60. Which of the following is an example of physical capital?
a.
the strength of workers
b.
on the job training
c.
financial assets like cash and bonds
d.
the equipment in a factory
61. Which of the following is an example of physical capital?
a.
the computer a secretary uses
b.
rivers on which goods are transported
c.
the skills and knowledge of a doctor
d.
All of the above are correct.
62. Which of the following is an example of physical capital?
a.
b.
c.
d.
63. Which of the following is an example of a produced factor of production?
a.
a plant in which automobiles are assembled
b.
skills that people accumulate in high school and college
c.
skills that people accumulate through experience in the workplace
d.
All of the above are correct.
64. Which of the following is an example of a produced factor of production?
a.
corn that is harvested from a field in Iowa
b.
workers who are hired at a coal mine in West Virginia
c.
skills that teachers in Texas acquire through continuing-education classes
d.
All of the above are correct.
65. Human capital is the
a.
knowledge and skills that workers acquire through education, training, and experience.
b.
stock of equipment and structures that is used to produce goods and services.
c.
total number of hours worked in an economy.
d.
same thing as technological knowledge.
66. Which of the following is considered human capital? Knowledge acquired from
a.
early childhood education programs
b.
job training
c.
on-the-job experience
d.
All of the above are correct.
67. Which of the following is an example of human capital?
a.
a student loan
b.
knowledge learned from reading books
c.
training videos for new corporate employees
d.
All of the above are correct.
68. Which of the following is an example of human capital?
a.
the comfortable chair in your dorm room where you read economics texts
b.
the amount you get paid each week to work at the library
c.
the things you have learned this semester
d.
any capital goods that require a human to be present to operate
69. Which of the following best illustrates the human capital of a survivor stranded on an island?
a.
the fishing poles she has produced
b.
the invention of a better fishing lure
c.
the fresh fruit and fish on and around the island
d.
her previous training in a survival course
70. Which of the following is a part of your economics professor’s human capital?
a.
the things she learned at some prestigious university
b.
her copy of Mankiw’s text
c.
her chalk holder
d.
All of the above are correct.
71. Which of the following is an example of human capital?
a.
textbooks
b.
hand held power tools
c.
knowing how to repair cars
d.
All of the above are correct.
72. Megan is a landscaper. Which of the following are included in her physical capital?
a.
her knowledge of landscaping learned in college and her landscaping equipment
b.
her knowledge of landscaping learned in college, but not her landscaping equipment
c.
her landscaping equipment, but not her knowledge of landscaping learned in college
d.
neither her knowledge of landscaping learned in college nor her landscaping equipment
73. Ralph is a plumber. Which of the following are included in his human capital?
a.
the knowledge he learned on the job, and the tools he uses
b.
the knowledge he learned on the job, but not the tools he uses
c.
the tools he uses, but not the knowledge he learned on the job
d.
neither the knowledge he learned on the job nor the tools he uses
74. Janet is a farmer. Which of the following are included in her human capital?
a.
her tractor and what she’s learned from experience
b.
her tractor but not what she’s learned from experience
c.
what she’s learned from experience but not her tractor
d.
neither her tractor nor what she’s learned from experience
75. Which of the following are human capital and physical capital, respectively?
a.
for an accounting firm: the accountants’ knowledge of tax laws and computer software
b.
for a grocery store: grocery carts and shelving
c.
for a school: chalkboard and desks
d.
for a library: the building and the reference librarians’ knowledge of the Internet
76. Which of the following are human capital and physical capital, respectively?
a.
for a brick layer: her bricks and her tools
b.
for a gas station: the pumps and the cash register
c.
for a restaurant: the chefs’ knowledge about preparing food and the equipment in the kitchen
d.
for a medical office: the building and the doctors’ knowledge of medicine
77. Which of the following statements is correct?
a.
By definition, all natural resources are nonrenewable.
b.
Market prices give us reason to believe that natural resources are a limit to economic growth.
c.
An economy must be blessed with ample quantities of natural resources if it is to be a highly productive
economy.
d.
Differences in natural resources can explain some of the differences in standards of living around the world.
78. The inputs into production of goods and services that are provided by nature, such as land, rivers, and mineral deposits
are called
a.
physical capital.
b.
natural resources.
c.
human capital.
d.
technological knowledge.
79. Japan’s status as a rich nation is attributable to
a.
Japan’s quantities of natural resources, but not to international trade.
b.
international trade, but not to Japan’s domestic quantities of natural resources.
c.
the fact that Japanese productivity has remained nearly constant for more than 100 years.
d.
the fact that the Japanese have downplayed the role of human capital in economic growth.
80. Natural resources
a.
are inputs provided by nature.
b.
include land, rivers, and mineral deposits.
c.
take two forms: renewable and nonrenewable.
d.
All of the above are correct.
81. Which of the following is an example of a nonrenewable resource?
a.
corn
b.
oil
c.
livestock
d.
All of the above are correct.
82. Which of the following is an example of a renewable natural resource?
a.
fish
b.
soybeans
c.
wood
d.
All of the above are correct.
83. Which of the following is an example of a renewable natural resource?
a.
the knowledge possessed by scientists
b.
carpenters’ labor services
c.
lumber
d.
All of the above are correct.
84. Which of the following is an example of a nonrenewable natural resource?
a.
tin
b.
petroleum
c.
gold
d.
All of the above are correct.
85. In a market economy, the real, or inflation-adjusted, price of a resource measures its
a.
contribution to revenue.
b.
relative scarcity.
c.
productivity.
d.
contribution to efficiency.
86. In a market economy, scarcity of resources is most clearly reflected in
a.
supply.
b.
demand.
c.
market prices.
d.
the stock of the resource.
87. In a market economy, we know that a resource has become scarcer when
a.
its price rises relative to other prices.
b.
it is non-renewable and some of it is used.
c.
people search for substitutes.
d.
All of the above are correct.
88. In which of the following cases can we be certain that a natural resource has become scarcer?
a.
both the demand for the resource and the supply of the resource have increased.
b.
both the demand for the resource and the supply of the resource have decreased.
c.
the demand for the resource has increased and the supply has decreased.
d.
the demand for the resource has decreased and the supply has increased.
89. In which of the following cases can we be certain that a natural resource has become scarcer?
a.
both the demand for the resource and the supply of the resource have increased
b.
both the demand for the resource and the supply of the resource have decreased
c.
demand for the resource is unchanged and the supply of the resource has increased
d.
the demand for the resource has decreased and the supply of the resource is unchanged
90. If the price of a good has risen over time,
a.
it must have become more scarce.
b.
it must have become less scarce.
c.
it has become more scarce only if the price adjusted for inflation has risen.
d.
it has become less scarce only if the price adjusted for inflation has risen.
91. If a good has become more scarce, then we know for sure that
a.
the demand for it increased.
b.
the supply of it decreased.
c.
either the demand for it increased or the supply of it decreased.
d.
both the supply of it and the demand for it decreased.
92. Greater scarcity of a natural resource is indicated
a.
by an increase in the price of the resource, whether the price increase is less than or greater than the rate of
inflation.
b.
only by an increase in the price of the resource that is less than the rate of inflation.
c.
only by an increase in the price of the resource that is greater than the rate of inflation.
d.
only by an increase in the price of the resource that is caused by a decrease in supply and is greater than the
rate of inflation.
93. Suppose that in some country the price of silver increased from $30 per ounce to $31 per ounce during a time when
the overall price level increased by 5 percent. During this period, the real price of silver
a.
increased.
b.
decreased.
c.
stayed the same.
d.
might have increased, decreased or stayed the same; more information is needed to be sure.
94. Suppose over the last five years that the price of recycled aluminum increased from $800 a ton to $900 a ton. Over the
same time a measure of the overall price level increased from 120 to 138. The real price of recycled aluminum
a.
increased, so it became scarcer
b.
increased, so it became less scarce
c.
decreased, so it became scarcer
d.
decreased, so it became less scarce
95. Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,275 a ton. Over the same time a
measure of the overall price level increased from 150 to 156. The price of iron ore increased by
a.
less than inflation, so it became less scarce.
b.
less than inflation, so it became more scarce.
c.
more than inflation, so it became more scarce.
d.
more than inflation, so it became less scarce.
96. Suppose that over the last year the price of copper increased from $1.70 a pound to $1.79 per pound. Over the same
time a measure of the overall price level increased from 300 to 309. The price of copper increased by
a.
less than inflation, and this means it became relatively less scarce.
b.
less than inflation, and this means it became scarcer.
c.
more than inflation, and this means it became scarcer.
d.
more than inflation, but this doesn’t necessarily mean that it become scarcer.
97. If an inexpensive alternative to oil were found, the price of oil adjusted for inflation
a.
would decline as the alternative would reduce the demand for oil.
b.
would decline as the alternative would reduce the supply of oil.
c.
would increase as the alternative would increase the demand for oil.
d.
would increase as the alternative would increase the supply of oil.
98. Historically, the market prices of most natural resources (adjusted for inflation) have
a.
increased.
b.
remained stable.
c.
remained stable or decreased.
d.
decreased.
99. The behavior of market prices over time indicates that natural resources are
a.
a limit to economic growth.
b.
unrelated to economic growth.
c.
not a limit to economic growth.
d.
the major determinant of productivity.
100. The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is
supported by the fact that
a.
most economists do not regard the availability of natural resources as a determinant of productivity.
b.
the quantity of natural resources does not enter into any production function.
c.
inflation-adjusted prices of most natural resources have been stable or fallen over time.
d.
inflation-adjusted prices of most natural resources have risen over time.
101. Which of the following is correct?
a.
Once adjustment is made for inflation, the prices of most natural resources have been about steady or falling.
b.
Technological progress has allowed us to substitute renewable resources for some nonrenewable resources.
c.
Technological progress has made once-crucial natural resources less necessary.
d.
All of the above are correct.
102. After adjusting for inflation, over time the prices of most natural resources have been
a.
steady or falling, meaning that our ability to conserve them is growing more rapidly than their supplies are
dwindling.
b.
steady or falling, meaning that their supplies are dwindling more rapidly than our ability to conserve them is
growing.
c.
rising, meaning that our ability to conserve them is growing more rapidly than their supplies are dwindling.
d.
rising, meaning that their supplies are dwindling more rapidly than our ability to conserve them is growing.
103. If natural resources had become scarcer, then we would expect their
a.
prices to have risen more than inflation as they have.
b.
prices to have risen more than inflation, but they have not.
c.
known quantities to have fallen as they have.
d.
known quantities to have fallen but they have not.
104. A leading environmental group recently published a report contending that humans are running a “resource deficit”
because we are using natural resources faster than they can be regenerated. The group claims that this means that
economic growth will eventually stop, and will even be reversed. An economist would
a.
agree with the report, and would point to rising natural resource prices as evidence.
b.
agree with the report, but wouldn’t think it was important because growth will not slow down for several
centuries.
c.
disagree with the report, in part because it ignores the mitigating effects of technological change.
d.
disagree with the report because labor and capital are the primary determinants of growth, and since they are
plentiful, growth will not slow down.
105. Despite its status as one of the richest countries in the world, Japan
a.
has a very low level of productivity.
b.
has few natural resources.
c.
has very little human capital.
d.
engages in a relatively small amount of international trade.
106. Which of the following best states economists’ understanding of the facts concerning the relationship between natural
resources and economic growth?
a.
A country with no or few domestic natural resources is destined to be poor.
b.
Differences in natural resources have virtually no role in explaining differences in standards of living.
c.
Some countries can be rich mostly because of their natural resources and countries without natural resources
need not be poor, but can never have very high standards of living.
d.
Abundant domestic natural resources may help make a country rich, but even countries with few natural
resources can have high standards of living.
107. An understanding of the best ways to produce goods and services is called
a.
human capital.
b.
physical capital.
c.
technology.
d.
productivity.
108. Technological knowledge refers to
a.
human capital.
b.
available information on how to produce things.
c.
resources expended transmitting society’s understanding to the labor force.
d.
All of the above are technological knowledge.
109. Technological knowledge
a.
is the same thing as human capital.
b.
can be discovered but it can never be kept secret.
c.
is a determinant of productivity.
d.
does not play a role in the relationship that economists call the production function.
110. Proprietary technology is knowledge that is
a.
known but no longer used much.
b.
known, but only recently discovered.
c.
known mostly by only those in a certain profession.
d.
known only by the company that discovered it.
111. Proprietary technology is technology that is
a.
widely used because it is easy to learn.
b.
widely used because the government subsidizes its use.
c.
not widely used because people could, but have not, taken the time to learn how to apply it.
d.
not widely used because it is known or controlled only by the company that discovered it.
112. Proprietary technology is technology
a.
that the government prohibits firms from using.
b.
conserves natural resources.
c.
that is useful while other types of technology are outdated.
d.
that is known or controlled only by the company that discovered it.
113. Human capital is
a.
the same thing as technological knowledge.
b.
the same thing as labor.
c.
the tools and equipment operated by humans.
d.
knowledge and skills that workers have acquired.
114. Human capital
a.
can be thought of, metaphorically, as the quality of society’s textbooks, whereas technological knowledge can
be thought of as the time that the population has devoted to reading textbooks.
b.
is more tangible than physical capital.
c.
is an input in the production of goods and services.