mousetraps themselves.What kind of knowledge is this?

Accepted Answer

A)  common technological knowledge
B)  common, but not technological, knowledge
C)  proprietary technological knowledge
D)  proprietary, but not technological, knowledgeE) B) and C)
F) A) and C)

Question 14

Last year,real GDP in Oceania was $620 billion and the population was 2.3 million.The year before,real GDP was $502 billion and the population was 2.0 million.What was the approximate growth rate of real GDP per person?

Accepted Answer

A)  16 percent
B)  13 percent
C)  10 percent
D)  7 percentE) A) and B)
F) C) and D)

Question 15

Which of the following is the source of most technological progress?

Accepted Answer

A)  private research by firms and individual inventors
B)  private research by firms and government
C)  government research
D)  government-sponsored research by universitiesE) B) and D)
F) A) and D)

Question 16

What is the key difference between Thomas Malthus and Michael Kremer's theories about population growth?

Accepted Answer

A)  Kremer argued that with greater population, society would generate more ideas so that growth of real GDP per person could continue. Malthus argued that increasing population would outstrip agricultural production and economies will eventually decline irreversibly.
B)  Kremer argued that increases in population would reduce the amount of human and physical capital per worker so that eventually the standard of living would decline. Malthus argued that increases in technology would allow increased output growth so that even with population growth, society would enjoy a higher standard of living.
C)  Malthus argued that with greater population, society would generate more ideas so that growth of real GDP per person could continue. Kremer argued that increasing population would outstrip agricultural production and economies will eventually decline irreversibly.
D)  Malthus argued that increases in population would reduce the amount of human and physical capital per worker so that eventually the standard of living would decline. Kremer argued that increases in technology would allow increased output growth so that even with population growth, society would enjoy a higher standard of living.E) B) and C)
F) A) and D)

Question 17

In a market economy,what does the real,or inflation-adjusted,price of a resource measure?

Accepted Answer

A)  contribution to revenue
B)  relative scarcity
C)  relative importance
D)  contribution to efficiencyE) B) and D)
F) None of the above

Question 18

If the production function for an economy had constant returns to scale,the labour force doubled,and all other inputs stayed the same,what would happen to real GDP?

Accepted Answer

A)  It would stay the same.
B)  It would increase by 50 percent.
C)  It would increase, but by something less than double.
D)  It would double.E) B) and D)
F) B) and C)

Question 19

If your firm has constant returns to scale,what would happen to your firm's output if you doubled all your inputs?

Accepted Answer

A)  It would not change.
B)  It would increase, but by less than double.
C)  It would double.
D)  It would more than double.E) None of the above
F) All of the above

Question 20

Both the standard of living and the growth of real GDP per person vary widely across countries.

Accepted Answer

A) True 
 B)False

Exam 7: Production and Growth

Cedar Valley Furniture uses 5 workers working 8 hours to produce 80 rocking chairs.What is the productivity of these workers?

Correct Answer
verified

In a market economy,what does the real,or inflation-adjusted,price of a resource measure?

Correct Answer
verified

Which of the following is an example of the "brain drain"?

Correct Answer
verified

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

Correct Answer
verified

Which of the following is the source of most technological progress?

Correct Answer
verified

If your firm has constant returns to scale,what would happen to your firm's output if you doubled all your inputs?

Correct Answer
verified

Both the standard of living and the growth of real GDP per person vary widely across countries.

Correct Answer
verified

Correct Answer
verified
Students may have various opinions on th...
View Answer

Last year,real GDP in Oceania was $620 billion and the population was 2.3 million.The year before,real GDP was $502 billion and the population was 2.0 million.What was the approximate growth rate of real GDP per person?

Correct Answer
verified

Correct Answer
verified

Read the article "What Makes a Nation Rich?" by Daron Acemoglu in your textbook,and write a one-page summary of the article (Times New Roman,size 12,double spaced).(You can find some guidelines on how to write a summary here: http://goo.gl/CncBb.)

Correct Answer
verified
The summary should be concise and it sho...
View Answer

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

Correct Answer
verified
In addition to investment in physical an...
View Answer

Which of the following has been happening to the market prices of most natural resources (adjusted for inflation) ?

Correct Answer
verified

What is a production function? Write an equation for a typical production function,and explain what each of the terms represents.

Correct Answer
verified
A production function is a mathematical ...
View Answer

If the production function for an economy had constant returns to scale,the labour force doubled,and all other inputs stayed the same,what would happen to real GDP?

Correct Answer
verified

From 1966 to 1973,at what rate did Canadian productivity grow?

Correct Answer
verified

According to Malthus's view,which of the following is a consequence of increased population?

Correct Answer
verified

Your company discovers a better way to produce mousetraps,but your better methods are not apparent from the mousetraps themselves.What kind of knowledge is this?

Correct Answer
verified

What is the key difference between Thomas Malthus and Michael Kremer's theories about population growth?

Correct Answer
verified

In countries where women are discriminated against,policies that increase their career and educational opportunities are likely to increase the birth rate.

Correct Answer
verified

Exam 7: Production and Growth

Cedar Valley Furniture uses 5 workers working 8 hours to produce 80 rocking chairs.What is the productivity of these workers?

Correct AnswerverifiedShow Answer

In a market economy,what does the real,or inflation-adjusted,price of a resource measure?

Correct AnswerverifiedShow Answer

Which of the following is an example of the "brain drain"?

Correct AnswerverifiedShow Answer

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

Correct AnswerverifiedShow Answer

Which of the following is the source of most technological progress?

Correct AnswerverifiedShow Answer

If your firm has constant returns to scale,what would happen to your firm's output if you doubled all your inputs?

Correct AnswerverifiedShow Answer

Both the standard of living and the growth of real GDP per person vary widely across countries.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedStudents may have various opinions on th...View AnswerShow Answer

Last year,real GDP in Oceania was $620 billion and the population was 2.3 million.The year before,real GDP was $502 billion and the population was 2.0 million.What was the approximate growth rate of real GDP per person?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Read the article "What Makes a Nation Rich?" by Daron Acemoglu in your textbook,and write a one-page summary of the article (Times New Roman,size 12,double spaced).(You can find some guidelines on how to write a summary here: http://goo.gl/CncBb.)

Correct AnswerverifiedThe summary should be concise and it sho...View AnswerShow 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

Which of the following has been happening to the market prices of most natural resources (adjusted for inflation) ?

Correct AnswerverifiedShow Answer

What is a production function? Write an equation for a typical production function,and explain what each of the terms represents.

Correct AnswerverifiedA production function is a mathematical ...View AnswerShow Answer

If the production function for an economy had constant returns to scale,the labour force doubled,and all other inputs stayed the same,what would happen to real GDP?

Correct AnswerverifiedShow Answer

From 1966 to 1973,at what rate did Canadian productivity grow?

Correct AnswerverifiedShow Answer

According to Malthus's view,which of the following is a consequence of increased population?

Correct AnswerverifiedShow Answer

Your company discovers a better way to produce mousetraps,but your better methods are not apparent from the mousetraps themselves.What kind of knowledge is this?

Correct AnswerverifiedShow Answer

What is the key difference between Thomas Malthus and Michael Kremer's theories about population growth?

Correct AnswerverifiedShow Answer

In countries where women are discriminated against,policies that increase their career and educational opportunities are likely to increase the birth rate.

Correct AnswerverifiedShow 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
Students may have various opinions on th...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The summary should be concise and it sho...
View Answer

Correct Answer
verified
In addition to investment in physical an...
View Answer

Correct Answer
verified

Correct Answer
verified
A production function is a mathematical ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified