BRAC-102-Ch25-inclass-quiz

If Robinson Crusoe observes more fishes are available around the Island, it means the Island experienced

• increase physical capital
• increase in human capital
• increase in natural resources
• advances in technological knowledges
• None of the above

If Robinson Crusoe learns improved technique to catch fishes with his same equipment, he experienced

• increase in physical capital
• increase in human capital
• increase in natural resources
• advances in technological knowledges
• None of the above

If Robinson Crusoe adds a fishing net to his fishing equipment , he experienced

• increase in physical capital
• increase in human capital
• increase in natural resources
• advances in technological knowledges
• None of the above

Which of the following lists contains, in this order, natural resources, human capital, and physical capital?

• a. Restaurant: vegetable for salad, Chef's skill, freezer.
• b. Furniture company: wood, the company cafeteria, saws.
• c. Railroad: fuel, railroad engines, railroad tracks.
• d. None of the above are correct.

If there are diminishing returns to capital,

• a. capital produces fewer goods as it ages.
• b. new ideas are not as useful as old ideas.
• c. increases in the capital stock eventually decrease output.
• d. increases in the capital stock increase output by ever smaller amounts.
• e. None of the above

Other things equal, relatively poor countries tend to grow

• a. slower than relatively rich countries; this is called the poverty trap.
• b. slower than relatively rich countries; this is called the Malthus effect.
• c. faster than relatively rich countries; this is called the catch-up effect.
• d. faster than relatively rich countries; this is called the constant-returns-to-scale effect.
• e. None of the above