Question 1

Dilbert's Incorporated produced 6,000,000 units of software in 2005.At the start of 2006 pointy-haired boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units.Based on these numbers what happened to productivity?

Accepted Answer

Productivity is measured by output per unit of input. In this case, the input is the total annual hours of employment. In 2005, Dilbert's Incorporated produced 6,000,000 units with 10,000 annual hours, resulting in a productivity of 600 units per hour. In 2006, they produced 7,000,000 units with 14,000 annual hours, resulting in a productivity of 500 units per hour. Therefore, productivity fell by about 16.7% (100 * (600 - 500) / 600).

Question 2

Libeteria has a population of 10,000,of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods.Despotvanyla has a population of 5,000,of whom 4,000 work 12 hours a day to produce a total of 120,000 final goods.

Accepted Answer

To calculate productivity, we divide the total output by the number of workers and the number of working hours.

For Libeteria: 
Productivity = (224,000/7000)/(8)= 4 
Real GDP per person = 224,000/10,000 = 22.4

For Despotvanyla: 
Productivity = (120,000/4000)/(12)= 2.5 
Real GDP per person = 120,000/5000 = 24

As we can see, Libeteria has higher productivity (4 compared to 2.5) but lower real GDP per person (22.4 compared to 24) than Despotvanyla. Therefore, the correct answer is A.

Question 3

Mary looks over reports on four of her workers.Jack made 25 baskets in 5 hours.Walter made 36 baskets in 6 hours.Rudy made 40 baskets in 10 hours.Sam made 22 baskets in four hours.Who has the greatest productivity?

Accepted Answer

The answer of Mary looks over reports on four of...

Question 4

Waldo works eight hours and produces 7 units of goods per hour.Emerson works six hours and produces 10 units of goods per hour.

Accepted Answer

The answer of Waldo works eight hours and produces 7...

Question 5

Cedar Valley Furniture uses 5 workers working 8 hours to produce 80 rocking chairs.What is the productivity of these workers?

Accepted Answer

Productivity is measured as output per input. In this case, the output is 80 rocking chairs and the input is 5 workers working 8 hours. Therefore, the productivity is 80/40 = 2 chairs per hour per worker.

Question 6

The Peapod Restaurant uses all of the following to produce vegetarian meals.Which of them is an example of physical capital?

Accepted Answer

Physical capital refers to the tools, equipment, and infrastructure used to produce goods or services. The tables and chairs in the restaurant are physical capital as they are the physical assets necessary to the operation of the restaurant. The owner's knowledge (A) is human capital, money in the bank (B) is financial capital, and the land the restaurant was built on (D) is natural capital.

Question 7

Which of the following is not correct?

Accepted Answer

This statement is not correct. Higher output growth per person is typically associated with higher productivity growth.

Question 8

Real Foods produced 300,000 boxes of organic spiral noodles in 2004 and produced 360,000 boxes in 2005.They used the same total hours of work in each year.In 2005 their productivity

Accepted Answer

To calculate productivity, we need to divide the amount of output by the amount of input (hours of work). Therefore, in 2004, productivity was 300,000/total hours worked, and in 2005, productivity was 360,000/total hours worked. Since we know that total hours worked was the same in each year, we can compare the productivity directly. 
Productivity in 2005 was (360,000/total hours worked) / (300,000/total hours worked) = 1.2 times the productivity in 2004. That means productivity rose by 20%. Therefore, the answer is C.

Question 9

Which of the following is a determinant of productivity?

Accepted Answer

All three factors - human capital per worker, physical capital per worker, and natural resources per worker - have been shown to be determinants of productivity. Human capital refers to the skills, knowledge, and experience of workers; physical capital refers to tools, equipment, and infrastructure; and natural resources include raw materials and energy sources. When workers have access to these factors, they are able to produce more output per unit of input, leading to increased productivity.

Question 10

In one day Alpha Cabinet Company made 40 cabinets with 320 hours of labor.What was their productivity?

Accepted Answer

The answer of In one day Alpha Cabinet Company made...

Question 11

The inputs used to produce goods and services are also called

Accepted Answer

Factors of production refer to the inputs needed to produce goods and services, such as land, labor, capital, and entrepreneurship. A, B, and C are not accurate terms for describing inputs used in production.

Question 12

Which of the following is a correct way to measure productivity?

Accepted Answer

Productivity is typically measured by the amount of output generated per unit of input, so dividing output by the number of hours worked would provide a more accurate measure of productivity than dividing the number of hours worked by output.

Question 13

Which of the following is true?

Accepted Answer

Productivity is not simply measured by hours worked, but also takes into account the output or results produced from those hours. Option C is incorrect, as trends in market prices do not necessarily indicate scarcity of resources, but can be influenced by a variety of factors such as changes in demand or government policies. Therefore, option B is the most accurate as it recognizes that differences in productivity can contribute to differences in standards of living between countries.

Question 14

Dilbert's Incorporated produced 5,000,000 units of accounting software in 2004.At the start of 2005 the pointy-haired boss reduced total annual hours of employment from 10,000 to 8,000 and production was 4,800,000.These numbers indicate that productivity

Accepted Answer

The answer of Dilbert's Incorporated produced 5,000,000 units of accounting...

Question 15

Which of the following would not be considered physical capital?

Accepted Answer

Physical capital refers to tangible assets used in production, such as buildings, equipment, and tools. On-the-job training, while important to a company's success, is not a tangible asset and therefore would not be considered physical capital.

Question 16

The equipment and structures available to produce goods and services are called

Accepted Answer

Physical capital refers to the equipment, machinery, tools, buildings, and other structures that are used in the production process. Human capital refers to the knowledge, skills, and abilities of the workers. The production function is a mathematical equation that shows the relationship between inputs and outputs in the production process. Technology refers to the methods and processes used to produce goods and services, including the use of machinery, equipment, and computer systems.

Question 17

The saws,lathes,and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called

Accepted Answer

The saws, lathes, and drill presses are physical capital, which refers to the tools, machines, buildings, and other equipment used in production. Human capital refers to the skills, knowledge, and experience of the workers, while natural resources are the raw materials used in production. Technological knowledge refers to the understanding of how to use technology to improve production processes.

Question 18

Consider two countries.Country A has a population of 1,000,of whom 800 work 8 hours a day to make 128,000 final goods.Country B has a population of 2,000 of whom 1,800 work 6 hours a day to make 270,000 final goods

Accepted Answer

Productivity is measured by output per worker or output per hour worked. Country B has a higher output of final goods but with more workers working less hours, indicating that they have a higher level of productivity than country A. Additionally, country B has a larger population which could contribute to a higher real GDP, but not necessarily a higher GDP per person. Therefore, country A has lower productivity and lower real GDP per person than country B.

Question 19

The key determinant of a person's standard of living in a country is

Accepted Answer

The amount of goods and services produced from each hour of a worker's time, also known as labor productivity, is the key determinant of a person's standard of living in a country. This is because higher labor productivity leads to higher wages and income per person, which in turn increases people's ability to consume goods and services, improving their standard of living. Therefore, A is the correct answer. B, C, and D may contribute to a country's standard of living, but they are not the key determinant.

Question 20

Both Tom and Jerry work eight hours a day.Tom can produce six baskets of goods per hour while Jerry can produce four baskets of the same goods per hour.It follows that Tom's

Accepted Answer

Tom's productivity is greater than Jerry's because he can produce more baskets of goods per hour. Tom's output is greater than Jerry's because he works the same number of hours and produces more baskets of goods per hour. Tom's standard of living is higher than Jerry's because he can produce more goods and services to meet his needs.

Quiz 25: Production and Growth