Macro economics
If a production function exhibits constant returns to scale, doubling all of the inputs
Doubles output
Copper is an example of
A non renewable natural source
A reasonable measure of the standard of living in a country is
A real GDP per person
Thomas Malthus argued that
An ever-increasing population is constrained only by the food supply, resulting in chronic famine
Which of the following statements is true?
Countries have great variance in both the level and growth rate of GDP per person; thus, poor countries can become relatively rich over time
The opportunity cost for growth is a reduction in
Current consumption
Which of the following statements regarding the impact of population growth on productivity is true?
(All the above are true) There is no evidence yet that rapid population growth stretches natural resources to the point that it limits growth in productivity Rapid population growth may dilute the capital stock, lowering productivity Rapid population growth may promote technological progress, increasing productivity
if real GDP per person in 2009 is 18,073 and real GDP per person in 2010 is 18,635 what is the growth rate of real output over this period
3.1%
Which of the following describes an increase in technological knowledge
A farmer discovers that it is better to plant in the spring rather than in the fall
Madelyn goes to college and reads many books while at school. Her education increases which of the following factors of production
Human capital
If Mazda builds a new plant in Illinois
In the future, US GDP will rise more than US GNP
Which of the following government policies is least likely to increase growth in Africa?
Increase restrictions on the importing of Japanese automobiles and electronics
When a nation has very little GDP per person
It has the potential to grow relatively quickly due to the "catch-up effect"
For a given level of technology, we should expect an increase in labor productivity within a nation when there is an increase in each of the following except
Labor
Our standard of living is most closely related to
Our productivity because our income is equal to what we produce
Which of the following is an example of foreign portfolio investment
Toyota buys stock in ford, and ford uses the proceeds to build a new plant in Michigan
Once a country is wealthy,
it may be harder for it to grow quickly because of the diminishing returns to capital.
Many East Asian countries are growing very quickly because
they save and invest an unusually high percentage of their GDP.
