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
d. all of the above
Productivity is the amount of goods and services
a. produced for each hour of a worker's time. It is linked to a nation's economic policies
b. an economy produces. It is linked to a nation's economic policies
c. an economy produces. It is not linked to a
a. 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. nominal GDP per person
b. real GDP
c. real GDP per person
d. nominal GDP
c. real GDP per person
In 2012, the imaginary nation of Kanmiw had a population of 8044 and real GDP of 36198000. In 2013 it had a population of 7800 and real GDP of 35880000. What was the growth rate of real GDP per person in Kanmiw between 2012 and 2013?
a. 4.5 percent
b. -0.
d. 2.2 percent
Over the last ten years productivity grew faster in Mapoli than in Romeria while the population and total hours worked remained the same in both countries. It follows that
a. real GDP per person grew faster in Mapoli than in Romeria
b. the standard of liv
a. real GDP per person grew faster in Mapoli than in Romeria
Allied Business Consultants employs five researchers that each work 8 hour days. In one day the researchers prepared 10 reports for its 2 largest clients. What was Allied Business Consultants' productivity?
a. 10 reports
b. 5 reports per client
c. 1/4 rep
c. 1/4 report per hour
Adam and Doug both build birdhouses. Adam works 30 hours a week and produces 15 bird houses. Doug works 20 hours a week and produces 12 bird houses. Which of the following is correct?
a. Adam's production and productivity are higher than Doug's
b. Doug's
d. Adam's productivity is higher than Doug's, but Doug's productivity is higher than Adam's
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. Labor land has a population of 5,000, of whom 3,000 work 7 hours a day to produce a total of 105,000 final goods
a. workland has a higher prod
d. workland has lower productivity but higher real GDP per person than labor land
The equipment and structures available to produce goods and services are called
a. technology
b. the production function
c. physical capital
d. human capital
c. physical capital
Which of the following is an example of a produced factor of production?
a. all of the above are correct
b. workers who are hired at a coal mine in West Virginia
c. corn that is harvested from a field in Iowa
d. skills that teachers in Texas acquire throu
d. skills that teachers in Texas acquire through continuing education classes
Which of the following is an example of human capital?
a. the things you have learned this semester
b. the amount you get paid each week to work at the library
c. any capital goods that require a human to be present to operate
d. the comfortable chair in
a. the things you have learned this semester
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
b. natural resources
In a market economy, the real, or inflation adjusted, price of a resource measure its
a. relative scarcity
b. contribution to efficiency
c. contribution to revenue
d. productivity
a. relative scarcity
Suppose over the last five years 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 138. The real price of recycled aluminum
a. decreased, so it became
a. decreased, so it became less scarce
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 eventu
b. disagree with the report, in part because it ignores the mitigating effects of technological change
An understanding of the best ways to produce goods and services is called
a. physical capital
b. technology
c. productivity
d. human capital
b. technology
Which of the following is a determinant of productivity?
a. physical capital per worker
b. natural resources per worker
c. all of the above are correct
d. human capital per worker
c. 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 falls and output r
c. productivity rises and output falls
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. increase, but by less than 60%
b. not change
c. increase by 60%
d. increase by more than 60%
c. increase by 60%
If there are constant returns to scale, the production function can be written as
a. L = AF(Y, K, H, N)
b. Y/L = AF(1, K/L, H/L, N/L)
c. xY = 2xAF(L, K, H, N)
d. Y/L = AF(xL, xK, xH, xN)
b. Y/L = AF(1, K/L, H/L, N/L)
Other things the same, when an economy increase its saving rate
a. consumption rises now and production rises later
b. consumption falls now and production falls later
c. consumption and production rise now
d. consumption falls now and production rises la
d. consumption falls now and production rises later
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 consistent with the view that capi
a. is consistent with the view that capital is subject to diminishing returns
Country A and country B both increase their capital stock by one unit. Output in country A increases by 12 while output in country B increases by 15. Other things the same, diminishing returns implies that country A is
a. poorer than Country B. If Country
d. richer than Country B. If Country A adds another unit of capital, output will increase by less than 12 units.
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 faster
b. increasing returns to capital so the poor country g
a. diminishing returns to capital so the poor country grows faster
If an American based firm opens and operates a new clothing factory in Honduras, then it is engaging in
a. foreign financial investment
b. indirect foreign investment
c. foreign direct investment
d. foreign portfolio investment
c. foreign direct investment
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
a. and the wages of Chinese workers increase
In the 19th century John Deere took out a patent on a newly designed plow that incorporated steel to make plowing faster. Many farmers bought plows from his company and he made millions. This example shows that patents turn an idea into a
a. normal good
b
d. private good
Once an idea enters society's pool of knowledge, the idea becomes a
a. public good
b. proprietary good
c. private good
d. societal good
a. public good
Suppose a country increases trade restrictions. This country would be pursuing a
a. outward policy, which most economists believe has adverse effects on the economy
b. outward policy, which most economists believe has beneficial effects on the economy
c.
d. inward policy, which most economists believe has adverse effects on the economy