Quiz 17: Production and Growth

The average income in a rich country,such as the United States or Japan,is more than A) 3 times,but less than 5 times,the average income in a poor country,such as Indonesia or Nigeria. B) 5 times,but less than 10 times,the average income in a poor country,such as Indonesia or Nigeria. C) 10 times,but less than 20 times,the average income in a poor country,such as Indonesia or Nigeria. D) more than 20 times the average income in a poor country,such as Indonesia or Nigeria.

Which of the following are residents of rich countries likely to have in greater quantities,or better quality,than residents of poor countries? A) housing B) healthcare C) life expectancy D) All of the above.

The average income in a rich country A) is about 5 times that in a poor country.Further,people in rich countries have longer life expectancy. B) is about 5 times that in a poor country.However,people in rich countries have about the same life expectancy as those in poor countries. C) is more than ten times that in a poor country.Further,people in rich countries have longer life expectancy. D) is more than ten times that in poor country.However,people in rich countries have about the same life expectancy as those in poor countries.

Over the past century in the United States,real GDP per person has grown,on average,by about A) 1 percent per year. B) 2 percent per year. C) 3 percent per year. D) 5 percent per year.

During the past century the average growth rate of U.S.real GDP per person implies that it doubled,on average,about every A) 100 years. B) 70 years. C) 35 years. D) 25 years.

In the United States,as measured by real GDP per person,average income is about how many times as high as average income a century ago? A) 2 B) 4 C) 6 D) 8

Over the last century,U.S.real GDP per person grew at a rate of about A) 2 percent per year,so that it is now 2 times as high as it was a century ago. B) 2 percent per year,so that it is now 8 times as high as it was a century ago. C) 4 percent per year,so that it is now 2 times as high as it was a century ago. D) 4 percent per year,so that it is now 8 times as high as it was a century ago.

Over the past century in the United States,average income as measured by real GDP per person has grown about A) 4 percent per year,which implies a doubling about every 18 years. B) 4 percent per year,which implies a doubling about every 8 years. C) 2 percent per year,which implies a doubling about every 35 years. D) 2 percent per year,which implies a doubling about every 18 years.

Over the past 100 years,U.S.real GDP per person has doubled about every 35 years.If it continues to double every 35 years,then in 100 years U.S.real GDP per person will be about 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.

In recent decades,average income in some East Asian countries,such as South Korea,Singapore,and Taiwan,has risen about A) 2 percent per year. B) 4 percent per year. C) 7 percent per year. D) 10 percent per year.

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 A) 10 years. B) 15 years. C) 20 years. D) 25 years.

A country experiencing a growth rate of 8% per year can go from being one of the poorest to one of the richest in how many generations? A) one B) two C) three D) four

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

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? A) India B) Mexico C) Senegal D) Singapore

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? A) South Korea B) Senegal C) India D) Indonesia

Average income has been stagnant for many years in A) Gabon. B) Ireland. C) Singapore. D) All of the above are correct.

Average income has been stagnant for many years in A) Argentina. B) India. C) Senegal. D) All of the above are correct.

Average income has been stagnant for many years in A) Chad. B) Gabon. C) Senegal. D) All of the above are correct.

Which of the following is a good gauge of economic progress? A) the level of real GDP per person,but not the growth rate of real GDP per person B) the level of real GDP per person and the growth rate of real GDP per person C) the growth rate of real GDP per person,but not the level of real GDP per person D) neither the level nor the growth rate of real GDP per person

Productivity is the amount of goods and services A) an economy produces.It is not linked to a nation's economic policies. B) an economy produces.It is linked to a nation's economic policies. C) produced for each hour of a worker's time.It is not linked to a nation's economic policies. D) produced for each hour of a worker's time.It is linked to a nation's economic policies.

A nation's standard of living is best measured by its A) real GDP. B) real GDP per person. C) nominal GDP. D) nominal GDP per person.

Which of the following can be measured by the level of real GDP per person? A) productivity and the standard of living B) productivity but not the standard of living C) the standard of living but not productivy D) neither the standard of living nor productivity

The level of real GDP person 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.

As of 2008,using real GDP per person as a measure,we would classify A) the United States and Mexico as advanced economies and Bangladesh as a middle-income country. B) Canada as an advanced economy,Mexico as a middle-income country,and Pakistan as a poor country. C) Japan and India as advanced economies and Mexico as a poor country. D) Japan as an advanced economy,the United Kingdom as a middle-income country,and Argentina as a poor country.

Which of the following statements is correct? In 2008, A) real income per person in the U.S.was about 8 times that in China. B) real income per person in China was about 2 times that in India in 2008. C) the typical resident of India had less real income than the typical resident of England in 1870. D) All of the above are correct.

In 2008,real GDP per person in Bangladesh was A) about 3 times as high as it was in the U.S.in 1870. B) about twice as high as it was in the U.S.in 1870. C) about the same as it was in the U.S.in 1870. D) less than it was in the U.S.in 1870.

In 2008,the typical Bangladeshi had about A) 1/5 the real income of a typical American a century ago. B) 1/3 the real income of a typical American a century ago. C) 2 times as much real income as that of a typical American a century ago. D) 4 times as much real income as that of a typical American a century ago.

The average citizen of India in 2008 had A) less real income than the typical resident of Canda in 1870. B) less real income than the typical resident of the United Kingdom in 1870. C) higher real income than a resident of Japan in 2008. D) higher real income than a resident of China in 2008.

Which of the following countries had the lowest level of real GDP per person in 2008? A) Bangladesh B) Indonesia C) Mexico D) China

Which of the following countries had the highest level of real GDP per person in 2008? A) Germany B) United Kingdom C) United States D) Japan

If one wants to know how the material well-being of the average person has changed over time in a given country,one should look at the A) level of real GDP. B) growth rate of nominal GDP. C) growth rate of real GDP. D) growth rate of real GDP per person.

Which of the following is correct? A) Countries with the highest growth rates over the last 100 years are the ones that had the highest level of real GDP 100 years ago. B) Most countries have had little fluctuation around their average growth rates during the past 100 years. C) The ranking of countries by income changes substantially over time. D) Over the last 100 years,Japan had the highest real GDP growth rate,and now has the highest real GDP per person.

Which of the following is not correct? A) Across countries there are large differences in the average income per person.These differences are reflected in large differences in the quality of life. B) With a growth rate of about 2 percent per year,average income per person doubles about every 35 years. C) The ranking of countries by average income changes very little over time. D) In some countries real income per person has changed very little over many years.

Countries that have lower levels of real GDP per person than the United States A) tend to have growth rates that are higher than that of the United States. B) tend to have growth rates that are about the same as that of the United States. C) tend to have growth rates that are lower than that of the United States. D) in some cases have growth rates that are higher than that of the United States and in other cases lower than that of the United States.

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 A) exceptionally high. B) moderately high. C) moderately low. D) exceptionally low.

Country A experienced a growth rate of real GDP per person of 0.5 percent per year throughout the 1900's.In view of other countries' experiences,country A's growth was A) exceptionally high. B) moderately high. C) moderately low. D) exceptionally low.

Countries that grew the fastest over the last 100 or so years had growth rates of real income per person of about A) 0.5 percent per year. B) 1.5 percent per year. C) 2.0 percent per year. D) 2.5 percent per year.

Which of the following nations experienced average rates of economic growth of less than 2 percent over the last 100 years? A) Bangladesh B) Pakistan C) United Kingdom D) All of the above are correct.

Over the period 1900-2008,which of the following countries experienced the highest average annual growth rate of real GDP per person? A) Indonesia B) India C) Pakistan D) Brazil

Which of the following countries had the highest growth rate over the last 100 or so years? A) Brazil B) Germany C) Canada D) United States

Over the last 100 years which of the following had growth rates higher than that of the United States? A) the United Kingdom B) India C) Mexico D) None of the above is correct.

Which list contains,in this order,a country whose real GDP per person grew faster and one whose real GDP per person grew slower than real GDP per person in the U.S.over the last 100 years? A) China,Pakistan B) United Kingdom,China C) Pakistan,Argentina D) Argentina,Japan

Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over the last 100 or so years? A) Germany and Japan B) Indonesia and the United Kingdom C) the United States and Japan D) Mexico and Pakistan

Of the following countries,which grew most slowly,in terms of real GDP per person,over the last 100 years? A) Brazil B) Mexico C) China D) United States

Which of the following is indicated by the data on real income per person for various countries over the past 100 or so years? A) If,in a relatively poor country,real income per person had grown by 3.5 percent per year for the last 100 years,it would be a relatively rich country today. B) Rich countries became richer and poor countries became poorer. C) In the United States,real income per person today is about four times as high as it was 100 years ago. D) All of the above are correct.

In 1870,the richest country in the world was A) the United States. B) Spain. C) the United Kingdom. D) Germany.

Which of the following statements is correct? A) In 1870,real income per person was higher in the United Kingdom than in any other country at that time. B) Between 1870 and 2008,India experienced significantly higher growth of real income per person than did the United States. C) Between 1870 and 2008,the United States experienced significantly higher growth of real income per person than did Canada. D) All of the above are correct.

Which of the following is correct? A) Over the last 100 years Japan had a higher average growth rate than the United States.It follows that,today,the standard of living in Japan is higher than in the United States. B) The typical person in Bangladesh today has about twice the real income of a typical American 100 years ago. C) The typical citizen of China today has about one-half as much real income as the typical citizen of America today. D) None of the above is correct.

Which of the following correctly ranks the three countries,from highest to lowest,for percentage of high-school age children in school? A) United Kingdom,Mali,Mexico. B) Mexico,Mali,United Kingdom. C) United Kingdom,Mexico,Mali. D) Mali,Mexico,United Kingdom.

Last year real GDP per person in the imaginary nation of Olympus was 4,500.The year before it was 4,250.By about what percentage did Olympian real GDP per person grow during the period? A) 4.6 percent B) 5.2 percent C) 5.9 percent D) 6.5 percent

Last year real GDP in the imaginary nation of Oceania was 561.0 billion and the population was 2.2 million.The year before,real GDP was 500.0 billion and the population was 2.0 million.What was the growth rate of real GDP per person during the year? A) 12 percent B) 10 percent C) 4 percent D) 2 percent

Last year real GDP in the imaginary nation of Populia was 907.5 billion and the population was 3.3 million.The year before real GDP was 750 billion and the population was 3 million.What was the growth rate of real GDP per person during the year? A) 10 percent B) 14 percent C) 17 percent D) 21 percent

Last year the imaginary nation of Freedonia had a population of 2,700 and real GDP of 16,200,000.This year it had a population of 2,500 and real GDP of 14,640,000.What was the growth rate of real GDP per person between last year and this year? A) -2.4 percent B) -0.7 percent C) 4.4 percent D) 5.2 percent

In 2009,the imaginary nation of Florastan had a population of 8,044 and real GDP of 36,198,000.In 2010 it had a population of 7,800 and real GDP of 35,880,000.What was the growth rate of real GDP per person in Florastan between 2009 and 2010? A) -2.2 percent B) -0.7 percent C) 2.2 percent D) 4.5 percent

In 2009,the imaginary nation of Florastan had a population of 8,300 and real GDP of 190,900.Florastan had 5% growth in real GDP per person.In 2010 it had a population of 8,400.What was real GDP in Florastan in 2010? A) 200,445 B) 202,860 C) 198,059 D) None of the above is correct.

In 2009,the imaginary nation of Viloxia had a population of 5,000 and real GDP of 500,000.In 2010 it had a population of 5,100 and real GDP of 520,200.During 2009 real GDP in Viloxia grew by A) 2 percent,which is high compared to average U.S.growth over the last one-hundred years. B) 2 percent,which is about the same as average U.S.growth over the last one-hundred years. C) 4 percent,which is high compared to average U.S.growth over the last one-hundred years. D) 4 percent,which is about the same as average U.S.growth over the last one-hundred years.

Last year Panglossia had real GDP of 27.0 billion.This year it had real GDP of 31.5 billion.Which of the following changes in population is consistent with a 5 percent growth rate of real GDP per person over the last year? A) The population decreased from 88 million to 84 million. B) The population decreased from 75 million to 73 million. C) The population increased from 45 million to 50 million. D) The population increased from 60 million to 62 million.

In 2009,the imaginary nation of Mainland had a population of 6,000 and real GDP of 120,000.In 2010 the population was 6,200 and real GDP of 128,960.Over the year in question,real GDP per person in Mainland grew by A) 2 percent,which is high compared to average U.S.growth over the last one-hundred years. B) 2 percent,which is about the same as average U.S.growth over the last one-hundred years. C) 4 percent,which is high compared to average U.S.growth over the last one-hundred years. D) 4 percent,which is about the same as average U.S.growth over the last one-hundred years.

In 2009,the imaginary nation of Mainland had a population of 7,000 and real GDP of 210,000.In 2010 the population was 7,300 and real GDP of 223,380.Over the year in question,real GDP per person in Mainland grew by A) 2 percent,which is high compared to average U.S.growth over the last one-hundred years. B) 2 percent,which is about the same as average U.S.growth over the last one-hundred years. C) 4 percent,which is high compared to average U.S.growth over the last one-hundred years. D) 4 percent,which is about the same as average U.S.growth over the last one-hundred years.

In 2009,the imaginary nation of Dorados had a population of 8,000 and real GDP of 3,000,000.During the year its real GDP grew by about 2.9%.Which of the following sets of growth rates is consistent with this growth in real GDP? A) 2% population growth and 6% real GDP growth B) 6% population growth and 2% real GDP growth C) 4% population growth and 7% real GDP growth D) 7% population growth and 4% real GDP growth

In 2009,the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000.During the year its real GDP grew by about 1.98%.Which of the following sets of growth rates is consistent with this growth in real GDP? A) 1% population growth and 3% real GDP growth B) 3% population growth and 1% real GDP growth C) 3% population growth and 6% real GDP growth D) 6% population growth and 3% real GDP growth

Which of the following is correct? A) Although levels of real GDP per person vary substantially from country to country,the growth rate of real GDP per person is similar across countries. B) Productivity is not closely linked to government policies. C) The level of real GDP per person is a good gauge of economic prosperity,and the growth rate of real GDP per person is a good gauge of economic progress. D) Productivity may be measured by the growth rate of real GDP per person.

The one variable that stands out as the most significant explanation of large variations in living standards around the world is A) productivity. B) population. C) preferences. D) prices.

Productivity is defined as the quantity of A) labor required to produce a nation's GDP. B) labor required to produce one unit of goods and services. C) goods and services produced from each unit of labor input. D) goods and services produced per unit of time.

Which of the following is a correct way to measure productivity? A) Divide the number of hours worked by the quantity of output. B) Divide the quantity of output by the number of hours worked. C) Determine how much output is produced in a given time. D) Determine how much time it takes to produce a unit of output.

Which of the following statements is true? A) Productivity is calculated as hours worked divided by output produced. B) Americans have a higher standard of living than Indonesians because American workers are more productive than Indonesian workers. C) Both A and B are correct. D) None of the above are correct.

Which of the following is not correct? 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.

In determining living standards,productivity plays a key role 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.

The key determinant of the standard of living in a country is 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.

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

Which of the following would,by itself,reveal the most about a country's standard of living? A) its level of capital B) the number of hours worked C) its availability of natural resources D) its productivity

Productivity A) is nearly the same across countries,and so provides no help explaining differences in the standard of living across countries. B) explains very little of the differences in the standard of living across countries. C) explains some,but not most of the differences in the standard of living across countries. D) explains most of the differences in the standard of living across countries.

Productivity is the A) key determinant of living standards,and growth in productivity is the key determinant of growth in living standards. B) key determinant of living standards,but growth in productivity is not the key determinant of growth in living standards. C) not the key determinant of living standards,but growth in productivity is the key determinant of growth in living standards. D) not the key determinant of living standards,and growth in productivity is not the key determinant of growth in living standards.

Over the last ten years productivity grew faster in Oceania than in Freedonia and the population and total hours worked remained the same in both countries.It follows that A) real GDP per person must be higher in Oceania than in Freedonia. B) real GDP per person grew faster in Oceania than in Freedonia. C) the standard of living must be higher in Oceania than in Freedonia. D) All of the above are correct.

Over the last ten years productivity grew more slowly in Upland than in Lowland and the population and total hours worked remained the same in both countries.It follows that A) real GDP per person must be lower in Upland than in Lowland. B) real GDP per person grew more slowly in Upland than in Lowland. C) the standard of living must be higher in Upland than in Lowland. D) All of the above are correct.

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

Given that a country's real output has increased,in which of the following cases can we be sure that its productivity also has increased? A) The total number of hours worked rose. B) The total number of hours worked stayed the same. C) The total number of hours worked fell. D) Both b and c are correct.

Phoenix furniture uses 10 workers,each working eight hours,to produce 80 rocking chairs.What is Phoenix's productivity? A) 80 rocking chairs B) 10 rocking chairs per hour C) 1 rocking chair per hour D) 1 hour per rocking chair

Strike Out Bowling Balls produces 800 bowling balls per day using 2 workers who each work 8 hours per day.What is Strike Out's productivity? A) 800 bowling balls B) 100 bowling balls per hour C) 50 bowling balls per hour D) None of the above is correct.

In one day Alpha Cabinet Company made 40 cabinets with 320 hours of labor.What was Alpha Cabinet Company's productivity? A) 1/8 cabinet per hour B) 8 hours per cabinet C) 40 cabinets D) None of the above is correct.

In one day Madison Laundry washed 4,000 pounds of laundry with 5 workers who each worked 8 hours.What was its productivity? A) 4000 pounds of laundry B) 500 pounds of laundry per hour C) 100 pounds of laundry per hour D) None of the above is correct.

Allied Business Consultants employs five researchers that each work 8 hour days.In one day the researchers prepare 60 reports for its 10 largest clients.What was Allied Business Consultants' productivity? A) 1.5 reports per hour B) 6 reports per client C) 7.5 reports per hour D) 60 reports

You and your friend work together for 4 hours to produce a total of 12 futons.What is productivity? A) 12 futons B) 24 futons C) 3 futons per hour of labor D) 1.5 futons per hour of labor

In one day Portal Computer Company made 400 laptops with 1200 hours of labor.What was its productivity? A) 1/3 laptop per hour B) 3 hours per laptop C) 1200 laptops D) 400 laptops

Mary looks over reports on four of her workers.Jack made 25 baskets in 5 hours.Walter made 36 baskets in 6 hours.Rudy made 40 baskets in 10 hours.Sam made 22 baskets in four hours.Who has the greatest productivity? A) Jack B) Walter C) Rudy D) Sam

A barber shop produces 96 haircuts a day.Each barber in the shop works 8 hours per day and produces the same number of haircuts per hour.If the shop's productivity is 2 haircuts per hour of labor,then how many barbers does the shop employ? A) 2 B) 3 C) 4 D) 6

Miller's Dairy produces 960 gallons of milk per day.Each milker at the dairy works 8 hours per day and produces the same number of gallons of milk per hour.If the Dairy's productivity is 12 gallons of milk per hour of labor,then how many milkers does the shop employ? A) 8 B) 10 C) 80 D) 120

Gramp's Potato Chips produces 1280 bags of potato chips a day.Each employee at Gramp's works 8 hours.If the company's productivity is 20 bags per hour,how many people does Gramp's employ? A) 8 B) 10 C) 80 D) 100

Greg's Ice Cream produces 1120 gallons of ice cream per day.Each employed works seven hours and has productivity of 20 gallons an hour.How many employees does Greg's employ? A) 160 B) 56 C) 8 D) None of the above is correct.

Adam and Doug both build birdhouses.Adam works 20 hours a week and produces 12 bird houses.Doug works 30 hours a week and produces 15 bird houses.Which of the following is correct? A) Adam's production and productivity are higher than Doug's. B) Adam's production is higher than Doug's,but Doug's productivity is higher than Adam's. C) Doug's production is higher than Adam's,but Adam's productivity is higher than Doug's. D) Doug's production and productivity are higher than Adam's.

Alexis and Tara both mine salt.Alexis mines 400 pounds in 40 hours.Tara mines 300 pounds in 20 hours.Which of the following is correct? A) Alexis's productivity is greater than Tara's.This difference could be explained by Alexis having more physical capital than Tara. B) Alexis's productivity is greater than Tara's.This difference cannot be explained by a difference in the physical capital each has. C) Tara's productivity is greater than Alexis's.This difference could be explained by Tara having more physical capital than Alexis. D) Tara's productivity is greater than Alexis's.This difference cannot be explained by a difference in the physical capital each has.

Waldo works eight hours and produces 7 units of goods per hour.Emerson works six hours and produces 10 units of goods per hour. A) Waldo's productivity and output are greater than Emerson's. B) Waldo's productivity is greater than Emerson's but his output is less. C) Emerson's productivity and output are greater than Waldo's. D) Emerson's productivity is greater than Waldo's but his output is less.

Popeye produces 20 cans of spinach in 8 hours.Wimpy produces 15 hamburgers in 10 hours.If each hamburger trades for 1.5 cans of spinach,then A) Popeye's production and productivity are greater than Wimpy's. B) Popeye's production is greater than Wimpy's,but his productivity is less. C) Wimpy's production and productivity are greater than Popeye's. D) Wimpy's production is greater than Popeye's,but his productivity is less.

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 A) decreased by 2.33%. B) increased by 2.33%. C) increased by 3.75%. D) increased by 24.50%.

Nathan owns a coffee kiosk.All of his employees work 8 hours per day.In 2009,he employed 5 people who produced a total of 900 cups of coffee each day.In 2010,he hired a sixth employee and production increased to 1188 cups of coffee each day.In Nathan's kiosk,productivity A) decreased by 2 percent. B) increased by 9 percent. C) increased by 10 percent. D) increased by 1.11 percent.

In 2009 Buckeye Brewing produced 1,000 bottles of ginger ale each day.It employed 10 workers each working 8 hours a day.In 2010 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%.

In 2009,Modern Electronics,Inc.produced 60,000 calculators,employing 80 workers,each of whom worked 8 hours per day.In 2010,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%

Real Foods produced 400,000 cans of diced tomatoes in 2009 and 460,000 cans of diced tomatoes in 2010.It employed the same number of labor hours each year.Real Foods' productivity A) decreased 13 percent. B) was unchanged. C) increased 13 percent. D) increased 15 percent.

In 2009,Angel Foods produced 300,000 bags of tortilla chips,employing 12,000 hours of labor.In 2010,Angel Foods produced 325,000 bags of tortilla chips,employing 13,000 hours of labor.Angel Food's productivity A) decreased by 2.1 percent. B) was unchanged. C) increased by 1.3 percent. D) increased by 2.3 percent.

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2008.At the start of 2009 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%.

Dilbert's Incorporated produced 6,000,000 units of software in 2008.At the start of 2009 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%.

Last year the imaginary country of Bahkan 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 San Andreo had a population of 15,000,8,000 people worked 7 hours a day and produced a real GDP of $33,000,000.Which of the following is correct? A) Bahkan had the higher productivity and the higher real GDP per person. B) San Andreo had the higher productivity and the higher real GDP per person. C) Bahkan had the higher productivity while San Andreo had the higher real GDP per person. D) San Andreo had the higher productivity while Bahkan had the higher real GDP per person.

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.

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 4,000 work 12 hours a day to produce a total of 120,000 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.

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.

Country A has a population of 1,000,of whom 700 worked an average of 8 hours a day and had a productivity of 2.5.Country B has a population of 800,of whom 560 worked 8 hours a day and had productivity of 3.0.The country with the higher real GDP was A) country A,and the country with higher real GDP per person was country A. B) country A,and the country with higher real GDP per person was country B. C) country B,and the country with higher real GDP per person was country A. D) country B,and the country with higher real GDP per person was country B.

Table 17-1. Athens and Troy both produce only ribs and baked potatoes. -Refer to Table 17-1.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.

Table 17-1. Athens and Troy both produce only ribs and baked potatoes. -Refer to Table 17-1.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.

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.

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.

Each day Sonja works 8 hours and produces 8 units of goods and services.Emma works 10 hours each day and produces 9 units of goods and services.It follows that A) Sonja's productivity is higher than Emma's. B) Emma's productivity is higher than Sonja's. C) Emma's income per hour will be higher than Sonja's. D) Sonja's income per day will be higher than Emma's.

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.

Industrial machinery is an example of 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.

Industrial machinery is an example of A) a factor of production that in the past was an output from the production process. B) physical capital. C) something that influences productivity. D) All of the above are correct.

The Karmic Deed Restaurant uses all of the following to produce vegetarian meals.Which of them is an example of physical capital? A) the owner's knowledge of how to prepare vegetarian entrees B) the money in the owner's account at the bank from which she borrowed money C) the tables and chairs in the restaurant D) the fresh fruits,vegetables,and grains the restaurant uses to prepare its meals

The equipment and structures available to produce goods and services are called A) physical capital. B) human capital. C) the production function. D) technology.

The saws,lathes,and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called A) human capital. B) physical capital. C) natural resources. D) technological knowledge.

Which of the following would not be considered physical capital? A) a new factory building B) a computer used to help Mercury Delivery Service keep track of its orders C) on-the-job training D) a desk used in an accountant's office

Which of the following is physical capital? A) the strength of workers B) the knowledge of workers C) financial assets like cash and bonds D) the equipment in a factory

Which of the following would be considered physical capital? A) the refrigerators at Uncle Bob's restaurant B) rivers on which goods are transported C) the skills and knowledge of a lawyer D) All of the above are correct.

Human capital is the A) knowledge and skills that workers acquire through education,training,and experience. B) stock of equipment and structures that is used to produce goods and services. C) total number of hours worked in an economy. D) same thing as technological knowledge.

Which of the following is considered human capital? Knowledge acquired from A) early childhood education programs B) job training C) on-the-job experience D) All of the above are correct.

Which of the following is human capital? 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.

Which of the following is considered human capital? A) the comfortable chair in your dorm room where you read economics texts B) the amount you get paid each week to work at the library C) the things you have learned this semester D) any capital goods that require a human to be present to operate

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

Which of the following is a part of your economics professor's human capital? A) the things she learned at some prestigious university B) her copy of Mankiw's text C) her chalk holder D) All of the above are correct.

Which of the following is human capital? A) textbooks B) hand held power tools C) understanding how to repair cars D) All of the above are correct.

Megan is a landscaper.Which of the following are included in her human capital? A) her knowledge of landscaping learned in college and her landscaping equipment B) her knowledge of landscaping learned in college,but not her landscaping equipment C) her landscaping equipment,but not her knowledge of landscaping learned in college D) neither her knowledge of landscaping learned in college nor her landscaping equipment

Ralph is a plumber.Which of the following are included in his physical capital? A) the knowledge he learned on the job,and the tools he uses B) the knowledge he learned on the job,but not the tools he uses C) the tools he uses,but not the knowledge he learned on the job D) neither the knowledge he learned on the job nor the tools he uses

Which of the following are human capital and physical capital,respectively? A) for an accounting firm: the accountants' knowledge of tax laws and computer software B) for a grocery store: grocery carts and shelving C) for a school: chalkboard and desks D) for a library: the building and the reference librarians' knowledge of the Internet

Which of the following are human capital and physical capital,respectively? A) for a brick layer: her bricks and her tools B) for a gas station: the pumps and the cash register C) for a restaurant: the chefs' knowledge about preparing food and the equipment in the kitchen D) for a medical office: the building and the doctors' knowledge of medicine

Which of the following statements is correct? A) By definition,all natural resources are nonrenewable. B) Market prices give us reason to believe that natural resources are a limit to economic growth. C) An economy must be blessed with ample quantities of natural resources if it is to be a highly productive economy. D) Differences in natural resources can explain some of the differences in standards of living around the world.

The inputs into production of goods and services that are provided by nature,such as land,rivers,and mineral deposits are called A) physical capital. B) natural resources. C) human capital. D) technological knowledge.

Natural resources A) are inputs provided by nature. B) include land,rivers,and mineral deposits. C) take two forms: renewable and nonrenewable. D) All of the above are correct.

Which of the following is an example of a nonrenewable resource? A) coal B) honey C) livestock D) All of the above are correct.

Which of the following is an example of a renewable natural resource? A) fish B) soybeans C) wood D) All of the above are correct.

Which of the following is an example of a renewable natural resource? A) the knowledge possessed by scientists B) carpenters' labor services C) lumber D) All of the above are correct.

Which of the following is an example of a nonrenewable natural resource? A) tin B) petroleum C) gold D) All of the above are correct.

In a market economy,the real,or inflation-adjusted,price of a resource measures its A) contribution to revenue. B) relative scarcity. C) productivity. D) contribution to efficiency.

In a market economy,scarcity of resources is most clearly reflected in A) supply. B) demand. C) market prices. D) the stock of the resource.

In a market economy,we know that a resource has become scarcer when A) its price rises relative to other prices. B) it is non-renewable and some of it is used. C) people search for substitutes. D) All of the above are correct.

In which of the following cases can we be certain that a natural resource has become scarcer? A) both the demand for the resource and the supply of the resource have increased. B) both the demand for the resource and the supply of the resource have decreased. C) the demand for the resource has increased and the supply has decreased. D) the demand for the resource has decreased and the supply has increased.

In which of the following cases can we be certain that a natural resource has become scarcer? A) both the demand for the resource and the supply of the resource have increased B) both the demand for the resource and the supply of the resource have decreased C) demand for the resource is unchanged and the supply of the resource has increased D) the demand for the resource has decreased and the supply of the resource is unchanged

If the price of a good has risen over time, A) it must have become more scarce. B) it must have become less scarce. C) it has become more scarce only if the price adjusted for inflation has risen. D) it has become less scarce only if the price adjusted for inflation has risen.

If a good has become more scarce,then we know for sure that A) the demand for it increased. B) the supply of it decreased. C) either the demand for it increased or the supply of it decreased. D) both the supply of it and the demand for it decreased.

Greater scarcity of a natural resource is indicated A) by an increase in the price of the resource,whether the price increase is less than or greater than the rate of inflation. B) only by an increase in the price of the resource that is less than the rate of inflation. C) only by an increase in the price of the resource that is greater than the rate of inflation. D) only by an increase in the price of the resource that is caused by a decrease in supply and is greater than the rate of inflation.

In the country of Suchnott,the price of silver increased from $30 per ounce to $32 per ounce during a time when the overall price level increased by 5 percent.During this period,the real price of silver A) increased. B) decreased. C) stayed the same. D) might have increased,decreased or stayed the same; more information is needed to be sure.

Suppose over the last year that the price of recycled aluminum increased from $800 a ton to $900 a ton.Over the same time a measure of the overall price level increased from 120 to 130.The price of recycled aluminum increased by A) less than inflation,but this doesn't necessarily mean it became scarcer. B) less than inflation,and this means it became scarcer. C) more than inflation,and this means it became scarcer. D) more than inflation,but this doesn't necessarily mean that it become scarcer.

Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,300 a ton.Over the same time a measure of the overall price level increased from 168 to 187.The price of iron ore increased by A) less than inflation,and this means it became relatively less scarce. B) less than inflation,and this means it became scarcer. C) more than inflation,and this means it became scarcer. D) more than inflation,but this doesn't necessarily mean that it become scarcer.

Suppose over the last year that the price of copper increased from ore increased from $1.70 a pound to $1.79 per pound.Over the same time a measure of the overall price level increased from 300 to 309.The price of copper increased by A) less than inflation,and this means it became relatively less scarce. B) less than inflation,and this means it became scarcer. C) more than inflation,and this means it became scarcer. D) more than inflation,but this doesn't necessarily mean that it become scarcer.

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

Historically,the market prices of most natural resources (adjusted for inflation)have A) increased. B) remained stable. C) remained stable or decreased. D) decreased.

The behavior of market prices over time indicates that natural resources are A) a limit to economic growth. B) unrelated to economic growth. C) not a limit to economic growth. D) the major determinant of productivity.

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that A) most economists do not regard the availability of natural resources as a determinant of productivity. B) the quantity of natural resources does not enter into any production function. C) inflation-adjusted prices of most natural resources have been stable or fallen over time. D) inflation-adjusted prices of most natural resources have risen over time.

Which of the following is correct? A) Once adjustment is made for inflation,the prices of most natural resources have been about steady or falling. B) Technological progress has allowed us to substitute renewable resources for some nonrenewable resources. C) Technological progress has made once-crucial natural resources less necessary. D) All of the above are correct.

After adjusting for inflation,over time the prices of most natural resources have been A) steady or falling,meaning that our ability to conserve them is growing more rapidly than their supplies are dwindling. B) steady or falling,meaning that their supplies are dwindling more rapidly than our ability to conserve them is growing. C) rising,meaning that our ability to conserve them is growing more rapidly than their supplies are dwindling. D) rising,meaning that their supplies are dwindling more rapidly than our ability to conserve them is growing.

If natural resources had become scarcer,then we would expect their A) prices to have risen more than inflation as they have. B) prices to have risen more than inflation,but they have not. C) known quantities to have fallen as they have. D) known quantities to have fallen but they have not.

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 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.

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

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth? A) A country with no or few 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.

An understanding of the best ways to produce goods and services is called A) human capital. B) physical capital. C) technology. D) productivity.

Technological knowledge refers to A) human capital. B) available information on how to produce things. C) resources expended transmitting society's understanding to the labor force. D) All of the above are technological knowledge.

Technological knowledge A) is the same thing as human capital. B) can be discovered but it can never be kept secret. C) is a determinant of productivity. D) does not play a role in the relationship that economists call the production function.

Proprietary technology is knowledge that is 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.

Proprietary technology is technology that is 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.

Human capital is A) the same thing as technological knowledge. B) the same thing as labor. C) the tools and equipment operated by humans. D) knowledge and skills that workers have acquired.

Perry accumulated a lot of mathematical skills while in high school,college,and graduate school.Economists include these skills as part of Perry's A) standard of learning. B) technological knowledge. C) physical capital. D) human capital.

Ryan plans on going to go to study engineering.What he learns about existing information increases A) both technological knowledge and human capital. B) technological knowledge but not human capital. C) human capital but not technological knowledge. D) neither technological knowledge nor human capital.

A management professor discovers a way for corporate management to operate more efficiently.He publishes his findings in a journal.His findings are A) proprietary and common knowledge. B) neither proprietary nor common knowledge. C) proprietary,but not common,knowledge. D) common,but not proprietary,knowledge.

Your company discovers a better way to produce mousetraps,but your better methods are not apparent from the mousetraps themselves.Your knowledge of how to more efficiently produce mousetraps is A) common technological knowledge. B) common,but not technological,knowledge. C) proprietary technological knowledge. D) proprietary,but not technological,knowledge.

A professor at a university finds a way to reduce the costs of producing automobile glass.The method is very easy for anyone to copy.A company develops a substance which prevents eyeglasses from smudging.It receives a patent on the formula.Which of these are common technological knowledge? A) the method to reduce costs of producing automobile glass,and the formula for the substance that prevents smudging B) the method to reduce costs of producing automobile glass,but not the formula for the substance that prevents smudging C) the formula for the substance that prevents smudging,but not the method to reduce costs of producing automobile glass D) neither the method to reduce costs of producing automobile glass nor the formula for the substance that prevents smudging

Thomas Edison received patents on many of his inventions.While the patents existed,his ideas were A) public goods and proprietary knowledge. B) public goods but not proprietary knowledge. C) private goods and proprietary knowledge. D) private goods but not proprietary knowledge.

Haley discovers a new way to design automobile engines so that they use less gasoline.Haley's finding is an example of A) physical capital.If Haley's discovery leads to lower gasoline prices,it has made gasoline less scarce. B) physical capital.If Haley's discovery leads to lower gasoline prices,it has made gasoline scarcer. C) technological knowledge.If Haley's discovery leads to lower gasoline prices,it has made gasoline less scarce. D) technological knowledge.If Haley's discovery leads to lower gasoline prices,it has made gasoline scarcer.

Which of the following statements about inputs is correct? A) A forest is an example of a natural resource; it is also an example of a renewable resource. B) There is no distinction between human capital and technological knowledge. C) Human capital is a non-produced factor of production. D) Physical capital is a non-produced factor of production.

Which of the following would be considered physical capital? A) the available knowledge on how to make semiconductors B) a taxi-cab driver's knowledge of the fastest routes to take C) bulldozers,backhoes and other construction equipment D) All of the above are correct.

Which of the following statements is true? A) Natural resources per worker influence productivity only when those natural resources are renewable. B) The prices of most natural resources are stable or falling relative to other prices. C) Technology requires greater use of natural resources. D) The terms human capital and technological knowledge are used interchangeably.

Which of the following statements is true? A) The quantity of natural resources per worker can influence productivity. B) Technological knowledge and human capital are closely related. C) Over long periods of time,the prices of most natural resources are stable or falling,relative to other prices. D) All of the above are correct.

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

Which of the following lists contains,in this order,natural resources,human capital,and physical capital? A) For a shoe factory: leather,hand tools,the managers' knowledge of shoe making. B) For a steel mill: the blast furnaces,the workers,iron ore. C) For an airline: oil used to make jet fuel,the pilots' knowledge of flying,jets. D) None of the above is correct.

Other things the same,which of the following would increase productivity? A) an increase in either human or physical capital B) an increase in human capital but not an increase in physical capital C) an increase in physical capital but not an increase in human capital D) neither an increase in human capital nor an increase in physical capital

Which of the following would increase productivity? A) an increase in the physical capital stock per worker B) an increase in human capital per worker C) an increase in natural resources per worker D) All of the above are correct.

Suppose a country imposes new restrictions on how many hours people can work.If these restrictions reduce the total number of hours worked in the economy,but all other factors that determine output are held fixed,then A) productivity and output both rise. B) productivity rises and output falls. C) productivity falls and output rises. D) productivity and output fall.

Which of the following is a determinant of productivity? A) human capital per worker B) physical capital per worker C) natural resources per worker D) All of the above are correct.

Other things the same,which of the following could explain an increase in productivity? A) either an increase in human capital or an increase in physical capital B) an increase in human capital but not an increase in physical capital C) an increase in physical capital but not an increase in human capital D) neither an increase in human capital nor an increase in physical capital

In the equation for the production function Y/L represents A) productivity. B) output. C) the availability of natural resources. D) the amount of human capital.

In the equation for the production function H/L represents A) natural resources per worker. B) human capital per worker. C) output per worker. D) physical capital per worker.

In a particular production process,if the quantities of all inputs used double,then the quantity of output doubles as well.This means that A) the production process cannot be enhanced by technological advances. B) no mathematical representation of the relevant production function can be formulated. C) the relevant production function has the limits-to-growth property. D) the relevant production function has the constant-returns-to-scale property.

If your firm's production function has constant returns to scale,then if you double all your inputs,your firm's output will A) double and productivity will rise. B) double but productivity will not change. C) more than double and productivity will rise. D) more then double but productivity will not change.

If your firm's production function has constant returns to scale,and if you double all your inputs,then your firm's productivity will A) not change. B) increase but not double. C) double. D) more than double.

In a particular production process,if the quantities of all inputs used are increased by 60 percent,then the quantity of output increases by 60 percent as well.This means that A) the production process cannot be enhanced by technological advances. B) no mathematical representation of the relevant production function can be formulated. C) the relevant production function has the limits-to-growth property. D) the relevant production function has the constant-returns-to-scale property.

If your firm's production function has constant returns to scale and you increase all your inputs by 60%,then your firm's output will A) not change. B) increase,but by less than 60% C) increase by 60% D) increase by more than 60%.

You bake cookies.One day you double the time you spend,double the number of chocolate chips,flour,eggs,and all your other inputs,and bake twice as many cookies.Your cookie production function has A) decreasing returns to scale. B) zero returns to scale. C) constant returns to scale. D) increasing returns to scale.

You sell fruit smoothies.One day you double the time you spend and double all your inputs,and make twice as many smoothies.Your smoothie production function has A) decreasing returns to scale. B) zero returns to scale. C) constant returns to scale. D) increasing returns to scale.

If there are constant returns to scale,the production function can be written as A) xY = 2xAF(L,K,H,N). B) Y/L = A F(xL,xK,xH,xN). C) Y/L = A F( 1,K/L,H/L,N/L). D) L = AF(Y,K,H,N).

If a production function has constant returns to scale,output can be doubled if A) labor alone doubles. B) all inputs but labor double. C) all of the inputs double. D) None of the above is correct.

Suppose there are constant returns to scale.Now suppose that over time a country doubles its workers,its natural resources,its physical capital,and its human capital,but its technology is unchanged.Which of the following would double? A) both output and productivity B) output,but not productivity C) productivity,but not output D) neither productivity nor output

An economy's production function has the constant-returns-to-scale property.If the economy's labor force doubled and all other inputs stayed the same,then real GDP would A) stay the same. B) increase by exactly 50 percent. C) increase by exactly 100 percent. D) increase,but not necessarily by either 50 percent or 100 percent.

If the number of workers in an economy doubled,all other inputs stayed the same,and there were constant returns to scale,productivity would A) fall to less than one-half of its former value. B) fall,but it would still be greater than one-half of its former value. C) stay the same. D) rise but less than double.

If an economy with constant returns to scale were to double its physical capital stock,its available natural resources,and its human capital,but leave the size of the labor force the same, A) its output would stay the same and so would its productivity. B) its output and productivity would increase,but less than double. C) its output and productivity would increase by more than double. D) None of the above is correct.

Scenario 17-1.An economy's production form takes the form Y = AF(L,K,H,N). -Refer to Scenario 17-1.K represents the quantity of A) human capital only. B) physical capital only. C) human capital and physical capital combined. D) nonrenewable natural resources.

Scenario 17-1.An economy's production form takes the form Y = AF(L,K,H,N). -Refer to Scenario 17-1.In the production function,which of the following represents technology? A) A B) K C) H D) N

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 could be rewritten as A) Y/L = AF(1,K/L,H/L,N/L) B) Y/L = AF(L,1,H/L,N/L) C) Y/L = AF(L,K/L,1,N/L) D) Y/L = AF(L,K/L,H/L,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 if we know the values of A,K/L,H/L,and N/L,we also know the value of A) output. B) labor productivity. C) A. D) All of the above are correct.

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

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 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.

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 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.

One of the Ten Principles of Economics in Chapter 1 is that people face tradeoffs.The growth that arises from capital accumulation is not a free lunch.It requires that society A) conserve resources for future generations. B) sacrifice consumption goods and services now in order to enjoy more consumption in the future. C) recycle resources so that future generations can produce goods and services with the accumulated capital. D) None of the above is correct.

In an economy where net exports are zero,if saving rises in some period,then in that period A) consumption and investment fall. B) consumption falls and investment rises. C) consumption rises and investment falls. D) consumption rises and investment falls.

Other things the same,when an economy increases its saving rate A) consumption and production rise now. B) consumption rises now and production rises later C) consumption falls now and production rises later. D) consumption falls now and production falls later.

When a society decides to increase its quantity of physical capital,the society A) can avoid the usual need to face trade-offs. B) is apparently not very concerned about its rate of economic growth in the future. C) is in effect deciding to consume fewer goods and services in the present. D) is in effect deciding to save less of its current income in the present.

Accumulating capital 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.

"When workers already have a large quantity of capital to use in producing goods and services,giving them an additional unit of capital increases their productivity only slightly." This statement A) represents the traditional view of the production process. B) is an assertion that capital is subject to diminishing returns. C) is made under the assumption that the quantities of human capital,natural resources,and technology are being held constant. D) All of the above are correct.

"When workers already have a large quantity of capital to use in producing goods and services,giving them an additional unit of capital increases their productivity only slightly." This statement A) represents an unconventional view of the production process. B) is an assertion that capital is subject to increasing returns. C) is made under the assumption that the quantities of human capital,natural resources,and technology are being held constant. D) All of the above are correct.

"When workers have a relatively small quantity of capital to use in producing goods and services,giving them an additional unit of capital increases their productivity by a relatively large amount." This statement A) is an assertion that production functions have the property of constant returns to scale. B) is consistent with the view that capital is subject to diminishing returns. C) is inconsistent with the view that it is easier for a country to grow fast if it starts out relatively poor. D) All of the above are correct.

The traditional view of the production process is that capital is subject to A) constant returns. B) increasing returns. C) diminishing returns. D) diminishing returns for low levels of capital,and increasing returns for high levels of capital.

If there are diminishing returns to capital,then A) capital produces fewer goods as it ages. B) old ideas are not as useful as new ones. C) increases in the capital stock eventually decrease output. D) increases in the capital stock increase output by ever smaller amounts.

All else equal,if there are diminishing returns,then which of the following is true if a country increases its capital by one unit? A) Output will rise by more than it did when the previous unit was added. B) Output will rise but by less than it did when the previous unit was added. C) Output will fall by more than it did when the previous unit was added. D) Output will fall but by less then it did when the previous unit was added.

All else equal,if there are diminishing returns,then if a country raised its capital by 100 units last year and by 100 units this year, A) the increase in output was greater for this year than last year. B) the increase in output was greater last year than this year. C) the increase in output is the same in both years. D) None of the above is necessarily correct.

Country A and country B are the same except country A currently has a lower level of capital.Assuming diminishing returns,if both countries increase their capital by 100 units and other factors that determine output are unchanged,then A) output in country A increases by more than in country B. B) output in country A increases by the same amount as in country B. C) output in country A increases by less than in country B. D) None of the above is necessarily correct.

Country A and country B both increase their capital stock by one unit.Output in country A increases by 15 while output in country B increases by 12.Other things the same,diminishing returns implies that country A is A) richer than Country B.If Country A adds another unit of capital,output will increase by more than 15 units. B) richer than Country B.If Country A adds another unit of capital,output will increase by less than 15 units. C) poorer than Country B.If Country A adds another unit of capital,output will increase by more than 15 units. D) poorer than Country B.If Country A adds another unit of capital,output will increase by less than 15 units.

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

All else equal,if there are diminishing returns,then what happens to productivity if both capital and labor increase? A) Productivity will definitely fall. B) Productivity will definitely be unchanged. C) Productivity will definitely rise. D) None of the above are necessarily correct.

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

Figure 17-1.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 17-1.The curve becomes flatter as the amount of capital per worker increases because of A) increasing returns to capital. B) increasing returns to labor. C) diminishing returns to capital. D) diminishing returns to labor.

Figure 17-1.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 17-1.The shape of the curve is consistent with which of the following statements about the economy to which the curve applies? 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.

Figure 17-1.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 17-1.The shape of the curve is consistent with which of the following statements about the economy to which the curve applies? A) In the long run,a higher saving rate leads to a higher growth rate of productivity. B) In the long run,a higher saving rate leads to a higher growth rate of income. C) Returns to capital become increasingly smaller as the amount of capital per worker increases. D) All of the above are correct.

Figure 17-1.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 17-1.Choose a point anywhere on the curve and call it point A.If the economy is at point A in 2011,then it will definitely remain at point A in 2012 if,between 2011 and 2012, A) the quantity of physical capital remains constant; the number of workers doubles; and human capital,natural resources,and technology all double as well. B) the quantity of physical capital doubles; human capital,natural resources,and technology all double as well; and the number of workers remains constant. C) the quantity of physical capital doubles; the number of workers doubles; and human capital,natural resources,and technology all double as well. D) the quantity of physical capital doubles; the number of workers doubles; and human capital,natural resources,and technology remain constant.

All else equal,by saving more,a country A) has more resources for capital goods.The increase in capital raises productivity. B) has more resources for capital goods.The increase in capital reduces productivity. C) has fewer resources for capital goods.The decrease in capital raises productivity. D) has fewer resources for capital goods.The decrease in capital reduces productivity.

If a country increases its saving rate in the long run A) K/L and productivity will be higher. B) K/L will be higher but productivity will not be higher. C) K/L will not be higher but productivity will be higher. D) neither K/L nor productivity will be higher.

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

If a country's saving rate increases,then in the long run A) productivity is higher but real GDP per person is not higher. B) real GDP per person is higher but productivity is not higher. C) productivity and real GDP per person are both higher. D) neither productivity nor real GDP per person is higher.

Other things the same,a country that increases its savings rate will have A) higher future capital and higher future real GDP per person. B) higher future capital but not higher future real GDP per person. C) higher future real GDP per person but not higher future capital. D) neither higher future capital nor higher future real GDP per person.

In the long run,a higher saving rate A) cannot increase the capital stock. B) means that people must consume less in the future. C) increases the level of productivity. D) None of the above is correct.

In the long run,an increase in the saving rate 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 not the level of productivity.

In the long run,a higher saving rate A) cannot increase the capital stock. B) increases the growth rate of income. C) increases the growth rate of productivity. D) None of the above is correct.

Other things the same,if a country raises its saving rate,then in the long run A) both the level and growth rate of real GDP are unchanged. B) the level of real GDP is higher but the growth rate of real GDP is unchanged. C) both the level and growth rate of real GDP are higher. D) None of the above are correct.

Other things the same,if a country raises its saving rate,when is productivity growth higher? A) as the economy moves toward the long run and in the long run. B) as the economy moves toward the long run,but not in the long run. C) in the long run,but not as the economy moves toward the long run. D) neither as the economy moves toward the long run,nor in the long run.

Other things the same,if a country raises its saving rate,when is growth of real GDP per person higher? A) as the economy moves toward the long run and in the long run. B) as the economy moves toward the long run,but not in the long run. C) in the long run,but not as the economy moves toward the long run. D) neither as the economy moves toward the long run,nor in the long run.

If a country were to increase its saving rate,then in the long run it would also increase its A) level of income. B) growth rate of income. C) growth rate of productivity. D) All of the above are correct.

If a country increases its saving rate,which of the following permanently grow at a higher rate? A) productivity and real GDP per person B) productivity but not real GDP per person C) real GDP per person but not productivity D) neither real GDP per person nor productivity

Suppose that a country increased its saving rate.In the long run it would have A) higher productivity,and another unit of capital would increase output by more than before. B) higher productivity,but another unit of capital would increase output by less than before. C) lower productivity,and another unit of capital would increase output by more than before. D) lower productivity,but another unit of capital would increase output by less than before.

If a country's saving rate declined,then other things the same,in the long run the country would have A) lower productivity,but not lower real GDP per person. B) lower productivity and lower real GDP per person. C) lower real GDP per person,but not lower productivity D) neither lower productivity nor lower real GDP per person.

Suppose Turkey increases its saving rate.In the long run A) the growth rates of productivity and real GDP per person increase. B) productivity and real GDP per person increase. C) the growth rate of productivity increases,and real GDP per person increases. D) productivity increases,and the growth rate of real GDP per person increases.

Other things the same,if a country increased its saving rate,in 40 years or so it would likely have A) higher productivity,and a higher growth rate of real GDP. B) higher productivity,but not a higher growth rate of real GDP. C) the same productivity and growth of real GDP it began with. D) None of the above is correct.

Which of the following best describes the response of output as time passes to an increase in the saving rate? A) The growth rate of output does not change. B) The growth rate of output increases and gets even larger as time passes. C) The growth rate of output increases and does not change as time passes. D) The growth rate of output increases,but diminishes to its former level as time passes.

According to studies using international data,an increase in the saving rate A) does not increase the growth rate of output. B) increases the growth rate of output for a few years. C) increases the growth rate of output for about a decade. D) increases the growth rate of output for several decades.

Suppose that Slovenia undertakes a policy to increase its saving rate.This policy will likely A) have no impact on GDP growth. B) lead to higher GDP growth for a few years. C) lead to higher GDP growth for a period of several decades. D) lead to a permanently higher growth rate.

Suppose that there are diminishing returns to capital.Suppose also that two countries are the same except one has more capital per worker and so it has more real GDP per worker than the other.Finally,suppose that the saving rate in both countries increases from 4 percent to 7 percent.Over the next ten years we would expect that A) the growth rate will not change in either country. B) the country that started with less capital per worker will grow faster. C) the country that started with more capital per worker will grow faster. D) both countries will grow and at the same higher rate.

Suppose that there are diminishing returns to capital.Suppose also that two countries are the same except one has less capital and so less real GDP per person.Suppose that both increase their saving rate from 3 percent to 4 percent.In the long run A) both countries will have permanently higher growth rates of real GDP per person,and the growth rate will be higher in the country with more capital. B) both countries will have permanently higher growth rates of real GDP per person,and the growth rate will be higher in the country with less capital. C) both countries will have higher levels of real GDP per person,and the temporary increase in growth in the level of real GDP per person will have been greater in the country with more capital. D) both countries will have higher levels of real GDP per person,and the temporary increase in growth in the level of real GDP per person will have been greater in the country with less capital.

Other things equal,relatively poor countries tend to grow A) slower than relatively rich countries; this is called the poverty trap. B) slower than relatively rich countries; this is called the fall-behind effect. C) faster than relatively rich countries; this is called the catch-up effect. D) faster than relatively rich countries; this is called the constant-returns-to-scale effect.

Two countries are the same,except one is poorer.Assuming the traditional assumption about the production function is made there are A) diminishing returns to capital so the poor country grows slower. B) increasing returns to capital so the poor country grows slower. C) diminishing returns to capital so the poor country grows faster. D) increasing returns to capital so the poor country grows faster.

An increase in the saving rate would,other things the same, A) increase growth more for a poor country than for a rich country,and raise growth permanently. B) increase growth more for a poor country than for a rich country,but raise growth temporarily. C) increase growth more for a rich country than for a poor country,and raise growth permanently. D) increase growth more for a rich country than for a poor country,but raise growth temporarily.

Real GDP per person is $30,000 in Country A,$20,000 in Country B,and $11,000 in Country C.Saving per person is $1,000 in all three countries.Other things equal,we would expect that A) all three countries will grow at the same rate. B) Country A will grow the fastest. C) Country B will grow the fastest. D) Country C will grow the fastest.

Assuming diminishing returns, A) the increase in output growth from an increase in the saving rate rises over time,and that,other things the same,rich countries should grow faster than poor ones. B) the increase in output growth from an increase in the saving rate falls over time,and that,other things the same,rich countries should grow faster than poor ones. C) the increase in output growth from an increase in the saving rate rises over time,and that,other things the same,poor countries should grow faster than rich ones. D) the increase in output growth from an increase in the saving rate falls over time,and that,other things the same,poor countries should grow faster than rich ones.

The catch-up effect refers to the idea that A) saving will always catch-up with investment spending. B) it is easier for a country to grow fast and so catch-up if it starts out relatively poor. C) population eventually catches-up with increased output. D) if investment spending is low,increased saving will help investment to "catch-up."

The traditional view of the production process is that capital is subject to A) diminishing returns,so that other things the same,real GDP in poor countries should grow at a faster rate than in rich countries. B) diminishing returns,so that other things the same,real GDP in poor countries should grow at a slower rate than in rich countries. C) increasing returns,so that other things the same,real GDP in poor countries should grow at a faster rate than in rich countries. D) increasing returns,so that other things the same,real GDP in poor countries should grow at a slower rate than in rich countries.

The logic behind the catch-up effect is that 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.

Country A has real GDP per person of 10,000 while country B has real GDP per person of 20,000.All else constant,country A will eventually have a higher standard of living than country B if A) the level of saving per person is 500 in country A and 750 in country B. B) the level of saving per person is 1,000 in country A and 1,800 in country B. C) Both of the above are correct. D) None of the above are correct.

Country A and country B are the same except country A has a capital stock of 5,000 a population of 12,000 and employment of 10,000.Country B has a capital stock of 8,000 and a population of 24,000 and employment of 20,000. A) Country A has a higher standard of living and country B will not catch up. B) Country A has a higher standard of living but country B will catch up. C) Country B has a higher standard of living and country A will not catch up. D) Country B has a higher standard of living but country A will catch up.

Evidence shows that other things the same,poor countries grow A) faster than rich countries.However,no country that was poor in 1870 is now rich. B) faster than rich countries.In fact,some countries that were poor in 1870 are now rich. C) slower than rich countries.In fact,no country that was poor in 1870 is now rich. D) slower than rich countries.However,some countries that were poor in 1870 are now rich.

Which of the following countries benefited significantly from the catch-up effect in the last half of the twentieth century? A) Ethiopia B) the United States C) Canada D) South Korea

Which of the following is consistent with the catch-up effect? A) The United States had a higher growth rate before 1900 than after. B) After World War II the United States had lower growth rates than war-ravaged European countries. C) Although the United States has a relatively high level of output per person,its growth rate is rather modest compared to some countries. D) All of the above are correct.

Over the period 1960-1991, A) South Korea had a higher growth rate than the United States because it had a higher ratio of investment to GDP. B) the United States had a higher growth rate than South Korea because it had a higher ratio of investment to GDP. C) South Korea had a higher growth rate than the United States even though it had a similar ratio of investment to GDP. D) the United States had a higher growth rate than South Korea even though it had a similar ratio of investment to real GDP.

Fretonia and Libstien are the same except Fretonia has a larger capital stock.Both countries undertake policies that raise their saving rates to the same higher level.We would expect that A) both countries would have permanent increases in their growth rates,but the increase would initially be larger in Fretonia. B) both countries would have permanent increases in their growth rates,but the increase would initially be smaller in Fretonia. C) both countries would have temporary increases in their growth rates,but the increase would be larger in Fretonia. D) both countries would have temporary increases in their growth rates,but the increase would be smaller in Fretonia.

If an American-based firm opens and operates a new watch factory in Panama,then it is engaging in A) foreign portfolio investment. B) foreign financial investment. C) foreign direct investment. D) indirect foreign investment.

If an American-based firm opens and operates a service call center in Bulgaria,then it is engaging in A) foreign portfolio investment. B) foreign financial investment. C) foreign direct investment. D) indirect foreign investment.

In the 1800s,Europeans purchased stock in American companies that used the funds to build railroads and factories.The Europeans who did this engaged in A) foreign portfolio investment. B) indirect domestic investment. C) foreign direct investment. D) foreign indirect investment.

In recent decades Americans have increased their purchase of stocks of foreign-based companies.The Americans who have bought these stocks were engaged in A) foreign portfolio investment. B) indirect domestic investment. C) foreign direct investment. D) foreign indirect investment.

Suppose that an American opens and operates a candy factory in Finland.This is an example of A) foreign direct investment.American saving is used to finance Finish investment. B) foreign direct investment.American saving is used to finance American investment. C) foreign portfolio investment.American saving is used to finance Finish investment. D) foreign portfolio investment.American saving is used to finance American investment.

Suppose that an American opens and operates a recording studio in Poland.This is an example of A) foreign direct investment.American saving is used to finance Polish investment. B) foreign direct investment.American saving is used to finance American investment. C) foreign portfolio investment.American saving is used to finance Polish investment. D) foreign portfolio investment.American saving is used to finance American investment.

Foreign saving is used for domestic investment when foreigners engage in A) foreign direct investment. B) foreign portfolio investment. C) either foreign direct investment or foreign portfolio investment. D) None of the above is correct.

If WarmWear,a U.S.manufacturer of winter clothing,opens a new factory in Austria,then A) Austrian GNP increases by more than Austrian GDP,because GDP includes income earned by foreigners working in Austria. B) Austrian GNP increases by more than Austrian GDP,because GDP excludes income earned by foreigners working in Austria. C) Austrian GNP increases by less than Austrian GDP,because GDP includes income earned by foreigners working in Austria. D) Austrian GNP increases by less than Austrian GDP,because GDP excludes income earned by foreigners working in Austria.

Suppose U.S.-based Intel Corporation builds and operates a new computer chip factory in Ghana.Future production from such an investment would A) increase Ghanaian GDP more than it would increase Ghanaian GNP. B) increase Ghanaian GNP more than it would increase Ghanaian GDP. C) not affect Ghanaian GNP,but would increase Ghanaian GDP. D) have no affect on either Ghanaian GDP or GNP.

Suppose Japanese-based Toshiba Corporation builds and operates a new computer factory in the United States.Future production from such an investment would A) increase U.S.GNP more than it would increase U.S.GDP. B) increase U.S.GDP more than it would increase U.S.GNP. C) not affect U.S.GNP,but would increase U.S.GDP. D) have no affect on U.S.GNP or GDP.

The opening of a new American-owned factory in Algeria would tend to increase Algeria's GDP more than it increases Algeria's GNP because A) some of the income from the factory accrues to people who do not live in Algeria. 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 Algeria's GDP. D) All of the above are correct.

If a Brazilian.company opens a new factory in Peru,it makes A) foreign direct investment.The factory will make a bigger impact on Peru's GDP than on its GNP. B) foreign direct investment.The factory will make a bigger impact on Peru's GNP than on its GDP. C) foreign portfolio investment.The factory will make a bigger impact on Peru's GDP than on its GNP. D) foreign portfolio investment.The factory will make a bigger impact on Peru's GNP than on its GDP.

When Chile experiences investment from abroad,it experiences,as a result, A) an increase in productivity. B) a decrease in Gross National Product (GNP). C) lower wages for Chilean workers. D) None of the above is correct.

If companies from foreign countries build and operate factories in China,then China's productivity A) and the wages of Chinese workers increase. B) increases but the wages of Chinese workers decrease. C) decreases but the wages of Chinese workers increase. D) and the wages of Chinese workers decrease.

Investment from abroad 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.

An organization that tries to encourage the flow of investment to poor countries is the A) World Bank. B) Organization of Less Developed Countries. C) Alliance of Developing Countries. D) International Development Alliance.

A country's human capital increases A) if its workers become better educated or healthier. B) only if its workers become better educated. C) only if its workers become healthier. D) None of the above is correct.

Investment in A) physical capital,unlike investment in human capital,has an opportunity cost. B) physical capital,like investment in human capital,has an opportunity cost. C) human capital is particularly attractive because it involves no externalities. D) human capital has been shown to be relatively unimportant,relative to investment in physical capital,for a country's long-run economic success.

Which of the following is generally an opportunity cost of investment in human capital? A) future job security B) forgone present wages C) increased earning potential D) All of the above are correct.

In the U.S.,each additional year of schooling has historically raised a person's wage on average by about A) 2 percent. B) 5 percent. C) 10 percent. D) 15 percent.

Educational attainment tends to be A) low in countries with high population growth. B) low in countries with low population growth. C) high in countries with high population growth. D) None of the above are true.

In the U.S.,each additional year of schooling has historically raised a person's wage on average by about A) 5 percent.In less developed countries the gap between the wages of educated and uneducated workers is smaller. B) 10 percent.In less developed countries the gap between the wages of educated and uneducated workers is smaller. C) 5 percent.In less developed countries the gap between the wages of educated and uneducated workers is larger. D) 10 percent.In less developed countries the gap between the wages of educated and uneducated workers is larger.

The return to schooling for society is higher than the return to schooling for the individual if A) the concept of diminishing returns applies to education. B) the concept of constant returns to scale applies to education. C) human capital conveys positive externalities. D) investment in human capital involves no opportunity costs.

Educated people may generate ideas that increase production.These ideas A) produce a return to society from education that is greater than the return to the individual. B) could justify government subsides for education. C) are external benefits of education. D) All of the above are correct.

Which of the following is an example of the "brain drain?" A) A country's most highly educated workers emigrate to rich countries. B) A country has such a poor educational system that human capital falls over time. C) The population of a country grows so fast that the educational system can't keep up. D) A country steals patented technology from another country.

Suppose a person receives an education in her home country.Which of the following will tend to make the increase in GDP of the person's home country larger than the increase in this person's income? A) externalities and brain drain B) externalities but not brain drain C) brain drain but not externalities D) neither externalities nor brain drain

Economist Robert Fogel focused on which of the following factors as one determinant of long-run economic growth? A) education B) research and development C) nutrition D) trade restrictions

According to research by Robert Fogel,what proportion of the British population in 1780 was so malnourished that they could not perform manual labor? A) 40 percent B) 20 percent C) 10 percent D) 5 percent

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? A) 30 percent B) 20 percent C) 10 percent D) 5 percent

Which of the following terms is used to refer to the ability of people to exercise authority over the resources they own? A) natural rights B) property rights C) input control D) collective control

Which of the following statements is correct? A) In an economy-wide sense,property rights are an important prerequisite for the price system to work. B) Property rights give people the ability to exercise authority over the resources they own. C) Based on the available evidence,the existence of well-established and well-enforced property rights appears to be associated with an enhanced standard of living. D) All of the above are correct.

In some countries it is time consuming and costly to establish ownership of property.Reforms to reduce these costs would likely A) have no affect on either real GDP nor productivity B) raise real GDP and productivity. C) raise real GDP but not productivity. D) raise productivity but not real GDP.

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 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.

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 building new factories or expanding existing ones.Other things the same,in the long run this requirement would 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.

Suppose that a new government is elected in Eurnesia.The new government takes steps toward improving the court system and reducing government corruption.The citizens of Eurnesia find these efforts credible and outsiders believe these changes will be effective and long lasting.These changes will probably A) raise real GDP per person and productivity in Eurnesia. B) raise real GDP per person but not productivity in Eurnesia. C) raise productivity but not real GDP per person in Eurnesia. D) raise neither productivity nor real GDP per person in Eurnesia.

Inward-oriented policies A) include imposing tariffs and other trade restrictions. B) have generally increased productivity and growth in the countries that pursued them. C) promote the production of goods and services that the country produces most efficiently. D) All of the above are correct.

Inward-oriented policies A) are generally supported by economists. B) are primarily concerned with the development of human capital. C) in some ways are like prohibiting the use of certain technologies. D) All of the above are correct.

Which of the following will increase a country's real GDP per person? A) imposing restrictions on foreign trade and foreign investment B) imposing restrictions on foreign trade and reducing restrictions on foreign investment C) reducing restrictions on foreign trade and imposing restrictions on foreign investment D) reducing restrictions on foreign trade and foreign investment

An increase in capital will increase real GDP per person A) more in a poor country than a rich country.The increase in real GDP per person will be larger if the addition to capital is from domestic rather than foreign investment. B) more in a poor country than a rich country.The increase in real GDP per person will be the same whether the addition to capital is from domestic or foreign investment. C) less in a poor country than a rich country.The increase in real GDP per person will be larger if the addition to capital is from domestic rather than foreign investment. D) less in a poor country than a rich country.The increase in real GDP per person will be the same whether the addition to capital is from domestic or foreign investment.

An increase in capital will increase real GNP per person A) more in a poor country than a rich country.The increase in real GNP per person will be larger if the addition to capital is from domestic rather than foreign investment. B) more in a poor country than a rich country.The increase in real GNP per person will be larger if the addition to capital is foreign rather than from domestic investment. C) less in a poor country than a rich country.The increase in real GNP per person will be larger if the addition to capital is from domestic rather than foreign investment. D) less in a poor country than a rich country.The increase in real GNP per person will be larger if the addition to capital is foreign rather than from domestic investment.

Countries that pursued outward-oriented policies in the 20th century A) experienced lower rates of economic growth than did countries that pursued inward-oriented policies. B) experienced higher levels of political instability than did countries that pursued inward-oriented policies. C) include Singapore,South Korea,and Taiwan. D) All of the above are correct.

Countries with more than 80 percent of their population living within 100 kilometers of a coast will have an average GDP per person that is A) around four times a country with less than 20 percent of the population living near the coast. B) around ten times a country with less than 20 percent of the population living near the coast. C) around twenty times a country with less than 20 percent of the population living near the coast. D) around fifty times a country with less than 20 percent of the population living near the coast.

The president of Suldinia,a developing country,proposes that his country needs to help domestic firms by reducing trade restrictions. A) These are outward-oriented policies and most economists believe they would have beneficial effects on growth in Suldinia. B) These are outward-oriented policies and most economists believe they would have adverse effects on growth in Suldinia. C) These are inward-oriented policies and most economists believe they would have beneficial effects on growth in Suldinia. D) These are inward-oriented policies and most economists believe they would have adverse effects on growth in Suldinia.

In the past there have been violent protests against the World Bank and the World Trade Organization.The protesters argued that these institutions promote free trade and also encourage corporations in rich countries to invest in poor countries.The protesters contended that these practices make rich countries richer and poor countries poorer.An economist would A) disagree with the protesters because these practices will help make both rich and poor countries richer. B) disagree with the protesters about free trade,but would agree with the protesters about corporate investment. C) disagree with the protesters about corporate investment,but would agree with the protesters about free trade. D) agree with the protesters.

Outward-oriented policies A) allow countries to take advantage of gains from trade. B) have generally led to high growth for the countries that pursued them. C) receive widespread support from economists. D) All of the above are correct.

When a country removes trade barriers and imports appliances and exports engineering services, A) its growth slows. B) its productivity decreases. C) it is essentially transforming engineering services into appliances. D) its economic well-being decreases while that of the country that sells appliances increases.

Suppose a country increases trade restrictions.This country would be pursing an A) inward policy,which most economists believe has beneficial effects on the economy. B) inward policy,which most economists believe has adverse effects on the economy. C) outward policy,which most economists believe has beneficial effects on the economy. D) outward policy,which most economists believe has adverse effects on the economy.

A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth.The first is to increase barriers to trade.The second is to restrict foreign portfolio investment.Which of these policies would most economist think would promote growth? A) both the first and the second B) the first but not the second C) the second but not the first D) neither the first nor the second

National defense and knowledge are generally considered to be A) private goods. B) public goods. C) proprietary goods. D) societal goods.