WorksheetsReview-Chapter 25
Total questions: 12
Worksheet time: 6mins
Productivity is defined as
the amount of difficulty that is involved in producing a given quantity of goods and services
the quantity of labor that is required to produce one unit of goods and services
the quantity of goods and services produced from each unit of labor input
the quantity of goods and services produced over a given amount of time
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%
If an economy’s production form takes the form Y = A F(L, K, H, N).
In the production function, which variable represents technology?
A
K
H
N
If the production function Y = A. F(L, K, H, N) has the constant-returns-to-scale property, then it could be rewritten as
Y/L = A F(1, K/L, H/L, N/L)
Y/L = A F(L, 1, H/L, N/L)
Y/L = A F(L, K/L, 1, N/L)
Y/L = A F(L, K/L, H/L, 1)
Suppose there are constant returns to scale. Now suppose that over time a country doubles its workers, its natural resources, its physical capital, and its human capital, but its technology is unchanged. Which of the following would double?
both output and productivity
output, but not productivity
productivity, but not output
neither productivity nor output
The catch-up effect refers to the idea that
saving will always catch-up with investment spending
it is easier for a country to grow fast and so catch-up if it starts out relatively poor
population eventually catches-up with increased output
if investment spending is low, increased saving will help investment to "catch-up."
If there are diminishing returns to capital, then
capital produces fewer goods as it ages
old ideas are not as useful as new ones
increases in the capital stock eventually decrease output
increases in the capital stock increase output by ever smaller amounts
Accumulating capital
requires that society sacrifice consumption goods in the present
allows society to consume more in the present
decreases saving rates
involves no tradeoffs
Which of the following would be human capital and physical capital, respectively?
for an accounting firm, the accountants’ knowledge of tax laws and the number of hours worked by those accountants
for a grocery store, grocery carts and cash registers
for a restaurant, the chefs’ knowledge about preparing food and equipment in the kitchen
for a library, the building and the reference librarians’ knowledge of the Internet
Human capital is the term economists use to refer to the knowledge and skills that workers acquire
through education, training, and experience
True
False
Investment from abroad
is a way for poor countries to learn the state-of-the-art technologies developed and used in richer
countries
is viewed by economists as a way to increase growth
often requires removing restrictions that governments have imposed on foreign ownership of
domestic capital
All of these answers are correct
Suppose a country reduces trade restrictions. This country would be pursing an
inward policy, which most economists believe has beneficial effects on the economy
inward policy, which most economists believe has adverse effects on the economy
outward policy, which most economists believe has beneficial effects on the economy
outward policy, which most economists believe has adverse effects on the economy
