HW #4

The country of Beerland is a happy place and they only produce beer. Labor productivity was 147 and the capital per worker 23. If Beerland had 260 machines, what was the production of beer?

260 x 147= 38,220 38,220/ 23= 1,661.74 A: 1,661.74

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

1/8 cabinet per hour

The country of Beerland is a happy place and they only produce beer. Labor productivity was 147 and the capital per worker 10. If Beerland had 285 machines, what was the production of beer?

147 x 285= 41,895 41,895/ 10= 4,189.5 A: 4,189.5

The country of Beerland is a happy place and they only produce beer. Labor productivity was 155 and the capital per worker 33. If Beerland had 272 machines, what was the production of beer?

155 x 272= 42,160 42,160/ 1,277.58 A: 1,277.58

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

Suppose that real GDP grew more in Country A than in Country B last year.

None of the above are correct

Which of the following is consistent with the catch-up effect?

. b. After World War II the United States had lower growth rates than war-ravaged European countries. Correct Answer: d. All of the above are correct.

Megan is a landscaper. Which of the following are included in her physical capital?

. her landscaping equipment, but not her knowledge of landscaping learned in college

The country of Beerland is a happy place and they only produce beer. Labor productivity was 41 and the capital per worker 16. If Beerland had 269 machines, what was the production of beer?

269 x 41= 11,029 11,029/ 16= 689.31 A: 689.31

The country of Beerland is a happy place and they only produce beer. The country has produced 5,501 of beers with 89 workers and 295 machines. What is the labor productivity of Beerland?

5,501/ 89= 61.81 A: 61.81

The country of Beerland is a happy place and they only produce beer. The country has produced 6,318 of beers with 48 workers and 242 machines. What is the labor productivity of Beerland?

6,318/ 48= 131.63 A: 131.63

The country of Beerland is a happy place and they only produce beer. Beer production was 647 and the capital per worker 14. If Beerland had 223 machines, what was labor productivity

647 x 14= 9,058 9,058/ 223= 40.62 A: 40.62

The country of Beerland is a happy place and they only produce beer. Labor productivity was 68 and the capital per worker 11. If Beerland had 278 machines, what was the production of beer?

68 x 278= 18,904 18,904/ 1,718.55 A:1,718.55

The country of Beerland is a happy place and they only produce beer. The country has produced 7,647 of beers with 96 workers and 239 machines. What is the labor productivity of Beerland?

7,647/ 96= 79.66 A: 79.66

The country of Beerland is a happy place and they only produce beer. Beer production was 907 and the capital per worker 21. If Beerland had 207 machines, what was labor productivity?

907 x 21= 19,047 19,047/ 207= 92.01 A: 92.01

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

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

On the horizontal axis, K/ L represents capital ( K) per worker ( L). On the vertical axis, Y/ L represents output ( Y) per worker ( L). The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

Returns to capital become increasingly smaller as the amount of capital per worker increases.

Consider two countries, A and B. In country A, real GDP per capita is $6,000. In country B, real GDP per capita is $9,000. Based on the economic growth model, what would you predict about the growth rates in real GDP per capita across these two countries?

The growth rate of real GDP per capita will be higher in country A than it is in country B

Mary looks over reports on four of her workers. Jack made 25 baskets in 5 hours. Walter made 36 baskets in 6 hours. Rudy made 40 baskets in 10 hours. Sam made 22 baskets in four hours. Who has the greatest productivity?

Walter

Industrial machinery is an example of

a factor of production that in the past was an output from the production process.

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.

Which of the following is a determinant of productivity?

a. human capital per worker b. physical capital per worker c. natural resources per worker d. All of the above are correct.

Which of the following is considered human capital?

a.knowledge acquired from early childhood education programs b.knowledge acquired from grade school c.knowledge acquired from on-the-job training d.All of the above are correct.

Which of the following is considered human capital?

a.knowledge acquired from early childhood education programs b.knowledge acquired from grade school c.knowledge acquired from on-the-job training d.All of the above are correct.

When a country saves a larger portion of its GDP, it will have

more investment, and so have more capital and higher productivity.

Technological knowledge refers to

available information on how to produce things.

Which of the following would be considered physical capital?

bulldozers, backhoes and other construction equipment

Two countries are the same, except one is poorer. Assuming the traditional assumption about the production function is made there are

diminishing returns to capital so the poor country grows faster.

The traditional view of the production process is that capital is subject to

diminishing returns, so that other things the same, real GDP in poor countries should grow at a faster rate than in rich countries.

Country A experienced a growth rate of real GDP per person of 0.5 percent per year throughout the 1900's. In view of other countries' experiences, country A's growth was

exceptionally low.

Productivity

explains most of the differences in the standard of living across countries

Industrial machinery is an example of

factor of production that in the past was an output from the production process. d. All of the above are correct.

Other things equal, relatively poor countries tend to grow

faster than relatively rich countries; this is called the catch-up effect

Which of the following are human capital and physical capital, respectively?

for a restaurant: the chefs' knowledge about preparing food and the equipment in the kitchen

Perry accumulated a lot of mathematical skills while in high school, college, and graduate school. Economists include these skills as part of Perry's

human capital.

A country's human capital increases

if its workers become better educated or healthier.

If there are diminishing returns to capital, then

increases in the capital stock increase output by ever smaller amounts.

Technological knowledge

is a determinant of productivity.

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

its productivity

Productivity is the

key determinant of living standards, and growth in productivity is the key determinant of growth in living standards.

which of the following is an example of human capital?

knowledge learned from reading books

The logic behind the catch-up effect is that

new capital adds more to production in a country that doesn't have much capital than in a country that already has much capital.

Which of the following would not be considered physical capital?

on-the-job training

The equipment and structures available to produce goods and services are called

physical capital

Country A and country B both increase their capital stock by one unit. Output in country A increases by 10 while output in country B increases by 8. Other things the same, diminishing returns implies that country A is

poorer than Country B. If Country A adds another unit of capital, output will increase by less than 10 units

What term do economists use to describe the relationship between the quantity of inputs used and the quantity of output produced?

production function

labor productivity will increase if the ________ increases and ________.

quantity of capital per hour worked; technology improves

Over the last ten years productivity grew faster in Mapoli than in Romeria while the population and total hours worked remained the same in both countries. It follows that

real GDP per person grew faster in Mapoli than in Romeria.

Over the last ten years productivity grew more slowly in Iberia than in Aire while the population and total hours worked remained the same in both countries. It follows that

real GDP per person grew more slowly in Iberia than in Aire.

Which factors explain labor productivity?

technological change; the quantity of capital per hour

An understanding of the best ways to produce goods and services is called

technology

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

the amount of goods and services produced from each hour of a worker's time.

Which of the following is an example of physical capital?

the equipment in a factory

All else equal, if there are diminishing returns, then if a country raised its capital by 100 units last year and by 100 units this year,

the increase in output was greater last year than this year.

Which of the following is not an example of physical capital?

the knowledge of workers

On the horizontal axis, K/ L represents capital ( K) per worker ( L). On the vertical axis, Y/ L represents output ( Y) per worker ( L Choose a point anywhere on the curve and call it point A. If the economy is at point A in 2007, then it will definitely remain at point A in 2008 if, between 2007 and 2008,

the quantity of physical capital doubles; the number of workers doubles; and human capital, natural resources, and technology remain constant.

The Karmic Deed Restaurant uses all of the following to produce vegetarian meals. Which of them is an example of physical capital?

the tables and chairs in the restaurant

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

the things she learned at some prestigious university