Macroeconomics C12

In the U.S. each additional year of schooling has historically raised a person's wage on average by about

10 percent

In the long run, a higher saving rate

none of the above are correct

Last year real GDP in the imaginary nation of Oceania was 561.0 billion and the population was 2.2 million. The year before, real GDP was 500.0 billion and the population was 2.0 million. What was the growth rate of real GDP per person during the year?

2 percent

Gramp's Potato Chips produces 1280 bags of potato chips a day. Each employee at Gramp's works 8 hours. If the company's productivity is 20 bags per hour, how many people does Gramp's employ?

8

Which of the following countries achieved a higher economic growth, in part by mandating a reduction in population growth?

China

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

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

Educated people may generate ideas that increase production. These ideas

all of the above are correct

In an economy where net exports are zero, if saving rises in some period, then in that period

consumption falls and investment rises

Other things equal, relatively poor countries tend to grow

fast than relatively rich countries, this is called catch-up effect

Which of the following are human capital and physical capital, respectively?

for a restaurant: the chef's knowledge about preparing the food and the equipment in the kitchen

Which of the following is generally an opportunity of investment in human capital?

forgone present wages

Productivity is defined as the quantity of

goods and services produced from each unit of labor input

All else equal, by saving more, a country

has more resources for capital goods. The increase in capital raises productivity

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

increase U.S. GDP and U.S. GNP

Human capital is

knowledge and skills that workers have acquired

An increase in capital will increase real GDP per person

more in a poor country than a rich country. The increase in real GDP per person will be the same whether the addition to capital is from domestic or foreign investment

A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth. The first is to decrease barriers to trade. The second is to restrict foreign portfolio investment. Which of these policies do most economists say promote growth?

neither the first nor the second

A country experiencing a growth rate of 8% per year can go from being one of the poorest to one of the richest in

one generation. In the last couple of decades China's growth has been higher than 8%.

Inventors often obtain patents on new products and processes, thereby turning new ideas into

private goods and increasing the incentive to engage in research

Which of the following terms is used to refer to the ability of people to exercise authority over the resources they own?

property rights

An understanding of the best ways to produce goods and services is called

technology

All else equal, if there are diminishing returns, then which of the following is true if a country increases its capital by one unit?

the increase in output was greater last year than this year.

Which of the following is human capital?

understanding how to use a company's accounting software

Investment from abroad

All of the above are correct

Natural resources

All of the above are correct