Question 1

If your company opens and operates a branch in a foreign country, your company engages in foreign direct investment.

Accepted Answer

A) True 
 B)False

Question 2

Investment in human capital has opportunity costs, but investment in physical capital does not.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is correct?

Accepted Answer

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.E) A) and D)
F) All of the above

Question 4

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

Accepted Answer

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

Question 5

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Accepted Answer

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.E) A) and C)
F) All of the above

Question 6

Which of the following is a good gauge of economic progress?

Accepted Answer

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

Question 7

Which of the following statements is correct?

Accepted Answer

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.E) None of the above
F) A) and B)

Question 8

Which of the following is an example of the "brain drain?"

Accepted Answer

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.E) B) and C)
F) None of the above

Question 9

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

Accepted Answer

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

Question 10

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?

Accepted Answer

A)  China, Pakistan
B)  United Kingdom, China
C)  Pakistan, Argentina
D)  Argentina, JapanE) B) and D)
F) A) and D)

Question 11

Suppose that an American opens and operates a candy factory in Finland. This is an example of

Accepted Answer

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

Question 12

Senator Smith says that in order to help poor countries develop, the United States should: 1. Prevent U.S. corporations from investing in poor countries because they take profits that the poor countries should have; 2. reduce or eliminate subsidizes to U.S. producers when poor countries have a comparative advantage producing those goods the U.S. subsidizes; 3. Work to promote political stability in poor countries; and 4. Reduce poor countries reliance on market forces in their economies. How many of these ideas are likely to help poor countries grow?

Accepted Answer

A)  1
B)  2
C)  3
D)  4E) None of the above
F) C) and D)

Question 13

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) A) and B)
F) A) and C)

Question 14

Which of the following statements is true?

Accepted Answer

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.E) None of the above
F) B) and D)

Question 15

If your firm's production function has constant returns to scale, then if you double all your inputs, your firm's output will

Accepted Answer

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.E) None of the above
F) C) and D)

Question 16

Which of the following statements is correct? In 2008,

Accepted Answer

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.E) A) and B)
F) None of the above

Question 17

According to research by Robert Fogel, what proportion of the British population in 1780 was so malnourished that they could not perform manual labor?

Accepted Answer

A)  40 percent
B)  20 percent
C)  10 percent
D)  5 percentE) A) and B)
F) A) and C)

Question 18

Which of the following is correct?

Accepted Answer

A)  If developing countries limit career and educational opportunities for women, birth rates are likely to be lower.
B)  Growth rates in developed and developing countries are nearly the same.
C)  Historically, in periods where the rate of population growth was high, so was the rate of growth in world real GDP per person.
D)  None of the above is correct.E) None of the above
F) B) and D)

Question 19

Which of the following is a part of your economics professor's human capital?

Accepted Answer

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

Question 20

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) A) and D)
F) A) and C)

Exam 12: Production and Growth

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Correct Answer
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Correct Answer
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Which of the following statements is correct?

Correct Answer
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If your company opens and operates a branch in a foreign country, your company engages in foreign direct investment.

Correct Answer
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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?

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

Correct Answer
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Which of the following is a part of your economics professor's human capital?

Correct Answer
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If your firm's production function has constant returns to scale, then if you double all your inputs, your firm's output will

Correct Answer
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Which of the following is correct?

Correct Answer
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Investment in human capital has opportunity costs, but investment in physical capital does not.

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

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

Correct Answer
verified

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

Correct Answer
verified

Which of the following is a good gauge of economic progress?

Correct Answer
verified

According to research by Robert Fogel, what proportion of the British population in 1780 was so malnourished that they could not perform manual labor?

Correct Answer
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Which of the following is correct?

Correct Answer
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Which of the following statements is true?

Correct Answer
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Which of the following is an example of the "brain drain?"

Correct Answer
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Suppose that an American opens and operates a candy factory in Finland. This is an example of

Correct Answer
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Which of the following statements is correct? In 2008,

Correct Answer
verified

Exam 12: Production and Growth

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following statements is correct?

Correct AnswerverifiedShow Answer

If your company opens and operates a branch in a foreign country, your company engages in foreign direct investment.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is a part of your economics professor's human capital?

Correct AnswerverifiedShow Answer

If your firm's production function has constant returns to scale, then if you double all your inputs, your firm's output will

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Investment in human capital has opportunity costs, but investment in physical capital does not.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is a good gauge of economic progress?

Correct AnswerverifiedShow Answer

According to research by Robert Fogel, what proportion of the British population in 1780 was so malnourished that they could not perform manual labor?

Correct AnswerverifiedShow Answer

Which of the following is correct?

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Which of the following is an example of the "brain drain?"

Correct AnswerverifiedShow Answer

Suppose that an American opens and operates a candy factory in Finland. This is an example of

Correct AnswerverifiedShow Answer

Which of the following statements is correct? In 2008,

Correct AnswerverifiedShow Answer

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