Ch. 12 Econ Quiz (F17, Flowers)

In one day Alpha Cabinet Company made 40 cabinets with 320 hours of labor. What was Alpha Cabinet Company's productivity?

1/8 cabinet per hour

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

Abundant domestic natural resources may help make a country rich, but even countries with few natural resources can have high standards of living.

One can argue that the average American today is "richer" than the richest American 100 years ago, given that 100 years ago,

C) many of the goods and services that we now take for granted were not available.

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

Country A has lower productivity and lower real GDP per person than country B.

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.

D. All of the above are correct

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.

D. All of the above are correct

Waldo works eight hours and produces 7 units of goods per hour. Emerson works six hours and produces 10 units of goods per hour.

Emerson's productivity and output are greater than Waldo's.

Which of the following would, by itself, reveal the most about a country's standard of living?

Its productivity

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?

The total number of hours worked stayed the same or the total number of hours worked fell

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

b. For a furniture company: wood, the skills and knowledge of its workers, saws.

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 decrease barriers to trade. The second is to restrict foreign portfolio investment. Which of these policies do most economists say promote growth?

b. the first but not the second

Which of the following is an example of physical capital?

bulldozers, backhoes and other construction equipment

If a country increases its saving rate, which of the following permanently grow at a higher rate?

d. neither real GDP per person nor productivity

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

fall and remain lower for a long time.

Other things the same, a country that increases its savings rate will have

higher future capital and higher future real GDP per person.

When a society decides to increase its quantity of physical capital, the society

is in effect deciding to consume fewer goods and services in the present.

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

lower this year than last year. A possible source of this change in productivity is a change in the size of the capital stock.

If natural resources had become scarcer, then we would expect their

prices to have risen more than inflation, but they have not

Productivity is the amount of goods and services

produced for each hour of a worker's time. It is linked to a nation's economic policies.

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

richer than Country B. If Country A adds another unit of capital, output will increase by less than 12 units