Macro: Ch. 7 (NOT ON FINAL)

Other things the same, which of the following could explain an increase in productivity? A) either an increase in human capital or an increase in physical capital B) an increase in human capital but not an increase in physical capital C) an increase in physical capital but not an increase in human capital D) neither an increase in human capital nor an increase in physical capital

A

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 A) real GDP per person grew faster in Mapoli than in Romeria B) real GDP per person must be higher in Mapoli than in Romeria C) the standard of living must be higher in AMapoli than in Romeria D) All of the above are correct

A

Apple founder Steve Jobs received patents on many of his ideas. While the patents existed, his ideas were A) public goods and proprietary knowledge B) private goods and proprietary knowledge C) public goods but not proprietary knowledge D) private goods but not proprietary knowledge

B

Ralph is a plumber. Which of the following are included in his human capital? A) the knowledge he learned on the job, and the tools he uses B) the knowledge he learned on the job, but not the tools he uses C) the tools he uses, but not the knowledge he learned on the job D) neither the knowledge he learned on the job nor the tools he uses

B

Which of the following is NOT correct? A) Across countries there are large differences in the average income per person. These differences are reflected in large differences in the quality of life. B) With a growth rate of about 2 percent per year, average income per person doubles about every 60 years. C) The ranking of countries by average income changes substantially over time. D) In some countries real income per person has changed very little over many years.

B

An increase in a country's population may contribute to the rate of technological progress because a larger population A) forces the capital stock to be spread more thinly B) forces natural resources to be spread more thinly C) brings with it more scientists, inventors, and engineers D) brings with it more favorable recognition from other countries

C

The return to schooling for society is higher than the return to schooling for the individual if A) the concept of diminishing returns applies to education B) the concept of constant returns to scale applies to education C) human capital conveys positive externalities D) investment in human capital involves no opportunity costs

C

Assuming diminishing returns, A) the increase in output growth from an increase in the saving rate rises over time, and that, other things the same, rich countries should grow faster than poor ones. B) the increase in output growth from an increase in the saving rate falls over time, and that, other things the same, rich countries should grow faster than poor ones. C) the increase in output growth from an increase in the saving rate rises over time, and that, other things the same, poor countries should grow faster than rich ones. D) 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.

D

Some poor countries appear to be falling behind rather than catching up with rich countries. Which of the following could explain the failure of a poor country to catch up? A) The poor country has outward oriented trade policies B) The poor country allows foreign direct investment C) The poor country has poorly developed property rights D) All of the above are correct

D

Which of the following is consistent with the catch up effect? A) The US had a higher growth rate before 1900 than after B) After WWII the US had lower growth rates than war ravaged European countries C) Although the US 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

D