Question 1

Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,275 a ton. Over the same time a measure of the overall price level increased from 150 to 156. The price of iron ore increased by

Accepted Answer

The answer of Suppose over the last year that the...

Question 2

Technological knowledge

Accepted Answer

Technological knowledge is considered a determinant of productivity.

Question 3

Historically, the market prices of most natural resources (adjusted for inflation) have

Accepted Answer

The market prices of most natural resources have either remained stable or decreased over time due to various factors such as increased production and efficiency, shifts in demand, and technological advancements. Exceptions to this include rare resources with limited availability or high demand.

Question 4

After adjusting for inflation, over time the prices of most natural resources have been

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The answer of After adjusting for inflation, over time the...

Question 5

Despite its status as one of the richest countries in the world, Japan

Accepted Answer

Japan has few natural resources, including oil, natural gas, and minerals, which forces the country to rely heavily on imports. Despite this, Japan has managed to develop a highly advanced and innovative economy through its skilled workforce, advanced technology, and strong focus on research and development.

Question 6

Technological knowledge refers to

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The answer of Technological knowledge refers to
...

Question 7

Proprietary technology is technology that is

Accepted Answer

Proprietary technology is technology that is known or controlled only by the company that discovered it. This means that it is not widely used because other companies or individuals do not have access to it.

Question 8

If natural resources had become scarcer, then we would expect their

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The answer of If natural resources had become scarcer, then...

Question 9

Human capital is

Accepted Answer

Human capital refers to the knowledge, skills, and education that a worker has acquired over time, which can be viewed as an investment in their future productivity. It is distinct from physical capital, which refers to the tools, equipment, and infrastructure that enable production.

Question 10

The behavior of market prices over time indicates that natural resources are

Accepted Answer

The behavior of market prices over time, particularly the decreasing real prices of many natural resources, suggests that technological advancements and efficiency improvements have allowed economies to grow without being limited by natural resource constraints. This indicates that natural resources are not a limit to economic growth, as we have found ways to use them more efficiently or substitute them with other resources or technologies.

Question 11

Proprietary technology is knowledge that is

Accepted Answer

Proprietary technology refers to knowledge or technology that is owned and kept secret by a specific company or individual. It is not widely known or available to the public or competitors. Therefore, the correct answer is D, known only by the company that discovered it.

Question 12

The notion that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling is supported by the fact that

Accepted Answer

The inflation-adjusted prices of most natural resources have been stable or fallen over time, indicating that our ability to conserve natural resources is growing more rapidly than their supplies are dwindling. Choice A and B are incorrect because many economists do consider the availability of natural resources as a determinant of productivity, and the quantity of natural resources does enter into some production functions. Choice D is also incorrect, as it contradicts the evidence presented in the explanation.

Question 13

Suppose over the last five years that the price of recycled aluminum increased from $800 a ton to $900 a ton. Over the same time a measure of the overall price level increased from 120 to 138. The real price of recycled aluminum

Accepted Answer

The answer of Suppose over the last five years that...

Question 14

A leading environmental group recently published a report contending that humans are running a "resource deficit" because we are using natural resources faster than they can be regenerated. The group claims that this means that economic growth will eventually stop, and will even be reversed. An economist would

Accepted Answer

While it is important to acknowledge the finite nature of natural resources, the report ignores the potential for technological advancements to increase efficiency and find new solutions to resource scarcity. An economist would likely argue that the market and innovation can lead to finding substitutes for scarce resources, and that resource scarcity is not the only factor affecting economic growth.

Question 15

If an inexpensive alternative to oil were found, the price of oil adjusted for inflation

Accepted Answer

If an inexpensive alternative to oil were found, it would reduce the demand for oil as consumers switch to the alternative. As a result, the price of oil would decline (adjusted for inflation) due to the decrease in demand.

Question 16

Suppose that over the last year the price of copper increased from $1.70 a pound to $1.79 per pound. Over the same time a measure of the overall price level increased from 300 to 309. The price of copper increased by

Accepted Answer

The answer of Suppose that over the last year the...

Question 17

Proprietary technology is technology

Accepted Answer

Proprietary technology refers to technology that is known or controlled only by the company that discovered it. It is typically protected by patents, copyrights, or trade secrets, and is kept confidential to maintain a competitive advantage in the market.

Question 18

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

Accepted Answer

While natural resources may help a country become rich, it is not the only factor that contributes to economic growth. Countries with few natural resources can still have high standards of living if they focus on other areas such as technology, education, and innovation. Therefore, option D is the best choice as it acknowledges the importance of natural resources but also recognizes that it is not the only determining factor for a country’s economic growth.

Question 19

Which of the following is correct?

Accepted Answer

A) Once adjustment is made for inflation, the prices of most natural resources have been about steady or falling. This is because as technology improves, it becomes easier and more efficient to extract natural resources, which can lead to oversupply and lower prices.

B) Technological progress has allowed us to substitute renewable resources for some nonrenewable resources. For example, the development of wind and solar power has reduced the need for fossil fuels.

C) Technological progress has made once-crucial natural resources less necessary. For instance, the rise of digital communication has reduced the demand for paper, which was once made from trees.

Therefore, all of the choices are correct.

Question 20

An understanding of the best ways to produce goods and services is called

Accepted Answer

Technology refers to the knowledge and tools used to produce goods and services. It encompasses everything from advancements in manufacturing processes to software that streamlines business operations. A good understanding of technology can lead to increased productivity, which is the amount of output produced per unit of input (such as labor or capital). Therefore, an understanding of technology is necessary for producing goods and services efficiently.

Quiz 25: Production and Growth