econ chapter 12

Other things the same, a country that increases its saving rate increases: a) its future productivity and future real GDP b) neither its future productivity nor future real GDP c) its future productivity but not its future real GDP d) its future real GDP, but not its future productivity

a) its future productivity and future real GDP

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: a) higher in Aire than in Cartar, and it is higher in Cartar than in Bovina b) higher in Cartar than Aire, and it is higher in Aire than in Bovina c) higher in Cartar than in Bovina, and it is the same in Bovina and Aire d) higher in Aire than Bovina, and it is the same in Aire and Cartar

a) higher in Aire than in Cartar, and it is higher in Cartar than in Bovina

Productivity is the: a) key determinant of living standards, and growth in productivity is the key determinant of growth in living standards b) key determinant of living standards,but growth in productivity is not the key determinant of growth in living standards c) not the key determinant of living standards, but growth in productivity is the key determinant of growth in living standards d) not the key determinant of living standards, and growth in productivity is not the key determinant of growth in living standards

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

In the equation for the production function Y/L represents: a) productivity b) output c) the availability of natural resources d) the amount of human capital

a) productivity

All else equal, if there are diminishing returns, then which of the following is true if a country increases its capital by one unit? a) output will rise by more than it did when the previous unit was added b) output will rise by less than it did when the previous unit was added c) output will fall by more than it did when the previous unit was added d) output will fall by less than it did when the previous unit was added

b) output will rise by less than it did when the previous unit was added

In the long run, an increase in the saving rate: a) doesn't change the level of productivity or income b) raises the levels of both productivity and income c) raises the level of productivity but not the level of income d) raises the level of income but not the level of productivity

b) raises the levels of both productivity and income

Which of the following statements is correct? a) productivity is a determinant of human capital per worker b) technological knowledge is a determinant of productivity c) human capital and technological knowledge are the same thing d) all of the above are correct

b) technological knowledge is a determinant of productivity

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: a) higher this year than last year. A possible source of this change in productivity is a change in the size of capital stock b) higher this year than last year. A change in the size of capital stock does not affect productivity c) lower this year than last year. A possible source of this change in productivity is a change in the size of capital stock d) lower this year than last year. A change in the size of capital stock does not affect productivity

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

Which of the following is correct? a) although levels of real GDP per person vary substantially from country to country, the growth rate of real GDP per person is similar across countries b) productivity is not closely linked to government policies c) the level of real GDP per person is a good gauge of economic prosperity, and the growth rate of real GDP per person is a good gauge for economic progress d) productivity may be measured by the growth rate of real GDP per person

c) the level of real GDP per person is a good gauge of economic prosperity, and the growth rate of real GDP per person is a good gauge for economic progress

A nation's standard of living is determined by: a) the percentage of its GDP that is accounted for by government purchases b) the quantity of natural resources with which it is endowed c) the productivity of its workers d) factors and events that are beyond the nation's control

c) the productivity of its workers

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

d) all of the above

All else equal, which of the following would tend to cause real GDP per person to rise? a) a change from inward-oriented policies to outward-oriented policies b) an increase in investment in human capital c) strengthening of property rights d) all of the above are correct

d) all of the above are correct

Country A has twice as many workers as Country B. Country A also has twice as much physical capital, twice as much human capital, and access to twice as many natural resources as Country B. Assuming constant-returns to scale, which of the following is higher in Country A? a) both output per worker and productivity b) output per worker but not productivity c) productivity but not output per worker d) neither productivity nor output per worker

d) neither productivity nor output per worker