ECO 201 Ch 7
Which of the following public policies would be least likely to result in more rapid economic growth for a poor or developing country?
inward-oriented policies
Human capital is the
knowledge and skills that workers acquire through education, training, and experience
Scenario 25-1. An economy's production form takes the form Y = AF(L, K, H, N). Refer to Scenario 25-1. If the production function has the constant-returns-to-scale property, then if we know the values of A, K/L, H/L, and N/L, we also know the value of
labor productivity
Suppose that over the last year the price of copper increased from $1.70 a pound to $1.79 per pound. Over the same time a measure of the overall price level increases from 300 to 309. The price of copper increased by
more than inflation, and this means it became scarcer
Which of the following countries had the highest growth rate over about the last 100 years?
Japan
Which of the following is true?
Kremer argued that with greater population, society would generate more ideas so that growth of real GDP per person could continue. Malthus argued that increasing population would outstrip agricultural production
Which of the following statements is not correct?
Malthus argued that charity and government aid was an effective way to reduce poverty
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. Not import goods from poor countries that use child labor; 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?
1
In the long run, a higher saving rate
None of the above is correct
In order for the standard of living within a country to be enhanced over time, which of the following is essential?
The level of productivity must increase
An organization that tries to encourage the flow of investment to poor countries is the
World Bank
Mexico is
a middle-income country, and over the past century its rate of economic growth has been higher than that of the United States
An understanding of the best ways to produce goods and services is called
technology
In the fourteenth century it is estimated that deaths resulting from the bubonic plague reduced the population by about a third. Assuming diminishing returns, the decrease in population should have
increased productivity and real GDP per person
In the long run, a higher saving rate
increases the level of productivity
On a production function, as capital per worker increases, output per worker
increases. This increases is smaller at larger values of capital per worker
Country A had a population of 1,000, of whom 600 worked an average of 8 hours a day and had a productivity of 2.5. Country B had a population of 800, of whom 560 worked 8 hours a day and had productivity of 3.0. Country
B had the higher level of real GDP and real GDP per person
Which of the following is a correct way to measure productivity?
Divide the quantity of output by the number of hours worked
Each day Sue works 8 hours and produces 7 units of goods and services. Mary works 10 hours each day and produces 10 units of goods and services. It follows that
Mary's productivity is higher than Sue's
Of the following countries, which grew most slowly, in terms of real GDP per person, over about the last 120 years?
United States
The United Kingdom is
an advanced economy, and over the past century its rate of economic growth has been lower than that of the United States
Fretonia and Libstien are the same except Fretonia has a larger capital stock. Both countries undertake policies that raise their saving rates to the same higher level. We would expect that
both countries would have temporary increases in their growth rates, but the increase would be smaller in Fretonia
Which of the following can explain faster growth of real GDP in country A than in country B?
both greater population growth and greater productivity growth in Country A
Which of the following provide benefits to society at large and not just to the person(s) who pursues it?
both technological knowledge that is a public good and education
In which of the following cases can we be certain that a natural resource has become scarcer?
the demand for the resource has decreased and the supply of the resource is unchanged
Which of the following is an example of physical capital?
the equipment in a factory
Miller's Dairy produces 960 gallons of milk per day. Each milker at the dairy works 8 hours per day and produces the same number of gallons of milk per hour. If the Dairy's productivity is 12 gallons of milk per hour of labor, then how many milkers does the shop employ?
10
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?
Both b and c are correct
Over the period 1900-2014, which of the following countries experienced the highest average annual growth rate of real GDP per person?
Brazil
All else equal, if there are diminishing returns, then which of the following is true if a country increases its capital by one unit?
Output will rise but by less than it did when the previous unit was added
Which of the following are human capital and physical capital, respectively?
for an accounting firm: the accountants' knowledge of tax laws and computer software
In recent decades Americans have increased their purchase of stocks of foreign-based companies. The Americans who have bought these stocks were engaged in
foreign portfolio investment
Suppose that the US undertakes a policy to increase its saving rate. This policy will likely
increase the growth of real GDP per person for several decades
The one variable that stands out as the most significant explanation of large variations in living standards around the world is
productivity
Janet is a farmer. Which of the following are included in her human capital?
what she's learned from experience but not her tractor
