Exam 17: Production and Growth

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Technological knowledge refers...

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A) has no effect on the standard of living.
B) has uncertain effects on the standard of living.
C) clearly raises the standard of living.
D) clearly lowers the standard of living.

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A) diminishing returns, so that other things the same, real GDP in poor countries should grow at a faster rate than in rich countries.
B) diminishing returns, so that other things the same, real GDP in poor countries should grow at a slower rate than in rich countries.
C) increasing returns, so that other things the same, real GDP in poor countries should grow at a faster rate than in rich countries.
D) increasing returns, so that other things the same, real GDP in poor countries should grow at a slower rate than in rich countries.

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A) genetics. However this increase in height had no effect on productivity.
B) genetics. This increase in height is associated with higher productivity.
C) higher caloric intake. However, this increase in height had no effect on productivity.
D) higher caloric intake. This increase in height is associated with higher productivity.

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A) differs widely across countries, but the growth rate of real GDP per person is similar across countries.
B) is very similar across countries, but the growth rate of real GDP per person differs widely across countries.
C) and the growth rate of real GDP per person are similar across countries.
D) and the growth rate of real GDP per person vary widely across countries.

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A) have no affect on either real GDP nor productivity
B) raise real GDP and productivity.
C) raise real GDP but not productivity.
D) raise productivity but not real GDP.

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A) as the economy moves toward the long run and in the long run.
B) as the economy moves toward the long run, but not in the long run.
C) in the long run, but not as the economy moves toward the long run.
D) neither as the economy moves toward the long run, nor in the long run.

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A) physical capital, unlike investment in human capital, has an opportunity cost.
B) physical capital, like investment in human capital, has an opportunity cost.
C) human capital is particularly attractive because it involves no externalities.
D) human capital has been shown to be relatively unimportant, relative to investment in physical capital, for a country's long­run economic success.

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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.

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A) raise productivity. Other things the same, this increase will be larger in a poor country.
B) raise productivity. Other things the same, this increase will be larger in a rich country.
C) reduce productivity. Other things the same, this decrease will be larger in a poor country.
D) reduce productivity. Other things the same, this decrease will be larger in a rich country.

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A) Productivity is a determinant of human capital per worker.
B) Technological knowledge is a determinant of productivity.
C) Human capital and technological knowledge are the same thing.
D) All of the above are correct.

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A) requires that society sacrifice consumption goods in the present.
B) allows society to consume more in the present.
C) decreases saving rates.
D) involves no tradeoffs.

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A) 1/8 cabinet per hour
B) 8 hours per cabinet
C) 40 cabinets
D) None of the above is correct.

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A) and physical capital per worker will increase.
B) and physical capital per worker will decrease.
C) will increase but physical capital per worker will decrease.
D) will decrease but physical capital per worker will increase.

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A) the United Kingdom
B) Mexico
C) Argentina
D) China

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A) the level of real GDP per person, but not the growth rate of real GDP per person
B) the level of real GDP per person and the growth rate of real GDP per person
C) the growth rate of real GDP per person, but not the level of real GDP per person
D) neither the level nor the growth rate of real GDP per person

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A) foreign direct investment. American saving is used to finance Finish investment.
B) foreign direct investment. American saving is used to finance American investment.
C) foreign portfolio investment. American saving is used to finance Finish investment.
D) foreign portfolio investment. American saving is used to finance American investment.

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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.

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