Question 1

Mike and Tom debone chicken breasts for Ted's Chicken Co.Mike is new and can only debone 60 chicken breasts per hour by hand, while Tom's experience allows him to debone 120 chicken breasts per hour by hand.Ted buys one new machine that can debone 100 chicken breasts per hour.Both Mike and Tom work the same 40 hours per week, but one of them is assigned to operate the machine instead of deboning the chicken breasts by hand.To obtain maximum average hourly productivity, ______ is assigned to use the machine and their combined average hourly productivity as a team is ______ chicken breasts.

Accepted Answer

A)  Mike; 80
B)  Mike; 110
C)  Tom; 80
D)  Tom; 110E) B) and C)
F) A) and D)

Question 2

Based on the table below and the principle of diminishing returns to capital, then total packages wrapped when a fourth machine is installed must be less than ______ packages.

Accepted Answer

A)  3,000
B)  4,000
C)  12,000
D)  15,000E) None of the above
F) B) and C)

Question 3

Which of the following is consistent with a political and legal framework that discourages economic growth?

Accepted Answer

A)  The allocation of bank credit by the government rather than by markets
B)  A speedy approval process for new businesses
C)  Agricultural prices that are allowed to vary according to market conditions
D)  Taxation and regulation that are not very burdensomeE) A) and C)
F) C) and D)

Question 4

Suppose that average labor productivity in Country C is $5,000, and that Countries C and E have the same real GDP per capita.Based on the information in the table, what must be the average labor productivity in Country E?

Accepted Answer

A)  $1,000
B)  $1,500
C)  $4,500
D)  $6,250E) C) and D)
F) None of the above

Question 5

Countries with small amounts of capital per worker tend to have ______ levels of real GDP per person and ______ levels of average labor productivity.

Accepted Answer

A)  high; high
B)  high; low
C)  low; low
D)  low; averageE) A) and D)
F) B) and D)

Question 6

Based on the table below and the principle of diminishing returns to capital, then total packages wrapped when a fourth machine is installed must be less than ______ packages.

Accepted Answer

A)  2,000
B)  15,000
C)  16,000
D)  17,000E) C) and D)
F) None of the above

Question 7

Assume that the share of population employed in all countries is 50 percent.Based on the information in the table, which country has the highest real GDP per capita?

Accepted Answer

A)  Country A
B)  Country B
C)  Country D
D)  Country EE) A) and C)
F) A) and B)

Question 8

A political system that promotes the free and open exchange of ideas:

Accepted Answer

A)  will not have well-defined property rights.
B)  slows the development of new technologies and products.
C)  increases average labor productivity.
D)  is detrimental to economic growth.E) A) and D)
F) B) and D)

Question 9

Higher future living standards require:

Accepted Answer

A)  reduced rates of current consumption.
B)  increased rates of population growth.
C)  increased rates of current consumption.
D)  reduced rates of current investment.E) A) and B)
F) A) and C)

Question 10

Diminishing returns to capital is a consequence of firms'incentives to use each piece of capital as productively as possible and illustrates the:

Accepted Answer

A)  principle of comparative advantage.
B)  principle of increasing opportunity costs.
C)  scarcity principle.
D)  cost-benefit principle.E) B) and D)
F) None of the above

Question 11

Getting a college degree is an example of investing in:

Accepted Answer

A)  human capital.
B)  physical capital.
C)  technology.
D)  research and development.E) None of the above
F) B) and D)

Question 12

The long-run average annual growth of real GDP per person is the United States is approximately ______ percent.

Accepted Answer

A)  one
B)  two
C)  five
D)  sevenE) B) and C)
F) A) and D)

Question 13

If you left $2,500 on deposit with a bank promising to pay you a 6 percent compound annual rate of interest, then after 50 years your deposit would be worth approximately:

Accepted Answer

A)  $2,800
B)  $18,420
C)  $46,050
D)  $250,750E) All of the above
F) A) and C)

Question 14

When a firm builds a new factory, this is an example of an investment in:

Accepted Answer

A)  human capital.
B)  physical capital.
C)  the market.
D)  research and development.E) B) and C)
F) A) and B)

Question 15

A worldwide slowdown in productivity growth occurred:

Accepted Answer

A)  before 1950.
B)  in the 1950s and 1960s.
C)  in the 1960s and 1970s.
D)  in the 1970s and 1980s.E) A) and B)
F) All of the above

Question 16

Real GDP per person in Richland is $20,000, while real GDP per person in Poorland is $10,000.However, Richland's real GDP per person is growing at 1 percent per year, and Poorland's real GDP per person is growing at 2 percent per year.After 50 years, real GDP per person in Richland minus real GDP in Poorland is:

Accepted Answer

A)  positive and greater than $10,000.
B)  positive but less than $10,000.
C)  zero.
D)  negative.E) None of the above
F) B) and D)

Question 17

Advances in information and communication technology are the principal factors cited for the:

Accepted Answer

A)  slowdown in productivity growth between 1973 and 1995.
B)  speedup in productivity growth between 1973 and 1995.
C)  slowdown in productivity growth since 1995.
D)  speedup in productivity growth since 1995.E) C) and D)
F) All of the above

Question 18

In order to promote growth through increased quantities of physical capital, governments must promote:

Accepted Answer

A)  a better educational system.
B)  job training programs.
C)  high rates of saving and investing.
D)  funding for basic science.E) C) and D)
F) A) and D)

Question 19

Suppose when you are 21 years old, you deposit $1,000 into a bank account that pays annual compound interest, and you do not withdraw from the account until your retirement at the age of 65, 44 years later.How much more will be in your account if the interest rate is 6 percent rather than 4 percent?

Accepted Answer

A)  $880
B)  $2,390
C)  $5,617
D)  $7,369E) A) and C)
F) C) and D)

Question 20

In symbolic terms where Y equals real GDP, POP equals total population, and N equals the number of employed workers, Y/POP must equal:

Accepted Answer

A)  Y/N×N/POP.
B)  N/Y×POP/N.
C)  Y/POP×N/POP
D)  N/Y×N/POPE) None of the above
F) All of the above

Exam 7: Economic Growth

Getting a college degree is an example of investing in:

Correct Answer
verified

When a firm builds a new factory, this is an example of an investment in:

Correct Answer
verified

Suppose when you are 21 years old, you deposit $1,000 into a bank account that pays annual compound interest, and you do not withdraw from the account until your retirement at the age of 65, 44 years later.How much more will be in your account if the interest rate is 6 percent rather than 4 percent?

Correct Answer
verified

Suppose that average labor productivity in Country C is $5,000, and that Countries C and E have the same real GDP per capita.Based on the information in the table, what must be the average labor productivity in Country E?

Correct Answer
verified

Assume that the share of population employed in all countries is 50 percent.Based on the information in the table, which country has the highest real GDP per capita?

Correct Answer
verified

In order to promote growth through increased quantities of physical capital, governments must promote:

Correct Answer
verified

Diminishing returns to capital is a consequence of firms'incentives to use each piece of capital as productively as possible and illustrates the:

Correct Answer
verified

The long-run average annual growth of real GDP per person is the United States is approximately ______ percent.

Correct Answer
verified

A worldwide slowdown in productivity growth occurred:

Correct Answer
verified

If you left $2,500 on deposit with a bank promising to pay you a 6 percent compound annual rate of interest, then after 50 years your deposit would be worth approximately:

Correct Answer
verified

Higher future living standards require:

Correct Answer
verified

A political system that promotes the free and open exchange of ideas:

Correct Answer
verified

Advances in information and communication technology are the principal factors cited for the:

Correct Answer
verified

Which of the following is consistent with a political and legal framework that discourages economic growth?

Correct Answer
verified

Based on the table below and the principle of diminishing returns to capital, then total packages wrapped when a fourth machine is installed must be less than ______ packages.

Correct Answer
verified

Correct Answer
verified

In symbolic terms where Y equals real GDP, POP equals total population, and N equals the number of employed workers, Y/POP must equal:

Correct Answer
verified

Countries with small amounts of capital per worker tend to have levels of real GDP per person and levels of average labor productivity.

Correct Answer
verified

Correct Answer
verified

Based on the table below and the principle of diminishing returns to capital, then total packages wrapped when a fourth machine is installed must be less than ______ packages.

Correct Answer
verified

Exam 7: Economic Growth

Getting a college degree is an example of investing in:

Correct AnswerverifiedShow Answer

When a firm builds a new factory, this is an example of an investment in:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Suppose that average labor productivity in Country C is $5,000, and that Countries C and E have the same real GDP per capita.Based on the information in the table, what must be the average labor productivity in Country E?

Correct AnswerverifiedShow Answer

Assume that the share of population employed in all countries is 50 percent.Based on the information in the table, which country has the highest real GDP per capita?

Correct AnswerverifiedShow Answer

In order to promote growth through increased quantities of physical capital, governments must promote:

Correct AnswerverifiedShow Answer

Diminishing returns to capital is a consequence of firms'incentives to use each piece of capital as productively as possible and illustrates the:

Correct AnswerverifiedShow Answer

The long-run average annual growth of real GDP per person is the United States is approximately ______ percent.

Correct AnswerverifiedShow Answer

A worldwide slowdown in productivity growth occurred:

Correct AnswerverifiedShow Answer

If you left $2,500 on deposit with a bank promising to pay you a 6 percent compound annual rate of interest, then after 50 years your deposit would be worth approximately:

Correct AnswerverifiedShow Answer

Higher future living standards require:

Correct AnswerverifiedShow Answer

A political system that promotes the free and open exchange of ideas:

Correct AnswerverifiedShow Answer

Advances in information and communication technology are the principal factors cited for the:

Correct AnswerverifiedShow Answer

Which of the following is consistent with a political and legal framework that discourages economic growth?

Correct AnswerverifiedShow Answer

Based on the table below and the principle of diminishing returns to capital, then total packages wrapped when a fourth machine is installed must be less than ______ packages.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In symbolic terms where Y equals real GDP, POP equals total population, and N equals the number of employed workers, Y/POP must equal:

Correct AnswerverifiedShow Answer

Countries with small amounts of capital per worker tend to have ______ levels of real GDP per person and ______ levels of average labor productivity.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Based on the table below and the principle of diminishing returns to capital, then total packages wrapped when a fourth machine is installed must be less than ______ packages.

Correct AnswerverifiedShow Answer

Correct Answer
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Countries with small amounts of capital per worker tend to have levels of real GDP per person and levels of average labor productivity.

Correct Answer
verified

Correct Answer
verified

Correct Answer
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