question

When the amount of human capital and the level of the technical means of the production of goods and services remain fixed, and workers are given more capital to use in production, then output will:

answer

rise at a decreasing rate.

question

If the average family makes $40,000 and the real GDP per capita increases 5%, that will increase the family's total income by $_____.

answer

2,000 ( you take 40,000 times .05 to get 2,000 It had only asked what the total income increase was so the wording was tricky.

question

A country's real GDP per capita increases 1%. The average family made $20,000 a year before the increase. What will the average family now roughly make following the increase in real GDP?

answer

$20,200 a year ( you take 20,000 times .01 to get 200 and then add that back to the original amount of 20,000) The question had asked what the family will now make with that increase.

question

An aggregate production function shows diminishing returns to physical capital when each successive increase in the amount of physical capital per worker leads to _____ productivity.

answer

a smaller increase in

question

According to the Rule of 70, if real GDP per capita grows at 5% per year, then it will double in about _____ years.

answer

14 (I really don't know how they got this exactly but I'm completely guessing here, I took 70 divided by 5 and got 14 so maybe that's how they did it.)

question

If a country experiences increases in the technical means of the production of goods and services, then _____ output will be produced using the same inputs.

answer

more

question

If the average family makes $50,000 and the real GDP per capita increases 4%, that will increase the family's total income to $_____.

answer

52,000

question

_____ is measured as output per worker or output per hour.

answer

Labor productivity

question

Compared to a century ago, the amount of capital per worker has:

answer

increased, because workers are better educated, and there are more buildings and machines.

question

If the economy of the United States grows at 5% per year, the size of the economy will quadruple in about _____ years.

answer

28

question

According to the Rule of 70, if a country's real GDP per capita is growing at a rate of 3.5% a year, it will take _____ years for the GDP to double twice.

answer

40 ( I actually don't know how they did the math on this one, but with a guess I'd say maybe they took 70 divided by 3.5 to get 20 and times that by 2 to get the 40, but I know know.)

question

Sustained economic growth occurs only when:

answer

the productivity of workers increases steadily.

question

GDP has grown in a country at 4% per year for the last 30 years. The labor force has grown at 1% per year and the quantity of physical capital has grown at 5% per year. Physical capital per worker in this country has grown by _____%.

answer

4

question

Question Value: 35 points

Real GDP has grown in a country at 4% per year for the last 30 years. The labor force has grown at 1% per year and the quantity of physical capital has grown at 5% per year. A 1% increase in average physical capital per worker (other things equal) raises productivity by 0.5%. Average education has not changed. How much has technological progress contributed to productivity growth?

Real GDP has grown in a country at 4% per year for the last 30 years. The labor force has grown at 1% per year and the quantity of physical capital has grown at 5% per year. A 1% increase in average physical capital per worker (other things equal) raises productivity by 0.5%. Average education has not changed. How much has technological progress contributed to productivity growth?

answer

1% (hint: There are no numbers applying directly to technological growth, so consider what growth physical capital and human capital caused.)

question

Data for the economy of Wonderland is shown in the table. Real GDP per capita at the beginning of 2011 was:

answer

$5,000. (Maybe calculate real GDP per capita?, I took 10 million real gdp divided by 2000 people to get 5,000)

question

Natural resources in the twenty-first century are less important in determining productivity than human or physical capital for:

answer

countries like Germany and Japan.

question

During the twentieth century in the United States, employment grew _____ the population.

answer

faster than

question

In the twenty-first century, _____ are a less important determinant of productivity than human or physical capital.

answer

natural resource reserves

question

_____ is real gross domestic product (GDP) divided by the population size.

answer

Real GDP per capita

question

If real GDP is $2,000,000 and real GDP per capita is $10,000, then the population is:

answer

200 ( I took the 2 million divided by the 10,000 to get the 200)

question

For the economy as a whole, productivity equals:

answer

real GDP divided by the number of people working.

question

If the economy of the United States grows at 10% per year, the size of the economy will quadruple in about _____ years.

answer

14

question

In the United States, GDP per capita in 2010 was more than five times the amount in 1907; this caused:

answer

a large increase in standard of living.

question

If the U.S. real GDP per capita is now $50,000 and is growing at 2% annually, GDP per capita be in 35 years will be:

answer

$100,000

question

Which is true regarding output per worker?

answer

Holding everything else constant, an increase in physical capital increases the output of a worker at a diminishing rate.

question

Real GDP per capita in an economy doubles in 25 years. Using the Rule of 70, the average growth rate of real GDP for this economy is approximately _____%.

answer

2.8

question

According to the Rule of 70, if real GDP per capita grows at 10% per year, then GDP will double in about _____ years.

answer

7

question

Diminishing returns to physical capital means that real GDP per worker eventually _____ as physical capital per worker increases.

answer

increases