MACRO Chapter 12

Which of the following pairs of terms refer to the same thing? a. "capital" and "physical capital" b. "technological knowledge" and "human capital" c. "standard of living" and "human capital" d. "standard of living" and "productivity"

a. "capital" and "physical capital"

If real income per person was $47,210 in the U.S. in 2010 and $55,860 in 2014, what was the annual growth rate over this time period? a. 4.29 percent per year b. 1.83 percent per year c. 8.45 percent per year d. 1.18 percent per year

a. 4.29 percent per year

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 in 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 in 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.

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

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 but 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 but by less then it did when the previous unit was added.

b. Output will rise but by less than it did when the previous unit was added.

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.

Technological knowledge refers to: a. human capital. b. available information on how to produce things. c. resources expended transmitting society's understanding to the labor force. d. All of the above are technological knowledge.

b. available information on how to produce things.

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 the capital stock. b. higher this year than last year. A change in the size of the 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 the capital stock. d. lower this year than last year. A change in the size of the 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 the capital stock.

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

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.

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.

d. All of the above are correct.

Productivity: a. is nearly the same across countries, and so provides no help explaining differences in the standard of living across countries. b. explains very little of the differences in the standard of living across countries. c. explains some, but not most of the differences in the standard of living across countries. d. explains most of the differences in the standard of living across countries.

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