Chapter 12 Test Questions Flashcards
(15 cards)
Other things the same, domestic investment will increase a country’s real GDP by more than foreign investment
T or F
False
According to some estimates, over the last two decades China has had an annual average growth rate of about 12 percent
T or F
True
The population growth rate tends to be higher in developed countries than in developing countries
T or F
False
In some countries such as Chad, Gabon, and Senegal real GDP per person had been stagnant for many years
T or F
True
The same size decrease in the amount of capital stock per worker will cause output per worker to fall by more in a country with a relatively high level of capital per worker than in a country with a relatively low level of capital per worker
T or F
False
If your firm’s production function has constant returns to scale and you increase all your inputs by 60% then your firm’s output will
Increase by 60%
Which of the following terms is used to refer to the ability of people to sever use authority over the resources they own
Property rights
Average income has been stagnant for many years in…
Cha, Gabon, and Senegal
Some poor countries appear to be falling behind rather than catching up with rich countries. Which of the following could explain the failure of a poor country to catch up
The poor country has poorly developed property rights
According to research by Robert Fogel, what proportion of the British population in 1780 was so malnourished that they could not perform manual labor
20 percent
An economy’s production firm takes the form Y=AF(L,K,H,N)
If the production function has the constant-returns-to-scale property, then if we know the values of A,K/L, H/L, and N/L we also know the value of …
Labor productivity
Two countries are the same, except one is poorer. Assuming the traditional assumption about the production Function is made there are…
Diminishing returns to capital so the poor country grows faster
In 2008, the typical Bangladeshi had about…
1/3 the real income of a typical American a century ago
Popeye produces 20 cans of spinach in 8 hours. Wimpy produces 15 hamburgers inc10 hours. If each hamburger trades for 1.5 cans of spinach, then…
Wimpy’s production is greater than Popeye’s, but his productivity is less
In medieval Europe an important technological advance was the use of the padded horse collar for plowing. Once this idea was thought of, other people used it. This illustrates that knowledge is generally a…
Public good
