Question 1

Senator Noitall says that in order to help poor countries develop,the United States should: 1.Prevent U.S.corporations from investing in poor countries because they take profits that the poor countries should have;2.Not import goods from poor countries that use child labor;3.Work to promote political stability in poor countries;and 4.Reduce poor countries reliance on market forces in their economies.How many of these ideas are likely to help poor countries grow?

Accepted Answer

A)  1
B)  2
C)  3
D)  4E) None of the above
F) All of the above

Question 2

Investment from abroad

Accepted Answer

A)  is a way for poor countries to learn the state-of-the-art technologies developed and used in richer countries.
B)  is viewed by economists as a way to increase growth.
C)  often requires removing restrictions that governments have imposed on foreign ownership of domestic capital.
D)  All of the above are correct.E) C) and D)
F) B) and C)

Question 3

The key determinant of a person's standard of living in a country is

Accepted Answer

A)  the amount of goods and services produced from each hour of a worker's time.
B)  the total amount of goods and services produced within the country.
C)  the total amount of its physical capital.
D)  its growth rate of real GDP.E) A) and B)
F) A) and C)

Question 4

The dictator of a certain country requires that companies planning to open or expand must pay a large fee to file an application one year prior to plans to build new factories or expand existing ones.Other things the same,in the long run this requirement would

Accepted Answer

A)  reduce real GDP per person and productivity.
B)  reduce real GDP per person but not productivity.
C)  reduce productivity but not real GDP per person.
D)  None of the above is correct.E) B) and D)
F) None of the above

Question 5

The logic behind the catch-up effect is that

Accepted Answer

A)  workers in countries with low incomes will work more hours than workers in countries with high incomes.
B)  the capital stock in rich countries deteriorates at a higher rate because it already has a lot of capital.
C)  new capital adds more to production in a country that doesn't have much capital than in a country that already has much capital.
D)  None of the above is correct.E) All of the above
F) C) and D)

Question 6

Economists differ in their views of the role of the government in promoting economic growth.According to the text,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) B) and C)
F) A) and D)

Question 7

The opening of a new American-owned factory in Egypt would tend to increase Egypt's GDP more than it increases Egypt's GNP because

Accepted Answer

A)  some of the income from the factory accrues to people who do not live in Egypt.
B)  gross domestic product is income earned within a country by both residents and nonresidents, whereas gross national product is the income earned by residents of a country while producing both at home and abroad.
C)  all of the income from the factory is included in Egypt's GDP.
D)  All of the above are correct.E) A) and C)
F) A) and B)

Question 8

Which of the following is physical capital?

Accepted Answer

A)  the strength of workers
B)  the knowledge of workers
C)  financial assets like cash and bonds
D)  the equipment in a factoryE) None of the above
F) B) and D)

Question 9

Why does a nation's standard of living depend on property rights?

Accepted Answer

Property rights are an important prerequ...

Question 10

In the long run an increase in the saving rate

Accepted Answer

A)  doesn't change the level of productivity or income.
B)  raises the levels of both productivity and income.
C)  raises the level of productivity but not the level of income.
D)  raises the level of income but no the level of productivity.E) B) and C)
F) A) and D)

Question 11

Over the past 100 years,U.S.real GDP per person has doubled about every 35 years.If in the next 100 years it doubles every 25 years,then a century from now U.S.real GDP per person will be

Accepted Answer

A)  4 times higher than it is now.
B)  8 times higher than it is now.
C)  12 times higher than it is now.
D)  16 times higher than it is now.E) C) and D)
F) A) and C)

Question 12

A leading environmental group recently published a report contending that humans are running a "resource deficit" because we are using natural resources faster than they can be regenerated.The group claims that this means that economic growth will eventually stop,and will even be reversed.An economist would

Accepted Answer

A)  agree with the report, and would point to rising natural resource prices as evidence.
B)  agree with the report, but wouldn't think it was important because growth will not slow down for several centuries.
C)  disagree with the report, in part because it ignores the mitigating effects of technological change.
D)  disagree with the report because labor and capital are the primary determinants of growth, and since they are plentiful, growth will not slow down.E) B) and C)
F) A) and B)

Question 13

Which of the following best illustrates the human capital of a survivor stranded on an island?

Accepted Answer

A)  The fishing poles she has produced.
B)  The invention of a better fishing lure.
C)  The fresh fruit and fish on and around the island.
D)  Her previous training in a survival course.E) B) and C)
F) A) and C)

Question 14

Which of the following is not correct?

Accepted Answer

A)  Countries that have had higher output growth per person have typically done so without higher productivity growth.
B)  A country's standard of living and its productivity are closely related.
C)  Productivity refers to output produced per hour of work.
D)  Increases in productivity can be used to increase output or leisure.E) B) and D)
F) None of the above

Question 15

On a production function,as capital per worker increases,output per worker

Accepted Answer

A)  increases.This increase is larger at larger values of capital per worker.
B)  increases.This increase is smaller at larger values of capital per worker.
C)  decreases.This decrease is larger at larger value of capital per worker.
D)  decreases.This decrease is smaller at larger value of capital per worker.E) B) and D)
F) B) and C)

Question 16

Proprietary technology is knowledge that is

Accepted Answer

A)  known but no longer used much.
B)  known, but only recently discovered.
C)  known mostly by only those in a certain profession.
D)  known only by the company that discovered it.E) A) and B)
F) B) and C)

Question 17

Which of the following is true?

Accepted Answer

A)  There are no renewable natural resources.
B)  The prices of most natural resources are stable or falling relative to other prices.
C)  Technology requires greater use of natural resources.
D)  Human capital is equivalent to technology.E) B) and C)
F) A) and C)

Question 18

In 2004 real GDP in Latania was 750 billion and the population was 3 million.In 2005 real GDP was 907.5 billion and the population was 3.3 million.What was the approximate growth rate of real GDP per person?

Accepted Answer

A)  10 percent
B)  14 percent
C)  17 percent
D)  21 percentE) A) and C)
F) B) and C)

Question 19

An organization that tries to encourage the flow of investment to poor countries is the

Accepted Answer

A)  World Bank.
B)  Organization of Less Developed Countries.
C)  Alliance of Developing Countries.
D)  International Development Alliance.E) None of the above
F) B) and D)

Question 20

Economist Robert Fogel focused on which of the following factors as one determinant of long-run economic growth?

Accepted Answer

A)  education
B)  research and development
C)  nutrition
D)  trade restrictionsE) A) and B)
F) A) and C)

Exam 25: Production and Growth

Which of the following is physical capital?

Correct Answer
verified

The opening of a new American-owned factory in Egypt would tend to increase Egypt's GDP more than it increases Egypt's GNP because

Correct Answer
verified

The logic behind the catch-up effect is that

Correct Answer
verified

On a production function,as capital per worker increases,output per worker

Correct Answer
verified

Over the past 100 years,U.S.real GDP per person has doubled about every 35 years.If in the next 100 years it doubles every 25 years,then a century from now U.S.real GDP per person will be

Correct Answer
verified

Economist Robert Fogel focused on which of the following factors as one determinant of long-run economic growth?

Correct Answer
verified

Why does a nation's standard of living depend on property rights?

Correct Answer
verified
Property rights are an important prerequ...
View Answer

Which of the following is true?

Correct Answer
verified

The dictator of a certain country requires that companies planning to open or expand must pay a large fee to file an application one year prior to plans to build new factories or expand existing ones.Other things the same,in the long run this requirement would

Correct Answer
verified

An organization that tries to encourage the flow of investment to poor countries is the

Correct Answer
verified

Which of the following best illustrates the human capital of a survivor stranded on an island?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Economists differ in their views of the role of the government in promoting economic growth.According to the text,at the very least,the government should

Correct Answer
verified

Investment from abroad

Correct Answer
verified

In 2004 real GDP in Latania was 750 billion and the population was 3 million.In 2005 real GDP was 907.5 billion and the population was 3.3 million.What was the approximate growth rate of real GDP per person?

Correct Answer
verified

In the long run an increase in the saving rate

Correct Answer
verified

Proprietary technology is knowledge that is

Correct Answer
verified

The key determinant of a person's standard of living in a country is

Correct Answer
verified

Which of the following is not correct?

Correct Answer
verified

Exam 25: Production and Growth

Which of the following is physical capital?

Correct AnswerverifiedShow Answer

The opening of a new American-owned factory in Egypt would tend to increase Egypt's GDP more than it increases Egypt's GNP because

Correct AnswerverifiedShow Answer

The logic behind the catch-up effect is that

Correct AnswerverifiedShow Answer

On a production function,as capital per worker increases,output per worker

Correct AnswerverifiedShow Answer

Over the past 100 years,U.S.real GDP per person has doubled about every 35 years.If in the next 100 years it doubles every 25 years,then a century from now U.S.real GDP per person will be

Correct AnswerverifiedShow Answer

Economist Robert Fogel focused on which of the following factors as one determinant of long-run economic growth?

Correct AnswerverifiedShow Answer

Why does a nation's standard of living depend on property rights?

Correct AnswerverifiedProperty rights are an important prerequ...View AnswerShow Answer

Which of the following is true?

Correct AnswerverifiedShow Answer

The dictator of a certain country requires that companies planning to open or expand must pay a large fee to file an application one year prior to plans to build new factories or expand existing ones.Other things the same,in the long run this requirement would

Correct AnswerverifiedShow Answer

An organization that tries to encourage the flow of investment to poor countries is the

Correct AnswerverifiedShow Answer

Which of the following best illustrates the human capital of a survivor stranded on an island?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Economists differ in their views of the role of the government in promoting economic growth.According to the text,at the very least,the government should

Correct AnswerverifiedShow Answer

Investment from abroad

Correct AnswerverifiedShow Answer

In 2004 real GDP in Latania was 750 billion and the population was 3 million.In 2005 real GDP was 907.5 billion and the population was 3.3 million.What was the approximate growth rate of real GDP per person?

Correct AnswerverifiedShow Answer

In the long run an increase in the saving rate

Correct AnswerverifiedShow Answer

Proprietary technology is knowledge that is

Correct AnswerverifiedShow Answer

The key determinant of a person's standard of living in a country is

Correct AnswerverifiedShow Answer

Which of the following is not correct?

Correct AnswerverifiedShow Answer

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Property rights are an important prerequ...
View Answer

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