Production and Growth 6091
34.
The United Kingdom is
a.
an advanced economy, and over the past century its rate of economic growth has been higher
than that of the
United States.
b.
an advanced economy, and over the past century its rate of economic growth has been lower
than that of the
United States.
c.
a middle-income country, and over the past century its rate of economic growth has been higher
than that of
the United States.
d.
a middle-income country, and over the past century its rate of economic growth has been lower
than that of
the United States.
35.
Mexico is
a.
a poor country, and over the past century its rate of economic growth has been higher than that
of the United
States.
b.
a poor country, and over the past century its rate of economic growth has been lower than that
of the United
States.
c.
a middle-income country, and over the past century its rate of economic growth has been higher
than that of
the United States.
d.
a middle-income country, and over the past century its rate of economic growth has been lower
than that of
the United States.
36.
In 1870, the richest country in the world was
a.
Germany.
b.
Japan
c.
the United Kingdom.
d.
the United States.
37.
Which of the following statements is correct?
a.
In 1870, real income per person was higher in the United States than in any other country at
that time.
b.
Over about the last 100 years India experienced significantly higher growth of real income per
person than did
the United States.
c.
Over about the last 100 years the United States experienced significantly higher growth of real
income per
person than did Japan.
d.
None of the above are correct.
38.
Which of the following is correct?
a.
Over the last 100 years Japan had a higher average growth rate than the United States. It
follows that, today,
the standard of living in Japan is higher than in the United States.
b.
The typical person in Bangladesh today has about twice the real income of a typical American
100 years ago.
c.
The typical citizen of China today has about one-half as much real income as the typical citizen
of America
today.
d.
None of the above is correct.
39.
Which of the following correctly ranks the three countries, from highest to lowest, for percentage
of high-school age
children in school?
a.
United Kingdom, Mali, Mexico.
b.
Mexico, Mali, United Kingdom.
c.
United Kingdom, Mexico, Mali.
d.
Mali, Mexico, United Kingdom.
40.
One can argue that the average American today is “richer” than the richest American 100 years
ago, given that 100 years ago,
a.
people’s nominal incomes were, on average, much lower than they are today.
b.
personal fortunes were not accurately measured.
c.
many of the goods and services that we now take for granted were not available.
d.
international trade had not yet begun to flourish.
41.
Last year real GDP per person in the imaginary nation of Olympus was 4,250. The year before it
was 4,100. By
about what percentage did Olympian real GDP per person grow during the period?
a.
1.6 percent
b.
2.5 percent
c.
3.7 percent
d.
6 percent
42.
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?
a.
12 percent
b.
10 percent
c.
4 percent
d.
2 percent
43.
Last year real GDP in the imaginary nation of Populia was 907.5 billion and the population was 3.3
million. The year
before real GDP was 750 billion and the population was 3 million. What was the
growth rate of real GDP per person
during the year?
a.
10 percent
b.
14 percent
c.
17 percent
d.
21 percent
44.
Last year the imaginary nation of Freedonia had a population of 2,800 and real GDP of
16,800,000. This year it had a
population of 2,700 and real GDP of 15,390,000. About what was
the growth rate of real GDP per person between
last year and this year?
a.
–5.3 percent
b.
-5 percent
c.
5 percent
d.
5.3 percent
45.
In 2012, the imaginary nation of Kanmiw had a population of 8,044 and real GDP of 36,198,000.
In 2013 it had a
population of 7,800 and real GDP of 35,880,000. What was the growth rate of
real GDP per person in Kanmiw
between 2012 and 2013?
a.
–2.2 percent
b.
–0.7 percent
c.
2.2 percent
d.
4.5 percent
46.
In 2011, the imaginary nation of Maconia had a population of 8,200 and real GDP of 210,500.
Maconia had 5%
growth in real GDP per person. In 2012 it had a population of 8,400. To the
nearest dollar what was real GDP in
Maconia in 2012?
a. 216,815
b. 221,025
c. 226,416
d. None of the above is correct.
47.
In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 500,000. In
2011 it had a
population of 5,100 and real GDP of 520,200. During 2011 real GDP per person in
Bovina grew by
a.
2 percent, which is high compared to average U.S. growth over the last one-hundred years.
b.
2 percent, which is about the same as average U.S. growth over the last one-hundred years.
c.
4 percent, which is high compared to average U.S. growth over the last one-hundred years.
d.
4 percent, which is about the same as average U.S. growth over the last one-hundred years.
48.
In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 600,000. In
2011 it had a
population of 5,200 and real GDP of 636,480. During 2011 real GDP per person in
Bovina grew by
a.
2 percent, which is high compared to average U.S. growth over the last one-hundred years.
b.
2 percent, which is about the same as average U.S. growth over the last one-hundred years.
c.
4 percent, which is high compared to average U.S. growth over the last one-hundred years.
d.
4 percent, which is about the same as average U.S. growth over the last one-hundred years.
49.
In 2010, the imaginary nation of Mainland had a population of 6,000 and real GDP of 120,000. In
2011 the population
was 6,200 and real GDP of 128,960. Over the year in question, real GDP per
person in Mainland grew by
a.
2 percent, which is high compared to average U.S. growth over the last one-hundred years.
b.
2 percent, which is about the same as average U.S. growth over the last one-hundred years.
c.
4 percent, which is high compared to average U.S. growth over the last one-hundred years.
d.
4 percent, which is about the same as average U.S. growth over the last one-hundred years.
50.
In 2009, the imaginary nation of Mainland had a population of 7,000 and real GDP of 210,000. In
2010 the population
was 7,300 and real GDP of 223,380. Over the year in question, real GDP per
person in Mainland grew by
a.
2 percent, which is high compared to average U.S. growth over the last one-hundred years.
b.
2 percent, which is about the same as average U.S. growth over the last one-hundred years.
c.
4 percent, which is high compared to average U.S. growth over the last one-hundred years.
d.
4 percent, which is about the same as average U.S. growth over the last one-hundred years.
51.
Last year the imaginary nation of Panglossia had real GDP of 400 billion. This year it had real
GDP of 472.5 billion. Which of the following changes in population is consistent with a 5 percent
growth rate of real GDP per person over
the last year?
a.
The population decreased from 75 million to 72 million.
b.
The population decreased from 60 million to 50 million.
c.
The population increased from 70 million to 80 million.
d.
The population increased from 80 million to 90 million.
52.
In 2012, the imaginary nation of Dorados had a population of 8,000 and real GDP of 3,000,000.
During the year its
real GDP grew by about 2.9%. Which of the following sets of growth rates is
consistent with this growth in real
GDP?
a.
2% population growth and 6% real GDP growth
b.
6% population growth and 2% real GDP growth
c.
4% population growth and 7% real GDP growth
d.
7% population growth and 4% real GDP growth
53.
In 2012, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000.
During the year its
real GDP per person grew by about 1.94%. Which of the following sets of
growth rates is consistent with this
growth in real GDP per person?
a.
3% population growth and 4% real GDP growth
b.
3% population growth and 5% real GDP growth
c.
6% population growth and 4% real GDP growth
d.
6% population growth and 5% real GDP growth
54.
Which of the following pairs of terms refer to the same thing?
a.
“capital” and “physical capital”
b.
“technological knowledge” and “human capital”
c.
“standard of living” and “human capital”
d.
“standard of living” and “productivity”
Multiple Choice – Section 02: Productivity: Its Role and Determinants
1.
Which of the following is correct?
a.
Although levels of real GDP per person vary substantially from country to country, the growth
rate of real
GDP per person is similar across countries.
b.
Productivity is not closely linked to government policies.
c.
The level of real GDP per person is a good gauge of economic prosperity, and the growth rate
of real GDP
per person is a good gauge of economic progress.
d.
Productivity may be measured by the growth rate of real GDP per person.
2.
The one variable that stands out as the most significant explanation of large variations in living
standards around the
world is
a.
productivity.
b.
population.
c.
preferences.
d.
prices.
3.
Productivity is defined as the quantity of
a.
labor required to produce a nation’s GDP.
b.
labor required to produce one unit of goods and services.
c.
goods and services produced from each unit of labor input.
d.
goods and services produced per unit of time.
4.
Which of the following is a correct way to measure productivity?
a.
Divide the number of hours worked by the quantity of output.
b.
Divide the quantity of output by the number of hours worked.
c.
Determine how much output is produced in a given time.
d.
Determine how much time it takes to produce a unit of output.
5.
Which of the following statements is true?
a.
Productivity is calculated as hours worked divided by output produced.
b.
Americans have a higher standard of living than Indonesians because American workers are
more
productive than Indonesian workers.
c.
Both A and B are correct.
d.
None of the above are correct.
6.
Which of the following is not correct?
a.
Countries that have had higher output growth per person have typically done so without higher
productivity
growth.
b.
A country‘s standard of living and its productivity are closely related.
c.
Productivity refers to output produced per hour of work.
d.
Increases in productivity can be used to increase output or leisure.
7.
In determining living standards, productivity plays a key role
a.
for individuals, but not for nations.
b.
for nations, but not for individuals.
c.
for both nations and individuals.
d.
for neither nations nor individuals.
8.
The key determinant of the standard of living in a country is
a.
the amount of goods and services produced from each hour of a worker’s time.
b.
the total amount of goods and services produced within the country.
c.
the total amount of its physical capital.
d.
its growth rate of real GDP.
9.
For a given year, productivity in a particular country is most closely matched with that country’s
a.
level of real GDP over that year.
b.
level of real GDP divided by hours worked over that year.
c.
growth rate of real GDP divided by hours worked over that year.
d.
growth rate of real GDP per person over that year.
10.
Which of the following would, by itself, reveal the most about a country’s standard of living?
a.
its level of capital
b.
the number of hours worked
c.
its availability of natural resources
d.
its productivity
11.
Productivity
a.
is nearly the same across countries, and so provides no help explaining differences in the
standard of living
across countries.
b.
explains very little of the differences in the standard of living across countries.
c.
explains some, but not most of the differences in the standard of living across countries.
d.
explains most of the differences in the standard of living across countries.
12.
Productivity is the
a.
key determinant of living standards, and growth in productivity is the key determinant of growth
in living
standards.
b.
key determinant of living standards, but growth in productivity is not the key determinant of
growth in living
standards.
c.
not the key determinant of living standards, but growth in productivity is the key determinant of
growth in
living standards.
d.
not the key determinant of living standards, and growth in productivity is not the key
determinant of growth in
living standards.
13.
Over the last ten years productivity grew faster in Mapoli than in Romeria while the population
and total hours
worked remained the same in both countries. It follows that
a.
real GDP per person grew faster in Mapoli than in Romeria.
b.
real GDP per person must be higher in Mapoli than in Romeria.
c.
the standard of living must be higher in Mapoli than in Romeria.
d.
All of the above are correct.
14.
Over the last ten years productivity grew more slowly in Iberia than in Aire while the population
and total hours
worked remained the same in both countries. It follows that
a.
real GDP per person must be lower in Iberia than in Aire.
b.
real GDP per person grew more slowly in Iberia than in Aire.
c.
the standard of living must be higher in Iberia than in Aire.
d.
All of the above are correct.
15.
Which of the following can explain faster growth of real GDP in country A than in Country B?
a.
both greater population growth and greater productivity growth in Country A
b.
greater population growth in Country A, but not greater productivity growth in Country A
c.
greater productivity growth in Country A, but not greater population growth in Country A
d.
neither greater population growth nor greater productivity growth in Country A
16.
Suppose that real GDP grew more in Country A than in Country B last year.
a.
Country A must have a higher standard of living than country B.
b.
Country A’s productivity must have grown faster than country B’s.
c.
Both of the above are correct.
d.
None of the above are correct.
17.
Given that a country’s real output has increased, in which of the following cases can we be sure
that its productivity also has increased?
a.
The total number of hours worked rose.
b.
The total number of hours worked stayed the same.
c.
The total number of hours worked fell.
d.
Both b and c are correct.
18.
Phoenix furniture uses 12 workers, each working eight hours, to produce 192 rocking chairs.
What is Phoenix’s productivity?
a.
192 rocking chairs
b.
24 rocking chairs per hour
c.
2 rocking chairs per hour
d.
2 hours per rocking chair
19.
Hit-It produces 320 baseball bats per day using 2 workers who each work 8 hours per day. What
is HitIt’s productivity?
a.
320 baseball bats
b.
160 baseball bats per hour
c.
20 baseball bats per hour
d.
None of the above is correct.
20.
In one day Alpha Cabinet Company made 40 cabinets with 320 hours of labor. What was Alpha
Cabinet Company’s productivity?
a.
1/8 cabinet per hour
b.
8 hours per cabinet
c.
40 cabinets
d.
None of the above is correct.
21.
In one day Madison Laundry washed 4,000 pounds of laundry with 5 workers who each worked 8
hours. What was
its productivity?
a.
4000 pounds of laundry
b.
500 pounds of laundry per hour
c.
100 pounds of laundry per hour
d.
None of the above is correct.
22.
Allied Business Consultants employs five researchers that each work 8 hour days. In one day the
researchers prepared 10 reports for its 2 largest clients. What was Allied Business Consultants’
productivity?
a.
10 reports
b.
5 reports per client
c.
1.25 reports per hour
d.
1/4 report per hour
23.
You and your friend work together for 4 hours to produce a total of 8 bookcases. What is
productivity?
a.
16 bookcases
b.
8 bookcases
c.
2 bookcases per hour
d.
1 bookcase per hour