Question 1

Which organization tries to encourage the flow of investment to poor countries?

Accepted Answer

A)   World Bank
B)   Organization of Less Developed Countries
C)   World Health Alliance
D)   International Development AllianceE) All of the above
F) B) and C)

Question 2

Some civil society groups and activists propose a zero-economic-growth policy in order to preserve the environment. Write an essay to discuss the pros and cons of this proposal. You may wish to refer, among other ideas, to the following:
Economic growth needs to compensate for the increase in population.
If population becomes older, the number of active persons decreases; therefore, productivity must increase to sustain a high standard of living.
An increase in standard of living is only possible if an economy becomes more productive. (Income per person is closely related to labour productivity.)
It is hoped that economic growth will eventually eradicate poverty.
Economic measures of well-being, such as GDP per capita, are imperfect mainly because they disregard external costs of economic activity, as well as other aspects of life that people value, such as leisure, fairness, and income equality.

Accepted Answer

There is no "correct" answer t...

Question 3

Which of the following would be considered physical capital?

Accepted Answer

A)   the cappuccino machine at the Garden of Eat'n Cafe
B)   soy beans used to make soy milk
C)   the skills and knowledge of a barber
D)   the number of hours people spend in the gymE) C) and D)
F) A) and B)

Question 4

Economists generally believe that outward-oriented policies are more likely to foster growth than inward-oriented policies.

Accepted Answer

A) True 
 B)False

Question 5

Why is productivity related to the standard of living. In your answer be sure to explain what productivity and standard of living mean. Make a list of things that determine labour productivity.

Accepted Answer

The standard of living is a measure of h...

Question 6

How does the political environment affect economic growth?

Accepted Answer

A)   Political instability can reduce foreign investment, thus reducing growth.
B)   Economic growth only depends on markets and production, while politics has no impact.
C)   Policies designed to prevent imports from other countries generally increase economic growth.
D)   Policies designed to restrict the immigration of foreign workers generally promote growth because wages earned by foreigners are not part of GNP.E) C) and D)
F) All of the above

Question 7

Which statement best describe the relationship between productivity and standard of living?

Accepted Answer

A)   International trade makes a country's productivity irrelevant.
B)   A country's standard of living and its productivity are closely related.
C)   Productivity only increases revenue to investors, while general well-being is not affected.
D)   A rich country can enjoy a high standard of living without the need for high productivity.E) A) and C)
F) B) and D)

Question 8

What would increase productivity, everything else being the same?

Accepted Answer

A)   an increase in immigration
B)   an increase in the number of hours of work per week
C)   an increase in prices
D)   an increase in physical capital per workerE) B) and D)
F) All of the above

Question 9

Changes in the prices of most natural resources compared to other goods indicate that natural resources are generally becoming scarcer.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following best describes natural resources?

Accepted Answer

A)   native abilities that workers might possess
B)   production inputs such as land, rivers, and mineral deposits
C)   knowledge that is freely available and is used in production
D)   public schools and universities where workers are prepared for life, for which companies do not have to payE) A) and D)
F) A) and B)

Question 11

In a market economy, what is scarcity of resources most clearly reflected in?

Accepted Answer

A)   supply
B)   demand
C)   market prices
D)   the stock of the resourceE) All of the above
F) B) and C)

Question 12

According to an economist, what kind of goods are national defence and knowledge?

Accepted Answer

A)   private goods
B)   public goods
C)   normal goods
D)   societal goodsE) All of the above
F) A) and B)

Question 13

What do economists call the equipment and structures available to produce goods and services?

Accepted Answer

A)   physical capital
B)   human capital
C)   production inputs
D)   technologyE) A) and C)
F) C) and D)

Question 14

If the productivity slowdown had not occurred in 1973, the income of the average Canadian today would be about 70 percent higher.

Accepted Answer

A) True 
 B)False

Question 15

Suppose that there are diminishing returns to capital. Suppose also that two countries are the same except one has less capital, and so less real GDP per person. Suppose that both increase their saving rate from 3 percent to 4 percent. What will happen in the long run?

Accepted Answer

A)   Both countries will have permanently higher growth rates of real GDP per person, and the growth rate will be higher in the country with more capital.
B)   Both countries will have permanently higher growth rates of real GDP per person, and the growth rate will be higher in the country with less capital.
C)   Both countries will have higher levels of real GDP per person, and the temporary increase in growth in the level of real GDP per person will have been greater in the country with more capital.
D)   Both countries will have higher levels of real GDP per person, and the temporary increase in growth in the level of real GDP per person will have been greater in the country with less capital.E) A) and B)
F) A) and D)

Question 16

Once one person discovers an idea, the idea generally enters society's pool of knowledge. Therefore, knowledge is generally what kind of good?

Accepted Answer

A)   a societal good
B)   a private good
C)   a public good
D)   a normal goodE) A) and D)
F) None of the above

Question 17

What is an effect of outward-oriented policies?

Accepted Answer

A)   Some countries gain and some lose from trade.
B)   They have generally led to high growth for the countries that pursued them.
C)   They impede growth in poor countries, but create more jobs.
D)   They increase GDP, but also increase overall unemployment.E) B) and D)
F) A) and D)

Question 18

Suppose that there are diminishing returns to capital. Suppose also that two countries are the same except one has less capital, and so less real GDP per person, than the other. Suppose that the saving rate in both countries increases from 5 percent to 6 percent. What would we expect over the next 10 years?

Accepted Answer

A)   The growth rate will not change in either country.
B)   The country with less capital will grow faster.
C)   The country with more capital will grow faster.
D)   Both countries will grow at the same rate.E) All of the above
F) A) and B)

Question 19

When a country removes trade barriers and exports pork chops and imports stereos, what will most likely happen?

Accepted Answer

A)   Its growth will slow down.
B)   Its productivity will decrease.
C)   It will essentially be transforming pork chops into stereos.
D)   Its economic well-being will decrease, while that of the country that sells stereos will increase.E) All of the above
F) A) and D)

Question 20

Which nation experienced average rates of economic growth of more than 2.0 percent between 1900 and 2010?

Accepted Answer

A)   Brazil
B)   India
C)   Pakistan
D)   ArgentinaE) C) and D)
F) All of the above

Exam 7: Production and Growth

In a market economy, what is scarcity of resources most clearly reflected in?

Correct Answer
verified

Changes in the prices of most natural resources compared to other goods indicate that natural resources are generally becoming scarcer.

Correct Answer
verified

If the productivity slowdown had not occurred in 1973, the income of the average Canadian today would be about 70 percent higher.

Correct Answer
verified

Economists generally believe that outward-oriented policies are more likely to foster growth than inward-oriented policies.

Correct Answer
verified

Correct Answer
verified
There is no "correct" answer t...
View Answer

How does the political environment affect economic growth?

Correct Answer
verified

What would increase productivity, everything else being the same?

Correct Answer
verified

Which of the following best describes natural resources?

Correct Answer
verified

According to an economist, what kind of goods are national defence and knowledge?

Correct Answer
verified

What is an effect of outward-oriented policies?

Correct Answer
verified

Once one person discovers an idea, the idea generally enters society's pool of knowledge. Therefore, knowledge is generally what kind of good?

Correct Answer
verified

Correct Answer
verified

What do economists call the equipment and structures available to produce goods and services?

Correct Answer
verified

Which organization tries to encourage the flow of investment to poor countries?

Correct Answer
verified

Suppose that there are diminishing returns to capital. Suppose also that two countries are the same except one has less capital, and so less real GDP per person. Suppose that both increase their saving rate from 3 percent to 4 percent. What will happen in the long run?

Correct Answer
verified

Which statement best describe the relationship between productivity and standard of living?

Correct Answer
verified

Why is productivity related to the standard of living. In your answer be sure to explain what productivity and standard of living mean. Make a list of things that determine labour productivity.

Correct Answer
verified
The standard of living is a measure of h...
View Answer

Which nation experienced average rates of economic growth of more than 2.0 percent between 1900 and 2010?

Correct Answer
verified

Which of the following would be considered physical capital?

Correct Answer
verified

When a country removes trade barriers and exports pork chops and imports stereos, what will most likely happen?

Correct Answer
verified

Exam 7: Production and Growth

In a market economy, what is scarcity of resources most clearly reflected in?

Correct AnswerverifiedShow Answer

Changes in the prices of most natural resources compared to other goods indicate that natural resources are generally becoming scarcer.

Correct AnswerverifiedShow Answer

If the productivity slowdown had not occurred in 1973, the income of the average Canadian today would be about 70 percent higher.

Correct AnswerverifiedShow Answer

Economists generally believe that outward-oriented policies are more likely to foster growth than inward-oriented policies.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThere is no "correct" answer t...View AnswerShow Answer

How does the political environment affect economic growth?

Correct AnswerverifiedShow Answer

What would increase productivity, everything else being the same?

Correct AnswerverifiedShow Answer

Which of the following best describes natural resources?

Correct AnswerverifiedShow Answer

According to an economist, what kind of goods are national defence and knowledge?

Correct AnswerverifiedShow Answer

What is an effect of outward-oriented policies?

Correct AnswerverifiedShow Answer

Once one person discovers an idea, the idea generally enters society's pool of knowledge. Therefore, knowledge is generally what kind of good?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What do economists call the equipment and structures available to produce goods and services?

Correct AnswerverifiedShow Answer

Which organization tries to encourage the flow of investment to poor countries?

Correct AnswerverifiedShow Answer

Suppose that there are diminishing returns to capital. Suppose also that two countries are the same except one has less capital, and so less real GDP per person. Suppose that both increase their saving rate from 3 percent to 4 percent. What will happen in the long run?

Correct AnswerverifiedShow Answer

Which statement best describe the relationship between productivity and standard of living?

Correct AnswerverifiedShow Answer

Why is productivity related to the standard of living. In your answer be sure to explain what productivity and standard of living mean. Make a list of things that determine labour productivity.

Correct AnswerverifiedThe standard of living is a measure of h...View AnswerShow Answer

Which nation experienced average rates of economic growth of more than 2.0 percent between 1900 and 2010?

Correct AnswerverifiedShow Answer

Which of the following would be considered physical capital?

Correct AnswerverifiedShow Answer

When a country removes trade barriers and exports pork chops and imports stereos, what will most likely happen?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
There is no "correct" answer t...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The standard of living is a measure of h...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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