Macroeconomics ch 7

physical capital

natural resources

technological knowledge

All of the above are correct.

raise productivity but not real GDP per person in Eurnesia.

raise real GDP per person and productivity in Eurnesia.

raise neither productivity nor real GDP per person in Eurnesia.

raise real GDP per person but not productivity in Eurnesia.

less real income than the typical resident of Canda in 1870.

higher real income than a resident of China in 2008.

higher real income than a resident of Japan in 2008.

less real income than the typical resident of the United Kingdom in 1870.

A country experiencing a growth rate of 8% per year can go from being one of the poorest to one of the richest in

Answer a.one generation.   In the last couple of decades China’s growth rate has been higher than 8%. b.three generations.   In the last couple of decades China’s growth rate has been higher than 8%. c.three generations.   However, in the last couple of decades not even China’s growth rate has been this high. d.one generation.  However, in the last couple of decades not even China’s growth rate has been this high.  

The saws, lathes, and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called

Answer a.natural resources. b.human capital. c.physical capital. d.technological knowledge.  

Which of the following is consistent with the catch-up effect?

Answer a.The United States had a higher growth rate before 1900 than after. b.After World War II the United States had lower growth rates than war-ravaged European countries. c.Although the United States has a relatively high level of output per person, its growth rate is rather modest compared to some countries. d.All of the above are correct.  

In the 1800s, Europeans purchased stock in American companies that used the funds to build railroads and factories. The Europeans who did this engaged in

Answer a.foreign direct investment. b.foreign indirect investment. c.indirect domestic investment. d.foreign portfolio investment. 

In some East Asian countries, average income, as measured by real GDP per person, has recently grown at an average annual rate that implies output will double about every

Answer a.10 years. b.25 years. c.20 years. d.15 years. 

Countries that grew the fastest over the last 100 or so years had growth rates of real income per person of about

Answer a.1.5 percent per year. b.2.0 percent per year. c.0.5 percent per year. d.2.5 percent per year. 

Which of the following is correct?

Answer a.Once adjustment is made for inflation, the prices of most natural resources have been about steady or falling. b.Technological progress has allowed us to substitute renewable resources for some nonrenewable resources. c.Technological progress has made once-crucial natural resources less necessary. d.All of the above are correct. 

Which of the following provide benefits to society at large and not just to the person(s) who pursues it?

Answer a.education, but not technological knowledge that is a public good b.both technological knowledge that is a public good and education c.neither education, nor technological knowledge that is a public good d.technological knowledge that is a public good, but not education 

Of the following countries, which grew most slowly, in terms of real GDP per person, over the last 100 years?

Answer a.Mexico b.China c.Brazil d.United States 

Which of the following is considered human capital?  Knowledge acquired from

Answer a.early childhood education programs b.job training c.on-the-job experience d.All of the above are correct. 

The slope of the production function with capital per worker on the horizontal axis and output per worker on the vertical axis

Answer a.is negative and gets steeper as capital per worker rises. b.is positive and gets flatter as capital per worker rises. c.is positive and gets steeper as capital per worker rises. d.is negative and gets flatter as capital per worker rises. 

Which of the following is a correct way to measure productivity?

Answer a.Determine how much time it takes to produce a unit 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.Divide the number of hours worked by the quantity of output.