HW8

Although growth rates across countries vary some, rankings of countries by income remain pretty much the same over time. True False

F

Economist Michael Kremer found that world growth rates fell as population increased. True False

F

Studies confirm that controlling for other variables such as the percentage of GDP devoted to investment, poor countries tend to grow at a faster rate than rich countries. True False

T

In recent decades Americans have increased their purchase of stocks of foreign-based companies. The Americans who have bought these stocks were engaged in a. foreign portfolio investment. b. indirect domestic investment. c. foreign direct investment. d. foreign indirect investment.

a

Last year real GDP in the imaginary nation of Populia was 907.5 billion and the population was 3.3 million. The year before real GDP was 750 billion and the population was 3 million. What was the growth rate of real GDP per person during the year? a. 10 percent b. 14 percent c. 17 percent d. 21 percent

a

In an economy where net exports are zero, if saving rises in some period, then in that period a. consumption and investment fall. b. consumption falls and investment rises. c. consumption rises and investment falls. d. consumption rises and investment falls.

b

Over the past century in the United States, real GDP per person has grown, on average, by about a. 1 percent per year. b. 2 percent per year. c. 3 percent per year. d. 5 percent per year.

b

Which of the following is a correct way to measure productivity? a. Divide the number of hours worked by the quantity of output. b. Divide the quantity of output by the number of hours worked. c. Determine how much output is produced in a given time. d. Determine how much time it takes to produce a unit of output.

b

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

According to research by Robert Fogel, what proportion of the increase in the standard of living in Britain between 1790 and 1980 can be accounted for by greater caloric intake? a. 10 percent b. 20 percent c. 30 percent d. 40 percent

c

In 2010, real GDP per person in Bangladesh was a. about 3 times as high as it was in the U.S. in 1870. b. about twice as high as it was in the U.S. in 1870. c. about the same as it was in the U.S. in 1870. d. less than it was in the U.S. in 1870.

c

The traditional view of the production process is that capital is subject to a. constant returns. b. increasing returns. c. diminishing returns. d. diminishing returns for low levels of capital, and increasing returns for high levels of capital.

c

Which of the following is an example of human capital? a. the comfortable chair in your dorm room where you read economics texts b. the amount you get paid each week to work at the library c. the things you have learned this semester d. any capital goods that require a human to be present to operate

c

Which of the following nations experienced average rates of economic growth of a bit under 2% over the last 100 years or so? a. Mexico b. Brazil c. the United States d. All of the above are correct.

c

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

Industrial machinery is an example of a. a factor of production that in the past was an output from the production process. b. physical capital. c. something that influences productivity. d. All of the above are correct.

d

Proprietary technology is knowledge that is a. known but no longer used much. b. known, but only recently discovered. c. known mostly by only those in a certain profession. d. known only by the company that discovered it.

d

Suppose that real GDP grew more in Country A than in Country B last year. a. Country A must have a higher standard of living than country B. b. Country A's productivity must have grown faster than country B's. c. Both of the above are correct. d. None of the above are correct.

d

Which of the following measures how the level of well-being in a country has changed over time? a. level of nominal GDP per person. b. growth rate of nominal GDP. c. growth rate of real GDP. d. growth rate of real GDP per person.

d

Which of the following will increase a country's real GDP per person? a. imposing restrictions on foreign trade and foreign investment b. imposing restrictions on foreign trade and reducing restrictions on foreign investment c. reducing restrictions on foreign trade and imposing restrictions on foreign investment d. reducing restrictions on foreign trade and foreign investment

d