Chapter 25 – Economics Worksheet (Mankiw/Taylor)

True/False – Indicate whether the sentence is true or false: The United States should grow faster than Japan because the United States has a larger economy.

• True

• False

True/False – Indicate whether the sentence is true or false: Evidence of rising prices for natural resources demonstrates that non-renewable resources will become so scarce that economic growth will be limited.

• True

• False

True/False – Indicate whether the sentence is true or false: The rate of economic growth is probably underestimated.

• True

• False

True/False – Indicate whether the sentence is true or false: Human capital refers to human-made capital such as tools and machinery, as opposed to natural capital such as rivers and timber.

• True

• False

True/False – Indicate whether the sentence is true or false: If a production function exhibits constant returns to scale, then doubling all of the inputs doubles output.

• True

• False

True/False – Indicate whether the sentence is true or false: In very poor countries, paying parents to send their children to school may increase the education of poor children and decrease the use of child labour.

• True

• False

True/False – Indicate whether the sentence is true or false: An increase in capital should cause the growth rate of a relatively poor country to increase more than that of a rich country.

• True

• False

True/False – Indicate whether the sentence is true or false: An increase in the rate of saving and investment permanently increases a country's rate of growth.

• True

• False

True/False – Indicate whether the sentence is true or false: A country can only increase its level of investment by increasing its saving.

• True

• False

True/False – Indicate whether the sentence is true or false: The only factor of production that is not produced is natural resources.

• True

• False