Question 1

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. $$\begin{array} { | c | c | c | } 
\hline \text { Year } & \text { Real GDP (2000pricas) } & \text { Papulation } \
\hline 1987 & \$ 6,435,000 \text { millian } & 243 \text { millian } \
\hline 2005 & \$ 11,092,000 \text { millian } & 296.6 \text { million } \
\hline
\end{array}$$

Accepted Answer

Real GDP per person in 1987 was $6,435,0...

Question 2

Patents turn new ideas into

Accepted Answer

A)  public goods, and increase the incentive to engage in research.
B)  public goods, but decrease the incentive to engage in research.
C)  private goods, and increase the incentive to engage in research.
D)  private goods, but decrease the incentive to engage in research.E) None of the above
F) A) and B)

Question 3

In determining living standards, productivity plays a key role

Accepted Answer

A)  for individuals, but not for nations.
B)  for nations, but not for individuals.
C)  for both nations and individuals.
D)  for neither nations nor individuals.E) B) and C)
F) All of the above

Question 4

Suppose that real GDP grew more in Country A than in Country B last year.

Accepted Answer

A)  Country A must have a higher standard of living than country B.
B)  Country A's productivity must have grown faster than country B's.
C)  Both of the above are correct.
D)  None of the above are correct.E) A) and B)
F) A) and C)

Question 5

Nathan owns a bakery that bakes only cakes. All of his bakers work 8 hours per day. In 2009, he employed 5 bakers who produced a total of 200 cakes each day. In 2010, he employed 6 bakers who produced a total of 249 cakes each day. The bakery's productivity

Accepted Answer

A)  decreased by 2.33%.
B)  increased by 2.33%.
C)  increased by 3.75%.
D)  increased by 24.50%.E) A) and B)
F) None of the above

Question 6

Despite its status as one of the richest countries in the world, Japan

Accepted Answer

A)  has a very low level of productivity.
B)  has few natural resources.
C)  has very little human capital.
D)  engages in a relatively small amount of international trade.E) B) and D)
F) B) and C)

Question 7

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

Question 8

Figure 12-1. On the horizontal axis, K/L represents capital (K)  per worker (L) . On the vertical axis, Y/L represents output (Y)  per worker (L) . 
-Refer to Figure 12-1. The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

Accepted Answer

A)  In the long run, a higher saving rate leads to a higher level of productivity.
B)  In the long run, a higher saving rate leads to a higher level of income.
C)  In the long run, a higher saving rate leads to neither a higher growth rate of productivity nor a higher growth rate of income.
D)  All of the above are correct.E) B) and C)
F) A) and D)

Question 9

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

Question 10

All else equal, if there are diminishing returns, then what happens to productivity if both capital and labor increase?

Accepted Answer

A)  Productivity will definitely fall.
B)  Productivity will definitely be unchanged.
C)  Productivity will definitely rise.
D)  None of the above are necessarily correct.E) A) and D)
F) None of the above

Question 11

If Country A produces 7,000 units of goods and services using 700 hours of labor, and if Country B produces 5,500 units of goods and services using 500 units of labor, then productivity is lower in Country A than in Country B.

Accepted Answer

A) True 
 B)False

Question 12

Over the past century in the United States, real GDP per person has grown, on average, by about

Accepted Answer

A)  1 percent per year.
B)  2 percent per year.
C)  3 percent per year.
D)  5 percent per year.E) All of the above
F) A) and B)

Question 13

The level of real GDP person

Accepted Answer

A)  differs widely across countries, but the growth rate of real GDP per person is similar across countries.
B)  is very similar across countries, but the growth rate of real GDP per person differs widely across countries.
C)  and the growth rate of real GDP per person are similar across countries.
D)  and the growth rate of real GDP per person vary widely across countries.E) A) and B)
F) B) and C)

Question 14

The slope of the production function with capital per worker on the horizontal axis and output per worker on the vertical axis

Accepted Answer

A)  is positive and gets steeper as capital per worker rises.
B)  is positive and gets flatter as capital per worker rises.
C)  is negative and gets steeper as capital per worker rises.
D)  is negative and gets flatter as capital per worker rises.E) B) and D)
F) All of the above

Question 15

Roughly what percentage of growth in real GDP per person in Britain between 1790 and 1980 was accounted for by improved nutrition according to the estimates of Robert Fogel?

Accepted Answer

A)  30 percent
B)  20 percent
C)  10 percent
D)  5 percentE) None of the above
F) A) and B)

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

Question 17

Other things the same, a country that increases its saving rate increases

Accepted Answer

A)  its future productivity and future real GDP.
B)  neither its future productivity nor future real GDP.
C)  its future productivity, but not its future real GDP.
D)  its future real GDP, but not its future productivity.E) B) and D)
F) A) and C)

Exam 12: Production and Growth

Other things the same, a country that increases its saving rate increases

Correct Answer
verified

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 Answer
verified

Patents turn new ideas into

Correct Answer
verified

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 Answer
verified

Suppose that real GDP grew more in Country A than in Country B last year.

Correct Answer
verified

The slope of the production function with capital per worker on the horizontal axis and output per worker on the vertical axis

Correct Answer
verified

Figure 12-1. On the horizontal axis, K/L represents capital (K) per worker (L) . On the vertical axis, Y/L represents output (Y) per worker (L) . -Refer to Figure 12-1. The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

Correct Answer
verified

Which of the following is human capital?

Correct Answer
verified

Over the past century in the United States, real GDP per person has grown, on average, by about

Correct Answer
verified

Despite its status as one of the richest countries in the world, Japan

Correct Answer
verified

The level of real GDP person

Correct Answer
verified

All else equal, if there are diminishing returns, then what happens to productivity if both capital and labor increase?

Correct Answer
verified

Roughly what percentage of growth in real GDP per person in Britain between 1790 and 1980 was accounted for by improved nutrition according to the estimates of Robert Fogel?

Correct Answer
verified

Nathan owns a bakery that bakes only cakes. All of his bakers work 8 hours per day. In 2009, he employed 5 bakers who produced a total of 200 cakes each day. In 2010, he employed 6 bakers who produced a total of 249 cakes each day. The bakery's productivity

Correct Answer
verified

In determining living standards, productivity plays a key role

Correct Answer
verified

Correct Answer
verified
Real GDP per person in 1987 was $6,435,0...
View Answer

If Country A produces 7,000 units of goods and services using 700 hours of labor, and if Country B produces 5,500 units of goods and services using 500 units of labor, then productivity is lower in Country A than in Country B.

Correct Answer
verified

Exam 12: Production and Growth

Other things the same, a country that increases its saving rate increases

Correct AnswerverifiedShow Answer

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

Patents turn new ideas into

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

Suppose that real GDP grew more in Country A than in Country B last year.

Correct AnswerverifiedShow Answer

The slope of the production function with capital per worker on the horizontal axis and output per worker on the vertical axis

Correct AnswerverifiedShow Answer

Figure 12-1. On the horizontal axis, K/L represents capital (K) per worker (L) . On the vertical axis, Y/L represents output (Y) per worker (L) . -Refer to Figure 12-1. The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

Correct AnswerverifiedShow Answer

Which of the following is human capital?

Correct AnswerverifiedShow Answer

Over the past century in the United States, real GDP per person has grown, on average, by about

Correct AnswerverifiedShow Answer

Despite its status as one of the richest countries in the world, Japan

Correct AnswerverifiedShow Answer

The level of real GDP person

Correct AnswerverifiedShow Answer

All else equal, if there are diminishing returns, then what happens to productivity if both capital and labor increase?

Correct AnswerverifiedShow Answer

Roughly what percentage of growth in real GDP per person in Britain between 1790 and 1980 was accounted for by improved nutrition according to the estimates of Robert Fogel?

Correct AnswerverifiedShow Answer

Nathan owns a bakery that bakes only cakes. All of his bakers work 8 hours per day. In 2009, he employed 5 bakers who produced a total of 200 cakes each day. In 2010, he employed 6 bakers who produced a total of 249 cakes each day. The bakery's productivity

Correct AnswerverifiedShow Answer

In determining living standards, productivity plays a key role

Correct AnswerverifiedShow Answer

Correct AnswerverifiedReal GDP per person in 1987 was $6,435,0...View AnswerShow Answer

If Country A produces 7,000 units of goods and services using 700 hours of labor, and if Country B produces 5,500 units of goods and services using 500 units of labor, then productivity is lower in Country A than in Country B.

Correct AnswerverifiedShow Answer

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verified
Real GDP per person in 1987 was $6,435,0...
View Answer

Correct Answer
verified