Question 1

Workers today are more productive than they were in the past because they:

Accepted Answer

Workers today are more productive because they are better educated, which means they have more human capital. This includes knowledge, skills, and abilities that they bring to their jobs. Having more human capital allows workers to be more efficient and effective in their work, completing tasks more quickly and with fewer errors. It has nothing to do with natural resources, working hours, or physical size.

Question 2

Use the following to answer question : 
-Growth accounting estimates the:

Accepted Answer

Growth accounting is a method of measuring the contribution of different factors to economic growth. It estimates the contribution of each major factor in the aggregate production function to economic growth, such as labor, capital, and productivity. Therefore, choice (C) is the correct answer. Choices (A) and (B) are not relevant to growth accounting, and choice (D) is too specific as it only refers to the contribution of one factor (technology).

Question 3

The aggregate production function exhibits _____ returns to physical capital.

Accepted Answer

The aggregate production function shows that as more physical capital is added to the production process, the marginal product of capital decreases, indicating diminishing returns to physical capital.

Question 4

Holding the human capital per worker and technology unchanged,the estimated aggregate production function in Jamaica is Y / L = 50 * K / L,where Y = real output,L = number of workers,and K = quantity of physical capital.If real GDP per worker equals $3 200,physical capital per worker equals:

Accepted Answer

Real GDP per worker (Y/L) = $3 200
Aggregate production function: Y / L = 50 * K / L
Substitute Y/L with $3 200: $3 200 = 50K/L
Simplify: K/L = $3 200 /50 = $64
Therefore, physical capital per worker is $64, so the answer is B.

Question 5

Which item does NOT qualify as physical capital?

Accepted Answer

Mineral deposits are natural resources, not physical capital, which are man-made goods used to produce other goods and services such as shovels, factories, and tractors.

Question 6

Use the following to answer question : 
-Because of diminishing returns to capital,doubling the amount of physical capital available for one worker to use will _____ output by _____ a factor of two.

Accepted Answer

Diminishing returns to capital means that as more capital is added, the marginal product of each additional unit of capital decreases. Therefore, doubling the amount of physical capital available for one worker will increase output, but by less than a factor of two.

Question 7

According to the text,productivity is NOT driven by:

Accepted Answer

The text states that productivity is not driven by natural resources, which implies that the other options (physical capital, human capital, and technological progress) are drivers of productivity.

Question 8

Use the following to answer questions: 
-(Figure: Productivity)Use Figure: Productivity.An improvement in technology with everything else remaining unchanged is shown on the diagram as a movement from:

Accepted Answer

The answer of Use the following to answer questions: 
-(Figure:...

Question 9

An increase in the amount of physical capital per worker _____,while technological progress _____.

Accepted Answer

An increase in physical capital per worker moves the economy along the aggregate production function because it results in an increase in output for a given level of technology. Technological progress, on the other hand, shifts up the aggregate production function, meaning that at any given level of physical capital per worker, the economy can produce more output than before. This is because technological progress allows for more efficient or effective use of existing resources, or the development of new resources or production methods altogether.

Question 10

Which sector is responsible for MOST of the growth in Canada during the 1990s?

Accepted Answer

The answer of Which sector is responsible for MOST of...

Question 11

Use the following to answer questions: 
-(Figure: Productivity)Use Figure: Productivity.An increase in physical capital per worker with everything else remaining unchanged is shown on the diagram as a movement from:

Accepted Answer

An increase in physical capital per worker, holding everything else constant, would lead to an increase in productivity. This is represented by a movement from a lower to a higher point on the same productivity curve, such as moving from point A to point B.

Question 12

Diminishing returns to physical capital means that,when the amount of human capital per worker and the state of technology are held fixed,each increase in the amount of physical capital per worker leads to:

Accepted Answer

Diminishing returns to physical capital means that as the amount of physical capital per worker increases, the marginal product of labour initially increases but eventually starts to decrease. This means that each increase in the amount of physical capital per worker leads to a smaller increase in the marginal product of labour, until a point is reached where adding more physical capital actually reduces the marginal product of labour. Therefore, choice A is the correct answer.

Question 13

Which statement accurately describes what is happening along a typical aggregate production function?

Accepted Answer

The statement accurately describes diminishing returns, which means that increased physical capital per worker will eventually result in smaller and smaller increases in productivity. Option A is incorrect because it states that productivity will reduce, which is not always true. Option B is also incorrect because it assumes that increasing physical capital will always lead to an increase in productivity, which is not the case under diminishing returns. Option D is incorrect because real GDP per worker does not always rise at an increasing rate throughout the function; it may initially rise at an increasing rate, but it will eventually reach a point of diminishing returns.

Question 14

Use the following to answer question : 
-(Table: Hypothetical Relationship)Use Table: Hypothetical Relationship.This economy is undergoing:

Accepted Answer

As shown in the table, as the amount of physical capital per worker increases, the output per worker initially increases until a point where it starts to diminish. This is indicative of diminishing returns to physical capital per worker.

Question 15

During the latter half of the twentieth century,the Soviet Union made more physical capital available to its workers,but this increase resulted in successively smaller increases in productivity.This example illustrates:

Accepted Answer

The scenario mentioned here is an example of diminishing returns to physical capital. This means that as more physical capital is added, the increase in productivity that is achieved becomes smaller and smaller. In this case, the Soviet Union provided more physical capital to its workers, but the resultant increase in productivity was successively smaller, indicating that the country had reached a point of diminishing returns.

Question 16

Investment in human capital causes _____________the aggregate production function.

Accepted Answer

Investment in human capital, such as education and training, increases the productivity and efficiency of workers. This leads to an increase in the overall output of goods and services, causing an upward shift in the aggregate production function.

Question 17

Diminishing returns to physical capital implies that,when the human capital per worker and the state of technology remain fixed,each successive increase in physical capital leads to _____ productivity.

Accepted Answer

Diminishing returns to physical capital means that as more physical capital is added, the marginal productivity of that additional physical capital decreases. Therefore, each successive increase in physical capital will lead to a smaller increase in productivity.

Question 18

Use the following to answer question : 
-Diminishing returns to physical capital means that as more and more physical capital is combined with a fixed amount of human capital and a fixed technology,eventually:

Accepted Answer

Diminishing returns to physical capital means that each additional unit of physical capital added will lead to smaller and smaller increases in aggregate output or real GDP. Eventually, a point is reached where additions to aggregate output or real GDP decline, indicating diminishing returns to physical capital. Therefore, the best answer is C.

Question 19

Holding the human capital per worker and technology unchanged,the estimated aggregate production function in Jamaica is Y / L = 50 * K / L,where Y = real output,L = number of workers,and K = quantity of physical capital.If K / L = $81,then real GDP per worker is:

Accepted Answer

Given the aggregate production function Y / L = 50 * K / L and K / L = $81, substituting the value of K / L into the equation gives Y / L = 50 * 81 = $4,050.

Question 20

The aggregate production function does NOT depend on:

Accepted Answer

The aggregate production function includes physical capital, human capital, and technology as inputs. However, it does not consider the amount of natural resources directly. While natural resources can be a factor in the production process, the aggregate production function focuses on the relationship between inputs and outputs, rather than the specific inputs themselves.

Quiz 9: Long-Run Economic Growth

Workers today are more productive than they were in the past because they:

Use the following to answer question : -Growth accounting estimates the:

The aggregate production function exhibits _____ returns to physical capital.

Holding the human capital per worker and technology unchanged,the estimated aggregate production function in Jamaica is Y / L = 50 * K / L,where Y = real output,L = number of workers,and K = quantity of physical capital.If real GDP per worker equals $3 200,physical capital per worker equals:

Which item does NOT qualify as physical capital?

Use the following to answer question : -Because of diminishing returns to capital,doubling the amount of physical capital available for one worker to use will _ output by _ a factor of two.

According to the text,productivity is NOT driven by:

Use the following to answer questions: -(Figure: Productivity) Use Figure: Productivity.An improvement in technology with everything else remaining unchanged is shown on the diagram as a movement from:

An increase in the amount of physical capital per worker _,while technological progress _.

Which sector is responsible for MOST of the growth in Canada during the 1990s?

Use the following to answer questions: -(Figure: Productivity) Use Figure: Productivity.An increase in physical capital per worker with everything else remaining unchanged is shown on the diagram as a movement from:

Diminishing returns to physical capital means that,when the amount of human capital per worker and the state of technology are held fixed,each increase in the amount of physical capital per worker leads to:

Which statement accurately describes what is happening along a typical aggregate production function?

Use the following to answer question : -(Table: Hypothetical Relationship) Use Table: Hypothetical Relationship.This economy is undergoing:

During the latter half of the twentieth century,the Soviet Union made more physical capital available to its workers,but this increase resulted in successively smaller increases in productivity.This example illustrates:

Investment in human capital causes _____________the aggregate production function.

Diminishing returns to physical capital implies that,when the human capital per worker and the state of technology remain fixed,each successive increase in physical capital leads to _____ productivity.

Use the following to answer question : -Diminishing returns to physical capital means that as more and more physical capital is combined with a fixed amount of human capital and a fixed technology,eventually:

Holding the human capital per worker and technology unchanged,the estimated aggregate production function in Jamaica is Y / L = 50 * K / L,where Y = real output,L = number of workers,and K = quantity of physical capital.If K / L = $81,then real GDP per worker is:

The aggregate production function does NOT depend on:

Quiz 9: Long-Run Economic Growth

Workers today are more productive than they were in the past because they:

Use the following to answer question : -Growth accounting estimates the:

The aggregate production function exhibits _____ returns to physical capital.

Holding the human capital per worker and technology unchanged,the estimated aggregate production function in Jamaica is Y / L = 50 * K / L,where Y = real output,L = number of workers,and K = quantity of physical capital.If real GDP per worker equals $3 200,physical capital per worker equals:

Which item does NOT qualify as physical capital?

Use the following to answer question : -Because of diminishing returns to capital,doubling the amount of physical capital available for one worker to use will _____ output by _____ a factor of two.

According to the text,productivity is NOT driven by:

Use the following to answer questions: -(Figure: Productivity) Use Figure: Productivity.An improvement in technology with everything else remaining unchanged is shown on the diagram as a movement from:

An increase in the amount of physical capital per worker _____,while technological progress _____.

Which sector is responsible for MOST of the growth in Canada during the 1990s?

Use the following to answer questions: -(Figure: Productivity) Use Figure: Productivity.An increase in physical capital per worker with everything else remaining unchanged is shown on the diagram as a movement from:

Diminishing returns to physical capital means that,when the amount of human capital per worker and the state of technology are held fixed,each increase in the amount of physical capital per worker leads to:

Which statement accurately describes what is happening along a typical aggregate production function?

Use the following to answer question : -(Table: Hypothetical Relationship) Use Table: Hypothetical Relationship.This economy is undergoing:

During the latter half of the twentieth century,the Soviet Union made more physical capital available to its workers,but this increase resulted in successively smaller increases in productivity.This example illustrates:

Investment in human capital causes _____________the aggregate production function.

Diminishing returns to physical capital implies that,when the human capital per worker and the state of technology remain fixed,each successive increase in physical capital leads to _____ productivity.

Use the following to answer question : -Diminishing returns to physical capital means that as more and more physical capital is combined with a fixed amount of human capital and a fixed technology,eventually:

Holding the human capital per worker and technology unchanged,the estimated aggregate production function in Jamaica is Y / L = 50 * K / L,where Y = real output,L = number of workers,and K = quantity of physical capital.If K / L = $81,then real GDP per worker is:

The aggregate production function does NOT depend on:

Use the following to answer question : -Because of diminishing returns to capital,doubling the amount of physical capital available for one worker to use will _ output by _ a factor of two.

An increase in the amount of physical capital per worker _,while technological progress _.