TUT 2

You are told that Country A experienced growth of real GDP per person of 4 percent per year

throughout the 1900s. In view of other countries’ experience, you would have to characterize

Country A’s growth as

• exceptionally high

• moderately high

• moderately low

• exceptionally low

The level of real GDP person

• differs widely across countries, but the growth rate of real GDP per person is

  similar across countries

• is very similar across countries, but the growth rate of real GDP per person differs

  widely across countries

• and the growth rate of real GDP per person are similar across countries

• and the growth rate of real GDP per person vary widely across countries

Which of the following countries had the highest growth rate over the last 100 or so year?

• Brazil

• Germany

• Canada

• United States

Which of the following countries had the highest level of real GDP per person in 2006?

• Germany

• United Kingdom

• United States

• Japan

The average amount of goods and services produced from each hour of a worker's time is called

• GDP

• per capita GDP

• productivity

• technological knowledge

Dilbert’s Incorporated produced 5,000,000 units of accounting software in 2004. At the start of 2005

the pointy-haired boss reduced total annual hours of employment from 10,000 to 8,000 and

production was 4,800,000. These numbers indicate that productivity

• fell by 4%

• fell by 20%

• rose by 12%

• rose by 20%

Dilbert’s Incorporated produced 6,000,000 units of software in 2005. At the start of 2006 the pointy- haired boss raised employment from 10,000 total annual hours to 14,000 annual hours and

production was 7,000,000 units. Based on these numbers what happened to productivity?

• It fell by about 16.7%

• It stayed the same

• It rose by about 16.7%

• It rose by about 40%

Which of the following is human capital?

• textbooks

• hand held power tools

• understanding how to repair cars

• All of the above are correct

Which of the following statements is true?

• Natural resources per worker influence productivity only when those natural

  resources are renewable

• The prices of most natural resources are stable or falling relative to other prices

• Technology requires greater use of natural resources

• The terms human capital and technological knowledge are used interchangeably

Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,300 a ton. Over the same time a measure of the overall price level increased from 168 to 187. The price of iron

ore increased by

• less than inflation, and this means it became relatively less scarce

• less than inflation, and this means it became scarcer

• more than inflation, and this means it became scarcer

• more than inflation, but this doesn’t necessarily mean that it become scarcer