Macroeconomics Ch. 12 Quiz

A barber shop produces 192 haircuts a day. Each barber in the shop works 8 hours per day and produces the same number of haircuts per hour. If the shop's productivity is 2 haircuts per hour of labor, then how many barbers does the shop employ?

12

In 2009, the imaginary nation of Mainland had a population of 7,000 and real GDP of 210,000. In 2010 the population was 7,300 and real GDP of 223,380. Over the year in question, real GDP per person in Mainland grew by

2 percent, which is about the same as average U.S. growth over the last one-hundred years.

Which of the following is a correct way to measure productivity?

Divide the quantity of output by the number of hours worked.

Which of the following countries had the highest level of real GDP per person in 2014?

Germany.

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

According to some estimates, over the last two decades China has had an annual average growth rate of about 12 percent.

True.

Over the last 140 years or so, on average Canada's real GDP per-person grew faster than that of the U.K.

True.

Which of the following is not correct?

With a growth rate of about 2 percent per year, average income per person doubles about every 60 years.

Figure 25-1. On the horizontal axis, K/L represents capital (K) per worker (L). On the vertical axis, Y/L represents output (Y) per worker (L). Refer to Figure 25-1. The curve becomes flatter as the amount of capital per worker increases because of

diminishing returns to capital.

Consider three imaginary countries. In Aire, saving amounts to $4,000 and consumption amounts to $12,000; in Bovina, saving amounts to $3,000 and consumption amounts to $24,000; and in Cartar, saving amounts to $10,000 and consumption amounts to $50,000. The saving rate is

higher in Aire than in Cartar, and it is higher in Cartar than in Bovina.

Suppose Japanese-based Toshiba Corporation builds and operates a new computer factory in the United States. Future production from such an investment will

increase U.S. GDP more than it increases U.S. GNP.

Suppose a country increases trade restrictions. This country would be pursuing an

inward policy, which most economists believe has adverse effects on the economy.

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.

Proprietary technology is technology that is

not widely used because it is known or controlled only by the company that discovered it.

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