Question 1

Changes in the prices of most natural resources compared to other goods indicate that natural resources are generally becoming scarcer.

Accepted Answer

A) True 
 B)False

Question 2

What is the average amount of goods and services produced from each hour of a worker's time called?

Accepted Answer

A)   per capita GDP
B)   per capita national income
C)   productivity
D)   human capitalE) A) and B)
F) A) and C)

Question 3

In 2014,Freedonia had a population of 2700 and real GDP of about $1,080,000.In 2013,it had a population of 2500 and real GDP of about $1,000,000.What was the approximate growth rate of real GDP per person in Freedonia between 2013 and 2014?

Accepted Answer

A)   0 percent
B)   2.5 percent
C)   5 percent
D)   7.5 percentE) A) and B)
F) B) and D)

Question 4

From 1966 to 1973,at what rate did Canadian productivity grow?

Accepted Answer

A)   1.3 percent
B)   1.8 percent
C)   2.3 percent
D)   2.5 percentE) B) and C)
F) C) and D)

Question 5

Which statement best describes the evolution of productivity growth in Canada?

Accepted Answer

A)   From 1974 to 1982,Canadian productivity growth was slower than from 1966 to 1973.This continued a long-term downward trend in productivity growth.
B)   From 1974 to 1982,Canadian productivity growth was slower than from 1966 to 1973.It appears that this was the result of a slowdown in technological progress.
C)   From 1966 to 1973,Canadian productivity growth was slower than from 1974 to 1982.This continued an upward trend in productivity growth.
D)   From 1966 to 1973,Canadian productivity growth was slower than from 1974 to 1982.It appears that this was the result of an upward trend in capital formation.E) B) and C)
F) C) and D)

Question 6

A puzzle: The share of GDP devoted to investment was similar for Canada and South Korea over the period 1960-1990.However,South Korea had a 7 percent growth rate of average annual income,while Canada had only a 2.5 percent growth rate.How can this be explained?

Accepted Answer

The solution to the puzzle is based on t...

Question 7

A forest is an example of a nonrenewable resource.

Accepted Answer

A) True 
 B)False

Question 8

The annual population growth rate in developed countries is about 1 percent,while the growth rate in developing countries is about 3 percent.

Accepted Answer

A) True 
 B)False

Question 9

Based on historical data on the prices of natural resources,which statement best describes how natural resources limit economic growth?

Accepted Answer

A)   Prices have been increasing,which shows that natural resources become scarcer and this impedes growth.
B)   Prices of natural resources have been fluctuating,which shows that there is no correlation between growth and natural resources.
C)   Prices of natural resources have been decreasing in constant dollars,which shows that natural resources are not scarcer than they were in the past,thus economic growth is not limited by natural resources.
D)   Prices do not show whether resources limit growth because the natural resources that economies use are not the same today as those in the past.E) None of the above
F) C) and D)

Question 10

The productivity slowdown in 1973 appears to be primarily the result of a decrease in the capital to labour ratio.

Accepted Answer

A) True 
 B)False

Question 11

From 1974 to 1982,what was the growth in Canadian productivity?

Accepted Answer

A)   0.5 percent
B)   1.3 percent
C)   1.8 percent
D)   2.5 percentE) B) and C)
F) A) and D)

Question 12

Suppose Japanese-based Sony Corporation builds and operates a new chip factory in Canada.What would the future production from such an investment do?

Accepted Answer

A)   increase Canadian GNP more than it would increase Canadian GDP
B)   increase Canadian GDP more than it would increase Canadian GNP
C)   not affect Canadian GNP,but it would increase Canadian GDP
D)   not affect Canadian GDP,but it would increase Canadian GNPE) A) and C)
F) A) and B)

Question 13

In 2014,real GDP in Latania was $750 billion and the population was 3 million.In 2015,real GDP was $990 billion and the population was 3.3 million.What was the approximate growth rate of real GDP per person?

Accepted Answer

A)   11 percent
B)   14 percent
C)   17 percent
D)   20 percentE) All of the above
F) C) and D)

Question 14

How does productivity explain the differences in standard of living across countries?

Accepted Answer

A)   Productivity tends to be lower in countries with high population,and therefore in those countries standards of living are lower.
B)   Productivity explains very little of the differences across countries in the standard of living.
C)   Productivity explains some,but not most,of the differences across countries in the standard of living.
D)   Productivity explains most of the differences across countries in the standard of living.E) B) and D)
F) B) and C)

Question 15

From 1960 to 1990,what happened to the growth rates of Canada and South Korea?

Accepted Answer

A)   South Korea had a higher growth rate than Canada because it had a higher ratio of investment to GDP.
B)   Canada 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 Canada,even though it had a similar ratio of investment to GDP.
D)   Canada had a higher growth rate than South Korea,even though it had a similar ratio of investment to GDP.E) B) and D)
F) B) and C)

Question 16

What is an example of a nonrenewable resource?

Accepted Answer

A)   coal
B)   honey
C)   livestock
D)   a forestE) B) and D)
F) A) and D)

Question 17

How do inward-oriented policies affect a nation's growth?

Accepted Answer

Most economists believe that poor nation...

Question 18

What is a characteristic of inward-oriented policies?

Accepted Answer

A)   They are generally supported by economists.
B)   They are primarily concerned with the development of human capital.
C)   They are in some ways like prohibiting the use of certain technologies.
D)   They are generally rejected by domestic producers in import-competing industries.E) A) and D)
F) A) and B)

Question 19

Constant returns to scale is the point on a production function where increasing inputs will no longer increase output.

Accepted Answer

A) True 
 B)False

Question 20

What factor did economic historian Robert Fogel focus on as one determinant of long-run economic growth?

Accepted Answer

A)   education
B)   national defence
C)   nutrition
D)   trade restrictionsE) B) and C)
F) B) and D)

Exam 7: Production and Growth

How do inward-oriented policies affect a nation's growth?

Correct AnswerverifiedMost economists believe that poor nation...View AnswerShow Answer

A puzzle: The share of GDP devoted to investment was similar for Canada and South Korea over the period 1960-1990.However,South Korea had a 7 percent growth rate of average annual income,while Canada had only a 2.5 percent growth rate.How can this be explained?

Correct AnswerverifiedThe solution to the puzzle is based on t...View AnswerShow Answer

From 1974 to 1982,what was the growth in Canadian productivity?

Correct AnswerverifiedShow Answer

The productivity slowdown in 1973 appears to be primarily the result of a decrease in the capital to labour ratio.

Correct AnswerverifiedShow Answer

In 2014,Freedonia had a population of 2700 and real GDP of about $1,080,000.In 2013,it had a population of 2500 and real GDP of about $1,000,000.What was the approximate growth rate of real GDP per person in Freedonia between 2013 and 2014?

Correct AnswerverifiedShow Answer

What factor did economic historian Robert Fogel focus on as one determinant of long-run economic growth?

Correct AnswerverifiedShow Answer

What is a characteristic of inward-oriented policies?

Correct AnswerverifiedShow Answer

Constant returns to scale is the point on a production function where increasing inputs will no longer increase output.

Correct AnswerverifiedShow Answer

From 1966 to 1973,at what rate did Canadian productivity grow?

Correct AnswerverifiedShow Answer

From 1960 to 1990,what happened to the growth rates of Canada and South Korea?

Correct AnswerverifiedShow Answer

Changes in the prices of most natural resources compared to other goods indicate that natural resources are generally becoming scarcer.

Correct AnswerverifiedShow Answer

Which statement best describes the evolution of productivity growth in Canada?

Correct AnswerverifiedShow Answer

What is an example of a nonrenewable resource?

Correct AnswerverifiedShow Answer

Based on historical data on the prices of natural resources,which statement best describes how natural resources limit economic growth?

Correct AnswerverifiedShow Answer

A forest is an example of a nonrenewable resource.

Correct AnswerverifiedShow Answer

How does productivity explain the differences in standard of living across countries?

Correct AnswerverifiedShow Answer

The annual population growth rate in developed countries is about 1 percent,while the growth rate in developing countries is about 3 percent.

Correct AnswerverifiedShow Answer

Suppose Japanese-based Sony Corporation builds and operates a new chip factory in Canada.What would the future production from such an investment do?

Correct AnswerverifiedShow Answer

What is the average amount of goods and services produced from each hour of a worker's time called?

Correct AnswerverifiedShow Answer

In 2014,real GDP in Latania was $750 billion and the population was 3 million.In 2015,real GDP was $990 billion and the population was 3.3 million.What was the approximate growth rate of real GDP per person?

Correct AnswerverifiedShow Answer

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Most economists believe that poor nation...
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The solution to the puzzle is based on t...
View Answer

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