Production and Growth 6111
24.
In one day Portal Computer Company made 400 laptops with 1200 hours of labor. What was its
productivity?
a.
1/3 laptop per hour
b.
3 hours per laptop
c.
1200 laptops
d.
400 laptops
25.
Mary looks over reports on four of her workers. Jack made 30 baskets in 5 hours. Rudy made 32
baskets in 8
hours. Sam made 40 baskets in 12 hours. Walter made 22 baskets in four hours.
Who has the greatest productivity?
a.
Jack
b.
Rudy
c.
Sam
d.
Walter
26.
A barber shop produces 192 haircuts a day. Each barber in the shop works 8 hours per day and
produces the same
number of haircuts per hour. If the shop’s productivity is 2 haircuts per hour of
labor, then how many barbers does
the shop employ?
a.
8
b.
12
c.
16
d.
None of the above is correct.
27.
Miller’s Dairy produces 960 gallons of milk per day. Each milker at the dairy works 8 hours per
day and produces
the same number of gallons of milk per hour. If the Dairy’s productivity is 12
gallons of milk per hour of labor, then
how many milkers does the shop employ?
a.
8
b.
10
c.
80
d.
120
28.
Gramp’s Potato Chips produces 2560 bags of potato chips a day. Each employee at Gramp’s
works 8 hours. If the company’s productivity is 20 bags per hour, how many people does Gramp’s
employ?
a.
8
b.
16
c.
24
d.
None of the above is correct.
29.
Greg’s Ice Cream produces 1120 gallons of ice cream per day. Each employed works seven
hours and has
productivity of 20 gallons an hour. How many employees does Greg’s employ?
a.
160
b.
56
c.
8
d.
None of the above is correct.
30.
Adam and Doug both build birdhouses. Adam works 30 hours a week and produces 15 bird
houses. Doug works 20
hours a week and produces 12 bird houses. Which of the following is
correct?
a.
Adam’s production and productivity are higher than Doug’s.
b.
Adam’s production is higher than Doug’s, but Doug’s productivity is higher than Adam’s.
c.
Doug’s production is higher than Adam’s, but Adam’s productivity is higher than Doug’s.
d.
Doug’s production and productivity are higher than Adam’s.
31.
Alexis and Tara both mine salt. Alexis mines 300 pounds in 20 hours. Tara mines 400 pounds in
40 hours. Which of
the following is correct?
a.
Alexis’s productivity is greater than Tara’s. This difference could be explained by Alexis
having more
physical capital than Tara.
b.
Alexis’s productivity is greater than Tara’s. This difference cannot be explained by a difference
in the
physical capital each has.
c.
Tara’s productivity is greater than Alexis’s. This difference could be explained by Tara having
more physical
capital than Alexis.
d.
Tara’s productivity is greater than Alexis’s. This difference cannot be explained by a difference
in the
physical capital each has.
32.
Waldo works eight hours and produces 7 units of goods per hour. Emerson works six hours and
produces 10 units
of goods per hour.
a.
Waldo’s productivity and output are greater than Emerson’s.
b.
Waldo’s productivity is greater than Emerson’s but his output is less.
c.
Emerson’s productivity and output are greater than Waldo’s.
d.
Emerson’s productivity is greater than Waldo’s but his output is less.
33.
Popeye produces 20 cans of spinach in 8 hours. Wimpy produces 15 hamburgers in 10 hours. If
each hamburger
trades for 1.5 cans of spinach, then
a.
Popeye’s production and productivity are greater than Wimpy’s.
b.
Popeye’s production is greater than Wimpy’s, but his productivity is less.
c.
Wimpy’s production and productivity are greater than Popeye’s.
d.
Wimpy’s production is greater than Popeye’s, but his productivity is less.
34.
Nathan owns a bakery that bakes only cakes. All of his bakers work 8 hours per day. In 2011, he
employed 5
bakers who produced a total of 200 cakes each day. In 2012, he employed 6 bakers
who produced a total of 249
cakes each day. The bakery’s productivity
a.
decreased by 2.33%.
b.
increased by 2.33%.
c.
increased by 3.75%.
d.
increased by 24.50%.
35.
Daniel owns a coffee kiosk. All of his employees work 8 hours per day. In 2011, he employed 6
people who
produced a total of 912 cups of coffee each day. In 2012, he hired a seventh
employee and production increased to
1008 cups of coffee each day. In Daniel’s kiosk,
productivity
a.
increased by about 10.5 percent
b.
increased by 9.5 percent
c.
decreased by about 5.6 percent
d.
decreased by about 5.3 percent
36.
In 2011 Buckeye Brewing produced 1,000 bottles of ginger ale each day. It employed 10 workers
each working 8
hours a day. In 2012 it produced 960 bottles of ginger ale each day employing 8
workers who worked 8 hours each
day. Productivity at Buckeye Brewing
a.
increased by 20%.
b.
increased by 16.67%.
c.
decreased by 1.67%.
d.
decreased by 40%.
37.
In 2011, Modern Electronics, Inc. produced 60,000 calculators, employing 80 workers, each of
whom worked 8
hours per day. In 2012, the same firm produced 76,500 calculators, employing 85
workers, each of whom worked
10 hours per day. Productivity at Modern Electronics
a.
decreased by 4%
b.
remained constant.
c.
increased by 8.33%
d.
increased by 27.50%
38.
Real Foods produced 400,000 cans of diced tomatoes last year and 460,000 cans of diced
tomatoes this year. It
employed the same number of labor hours each year. Real Foods’
productivity
a.
decreased 13%.
b.
was unchanged.
c.
increased 13%.
d.
increased 15%.
39.
In 2010, Acme Foods produced 300,000 bags of pretzels, employing 12,000 hours of labor. In
2011, it produced
322,000 bags of pretzels, employing 14,000 hours of labor. Acme Foods
productivity
a.
decreased by 8%.
b.
was unchanged.
c.
increased by 6.8%.
d.
increased by 7.3%.
40.
Dilbert’s Incorporated produced 5,000,000 units of accounting software in 2010. At the start of
2011 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
a.
fell by 4%.
b.
fell by 20%.
c.
rose by 12%.
d.
rose by 20%.
41.
Dilbert’s Incorporated produced 6,000,000 units of software in 2010. At the start of 2011 the
pointy-haired boss raised employment from 10,000 total annual hours to 14,000 annual hours and
production was 7,000,000 units. These number indicate that productivity
a.
fell by about 16.7%.
b.
stayed the same.
c.
rose by about 16.7%.
d.
rose by about 40%.
42.
Last year the imaginary country of Basova 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 Andovia had a
population of 12,000, 8,000 people
worked 8 hours a day, and produced a real GDP of
$38,000,000. Which of the following is correct?
a.
Basova had higher productivity and higher real GDP per person.
b.
Andovia had the higher productivity and higher real GDP per person.
c.
Basova had the higher productivity while Andovia had the higher real GDP per person.
d.
Andovia had the higher productivity while Basova had the higher real GDP per person.
43.
Country A has a population of 1,000, of whom 800 work 8 hours a day to make 128,000 final
goods. Country B has
a population of 2,000, of whom 1,800 work 6 hours a day to make 270,000
final goods.
a.
Country A has higher productivity and higher real GDP per person than country B.
b.
Country A has lower productivity and lower real GDP per person than country B.
c.
Country A has higher productivity, but lower real GDP per person than country B.
d.
Country B has lower productivity, but higher real GDP per person than country B.
44.
Workland has a population of 10,000, of whom 7,000 work 8 hours a day to produce a total of
224,000 final goods. Laborland has a population of 5,000, of whom 3,000 work 7 hours a day to
produce a total of 105,000 final goods.
a.
Workland has higher productivity and higher real GDP per person than Laborland.
b.
Workland has higher productivity but lower real GDP per person than Laborland.
c.
Workland has lower productivity but higher real GDP per person than Laborland.
d.
Workland has lower productivity and lower real GDP per person than Laborland.
45.
Upland has a population of 15,000, of whom 9,000 work 8 hours a day to produce real output of
$342,000. Lowland
has a population of 8,000, of whom 7,000 work 7 hours a day to produce real
output of $171,500.
a.
Upland has higher productivity and higher real GDP per person than Lowland.
b.
Upland has higher productivity but lower real GDP per person than Lowland.
c.
Upland has lower productivity but higher real GDP per person than Lowland.
d.
Upland has lower productivity and lower real GDP per person than Lowland.
46.
Country A had a population of 1,000, of whom 600 worked an average of 8 hours a day and had a
productivity of 2.5. Country B had a population of 800, of whom 560 worked 8 hours a day and
had productivity of 3.0. Country
a.
A had the higher level of real GDP and real GDP per person.
b.
A had the higher level of real GDP and Country B had the higher level of real GDP per person
c.
B had the higher level of real GDP and Country A had the higher level of real GDP per person
d.
B had the higher level of real GDP and real GDP per person.
47.
Country A had a population of 2,000, of whom 1,300 worked an average of 8 hours a day and had
a productivity of 5.Country B had a population of 2,500, of whom 1,700 worked 8 hours a day and
had productivity of 4. Country
a.
A had the higher level of real GDP and real GDP per person.
b.
A had the higher level of real GDP and Country B had the higher level of real GDP per person
c.
B had the higher level of real GDP and Country A had the higher level of real GDP per person
d.
B had the higher level of real GDP and real GDP per person.
Table 25–1.
Athens and Troy both produce only ribs and baked potatoes.
Athens
Troy
Quantities
Ribs
200,000
300,000
Baked Potatoes
400,000
250,000
Base year prices
Ribs
$10
$10
Baked Potatoes
$4
$4
Population and Employment
Population
6,000
8,000
Total hours of employment
40,000
60,000
48.
Refer to Table 25-1. Which of the following is correct?
a.
Both real GDP and real GDP per person are higher in Athens than Troy.
b.
Real GDP is higher in Athens while real GDP per person is higher in Troy
c.
Real GDP is higher in Troy while real GDP per person is higher in Athens.
d.
Both real GDP and real GDP per person are higher in Troy than Athens.
49.
Refer to Table 25-1. Which of the following is correct?
a.
Both productivity and the standard of living are higher in Athens than Troy.
b.
Productivity is higher in Athens while the standard of living is higher in Troy
c.
Productivity is higher in Troy while the standard of living is higher in Athens.
d.
Both productivity and the standard of living are higher in Troy than Athens.
50.
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
a.
higher this year than last year. A possible source of this change in productivity is a change in
the size of the
capital stock.
b.
higher this year than last year. A change in the size of the capital stock does not affect
productivity.
c.
lower this year than last year. A possible source of this change in productivity is a change in
the size of the
capital stock.
d.
lower this year than last year. A change in the size of the capital stock does not affect
productivity.
51.
Both Arnold and Will work 10 hours a day. Arnold can produce six baskets of goods per hour
while Will can produce four baskets of the same goods per hour. It follows that Arnold’s
a.
productivity is greater than Will’s.
b.
output is greater than Will’s.
c.
standard of living is higher than Will’s.
d.
All of the above are correct.
52.
Each day Sue works 8 hours and produces 7 units of goods and services. Mary works 10 hours
each day and
produces 10 units of goods and services. It follows that
a.
Sue’s productivity is higher than Mary’s.
b.
Mary’s productivity is higher than Sue’s.
c.
Sue’s income per hour will be higher than Mary’s.
d.
Sue’s income per day will be higher than Mary’s.
53.
Which of the following items plays a role in determining productivity?
a.
physical capital
b.
natural resources
c.
technological knowledge
d.
All of the above are correct.
54.
Industrial machinery is an example of
a.
a factor of production that in the past was an output from the production process.
b.
technological knowledge.
c.
a production function.
d.
an item which always has the property called constant returns to scale.
55.
Industrial machinery is an example of
a.
a factor of production that in the past was an output from the production process.
b.
physical capital.
c.
something that influences productivity.
d.
All of the above are correct.
56.
The Karmic Deed Restaurant uses all of the following to produce vegetarian meals. Which of
them is an example
of physical capital?
a.
the owner’s knowledge of how to prepare vegetarian entrees
b.
the money in the owner‘s account at the bank from which she borrowed money
c.
the tables and chairs in the restaurant
d.
the fresh fruits, vegetables, and grains the restaurant uses to prepare its meals
57.
The equipment and structures available to produce goods and services are called
a.
physical capital.
b.
human capital.
c.
the production function.
d.
technology.
58.
The saws, lathes, and drill presses that woodworkers at Cedar Valley Furniture use to produce
furniture are called
a.
human capital.
b.
physical capital.
c.
natural resources.
d.
technological knowledge.
59.
Which of the following is not an example of physical capital?
a.
a new factory building
b.
a delivery van
c.
the knowledge of workers
d.
the office chair in a lawyer’s office
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.
the available knowledge on how to make semiconductors
b.
a taxi-cab driver’s knowledge of the fastest routes to take
c.
bulldozers, backhoes and other construction equipment
d.
All of the above are correct.
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.