Chapter 12 Quiz

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

Technological knowledge...

is a determinant of productivity.

Which of the following was NOT a result of the BRAC anti-poverty program in Bangladesh?

large increases in income of over 10%

Currently a country has real GDP per person of 500. Raising capital per worker by one would increase output per worker by 4. Other things the same, which of the following long-run combinations are consistent with the effects of this country increasing its saving rate?

real GDP per person is 520 and raising capital per worker by one would increase output per worker by 3

In some countries it is time consuming and costly to establish ownership of property. Reforms to reduce these costs would likely

raise real GDP and productivity

Which of the following is correct?

Historically, in periods where the rate of population growth was high, so was the rate of growth in world real GDP per person

Measured in 2014 dollars, real GDP per person in the United States in 2014 was about

$56,000

All else equal, which of the following would tend to cause real GDP per person to rise?

- a change from inward-oriented policies to outward-oriented policies - an increase in investment in human capital - strengthening property rights

Which of the following is a determinant of productivity?

- human capital per worker - physical capital per worker - natural resources per worker

Over the last century, U.S. real GDP per person grew at a rate of about

2 percent per year, so that it is now 8 times as high as it was a century ago.

Countries that grew the fastest over the last 100 or so years had average growth rates of real income per person of about

2.5 % per year

​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?

4.29% per year

Greg's Ice Cream produces 1120 gallons of ice cream per day. Each employed works seven hours and has productivity of 20 gallons an hour. How many employees does Greg's employ?

8

Adam and Doug both build birdhouses. Adam works 30 hours a week and produces 15 bird houses. Doug works 20 hours a week and produces 12 bird houses. Which of the following is correct?

Adam's production is higher than Doug's, but Doug's productivity is higher than Adam's.

Which of the following statements is true?

Americans have a higher standard of living than Indonesians because American workers are more productive than Indonesian workers.

In which of the following countries has economic growth been sufficiently high that income would double every ten years?

Singapore

Of the following countries, which grew most slowly, in terms of real GDP per person, over about the last 120 years?

United States

Foreign saving is used for domestic investment when foreigners engage in

either foreign direct investment or foreign portfolio investment

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

The return to schooling for society is higher than the return to schooling for an individual if

human capital conveys positive externalities

Greg learns how to bake from his grandmother. This is an example of

human capital, but not technological knowledge

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 increased from 300 to 309. The price of copper increased by

more than inflation, and this means it became scarcer

The behavior of market prices over time indicates that natural resources are

not a limit to economic growth

Greater scarcity of a natural resource is indicated

only by an increase in the price of the resource that is greater than the rate of inflation.

Productivity is the amount of goods and services

produced for each hour of a worker's time. It is linked to a nation's economic policies

In which of the following cases can we be certain that a natural resource has become scarcer?

the demand for the resource has increased and the supply has decreased

Assuming diminishing returns,

the increase in output growth from an increase in the saving rate falls over time, and that, other things the same, poor countries should grow faster than rich ones.

Ralph is a plumber. Which of the following are included in his human capital?

the knowledge he learned on the job, but not the tools he uses

Country A has real GDP per person of 250,000 while Country B has real GDP per person of 500,000. All else constant, Country A will eventually have a higher standard of living than Country B if

the level of saving per person is 5.000 in Country A and 7,500 in Country B