Question 1

Country A had a population of 2,000,of whom 1,300 worked an average of 8 hours a day and had a productivity of 5.Country B had a population of 2,500,of whom 1,700 worked 8 hours a day and had productivity of 4.Country

Accepted Answer

The answer of Country A had a population of 2,000,of...

Question 2

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 all physical tools and equipment, making them physical capital. Human capital refers to the knowledge, skills, and experience of individuals, while natural resources refer to resources found in the environment. Technological knowledge refers to the knowledge and skills necessary to create and use technology, but it does not refer specifically to the physical tools used in woodworking.

Question 3

Which of the following is not an example of physical capital?

Accepted Answer

Physical capital refers to tangible objects or assets used in the production process, such as buildings, machinery, and vehicles. The knowledge of workers, while a valuable asset, is considered human capital, which is the skills, knowledge, and abilities of the workforce. The office chair in a lawyer's office is a physical object, and a new factory building and a delivery van are also physical capital.

Question 4

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units.This year the same country had 1000 workers who worked an average of 8 hours and produced 14,000 units.This country's productivity was

Accepted Answer

The answer of Last year a country had 800 workers...

Question 5

Which of the following items plays a role in determining productivity?

Accepted Answer

All three factors, physical capital, natural resources, and technological knowledge, play significant roles in determining productivity. Physical capital refers to machinery, equipment, and infrastructure that aid in the production process. Natural resources such as land and minerals also contribute to productivity. Technological knowledge, including research and development, innovation, and knowledge transfer, plays a crucial role in enabling productivity growth by improving the efficiency of production processes. Therefore, all of the factors mentioned in the options above are correct in determining productivity.

Question 6

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

The answer of Country A has a population of 1,000,of...

Question 7

Which of the following is an example of physical capital?

Accepted Answer

Physical capital refers to physical equipment, tools, and infrastructure used in production. Bulldozers, backhoes, and other construction equipment are examples of physical capital. Option A refers to technological knowledge which is an example of human capital. Option B refers to the knowledge possessed by an individual and is also an example of human capital.

Question 8

Dilbert's Incorporated produced 6,000,000 units of software in 2010.At the start of 2011 the pointy-haired boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units.These number indicate that productivity

Accepted Answer

Productivity is calculated as output per hour. In 2010, productivity was 6,000,000 units / 10,000 hours = 600 units per hour. In 2011, it was 7,000,000 units / 14,000 hours = 500 units per hour. The decrease from 600 to 500 units per hour represents a fall of about 16.7%.

Question 9

Which of the following is an example of physical capital?

Accepted Answer

Physical capital refers to tangible items used by a business or enterprise to produce goods or provide services. The equipment in a factory is an example of physical capital because it is a tangible item used in the production process. Choices A and B refer to human capital and choice C refers to financial capital.

Question 10

Each day Sue works 8 hours and produces 7 units of goods and services.Mary works 10 hours each day and produces 10 units of goods and services.It follows that

Accepted Answer

Mary's productivity is higher than Sue's as she produces 10 units in 10 hours compared to Sue's 7 units in 8 hours. However, we cannot determine income from the given information.

Question 11

Both Arnold and Will work 10 hours a day.Arnold can produce six baskets of goods per hour while Will can produce four baskets of the same goods per hour.It follows that Arnold's

Accepted Answer

Arnold's productivity is higher than Will's (6 baskets/hour compared to 4 baskets/hour), so option A is correct. As both work for the same duration, Arnold's total output will be more than Will's (as he can produce more per hour), so option B is also correct. However, option C cannot be inferred from the given information and is thus incorrect. Therefore, the correct choice is D.

Question 12

Upland has a population of 15,000,of whom 9,000 work 8 hours a day to produce real output of $342,000.Lowland has a population of 8,000,of whom 7,000 work 7 hours a day to produce real output of $171,500.

Accepted Answer

Productivity is determined by the ratio of real output to the number of hours worked. 
For Upland, productivity = $342,000 / (9,000 x 8) = $4.75 per hour worked 
For Lowland, productivity = $171,500 / (7,000 x 7) = $3.26 per hour worked

Therefore, Upland has a higher productivity than Lowland.

Real GDP per person is calculated by dividing the real output by the population. 
For Upland, real GDP per person = $342,000 / 15,000 = $22.80 
For Lowland, real GDP per person = $171,500 / 8,000 = $21.44

Therefore, Upland also has a higher real GDP per person than Lowland.

Thus, option A is the correct choice.

Question 13

Country A had a population of 1,000,of whom 600 worked an average of 8 hours a day and had a productivity of 2.5.Country B had a population of 800,of whom 560 worked 8 hours a day and had productivity of 3.0.Country

Accepted Answer

The answer of Country A had a population of 1,000,of...

Question 14

Last year the imaginary country of Basova had a population of 10,000,6,000 people worked 8 hours a day,and produced a real GDP of $30,000,000.The imaginary country of Andovia had a population of 12,000,8,000 people worked 8 hours a day,and produced a real GDP of $38,000,000.Which of the following is correct?

Accepted Answer

Basova's productivity is $625 per worker ($30,000,000/6,000), while Andovia's is $475 per worker ($38,000,000/8,000). Basova's real GDP per person is $3,000 ($30,000,000/10,000), while Andovia's is $3,166.67 ($38,000,000/12,000).

Question 15

Industrial machinery is an example of

Accepted Answer

Industrial machinery is an example of a factor of production that was once an output from the production process, as machinery itself is produced before it can be used in the production of other goods.

Question 16

Workland has a population of 10,000,of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods.Laborland has a population of 5,000,of whom 3,000 work 7 hours a day to produce a total of 105,000 final goods.

Accepted Answer

The answer of Workland has a population of 10,000,of whom...

Question 17

The Karmic Deed 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 facilities used in the production process. In this case, the tables and chairs in the restaurant are physical capital.

Question 18

Which of the following is an example of physical capital?

Accepted Answer

Physical capital refers to the tools, equipment, and infrastructure that are used to produce goods and services. The computer mentioned in choice A is an example of physical capital, while the rivers in choice B and the skills/knowledge of a doctor in choice C are not. Choice D is incorrect because not all three options are examples of physical capital.

Question 19

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

Accepted Answer

Physical capital refers to the equipment, tools, structures, and other types of productive assets used to produce goods and services.

Question 20

Industrial machinery is an example of

Accepted Answer

Industrial machinery is a factor of production that was once an output, is considered physical capital, and influences productivity, making all options correct.

Quiz 12: Production and Growth: Productivity Its Role and Determinants

Country A had a population of 2,000,of whom 1,300 worked an average of 8 hours a day and had a productivity of 5.Country B had a population of 2,500,of whom 1,700 worked 8 hours a day and had productivity of 4.Country

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

Which of the following is not an example of physical capital?

Last year a country had 800 workers who worked an average of 8 hours and produced 12,800 units.This year the same country had 1000 workers who worked an average of 8 hours and produced 14,000 units.This country's productivity was

Which of the following items plays a role in determining productivity?

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.

Which of the following is an example of physical capital?

Dilbert's Incorporated produced 6,000,000 units of software in 2010.At the start of 2011 the pointy-haired boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units.These number indicate that productivity

Which of the following is an example of physical capital?

Each day Sue works 8 hours and produces 7 units of goods and services.Mary works 10 hours each day and produces 10 units of goods and services.It follows that

Both Arnold and Will work 10 hours a day.Arnold can produce six baskets of goods per hour while Will can produce four baskets of the same goods per hour.It follows that Arnold's

Upland has a population of 15,000,of whom 9,000 work 8 hours a day to produce real output of $342,000.Lowland has a population of 8,000,of whom 7,000 work 7 hours a day to produce real output of $171,500.

Country A had a population of 1,000,of whom 600 worked an average of 8 hours a day and had a productivity of 2.5.Country B had a population of 800,of whom 560 worked 8 hours a day and had productivity of 3.0.Country

Industrial machinery is an example of

Workland has a population of 10,000,of whom 7,000 work 8 hours a day to produce a total of 224,000 final goods.Laborland has a population of 5,000,of whom 3,000 work 7 hours a day to produce a total of 105,000 final goods.

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

Which of the following is an example of physical capital?

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

Industrial machinery is an example of