Question 1

Randomized control trials can help economists evaluate the impact of global aid programs in the same way that doctors test drugs.

Accepted Answer

A) True 
 B)False

Question 2

Other things the same, which of the following would increase productivity?

Accepted Answer

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 capitalE) B) and C)
F) None of the above

Question 3

When a country imposes tariffs, intending to protect domestic firms from foreign competition, it is pursuing _______-oriented policies.

Accepted Answer

The answer of When a country imposes tariffs, intending to...

Question 4

Which of the following countries achieved higher economic growth, in part by mandating a reduction in population growth?

Accepted Answer

A)  Great Britain
B)  China
C)  Australia
D)  FranceE) None of the above
F) A) and C)

Question 5

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

Accepted Answer

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.E) A) and C)
F) A) and B)

Question 6

Which of the following countries has had the greatest growth rate of real GDP per person within the last 10 years?

Accepted Answer

A)  Germany
B)  Bangladesh
C)  Argentina
D)  IndiaE) C) and D)
F) B) and C)

Question 7

In the production function Y=AF(L,K,H,N), Y represents the quantity of output; L represents the quantity of labor; K represents the quantity of physical capital; and H represents the quantity of human capital. What does N represent?

Accepted Answer

N represen...

Question 8

Other things the same, an economy's factors of production are likely to be used more effectively if there is an economywide respect for property rights.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements accurately describes catch-up growth?

Accepted Answer

A)  In one generation, China will be one of the richest countries in the world, if China's GDP per person continues to grow 9% per year.
B)  In one generation, Zimbabwe will be one of middle-income countries, since Zimbabwe's per person GDP fell by 27% in the last couple of decades.
C)  In one generation, even if China's GDP per person will decline 9% per year, China will remain one of richest countries in the world.
D)  In one generation, Zimbabwe will be the world richest country, since Zimbabwe's per person GDP grew 9% in the last couple of decades.E) All of the above
F) B) and C)

Question 10

One reason that governments may find it useful to sponsor universities and basic research is that to a large extent knowledge is generally a private good.

Accepted Answer

A) True 
 B)False

Question 11

The United Kingdom is

Accepted Answer

A)  an advanced economy, and over the past century its rate of economic growth has been higher than that of the United States.
B)  an advanced economy, and over the past century its rate of economic growth has been lower than that of the United States.
C)  a middle-income country, and over the past century its rate of economic growth has been higher than that of the United States.
D)  a middle-income country, and over the past century its rate of economic growth has been lower than that of the United States.E) All of the above
F) B) and C)

Question 12

An increase in a country's saving rate permanently raises its productivity.

Accepted Answer

A) True 
 B)False

Question 13

Educational attainment tends to be

Accepted Answer

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)  unrelated to population growth.E) A) and C)
F) All of the above

Question 14

At first patents might seem like a deterrent to growth because in effect they restrict the use of new technology. Yet many economists believe that patents generate growth. Explain why.

Accepted Answer

Once someone comes up with an idea it is...

Question 15

Educated people may generate ideas that increase production. These ideas

Accepted Answer

A)  produce a return to society from education that is greater than the return to the individual.
B)  never justify government subsides for education.
C)  are the source of personal benefits of education.
D)  are generally irrelevant for economic growth.E) A) and C)
F) All of the above

Question 16

The rate of real economic growth is

Accepted Answer

A)  underestimated using measures of income growth.
B)  overestimated using measures of income growth.
C)  underestimated using measures of technological growth.
D)  overestimated using measures of technological growth.E) A) and B)
F) All of the above

Question 17

The population growth rate tends to be higher in developed countries than in developing countries.

Accepted Answer

A) True 
 B)False

Question 18

Both the standard of living and the growth of real GDP per person vary widely across countries.

Accepted Answer

A) True 
 B)False

Question 19

If a production function has constant returns to scale, then if all inputs double so does production.

Accepted Answer

A) True 
 B)False

Question 20

Japan is

Accepted Answer

A)  an advanced economy, and over the past century its rate of economic growth has been higher than that of the United States.
B)  an advanced economy, and over the past century its rate of economic growth has been lower than that of the United States.
C)  a middle-income country, and over the past century its rate of economic growth has been higher than that of the United States.
D)  a middle-income country, and over the past century its rate of economic growth has been lower than that of the United States.E) A) and C)
F) None of the above

Exam 25: Production and Growth

Both the standard of living and the growth of real GDP per person vary widely across countries.

Correct AnswerverifiedShow Answer

Other things the same, which of the following would increase productivity?

Correct AnswerverifiedShow Answer

One reason that governments may find it useful to sponsor universities and basic research is that to a large extent knowledge is generally a private good.

Correct AnswerverifiedShow Answer

Which of the following statements accurately describes catch-up growth?

Correct AnswerverifiedShow Answer

The population growth rate tends to be higher in developed countries than in developing countries.

Correct AnswerverifiedShow Answer

An increase in a country's saving rate permanently raises its productivity.

Correct AnswerverifiedShow Answer

At first patents might seem like a deterrent to growth because in effect they restrict the use of new technology. Yet many economists believe that patents generate growth. Explain why.

Correct AnswerverifiedOnce someone comes up with an idea it is...View AnswerShow Answer

Which of the following countries achieved higher economic growth, in part by mandating a reduction in population growth?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In the production function Y=AF(L,K,H,N), Y represents the quantity of output; L represents the quantity of labor; K represents the quantity of physical capital; and H represents the quantity of human capital. What does N represent?

Correct AnswerverifiedN represen...View AnswerShow Answer

Other things the same, an economy's factors of production are likely to be used more effectively if there is an economywide respect for property rights.

Correct AnswerverifiedShow Answer

Which of the following countries has had the greatest growth rate of real GDP per person within the last 10 years?

Correct AnswerverifiedShow Answer

Educated people may generate ideas that increase production. These ideas

Correct AnswerverifiedShow Answer

Randomized control trials can help economists evaluate the impact of global aid programs in the same way that doctors test drugs.

Correct AnswerverifiedShow Answer

Japan is

Correct AnswerverifiedShow Answer

The United Kingdom is

Correct AnswerverifiedShow Answer

If a production function has constant returns to scale, then if all inputs double so does production.

Correct AnswerverifiedShow Answer

Educational attainment tends to be

Correct AnswerverifiedShow Answer

When a country imposes tariffs, intending to protect domestic firms from foreign competition, it is pursuing _______-oriented policies.

Correct AnswerverifiedShow Answer

The rate of real economic growth is

Correct AnswerverifiedShow Answer

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Once someone comes up with an idea it is...
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N represen...
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