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WorksheetsProduction and Growth Quiz 3
Total questions: 20
Worksheet time: 10mins
The average income in a rich country, such as the United States or Japan, is more than
3 times, but less than 5 times, the average income in a poor country, such as Indonesia or Nigeria.
5 times, but less than 10 times, the average income in a poor country, such as Indonesia or Nigeria.
10 times, but less than 20 times, the average income in a poor country, such as Indonesia or Nigeria.
more than 20 times the average income in a poor country, such as Indonesia or Nigeria.
In which of the following countries has economic growth been sufficiently strong in recent history to propel that country from being among the poorest in the world to being among the richest in the world?
South Korea
Senegal
India
Indonesia
Productivity is the amount of goods and services
an economy produces. It is not linked to a nation’s economic policies.
an economy produces. It is linked to a nation’s economic policies.
produced for each hour of a worker’s time. It is not linked to a nation’s economic policies.
produced for each hour of a worker’s time. It is linked to a nation’s economic policies.
A nation's standard of living is best measured by its
real GDP.
real GDP per person.
nominal GDP.
nominal GDP per person.
If one wants to know how the material well-being of the average person has changed over time in a given country, one should look at the
level of real GDP.
growth rate of nominal GDP.
growth rate of real GDP.
growth rate of real GDP per person.
Which of the following is correct?
Countries with the highest growth rates over the last 100 years are the ones that had the highest level of real GDP 100 years ago.
Most countries have had little fluctuation around their average growth rates during the past 100 years.
The ranking of countries by income changes substantially over time.
Over the last 100 years, Japan had the highest real GDP growth rate, and now has the highest real GDP per person.
Last year real GDP in the imaginary nation of Oceania was 561.0 billion and the population was 2.2 million. The year before, real GDP was 500.0 billion and the population was 2.0 million. What was the growth rate of real GDP per person during the year?
12 percent
10 percent
4 percent
2 percent
In 2009, the imaginary nation of Florastan had a population of 8,300 and real GDP of 190,900. Florastan had 5% growth in real GDP per person. In 2010 it had a population of 8,400. What was real GDP in Florastan in 2010?
200,445
202,860
198,059
None of the above is correct.
In 2009, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its real GDP grew by about 1.98%. Which of the following sets of growth rates is consistent with this growth in real GDP?
1% population growth and 3% real GDP growth
3% population growth and 1% real GDP growth
3% population growth and 6% real GDP growth
6% population growth and 3% real GDP growth
Which of the following is not correct?
Countries that have had higher output growth per person have typically done so without higher productivity growth.
A country's standard of living and its productivity are closely related.
Productivity refers to output produced per hour of work.
Increases in productivity can be used to increase output or leisure.
Dilbert’s Incorporated produced 5,000,000 units of accounting software in 2008. At the start of 2009 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%.
Last year the imaginary country of Bahkan had a population of 10,000, 6,000 people worked 8 hours a day and produced a real GDP of $30,000,000. The imaginary country of San Andreo had a population of 15,000, 8,000 people worked 7 hours a day and produced a real GDP of $33,000,000. Which of the following is correct?
Bahkan had the higher productivity and the higher real GDP per person.
San Andreo had the higher productivity and the higher real GDP per person.
Bahkan had the higher productivity while San Andreo had the higher real GDP per person.
San Andreo had the higher productivity while Bahkan had the higher real GDP per person.
Country A has a population of 1,000, of whom 700 worked an average of 8 hours a day and had a productivity of 2.5. Country B has a population of 800, of whom 560 worked 8 hours a day and had productivity of 3.0. The country with the higher real GDP was
country A, and the country with higher real GDP per person was country A.
country A, and the country with higher real GDP per person was country B.
country B, and the country with higher real GDP per person was country A.
country B, and the country with higher real GDP per person was country B.
Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units. This year the same country had 1000 workers who worked an average of 8 hours and produced 14,000 units. This country’s productivity was
higher this year than last year. A possible source of this change in productivity is a change in the size of the capital stock.
higher this year than last year. A change in the size of the capital stock does not affect productivity.
lower this year than last year. A possible source of this change in productivity is a change in the size of the capital stock.
lower this year than last year. A change in the size of the capital stock does not affect productivity.
Which of the following items plays a role in determining productivity?
physical capital
natural resources
technological knowledge
All of the above are correct.
The equipment and structures available to produce goods and services are called
physical capital.
human capital.
the production function.
technology.
Which of the following are human capital and physical capital, respectively?
for a brick layer: her bricks and her tools
for a gas station: the pumps and the cash register
for a restaurant: the chefs’ knowledge about preparing food and the equipment in the kitchen
for a medical office: the building and the doctors’ knowledge of medicine
In a particular production process, if the quantities of all inputs used double, then the quantity of output doubles as well. This means that
the production process cannot be enhanced by technological advances.
no mathematical representation of the relevant production function can be formulated.
the relevant production function has the limits-to-growth property.
the relevant production function has the constant-returns-to-scale property.
In a particular production process, if the quantities of all inputs used are increased by 60 percent, then the quantity of output increases by 60 percent as well. This means that
the production process cannot be enhanced by technological advances.
no mathematical representation of the relevant production function can be formulated.
the relevant production function has the limits-to-growth property.
the relevant production function has the constant-returns-to-scale property.
Suppose that there are diminishing returns to capital. Suppose also that two countries are the same except one has less capital and so less real GDP per person. Suppose that both increase their saving rate from 3 percent to 4 percent. In the long run
both countries will have permanently higher growth rates of real GDP per person, and the growth rate will be higher in the country with more capital.
both countries will have permanently higher growth rates of real GDP per person, and the growth rate will be higher in the country with less capital.
both countries will have higher levels of real GDP per person, and the temporary increase in growth in the level of real GDP per person will have been greater in the country with more capital.
both countries will have higher levels of real GDP per person, and the temporary increase in growth in the level of real GDP per person will have been greater in the country with less capital.
