Question : 51.LastyeartheimaginarynationofPanglossiahadrealGDPof400billion.ThisyearithadrealGDPof472.5billion.Whichofthefollowingchangesinpopulationisconsistentwitha5percentgrowthrateofrealGDPperpersonoverthelastyear? : 1261783

 

51.LastyeartheimaginarynationofPanglossiahadrealGDPof400billion.ThisyearithadrealGDPof472.5billion.Whichofthefollowingchangesinpopulationisconsistentwitha5percentgrowthrateofrealGDPperpersonoverthelastyear?

a.Thepopulationdecreasedfrom75millionto72million.

b.Thepopulationdecreasedfrom60millionto50million.

c.The population increased from 70million to 80 million.

d.The population increased from 80million to 90 million.

52.In2012,theimaginarynationofDoradoshadapopulationof8,000andrealGDPof3,000,000.DuringtheyearitsrealGDPgrewbyabout2.9%.WhichofthefollowingsetsofgrowthratesisconsistentwiththisgrowthinrealGDP?

a.2%populationgrowthand6%realGDPgrowth

b.6%populationgrowthand2%realGDPgrowth

c.4%populationgrowthand7%realGDPgrowth

d.7%populationgrowthand4%realGDPgrowth

53.In2012,theimaginarynationofPlatlandhadapopulationof10,000andrealGDPof42,000,000.DuringtheyearitsrealGDPperpersongrewbyabout1.94%.WhichofthefollowingsetsofgrowthratesisconsistentwiththisgrowthinrealGDPperperson?

a.3%populationgrowthand4%realGDPgrowth

b.3%populationgrowthand5%realGDPgrowth

c.6%populationgrowthand4%realGDPgrowth

d.6%populationgrowthand5%realGDPgrowth

54.Whichofthefollowingpairsoftermsrefertothesamething?

a.“capital”and“physicalcapital”

b.“technologicalknowledge”and“humancapital”

c.“standardofliving”and“humancapital”

d.“standardofliving”and“productivity”

1.Whichofthefollowingiscorrect?

a.AlthoughlevelsofrealGDPperpersonvarysubstantiallyfromcountrytocountry,thegrowthrateofrealGDPperpersonissimilaracrosscountries.

b.Productivityisnotcloselylinkedtogovernmentpolicies.

c.ThelevelofrealGDPperpersonisagoodgaugeofeconomicprosperity,andthegrowthrateofrealGDPperpersonisagoodgaugeofeconomicprogress.

d.ProductivitymaybemeasuredbythegrowthrateofrealGDPperperson.

2.Theonevariablethatstandsoutasthemostsignificantexplanationoflargevariationsinlivingstandardsaroundtheworldis

a.productivity.

b.population.

c.preferences.

d.prices.

3.Productivityisdefinedasthequantityof

a.laborrequiredtoproduceanation’sGDP.

b.laborrequiredtoproduceoneunitofgoodsandservices.

c.goodsandservicesproducedfromeachunitoflaborinput.

d.goodsandservicesproducedperunitoftime.

4.Whichofthefollowingisacorrectwaytomeasureproductivity?

a.Dividethenumberofhoursworkedbythequantityofoutput.

b.Dividethequantityofoutputbythenumberofhoursworked.

c.Determinehowmuchoutputisproducedinagiventime.

d.Determinehowmuchtimeittakestoproduceaunitofoutput.

5.Whichofthefollowingstatementsistrue?

a.Productivityiscalculatedashoursworkeddividedbyoutputproduced.

b.AmericanshaveahigherstandardoflivingthanIndonesiansbecauseAmericanworkersaremoreproductivethanIndonesianworkers.

c.BothAandBarecorrect.

d.Noneoftheabovearecorrect.

6.Whichofthefollowingisnotcorrect?

a.Countriesthathavehadhigheroutputgrowthperpersonhavetypicallydonesowithouthigherproductivitygrowth.

b.Acountry’sstandardoflivinganditsproductivityarecloselyrelated.

c.Productivityreferstooutputproducedperhourofwork.

d.Increasesinproductivitycanbeusedtoincreaseoutputorleisure.

7.Indetermininglivingstandards,productivityplaysakeyrole

a.forindividuals,butnotfornations.

b.fornations,butnotforindividuals.

c.forbothnationsandindividuals.

d.forneithernationsnorindividuals.

8.Thekeydeterminantofthestandardoflivinginacountryis

a.theamountofgoodsandservicesproducedfromeachhourofaworker’stime.

b.thetotalamountofgoodsandservicesproducedwithinthecountry.

c.thetotalamountofitsphysicalcapital.

d.itsgrowthrateofrealGDP.

9.Foragivenyear,productivityinaparticularcountryismostcloselymatchedwiththatcountry’s

a.levelofrealGDPoverthatyear.

b.levelofrealGDPdividedbyhoursworkedoverthatyear.

c.growthrateofrealGDPdividedbyhoursworkedoverthatyear.

d.growthrateofrealGDPperpersonoverthatyear.

10.Whichofthefollowingwould,byitself,revealthemostaboutacountry’sstandardofliving?

a.itslevelofcapital

b.thenumberofhoursworked

c.itsavailabilityofnaturalresources

d.itsproductivity

11.Productivity

a.isnearlythesameacrosscountries,andsoprovidesnohelpexplainingdifferencesinthestandardoflivingacrosscountries.

b.explainsverylittleofthedifferencesinthestandardoflivingacrosscountries.

c.explainssome,butnotmostofthedifferencesinthestandardoflivingacrosscountries.

d.explainsmostofthedifferencesinthestandardoflivingacrosscountries.

12.Productivityisthe

a.keydeterminantoflivingstandards,andgrowthinproductivityisthekeydeterminantofgrowthinlivingstandards.

b.keydeterminantoflivingstandards,butgrowthinproductivityisnotthekeydeterminantofgrowthinlivingstandards.

c.notthekeydeterminantoflivingstandards,butgrowthinproductivityisthekeydeterminantofgrowthinlivingstandards.

d.notthekeydeterminantoflivingstandards,andgrowthinproductivityisnotthekeydeterminantofgrowthinlivingstandards.

13.OverthelasttenyearsproductivitygrewfasterinMapolithaninRomeriawhilethepopulationandtotalhoursworkedremainedthesameinbothcountries.Itfollowsthat

a.realGDPperpersongrewfasterinMapolithaninRomeria.

b.realGDPperpersonmustbehigherinMapolithaninRomeria.

c.thestandardoflivingmustbehigherinMapolithaninRomeria.

d.Alloftheabovearecorrect.

14.OverthelasttenyearsproductivitygrewmoreslowlyinIberiathaninAirewhilethepopulationandtotalhoursworkedremainedthesameinbothcountries.Itfollowsthat

a.realGDPperpersonmustbelowerinIberiathaninAire.

b.realGDPperpersongrewmoreslowlyinIberiathaninAire.

c.thestandardoflivingmustbehigherinIberiathaninAire.

d.Alloftheabovearecorrect.

15.WhichofthefollowingcanexplainfastergrowthofrealGDPincountryAthaninCountryB?

a.bothgreaterpopulationgrowthandgreaterproductivitygrowthinCountryA

b.greaterpopulationgrowthinCountryA,butnotgreaterproductivitygrowthinCountryA

c.greaterproductivitygrowthinCountryA,butnotgreaterpopulationgrowthinCountryA

d.neithergreaterpopulationgrowthnorgreaterproductivitygrowthinCountryA

16.SupposethatrealGDPgrewmoreinCountryAthaninCountryBlastyear.

a.CountryAmusthaveahigherstandardoflivingthancountryB.

b.CountryA’sproductivitymusthavegrownfasterthancountryB’s.

c.Bothoftheabovearecorrect.

d.Noneoftheabovearecorrect.

17.Giventhatacountry’srealoutputhasincreased,inwhichofthefollowingcasescanwebesurethatitsproductivityalsohasincreased?

a.Thetotalnumberofhoursworkedrose.

b.Thetotalnumberofhoursworkedstayedthesame.

c.Thetotalnumberofhoursworkedfell.

d.Bothbandcarecorrect.

18.Phoenixfurnitureuses12workers,eachworkingeighthours,toproduce192rockingchairs.WhatisPhoenix’sproductivity?

a.192rockingchairs

b.24rockingchairsperhour

c.2rockingchairsperhour

d.2hoursperrockingchair

19.Hit-Itproduces320baseballbatsperdayusing2workerswhoeachwork8hoursperday.WhatisHit­It’sproductivity?

a.320baseballbats

b.160baseballbatsperhour

c.20baseballbatsperhour

d.Noneoftheaboveiscorrect.

20.InonedayAlphaCabinetCompanymade40cabinetswith320hoursoflabor.WhatwasAlphaCabinetCompany’sproductivity?

a.1/8cabinetperhour

b.8hourspercabinet

c.40cabinets

d.Noneoftheaboveiscorrect.

21.InonedayMadisonLaundrywashed4,000poundsoflaundrywith5workerswhoeachworked8hours.Whatwasitsproductivity?

a.4000poundsoflaundry

b.500poundsoflaundryperhour

c.100poundsoflaundryperhour

d.Noneoftheaboveiscorrect.

22.AlliedBusinessConsultantsemploysfiveresearchersthateachwork8hourdays.Inonedaytheresearchersprepared10reportsforits2largestclients.WhatwasAlliedBusinessConsultants’productivity?

a.10reports

b.5reportsperclient

c.1.25reportsperhour

d.1/4reportperhour

23.Youandyourfriendworktogetherfor4hourstoproduceatotalof8bookcases.What is productivity?

a.16bookcases

b.8bookcases

c.2bookcasesperhour

d.1bookcaseperhour

24.InonedayPortalComputerCompanymade400laptopswith1200hoursoflabor.Whatwasitsproductivity?

a.1/3laptopperhour

b.3hoursperlaptop

c.1200laptops

d.400laptops

25.Marylooksoverreportsonfourofherworkers.Jackmade30basketsin5hours.Rudymade32basketsin8hours.Sammade40basketsin12hours.Waltermade22basketsinfourhours.Whohasthegreatestproductivity?

a.Jack

b.Rudy

c.Sam

d.Walter

26.Abarbershopproduces192haircutsaday.Eachbarberintheshopworks8hoursperdayandproducesthesamenumberofhaircutsperhour.Iftheshop’sproductivityis2haircutsperhouroflabor,thenhowmanybarbersdoestheshopemploy?

a.8

b.12

c.16

d.Noneoftheaboveiscorrect.

27.Miller’sDairyproduces960gallonsofmilkperday.Eachmilkeratthedairyworks8hoursperdayandproducesthesamenumberofgallonsofmilkperhour.IftheDairy’sproductivityis12gallonsofmilkperhouroflabor,thenhowmanymilkersdoestheshopemploy?

a.8

b.10

c.80

d.120

28.Gramp’sPotatoChipsproduces2560bagsofpotatochipsaday.EachemployeeatGramp’sworks8hours.Ifthecompany’sproductivityis20bagsperhour,howmanypeopledoesGramp’semploy?

a.8

b.16

c.24

d.Noneoftheaboveiscorrect.

29.Greg’sIceCreamproduces1120gallonsoficecreamperday.Eachemployedworkssevenhoursandhasproductivityof20gallonsanhour.HowmanyemployeesdoesGreg’semploy?

a.160

b.56

c.8

d.Noneoftheaboveiscorrect.

30.AdamandDougbothbuildbirdhouses.Adamworks30hoursaweekandproduces15birdhouses.Dougworks20hoursaweekandproduces12birdhouses.Whichofthefollowingiscorrect?

a.Adam’sproductionandproductivityarehigherthanDoug’s.

b.Adam’sproductionishigherthanDoug’s,butDoug’sproductivityishigherthanAdam’s.

c.Doug’sproductionishigherthanAdam’s,butAdam’sproductivityishigherthanDoug’s.

d.Doug’sproductionandproductivityarehigherthanAdam’s.

31.AlexisandTarabothminesalt.Alexismines300poundsin20hours.Taramines400poundsin40hours.Whichofthefollowingiscorrect?

a.Alexis’sproductivityisgreaterthanTara’s.ThisdifferencecouldbeexplainedbyAlexishavingmorephysicalcapitalthanTara.

b.Alexis’sproductivityisgreaterthanTara’s.Thisdifferencecannotbeexplainedbyadifferenceinthephysicalcapitaleachhas.

c.Tara’sproductivityisgreaterthanAlexis’s.ThisdifferencecouldbeexplainedbyTarahavingmorephysicalcapitalthanAlexis.

d.Tara’sproductivityisgreaterthanAlexis’s.Thisdifferencecannotbeexplainedbyadifferenceinthephysicalcapitaleachhas.

32.Waldoworkseighthoursandproduces7unitsofgoodsperhour.Emersonworkssixhoursandproduces10unitsofgoodsperhour.

a.Waldo’sproductivityandoutputaregreaterthanEmerson’s.

b.Waldo’sproductivityisgreaterthanEmerson’sbuthisoutputisless.

c.Emerson’sproductivityandoutputaregreaterthanWaldo’s.

d.Emerson’sproductivityisgreaterthanWaldo’sbuthisoutputisless.

33.Popeyeproduces20cansofspinachin8hours.Wimpyproduces15hamburgersin10hours.Ifeachhamburgertradesfor1.5cansofspinach,then

a.Popeye’sproductionandproductivityaregreaterthanWimpy’s.

b.Popeye’sproductionisgreaterthanWimpy’s,buthisproductivityisless.

c.Wimpy’sproductionandproductivityaregreaterthanPopeye’s.

d.Wimpy’sproductionisgreaterthanPopeye’s,buthisproductivityisless.

34.Nathanownsabakerythatbakesonlycakes.Allofhisbakerswork8hoursperday.In2011, heemployed5bakerswhoproducedatotalof200cakeseachday.In2012,heemployed6bakerswhoproducedatotalof249cakeseachday.Thebakery’sproductivity

a.decreasedby2.33%.

b.increasedby2.33%.

c.increasedby3.75%.

d.increasedby24.50%.

35.Danielownsacoffeekiosk.Allofhisemployeeswork8hoursperday.In2011,heemployed6peoplewhoproducedatotalof912cupsofcoffeeeachday.In2012,hehiredaseventhemployeeandproductionincreasedto1008cupsofcoffeeeachday.InDaniel’skiosk, productivity

a.increasedbyabout10.5percent

b.increasedby9.5percent

c.decreasedbyabout5.6percent

d.decreasedbyabout5.3percent

36.In2011BuckeyeBrewingproduced1,000bottlesofgingeraleeachday.Itemployed10workerseachworking8hoursaday.In2012itproduced960bottlesofgingeraleeachdayemploying8workerswhoworked8hourseachday.ProductivityatBuckeyeBrewing

a.increasedby20%.

b.increasedby16.67%.

c.decreasedby1.67%.

d.decreasedby40%.

37.In2011,ModernElectronics,Inc.produced60,000calculators,employing80workers,eachofwhomworked8hoursperday.In2012,thesamefirmproduced76,500calculators,employing85workers,eachofwhomworked10hoursperday.ProductivityatModernElectronics

a.decreasedby4%

b.remainedconstant.

c.increasedby8.33%

d.increasedby27.50%

38.RealFoodsproduced400,000cansofdicedtomatoeslastyearand460,000cansofdicedtomatoesthisyear.Itemployedthesamenumberoflaborhourseachyear.RealFoods’productivity

a.decreased13%.

b.wasunchanged.

c.increased13%.

d.increased15%.

39.In2010,AcmeFoodsproduced300,000bagsofpretzels,employing12,000hoursoflabor.In2011,itproduced322,000bagsofpretzels,employing14,000hoursoflabor.AcmeFoodsproductivity

a.decreasedby8%.

b.wasunchanged.

c.increasedby6.8%.

d.increasedby7.3%.

40.Dilbert’sIncorporatedproduced5,000,000unitsofaccountingsoftwarein2010.Atthestartof2011thepointy­hairedbossreducedtotalannualhoursofemploymentfrom10,000to8,000andproductionwas4,800,000.Thesenumbersindicatethatproductivity

a.fellby4%.

b.fellby20%.

c.roseby12%.

d.roseby20%.

41.Dilbert’sIncorporatedproduced6,000,000unitsofsoftwarein2010.Atthestartof2011thepointy­hairedbossraisedemploymentfrom10,000totalannualhoursto14,000annualhoursandproductionwas7,000,000units.Thesenumberindicatethatproductivity

a.fellbyabout16.7%.

b.stayedthesame.

c.rosebyabout16.7%.

d.rosebyabout40%.

42.LastyeartheimaginarycountryofBasovahadapopulationof10,000,6,000peopleworked8hoursaday,andproducedarealGDPof$30,000,000.TheimaginarycountryofAndoviahadapopulationof12,000,8,000peopleworked8hoursaday,andproducedarealGDPof$38,000,000.Whichofthefollowingiscorrect?

a.BasovahadhigherproductivityandhigherrealGDPperperson.

b.AndoviahadthehigherproductivityandhigherrealGDPperperson.

c.BasovahadthehigherproductivitywhileAndoviahadthehigherrealGDPperperson.

d.AndoviahadthehigherproductivitywhileBasovahadthehigherrealGDPperperson.

43.CountryAhasapopulationof1,000,ofwhom800work8hoursadaytomake128,000finalgoods.CountryBhasapopulationof2,000,ofwhom1,800work6hoursadaytomake270,000finalgoods.

a.CountryAhashigherproductivityandhigherrealGDPperpersonthancountryB.

b.CountryAhaslowerproductivityandlowerrealGDPperpersonthancountryB.

c.CountryAhashigherproductivity,butlowerrealGDPperpersonthancountryB.

d.CountryBhaslowerproductivity,buthigherrealGDPperpersonthancountryB.

44.Worklandhasapopulationof10,000,ofwhom7,000work8hoursadaytoproduceatotalof224,000finalgoods.Laborlandhasapopulationof5,000,ofwhom3,000work7hoursadaytoproduceatotalof105,000finalgoods.

a.WorklandhashigherproductivityandhigherrealGDPperpersonthanLaborland.

b.WorklandhashigherproductivitybutlowerrealGDPperpersonthanLaborland.

c.WorklandhaslowerproductivitybuthigherrealGDPperpersonthanLaborland.

d.WorklandhaslowerproductivityandlowerrealGDPperpersonthanLaborland.

45.Uplandhasapopulationof15,000,ofwhom9,000work8hoursadaytoproducerealoutputof$342,000.Lowlandhasapopulationof8,000,ofwhom7,000work7hoursadaytoproducerealoutputof$171,500.

a.UplandhashigherproductivityandhigherrealGDPperpersonthanLowland.

b.UplandhashigherproductivitybutlowerrealGDPperpersonthanLowland.

c.UplandhaslowerproductivitybuthigherrealGDPperpersonthanLowland.

d.UplandhaslowerproductivityandlowerrealGDPperpersonthanLowland.

46.CountryAhadapopulationof1,000,ofwhom600workedanaverageof8hoursadayandhadaproductivityof2.5.CountryBhadapopulationof800,ofwhom560worked8hoursadayandhadproductivityof3.0.Country

a.AhadthehigherlevelofrealGDPandrealGDPperperson.

b.AhadthehigherlevelofrealGDPandCountryBhadthehigherlevelofrealGDPperperson

c.BhadthehigherlevelofrealGDPandCountryAhadthehigherlevelofrealGDPperperson

d.BhadthehigherlevelofrealGDPandrealGDPperperson.

47.CountryAhadapopulationof2,000,ofwhom1,300workedanaverageof8hoursadayandhadaproductivityof 5.CountryBhadapopulationof2,500,ofwhom1,700worked8hoursadayandhadproductivityof4.Country

a.AhadthehigherlevelofrealGDPandrealGDPperperson.

b.AhadthehigherlevelofrealGDPandCountryBhadthehigherlevelofrealGDPperperson

c.BhadthehigherlevelofrealGDPandCountryAhadthehigherlevelofrealGDPperperson

d.BhadthehigherlevelofrealGDPandrealGDPperperson.

Table25-1.

AthensandTroybothproduceonlyribsandbakedpotatoes.

 

 

 

Athens

Troy

Quantities

 

 

Ribs

200,000

300,000

BakedPotatoes

400,000

250,000

Baseyearprices

 

 

Ribs

$10

$10

BakedPotatoes

$4

$4

PopulationandEmployment

 

 

Population

6,000

8,000

Totalhoursofemployment

40,000

60,000

 

48.RefertoTable25-1.Whichofthefollowingiscorrect?

a.BothrealGDPandrealGDPperpersonarehigherinAthensthanTroy.

b.RealGDPishigherinAthenswhilerealGDPperpersonishigherinTroy

c.RealGDPishigherinTroywhilerealGDPperpersonishigherinAthens.

d.BothrealGDPandrealGDPperpersonarehigherinTroythanAthens.

49.RefertoTable25-1.Whichofthefollowingiscorrect?

a.BothproductivityandthestandardoflivingarehigherinAthensthanTroy.

b.ProductivityishigherinAthenswhilethestandardoflivingishigherinTroy

c.ProductivityishigherinTroywhilethestandardoflivingishigherinAthens.

d.BothproductivityandthestandardoflivingarehigherinTroythanAthens.

50.Lastyearacountryhad800workerswhoworkedanaverageof8hoursandproduced12,800units.Thisyearthesamecountryhad1000workerswhoworkedanaverageof8hoursandproduced14,000units.Thiscountry’sproductivitywas

a.higherthisyearthanlastyear.Apossiblesourceofthischangeinproductivityisachangeinthesizeofthecapitalstock.

b.higherthisyearthanlastyear.Achangeinthesizeofthecapitalstockdoesnotaffectproductivity.

c.lowerthisyearthanlastyear.Apossiblesourceofthischangeinproductivityisachangeinthesizeofthecapitalstock.

d.lowerthisyearthanlastyear.Achangeinthesizeofthecapitalstockdoesnotaffectproductivity.

51.BothArnoldandWillwork10hoursaday.ArnoldcanproducesixbasketsofgoodsperhourwhileWillcanproducefourbasketsofthesamegoodsperhour.ItfollowsthatArnold’s

a.productivityisgreaterthanWill’s.

b.outputisgreaterthanWill’s.

c.standardoflivingishigherthanWill’s.

d.Alloftheabovearecorrect.

52.EachdaySueworks8hoursandproduces7unitsofgoodsandservices.Maryworks10hourseachdayandproduces10unitsofgoodsandservices.Itfollowsthat

a.Sue’sproductivityishigherthanMary’s.

b.Mary’sproductivityishigherthanSue’s.

c.Sue’sincomeperhourwillbehigherthanMary’s.

d.Sue’sincomeperdaywillbehigherthanMary’s.

53.Whichofthefollowingitemsplaysaroleindeterminingproductivity?

a.physicalcapital

b.naturalresources

c.technologicalknowledge

d.Alloftheabovearecorrect.

54.Industrialmachineryisanexampleof

a.afactorofproductionthatinthepastwasanoutputfromtheproductionprocess.

b.technologicalknowledge.

c.aproductionfunction.

d.anitemwhichalwayshasthepropertycalledconstantreturnstoscale.

55.Industrialmachineryisanexampleof

a.afactorofproductionthatinthepastwasanoutputfromtheproductionprocess.

b.physicalcapital.

c.somethingthatinfluencesproductivity.

d.Alloftheabovearecorrect.

56.TheKarmicDeedRestaurantusesallofthefollowingtoproducevegetarianmeals.Whichofthemisanexampleofphysicalcapital?

a.theowner’sknowledgeofhowtopreparevegetarianentrees

b.themoneyintheowner’saccountatthebankfromwhichsheborrowedmoney

c.thetablesandchairsintherestaurant

d.thefreshfruits,vegetables,andgrainstherestaurantusestoprepareitsmeals

57.Theequipmentandstructuresavailabletoproducegoodsandservicesarecalled

a.physicalcapital.

b.humancapital.

c.theproductionfunction.

d.technology.

58.Thesaws,lathes,anddrillpressesthatwoodworkersatCedarValleyFurnitureusetoproducefurniturearecalled

a.humancapital.

b.physicalcapital.

c.naturalresources.

d.technologicalknowledge.

59.Which of thefollowing isnotanexampleofphysicalcapital?

a.anewfactorybuilding

b.adeliveryvan

c.theknowledgeofworkers

d.theofficechairinalawyer’soffice

60.Whichofthefollowingisanexampleofphysicalcapital?

a.thestrengthofworkers

b.onthe job training

c.financialassetslikecashandbonds

d.theequipmentinafactory

 

 

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