Unit 25: Production and Growth (Ans)

UNIT 25: PRODUCTION AND GROWTH (ANS)
Question 1
Because capital is subject to diminishing returns, higher saving and investment does not lead to
higher
Select one:
a. growth in the short run.
b. income in the short run.
c. growth in the long run.
d. income in the long run.
Question 2
When the Japanese car maker Toyota expands one of its car factories in Vietnam, what is the
likely impact of this event on the GDP and GNI of Vietnam?
Select one:
a. GNI rises and GDP falls.
b. GDP rises and GNI falls.
c. GNI shows a larger increase than GDP.
d. GDP shows a larger increase than GNI.
Question 3
Which of the following is a good gauge of economic progress?
Select one:
a. neither the level nor the growth rate of real GDP per person
b. the level of real GDP per person and the growth rate of real GDP per person
c. the growth rate of real GDP per person, but not the level of real GDP per person
d. the level of real GDP per person, but not the growth rate of real GDP per person
Question 4
Productivity is the amount of goods and services
Select one:
a. produced for each hour of a worker’s time. It is linked to a nation’s economic
policies.
b. an economy produces. It is linked to a nation’s economic policies.
c. produced for each hour of a worker’s time. It is not linked to a nation’s economic policies.
d. an economy produces. It is not linked to a nation’s economic policies.
Question 5
A nation’s standard of living is determined by
Select one:
a. the percentage of its GDP that is accounted for by government purchases.
b. factors and events that are beyond the nation’s control.
c. the productivity of its workers.
d. the quantity of natural resources with which it is endowed.
Question 6
A nation's standard of living is best measured by its
Select one:
a. nominal GDP per person.
b. nominal GDP.
c. real GDP.
d. real GDP per person.
Question 7
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?
Select one:
a. 12 percent
b. 4 percent
c. 10 percent
d. 2 percent
Question 8
Suppose that real GDP grew more in Country A than in Country B last year.
Select one:
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. (do chưa biết pop
c. Both of the above are correct. bằng nhau hay ko)
d. None of the above are correct.
Question 9
Which of the following items plays a role in determining productivity?
Select one:
a. physical capital
b. natural resources
c. technological knowledge
d. All of the above are correct.
Question 10
Which of the following pairs of terms refer to the same thing?
Select one:
a. “technological knowledge” and “human capital”
b. “capital” and “physical capital”
c. “standard of living” and “human capital”
d. “standard of living” and “productivity”
Question 11
An understanding of the best ways to produce goods and services is called
Select one:
a. productivity.
b. physical capital.
c. human capital.
d. technology.
Question 12
Industrial machinery is an example of
Select one:
a. a factor of production that in the past was an output from the production process.
b. physical capital.
c. something that influences productivity.
Question 13
Which of the following is not an example of physical capital?
Select one:
a. the office chair in a lawyer’s office
b. a delivery van
c. a factory building
d. the knowledge of workers
Question 14
Which of the following is an example of physical capital?
Select one:
a. the computer a secretary uses
b. the skills and knowledge of a doctor
c. rivers on which goods are transported
Question 15
Human capital is the
Select one:
a. same thing as technological knowledge.
b. stock of equipment and structures that is used to produce goods and services.
c. knowledge and skills that workers acquire through education, training, and
experience.
d. total number of hours worked in an economy.
Question 16
Which of the following is an example of human capital?
Select one:
a. the things you have learned this semester
b. the amount you get paid each week to work at the library
c. any capital goods that require a human to be present to operate
d. the comfortable chair in your dorm room where you read economics texts
Question 17
Which of the following is considered human capital? Knowledge acquired from
Select one:
a. early childhood education programs
b. job training
c. on-the-job experience
Question 18
Which of the following are human capital and physical capital, respectively?
Select one:
a. for a grocery store: grocery carts and shelving
b. for a library: the building and the reference librarians’ knowledge of the Internet
c. for an accounting firm: the accountants’ knowledge of tax laws and computer
software
d. for a school: chalkboard and desks
Question 19
Natural resources
Select one:
a. are inputs provided by nature.
b. include land, rivers, and mineral deposits.
c. take two forms: renewable and nonrenewable.
Question 20
Accumulating capital
Select one:
a. decreases saving rates.
b. involves no trade-offs.
c. allows society to consume more in the present.
d. requires that society sacrifice consumption goods in the present.
Question 21
Which of the following is a determinant of productivity?
Select one:
a. human capital per worker
b. physical capital per worker
c. natural resources per worker
Question 22
Which of the following would increase productivity?
Select one:
a. an increase in the physical capital stock per worker
b. an increase in human capital per worker
c. an increase in natural resources per worker
Question 23
If there are diminishing returns to capital, then
Select one:
a. old ideas are not as useful as new ones.
b. increases in the capital stock eventually decrease output.
c. increases in the capital stock increase output by ever smaller amounts.
d. capital produces fewer goods as it ages.
Question 24
“When workers have a relatively small quantity of capital to use in producing goods and
services, giving them an additional unit of capital increases their productivity by a relatively
large amount.” This statement
Select one:
a. is an assertion that production functions have the property of constant returns to scale.
b. is consistent with the view that capital is subject to diminishing returns.
c. is inconsistent with the view that it is easier for a country to grow fast if it starts out
relatively poor.
Question 25
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 county to catch up?
Select one:
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.

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