Question 1

Scenario 17-1.An economy's production form takes the form Y = AF(L,K,H,N) .
-Refer to Scenario 17-1.If the production function has the constant-returns-to-scale property,then it is possible that the specific form of the production function is

Accepted Answer

A)   Y = 4L + 2K + 3H + N
B)   Y = (L + K + H + N) /4
C)   Y =2
D)   Y = 4E) A) and D)
F) A) and B)

Question 2

Country A experienced a growth rate of real GDP per person of 4 percent per year throughout the 1900's.In view of other countries' experiences during this time country A's growth was

Accepted Answer

A)   exceptionally high.
B)   moderately high.
C)   moderately low.
D)   exceptionally low.E) None of the above
F) B) and C)

Question 3

Indonesians,for example,have a lower standard of living than Americans because they have a lower level of productivity.

Accepted Answer

A) True 
 B)False

Question 4

A country experiencing a growth rate of 8% per year can go from being one of the poorest to one of the richest in

Accepted Answer

A)   one generation.In the last couple of decades China's growth rate has been higher than 8%.
B)   one generation.However,in the last couple of decades not even China's growth rate has been this high.
C)   three generations.In the last couple of decades China's growth rate has been higher than 8%.
D)   three generations.However,in the last couple of decades not even China's growth rate has been this high.E) A) and C)
F) A) and D)

Question 5

Industrial machinery is an example of

Accepted Answer

A)   a factor of production that in the past was an output from the production process.
B)   technological knowledge.
C)   a production function.
D)   an item which always has the property called constant returns to scale.E) A) and B)
F) None of the above

Question 6

Some economists argue that it is possible to raise the standard of living by reducing population growth.As an economist interested in incentives rather than coercion,what kind of policy would you recommend to slow population growth?

Accepted Answer

Since bearing a child has an opportunity...

Question 7

If your firm's production function has constant returns to scale,and if you double all your inputs,then your firm's productivity will

Accepted Answer

A)   not change.
B)   increase but not double.
C)   double.
D)   more than double.E) None of the above
F) A) and B)

Question 8

Proprietary technology is technology that is

Accepted Answer

A)   widely used because it is easy to learn.
B)   widely used because the government subsidizes its use.
C)   not widely used because people could,but have not,taken the time to learn how to apply it.
D)   not widely used because it is known or controlled only by the company that discovered it.E) A) and D)
F) A) and C)

Question 9

Economists generally believe that inward-oriented policies are more likely to foster growth than outward-oriented policies.

Accepted Answer

A) True 
 B)False

Question 10

The dictator of Turan has recently begun to arbitrarily seize farms belonging to his political opponents,and he has given the farms to his friends.His friends don't know much about farming.The courts in Turan have ruled that the seizures are illegal,but the dictator has ignored the rulings.Other things equal,we would expect that the growth rate in Turan will

Accepted Answer

A)   fall temporarily,but will return to where it was when the new owners learn how to farm.
B)   increase because the total amount of human capital in the country will increase as the new owners learn how to farm.
C)   fall and remain lower for a long time.
D)   not be affected unless widespread civil disorder or civil war results.E) B) and C)
F) A) and D)

Question 11

If over a short time there is an increase in the number of people retired and a decrease in the number of people working,then productivity

Accepted Answer

A)   and real GDP per person rise.
B)   rises but real GDP per person falls.
C)   falls and real GDP per person rises.
D)   and real GDP per person fall.E) C) and D)
F) B) and C)

Question 12

In which of the following countries has economic growth been sufficiently strong in recent history to propel that country from being among the poorest in the world to being among the richest in the world?

Accepted Answer

A)   South Korea
B)   Senegal
C)   India
D)   IndonesiaE) A) and B)
F) B) and D)

Question 13

Which of the following lists contains,in this order,natural resources,human capital,and physical capital?

Accepted Answer

A)   For a restaurant: the land the restaurant was built on,the things the Chef learned at Cooking School,the freezers where the chops and steaks are kept.
B)   For a furniture company: wood,the company cafeteria,saws.
C)   For a railroad: fuel,railroad engines,railroad tracks.
D)   None of the above is correct.E) A) and B)
F) C) and D)

Question 14

In some East Asian countries,average income,as measured by real GDP per person,has recently grown at an average annual rate that implies output will double about every

Accepted Answer

A)   10 years.
B)   15 years.
C)   20 years.
D)   25 years.E) C) and D)
F) B) and C)

Question 15

If an inexpensive alternative to oil were found,the price of oil adjusted for inflation

Accepted Answer

A)   would decline as the alternative would reduce the demand for oil.
B)   would decline as the alternative would reduce the supply of oil.
C)   would increase as the alternative would increase the demand for oil.
D)   would increase as the alternative would increase the supply of oil.E) A) and D)
F) All of the above

Question 16

In an economy where net exports are zero,if saving rises in some period,then in that period

Accepted Answer

A)   consumption and investment fall.
B)   consumption falls and investment rises.
C)   consumption rises and investment falls.
D)   consumption rises and investment fallsE) A) and D)
F) All of the above

Question 17

Consider three imaginary countries.In Mainland,saving amounts to $4,000 and consumption amounts to $8,000; in Upland,saving amounts to $2,000 and consumption amounts to $15,000; and in Lowland,saving amounts to $6,000 and consumption amounts to $11,000.The saving rate is

Accepted Answer

A)   higher in Mainland than in Lowland,and it is higher in Lowland than in Upland.
B)   higher in Lowland than in Mainland,and it is higher in Mainland than in Upland.
C)   higher in Lowland than in Upland,and it is the same in Upland and Mainland.
D)   higher in Mainland than in Upland,and it is the same in Mainland and Lowland.E) A) and D)
F) None of the above

Question 18

Accumulating capital

Accepted Answer

A)   requires that society sacrifice consumption goods in the present.
B)   allows society to consume more in the present.
C)   decreases saving rates.
D)   involves no tradeoffs.E) None of the above
F) A) and B)

Question 19

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) C) and D)

Question 20

For a given year,productivity in a particular country is most closely matched with that country's

Accepted Answer

A)   level of real GDP over that year.
B)   level of real GDP divided by hours worked over that year.
C)   growth rate of real GDP divided by hours worked over that year.
D)   growth rate of real GDP per person over that year.E) None of the above
F) A) and C)

Exam 17: Production and Growth

Industrial machinery is an example of

Correct Answer
verified

Which of the following lists contains,in this order,natural resources,human capital,and physical capital?

Correct Answer
verified

Consider three imaginary countries.In Mainland,saving amounts to $4,000 and consumption amounts to $8,000; in Upland,saving amounts to $2,000 and consumption amounts to $15,000; and in Lowland,saving amounts to $6,000 and consumption amounts to $11,000.The saving rate is

Correct Answer
verified

In some East Asian countries,average income,as measured by real GDP per person,has recently grown at an average annual rate that implies output will double about every

Correct Answer
verified

Proprietary technology is technology that is

Correct Answer
verified

If an inexpensive alternative to oil were found,the price of oil adjusted for inflation

Correct Answer
verified

Country A experienced a growth rate of real GDP per person of 4 percent per year throughout the 1900's.In view of other countries' experiences during this time country A's growth was

Correct Answer
verified

A country experiencing a growth rate of 8% per year can go from being one of the poorest to one of the richest in

Correct Answer
verified

Accumulating capital

Correct Answer
verified

For a given year,productivity in a particular country is most closely matched with that country's

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

In an economy where net exports are zero,if saving rises in some period,then in that period

Correct Answer
verified

In which of the following countries has economic growth been sufficiently strong in recent history to propel that country from being among the poorest in the world to being among the richest in the world?

Correct Answer
verified

Indonesians,for example,have a lower standard of living than Americans because they have a lower level of productivity.

Correct Answer
verified

Economists generally believe that inward-oriented policies are more likely to foster growth than outward-oriented policies.

Correct Answer
verified

Correct Answer
verified

If your firm's production function has constant returns to scale,and if you double all your inputs,then your firm's productivity will

Correct Answer
verified

Some economists argue that it is possible to raise the standard of living by reducing population growth.As an economist interested in incentives rather than coercion,what kind of policy would you recommend to slow population growth?

Correct Answer
verified
Since bearing a child has an opportunity...
View Answer

If over a short time there is an increase in the number of people retired and a decrease in the number of people working,then productivity

Correct Answer
verified

Scenario 17-1.An economy's production form takes the form Y = AF(L,K,H,N) . -Refer to Scenario 17-1.If the production function has the constant-returns-to-scale property,then it is possible that the specific form of the production function is

Correct Answer
verified

Exam 17: Production and Growth

Industrial machinery is an example of

Correct AnswerverifiedShow Answer

Which of the following lists contains,in this order,natural resources,human capital,and physical capital?

Correct AnswerverifiedShow Answer

Consider three imaginary countries.In Mainland,saving amounts to $4,000 and consumption amounts to $8,000; in Upland,saving amounts to $2,000 and consumption amounts to $15,000; and in Lowland,saving amounts to $6,000 and consumption amounts to $11,000.The saving rate is

Correct AnswerverifiedShow Answer

In some East Asian countries,average income,as measured by real GDP per person,has recently grown at an average annual rate that implies output will double about every

Correct AnswerverifiedShow Answer

Proprietary technology is technology that is

Correct AnswerverifiedShow Answer

If an inexpensive alternative to oil were found,the price of oil adjusted for inflation

Correct AnswerverifiedShow Answer

Country A experienced a growth rate of real GDP per person of 4 percent per year throughout the 1900's.In view of other countries' experiences during this time country A's growth was

Correct AnswerverifiedShow Answer

A country experiencing a growth rate of 8% per year can go from being one of the poorest to one of the richest in

Correct AnswerverifiedShow Answer

Accumulating capital

Correct AnswerverifiedShow Answer

For a given year,productivity in a particular country is most closely matched with that country's

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 an economy where net exports are zero,if saving rises in some period,then in that period

Correct AnswerverifiedShow Answer

In which of the following countries has economic growth been sufficiently strong in recent history to propel that country from being among the poorest in the world to being among the richest in the world?

Correct AnswerverifiedShow Answer

Indonesians,for example,have a lower standard of living than Americans because they have a lower level of productivity.

Correct AnswerverifiedShow Answer

Economists generally believe that inward-oriented policies are more likely to foster growth than outward-oriented policies.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If your firm's production function has constant returns to scale,and if you double all your inputs,then your firm's productivity will

Correct AnswerverifiedShow Answer

Some economists argue that it is possible to raise the standard of living by reducing population growth.As an economist interested in incentives rather than coercion,what kind of policy would you recommend to slow population growth?

Correct AnswerverifiedSince bearing a child has an opportunity...View AnswerShow Answer

If over a short time there is an increase in the number of people retired and a decrease in the number of people working,then productivity

Correct AnswerverifiedShow Answer

Scenario 17-1.An economy's production form takes the form Y = AF(L,K,H,N) . -Refer to Scenario 17-1.If the production function has the constant-returns-to-scale property,then it is possible that the specific form of the production function is

Correct AnswerverifiedShow Answer

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Since bearing a child has an opportunity...
View Answer

Correct Answer
verified

Correct Answer
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