Question 1

Other things the same, which of the following would increase productivity?

Accepted Answer

An increase in either human or physical capital would increase productivity. Human capital refers to the skills, knowledge, and experience of the workforce, while physical capital refers to the tools, equipment, and infrastructure used in production. Both factors contribute to productivity, and an increase in either one would lead to greater output per input.

Question 2

Which of the following is a determinant of productivity?

Accepted Answer

All of the factors listed - human capital per worker, physical capital per worker, and natural resources per worker - are determinants of productivity. Human capital refers to the knowledge, skills, and education of a workforce, which can lead to greater efficiency and innovation. Physical capital includes tools, machines, and equipment which enhance productivity by allowing workers to produce more output per unit of time. Natural resources such as raw materials, energy sources, and land can contribute to productivity as well, depending on their availability and quality.

Question 3

Apple founder Steve Jobs received patents on many of his ideas. While the patents existed, his ideas were

Accepted Answer

Steve Jobs' ideas were protected by patents, meaning they were considered private goods that belonged to him and his company. Additionally, since they were protected by patents, they were also considered proprietary knowledge, as only Apple had the legal right to use and profit from them.

Question 4

Matt is going to college to become a pharmacist. What he learns about existing information increases

Accepted Answer

Matt is going to college to acquire knowledge and skills related to pharmacy which falls under the category of human capital. However, he is not necessarily learning about new technologies or innovations in the field, so his technological knowledge may not necessarily increase.

Question 5

Perry accumulated a lot of mathematical skills while in high school, college, and graduate school. Economists include these skills as part of Perry's

Accepted Answer

Perry's mathematical skills are part of his human capital, which refers to the knowledge, skills, and abilities a person possesses that make them productive in a particular industry or job. Human capital is an important factor in economic growth and development, as individuals with higher levels of human capital are typically more productive and earn higher wages. Proprietary knowledge refers to knowledge or information that is unique to a particular company or individual, while technological knowledge refers specifically to knowledge about technology and its application. Physical capital refers to tangible assets such as buildings, machinery, and equipment.

Question 6

Which of the following statements about inputs is correct?

Accepted Answer

This statement is correct, as a forest is a natural resource and can be renewed through reforestation efforts. B is incorrect as human capital (skills and knowledge possessed by workers) and technological knowledge (knowledge about the use and development of technology) are distinct inputs. C is incorrect as human capital is a produced factor of production, created through education and training. D is incorrect as physical capital (tools, machinery, and infrastructure) is a produced factor of production.

Question 7

Which of the following lists contains, in this order, natural resources, human capital, and physical capital?

Accepted Answer

- Wood is a natural resource.
- The skills and knowledge of workers is an example of human capital.
- Saws are an example of physical capital.

Question 8

Which of the following lists contains, in this order, natural resources, physical capital, and human capital?

Accepted Answer

The answer of Which of the following lists contains, in...

Question 9

Which of the following is a determinant of productivity?

Accepted Answer

All of the above factors are determinants of productivity. Human capital refers to the skills and knowledge that workers possess, which can increase their productivity. Physical capital refers to the tools, equipment, and infrastructure that can aid in the production process. Natural resources can also affect productivity, as they provide the raw materials necessary for production. Therefore, all three factors (human capital, physical capital, and natural resources) contribute to a country's productivity.

Question 10

Human capital is

Accepted Answer

Human capital refers to the knowledge and skills possessed by individuals, including their education, training, and experiences. It is often seen as an asset that individuals bring to the workplace, which can improve productivity and contribute to economic growth. While technological knowledge and labor are related to human capital, they are distinct concepts. Human capital focuses specifically on the knowledge and skills of individuals, rather than the tools or input used in production.

Question 11

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

Since the better methods for producing mousetraps are not apparent from the mousetraps themselves, it implies that the knowledge is not common knowledge. Furthermore, since the company has discovered these methods, they are proprietary to the company. As such, the knowledge is proprietary technological knowledge.

Question 12

Proprietary technology is technology

Accepted Answer

Proprietary technology refers to technology that is owned and controlled by a single company or entity. This means that the technology is not available for use or access by other companies or individuals without permission or a license from the owner.

Question 13

Proprietary technology is technology that is

Accepted Answer

Proprietary technology is known or controlled only by the company that discovered it, making it not widely used in the market.

Question 14

Which of the following statements is true?

Accepted Answer

According to the textbook, "the prices of most natural resources (such as oil) have tended to be stable or even falling relative to prices of other goods and services." The other statements are false.

Question 15

Which of the following statements is true?

Accepted Answer

A) The quantity of natural resources per worker can influence productivity. This is true as workers with access to more natural resources will have more inputs to work with, potentially increasing productivity.
B) Technological knowledge and human capital are closely related. This is true as technological knowledge is often developed through education and learning, which falls under the category of human capital.
C) Over long periods of time, the prices of most natural resources are stable or falling, relative to other prices. This is generally true as advances in technology and efficiency in production can lead to lower costs of extracting natural resources, reducing their prices over time.

Question 16

Amy discovers a way to produce water heaters so they are less expensive and use less natural gas. Amy's discovery is

Accepted Answer

Amy's discovery pertains to technological knowledge because it involves finding a more efficient way of producing a product. The discovery leads to lower natural gas prices, making it less scarce, which is the outcome of the discovery, rather than the discovery itself. Therefore, options A and B are incorrect. Option D is also incorrect because lower natural gas prices would imply that the resource is more abundant rather than scarcer.

Question 17

A professor at a university finds a way to reduce the costs of producing automobile glass. The method is very easy for anyone to copy. A company develops a substance which prevents eyeglasses from smudging. It receives a patent on the formula. Which of these are common technological knowledge?

Accepted Answer

The method to reduce costs of producing automobile glass is considered common technological knowledge because it can be easily replicated by anyone. However, the formula for the substance that prevents smudging is protected by a patent, which means it is not common knowledge and cannot be used by anyone without permission from the patent holder.

Question 18

Human capital

Accepted Answer

Human capital refers to the knowledge, skills, and abilities that people possess and can use to produce goods and services. It is an input in the production process, similar to physical capital like machinery or buildings. Option A is incorrect as it uses a flawed metaphor to describe human capital, and option B is incorrect as physical capital refers to tangible assets like machinery and buildings. Option D is also incorrect, as human capital is not the same as the quantity of labor, but rather the quality of labor.

Question 19

Which of the following would increase productivity?

Accepted Answer

All the given options can increase productivity. An increase in physical capital per worker can lead to better tools and equipment which in turn increases productivity. Similarly, an increase in human capital per worker through training and education can lead to greater efficiency and higher productivity. Finally, an increase in natural resources per worker can provide more inputs for production, thereby increasing productivity.

Question 20

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 answer of A management professor discovers a way for...

Quiz 25: Production and Growth

Other things the same, which of the following would increase productivity?

Which of the following is a determinant of productivity?

Apple founder Steve Jobs received patents on many of his ideas. While the patents existed, his ideas were

Matt is going to college to become a pharmacist. What he learns about existing information increases

Perry accumulated a lot of mathematical skills while in high school, college, and graduate school. Economists include these skills as part of Perry's

Which of the following statements about inputs is correct?

Which of the following lists contains, in this order, natural resources, human capital, and physical capital?

Which of the following lists contains, in this order, natural resources, physical capital, and human capital?

Which of the following is a determinant of productivity?

Human capital is

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

Proprietary technology is technology

Proprietary technology is technology that is

Which of the following statements is true?

Which of the following statements is true?

Amy discovers a way to produce water heaters so they are less expensive and use less natural gas. Amy's discovery is

A professor at a university finds a way to reduce the costs of producing automobile glass. The method is very easy for anyone to copy. A company develops a substance which prevents eyeglasses from smudging. It receives a patent on the formula. Which of these are common technological knowledge?

Human capital

Which of the following would increase productivity?

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