Question 1

Which of the following items plays a role in determining productivity?
A)physical capital
B)natural resources
C)technological knowledge
D)All of the above are correct.

Accepted Answer

All three factors, physical capital, natural resources, and technological knowledge, play a role in determining productivity. Physical capital includes tools, equipment, and infrastructure that help workers produce more efficiently. Natural resources, such as land, minerals, and water, provide the raw materials for production. Technological knowledge includes advances in machinery and production methods that allow for greater efficiency and output. Combined, these factors contribute to a country's overall productivity.

Question 2

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units. This year the same country had 1000 workers who worked an average of 8 hours and produced 14,000 units. This country's productivity was
A)higher this year than last year. A possible source of this change in productivity is a change in the size of the capital stock.
B)higher this year than last year. A change in the size of the capital stock does not affect productivity.
C)lower this year than last year. A possible source of this change in productivity is a change in the size of the capital stock.
D)lower this year than last year. A change in the size of the capital stock does not affect productivity.

Accepted Answer

The answer of Last year a country had 800 workers...

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
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.

Accepted Answer

Arnold's productivity is higher than Will's (6 baskets/hour compared to 4 baskets/hour), so option A is correct. As both work for the same duration, Arnold's total output will be more than Will's (as he can produce more per hour), so option B is also correct. However, option C cannot be inferred from the given information and is thus incorrect. Therefore, the correct choice is D.

Question 4

In 2011 Buckeye Brewing produced 1,000 bottles of ginger ale each day. It employed 10 workers each working 8 hours a day. In 2012 it produced 960 bottles of ginger ale each day employing 8 workers who worked 8 hours each day. Productivity at Buckeye Brewing
A)increased by 20%.
B)increased by 16.67%.
C)decreased by 1.67%.
D)decreased by 40%.

Accepted Answer

The answer of In 2011 Buckeye Brewing produced 1,000 bottles...

Question 5

In 2011, Modern Electronics, Inc. produced 60,000 calculators, employing 80 workers, each of whom worked 8 hours per day. In 2012, the same firm produced 76,500 calculators, employing 85 workers, each of whom worked 10 hours per day. Productivity at Modern Electronics
A)decreased by 4%
B)remained constant.
C)increased by 8.33%
D)increased by 27.50%

Accepted Answer

The answer of In 2011, Modern Electronics, Inc. produced 60,000...

Question 6

Last year the imaginary country of Basova had a population of 10,000, 6,000 people worked 8 hours a day, and produced a real GDP of $30,000,000. The imaginary country of Andovia had a population of 12,000, 8,000 people worked 8 hours a day, and produced a real GDP of $38,000,000. Which of the following is correct?
A)Basova had higher productivity and higher real GDP per person.
B)Andovia had the higher productivity and higher real GDP per person.
C)Basova had the higher productivity while Andovia had the higher real GDP per person.
D)Andovia had the higher productivity while Basova had the higher real GDP per person.

Accepted Answer

The answer of Last year the imaginary country of Basova...

Question 7

In 2010, Acme Foods produced 300,000 bags of pretzels, employing 12,000 hours of labor. In 2011, it produced 322,000 bags of pretzels, employing 14,000 hours of labor. Acme Foods productivity
A)decreased by 8%.
B)was unchanged.
C)increased by 6.8%.
D)increased by 7.3%.

Accepted Answer

The answer of In 2010, Acme Foods produced 300,000 bags...

Question 8

Workland has a population of 10,000, of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods. Laborland has a population of 5,000, of whom 3,000 work 7 hours a day to produce a total of 105,000 final goods.
A)Workland has higher productivity and higher real GDP per person than Laborland.
B)Workland has higher productivity but lower real GDP per person than Laborland.
C)Workland has lower productivity but higher real GDP per person than Laborland.
D)Workland has lower productivity and lower real GDP per person than Laborland.

Accepted Answer

The answer of Workland has a population of 10,000, of...

Question 9

Each day Sue works 8 hours and produces 7 units of goods and services. Mary works 10 hours each day and produces 10 units of goods and services. It follows that
A)Sue's productivity is higher than Mary's.
B)Mary's productivity is higher than Sue's.
C)Sue's income per hour will be higher than Mary's.
D)Sue's income per day will be higher than Mary's.

Accepted Answer

Mary produces more units of goods and services each day than Sue despite working two more hours. Therefore, Mary's productivity is higher than Sue's. However, we cannot determine who earns more per hour or per day based on productivity alone.

Question 10

Upland has a population of 15,000, of whom 9,000 work 8 hours a day to produce real output of $342,000. Lowland has a population of 8,000, of whom 7,000 work 7 hours a day to produce real output of $171,500.
A)Upland has higher productivity and higher real GDP per person than Lowland.
B)Upland has higher productivity but lower real GDP per person than Lowland.
C)Upland has lower productivity but higher real GDP per person than Lowland.
D)Upland has lower productivity and lower real GDP per person than Lowland.

Accepted Answer

Upland has a higher total real output than Lowland ($342,000 vs. $171,500). Upland also has a larger population and more workers. However, Upland's workers produce more output per hour than Lowland's workers. Therefore, Upland has higher productivity and higher real GDP per person than Lowland.

Question 11

Daniel owns a coffee kiosk. All of his employees work 8 hours per day. In 2011, he employed 6 people who produced a total of 912 cups of coffee each day. In 2012, he hired a seventh employee and production increased to 1008 cups of coffee each day. In Daniel's kiosk, productivity
A)increased by about 10.5 percent
B)increased by 9.5 percent
C)decreased by about 5.6 percent
D)decreased by about 5.3 percent

Accepted Answer

The answer of Daniel owns a coffee kiosk. All of...

Question 12

Real Foods produced 400,000 cans of diced tomatoes last year and 460,000 cans of diced tomatoes this year. It employed the same number of labor hours each year. Real Foods' productivity
A)decreased 13%.
B)was unchanged.
C)increased 13%.
D)increased 15%.

Accepted Answer

The answer of Real Foods produced 400,000 cans of diced...

Question 13

Dilbert's Incorporated produced 6,000,000 units of software in 2010. At the start of 2011 the pointy-haired boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units. These number indicate that productivity
A)fell by about 16.7%.
B)stayed the same.
C)rose by about 16.7%.
D)rose by about 40%.

Accepted Answer

The answer of Dilbert's Incorporated produced 6,000,000 units of software...

Question 14

Country A has a population of 1,000, of whom 800 work 8 hours a day to make 128,000 final goods. Country B has a population of 2,000, of whom 1,800 work 6 hours a day to make 270,000 final goods.
A)Country A has higher productivity and higher real GDP per person than country B.
B)Country A has lower productivity and lower real GDP per person than country B.
C)Country A has higher productivity, but lower real GDP per person than country B.
D)Country B has lower productivity, but higher real GDP per person than country B.

Accepted Answer

Productivity is measured as the amount of output per unit of input. In this case, we can calculate productivity by dividing the total output (final goods) by the total number of hours worked. Country A's productivity is (128,000/800) = 160 units of output per hour worked, while Country B's productivity is (270,000/1,800) = 150 units of output per hour worked. Therefore, Country A has higher productivity than Country B.

However, real GDP per person takes into account both productivity and population. We can calculate real GDP per person by dividing the total output (final goods) by the total population. Country A's real GDP per person is (128,000/1,000) = $128 per person, while Country B's real GDP per person is (270,000/2,000) = $135 per person. Therefore, Country B has higher real GDP per person than Country A, despite Country A having higher productivity. Thus, the correct answer is B.

Question 15

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2010. At the start of 2011 the pointy-haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000. These numbers indicate that productivity
A)fell by 4%.
B)fell by 20%.
C)rose by 12%.
D)rose by 20%.

Accepted Answer

The answer of Dilbert's Incorporated produced 5,000,000 units of accounting...

Question 16

Table 25-1.
Athens and Troy both produce only ribs and baked potatoes. 
-Refer to Table 25-1. Which of the following is correct?
A)Both productivity and the standard of living are higher in Athens than Troy.
B)Productivity is higher in Athens while the standard of living is higher in Troy
C)Productivity is higher in Troy while the standard of living is higher in Athens.
D)Both productivity and the standard of living are higher in Troy than Athens.

Accepted Answer

Without the table, we assume that the correct answer is A based on the typical relationship between productivity and standard of living, where higher productivity often correlates with a higher standard of living.

Question 17

Country A had a population of 2,000, of whom 1,300 worked an average of 8 hours a day and had a productivity of 5. Country B had a population of 2,500, of whom 1,700 worked 8 hours a day and had productivity of 4. Country
A)A had the higher level of real GDP and real GDP per person.
B)A had the higher level of real GDP and Country B had the higher level of real GDP per person
C)B had the higher level of real GDP and Country A had the higher level of real GDP per person
D)B had the higher level of real GDP and real GDP per person.

Accepted Answer

The answer of Country A had a population of 2,000,...

Question 18

Nathan owns a bakery that bakes only cakes. All of his bakers work 8 hours per day. In 2011, he employed 5 bakers who produced a total of 200 cakes each day. In 2012, he employed 6 bakers who produced a total of 249 cakes each day. The bakery's productivity
A)decreased by 2.33%.
B)increased by 2.33%.
C)increased by 3.75%.
D)increased by 24.50%.

Accepted Answer

To calculate productivity, we need to determine the number of cakes produced per hour per baker.

In 2011, the bakers produced 200 cakes per day, so each baker produced 40 cakes per day (since there are five bakers).

Therefore, the productivity of each baker was:

40 cakes / 8 hours = 5 cakes per hour

In 2012, the bakers produced 249 cakes per day, so each baker produced approximately 41.5 cakes per day (since there are six bakers).

Therefore, the productivity of each baker was:

41.5 cakes / 8 hours = 5.19 cakes per hour

To determine the increase in productivity, we calculate the percentage increase from 5 cakes per hour to 5.19 cakes per hour:

(5.19 cakes per hour - 5 cakes per hour) / 5 cakes per hour x 100% = 3.75%

Therefore, the bakery's productivity increased by 3.75%.

Question 19

Country A had a population of 1,000, of whom 600 worked an average of 8 hours a day and had a productivity of 2.5. Country B had a population of 800, of whom 560 worked 8 hours a day and had productivity of 3.0. Country
A)A had the higher level of real GDP and real GDP per person.
B)A had the higher level of real GDP and Country B had the higher level of real GDP per person
C)B had the higher level of real GDP and Country A had the higher level of real GDP per person
D)B had the higher level of real GDP and real GDP per person.

Accepted Answer

The answer of Country A had a population of 1,000,...

Question 20

Table 25-1.
Athens and Troy both produce only ribs and baked potatoes. 
-Refer to Table 25-1. Which of the following is correct?
A)Both real GDP and real GDP per person are higher in Athens than Troy.
B)Real GDP is higher in Athens while real GDP per person is higher in Troy
C)Real GDP is higher in Troy while real GDP per person is higher in Athens.
D)Both real GDP and real GDP per person are higher in Troy than Athens.

Accepted Answer

The answer of Table 25-1.
Athens and Troy both produce only...

Quiz 25: Production and Growth

Which of the following items plays a role in determining productivity?

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units. This year the same country had 1000 workers who worked an average of 8 hours and produced 14,000 units. This country's productivity was

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

In 2011 Buckeye Brewing produced 1,000 bottles of ginger ale each day. It employed 10 workers each working 8 hours a day. In 2012 it produced 960 bottles of ginger ale each day employing 8 workers who worked 8 hours each day. Productivity at Buckeye Brewing

In 2011, Modern Electronics, Inc. produced 60,000 calculators, employing 80 workers, each of whom worked 8 hours per day. In 2012, the same firm produced 76,500 calculators, employing 85 workers, each of whom worked 10 hours per day. Productivity at Modern Electronics

In 2010, Acme Foods produced 300,000 bags of pretzels, employing 12,000 hours of labor. In 2011, it produced 322,000 bags of pretzels, employing 14,000 hours of labor. Acme Foods productivity

Workland has a population of 10,000, of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods. Laborland has a population of 5,000, of whom 3,000 work 7 hours a day to produce a total of 105,000 final goods.

Each day Sue works 8 hours and produces 7 units of goods and services. Mary works 10 hours each day and produces 10 units of goods and services. It follows that

Upland has a population of 15,000, of whom 9,000 work 8 hours a day to produce real output of $342,000. Lowland has a population of 8,000, of whom 7,000 work 7 hours a day to produce real output of $171,500.

Daniel owns a coffee kiosk. All of his employees work 8 hours per day. In 2011, he employed 6 people who produced a total of 912 cups of coffee each day. In 2012, he hired a seventh employee and production increased to 1008 cups of coffee each day. In Daniel's kiosk, productivity

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

Dilbert's Incorporated produced 6,000,000 units of software in 2010. At the start of 2011 the pointy-haired boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units. These number indicate that productivity

Country A has a population of 1,000, of whom 800 work 8 hours a day to make 128,000 final goods. Country B has a population of 2,000, of whom 1,800 work 6 hours a day to make 270,000 final goods.

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2010. At the start of 2011 the pointy-haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000. These numbers indicate that productivity

Table 25-1. Athens and Troy both produce only ribs and baked potatoes. -Refer to Table 25-1. Which of the following is correct?

Country A had a population of 2,000, of whom 1,300 worked an average of 8 hours a day and had a productivity of 5. Country B had a population of 2,500, of whom 1,700 worked 8 hours a day and had productivity of 4. Country

Nathan owns a bakery that bakes only cakes. All of his bakers work 8 hours per day. In 2011, he employed 5 bakers who produced a total of 200 cakes each day. In 2012, he employed 6 bakers who produced a total of 249 cakes each day. The bakery's productivity

Country A had a population of 1,000, of whom 600 worked an average of 8 hours a day and had a productivity of 2.5. Country B had a population of 800, of whom 560 worked 8 hours a day and had productivity of 3.0. Country

Table 25-1. Athens and Troy both produce only ribs and baked potatoes. -Refer to Table 25-1. Which of the following is correct?