Question 1

Which of the following would,by itself,reveal the most about a country's standard of living?

Accepted Answer

Productivity is the most important factor in determining a country's standard of living. It reflects the efficiency and effectiveness of a country's use of resources, including labor and capital, in producing goods and services. Higher productivity means that the country can produce more output with the same resources, leading to higher incomes and a higher standard of living for its citizens. The other factors, such as capital, natural resources, and hours worked, are important but are not as significant as productivity in determining a country's standard of living.

Question 2

In the country of Suchnott,the price of silver increased from $30 per ounce to $32 per ounce during a time when the overall price level increased by 5 percent.During this period,the real price of silver

Accepted Answer

The answer of In the country of Suchnott,the price of...

Question 3

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's economic growth and development, it is not the only factor that contributes to a high standard of living. Countries with few natural resources can still achieve high standards of living through factors such as trade, innovation, and policy initiatives. Therefore, choice D is the best statement that aligns with economists' understanding of the relationship between natural resources and economic growth.

Question 4

Suppose a country imposes new restrictions on how many hours people can work.If these restrictions reduce the total number of hours worked in the economy,but all other factors that determine output are held fixed,then

Accepted Answer

When the total number of hours worked in the economy reduces due to the new restrictions, output will also fall as there are fewer hours being dedicated to production. However, productivity may rise as workers may become more efficient with their time, although this is not guaranteed.

Question 5

Your company discovers a better way to produce mousetraps,but your better methods are not apparent from the mousetraps themselves.Your knowledge of how to more efficiently produce mousetraps is

Accepted Answer

The better way to produce mousetraps is not apparent from the mousetraps themselves, which means that it is not common knowledge. Since it is a better method and not obvious, it is likely proprietary. Additionally, since it involves a production process, it is technological knowledge. Therefore, the best choice is C, proprietary technological knowledge.

Question 6

Thomas Edison received patents on many of his inventions.While the patents existed,his ideas were

Accepted Answer

Patents are meant to protect private goods and proprietary knowledge. Therefore, while Edison's inventions may have been considered public goods, as they were available for public use, the patents protected them as his private goods and proprietary knowledge.

Question 7

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

Accepted Answer

The understanding of the best ways to produce goods and services is referred to as technology. Human capital refers to the knowledge, skills, and experience workers possess. Physical capital refers to the equipment, machinery, and infrastructure used in production. Productivity is a measure of output per unit of input, such as labor or capital. While all of these concepts can be important for production, the specific understanding of how to produce efficiently and effectively is captured by the concept of technology.

Question 8

Human capital is

Accepted Answer

Human capital refers to the knowledge, skills, and abilities that workers have obtained through education, training, and experience. It is an intangible asset that workers possess and contribute to the overall productivity and output of a company or economy. It is distinct from physical capital, which refers to the tools, equipment, and machinery used by workers.

Question 9

Suppose that real GDP grew more in Country A than in Country B last year.

Accepted Answer

Real GDP growth does not necessarily imply a higher standard of living or faster productivity growth, as it does not account for population growth or other factors affecting living standards and productivity.

Question 10

Suppose over the last year that the price of iron ore increased from $1,200 a ton to $1,300 a ton.Over the same time a measure of the overall price level increased from 168 to 187.The price of iron ore increased by

Accepted Answer

Even though the price of iron ore increased from $1,200 to $1,300, the measure of overall price level also increased from 168 to 187, indicating inflation. Since the price of iron ore increased by less than inflation, it means it became relatively less scarce.

Question 11

The relationship between the quantity of output created and the quantity of inputs needed to create it is called

Accepted Answer

The production function describes the relationship between the inputs used (such as labor, capital, and raw materials) and the resulting output. It shows how much output can be produced from a given set of inputs. A production function can be represented mathematically as Q = f(K,L), where Q is the quantity of output, K is the quantity of capital, and L is the quantity of labor.

Question 12

Which of the following would be considered physical capital?

Accepted Answer

Physical capital refers to any tangible asset that is used in the production of goods or services. Option C lists bulldozers, backhoes, and other construction equipment which are all tangible assets used in production. Option A and B refer to knowledge, which is not physical capital.

Question 13

Proprietary technology is knowledge that is

Accepted Answer

Proprietary technology is knowledge that is known only by the company that discovered it. It is legally protected as intellectual property and is kept confidential so that competitors cannot use it without permission or paying licensing fees.

Question 14

Technological knowledge refers to

Accepted Answer

The answer of Technological knowledge refers to
...

Question 15

A management professor discovers a way for corporate management to operate more efficiently.He publishes his findings in a journal.His findings are

Accepted Answer

The professor's findings are not proprietary, as he has published them in a journal, making them accessible to the public. However, they are common knowledge because they are now available to anyone who reads the journal.

Question 16

Suppose over the last year 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 130.The price of recycled aluminum increased by

Accepted Answer

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

Question 17

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

Accepted Answer

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

Question 18

Proprietary technology is technology that is

Accepted Answer

Proprietary technology is technology that is not widely used because it is known or controlled only by the company that discovered it. It is often protected through patents, copyrights, or trade secrets, which prevent others from using or copying it without permission.

Question 19

Suppose that over the last ten years productivity grew faster in Oceania than in Freedonia and the population of both countries was unchanged.

Accepted Answer

Faster productivity growth in Oceania implies that real GDP per person grew faster there compared to Freedonia, assuming population remained unchanged.

Question 20

Which of the following would increase productivity?

Accepted Answer

All of the given choices would increase productivity. Increasing physical capital per worker would mean that workers have more and better machines/tools to work with, which would increase efficiency and output. Similarly, an increase in human capital per worker, such as through education and training, would lead to higher productivity as workers would be more skilled and knowledgeable. Finally, an increase in natural resources per worker would mean that workers have access to more raw materials, which would also increase productivity.

Quiz 25: Production and Growth