Brief Principles of Macroeconomics 7th Edition
Gregory Mankiw Solutions Manual
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Production and Growth
Multiple Choice – Section 00: Introduction
1. The average income in a rich country, such as the United States or Japan, is more than
a. 3 times, but less than 5 times, the average income in a poor country, such as Indonesia or Nigeria.
b. 5 times, but less than 10 times, the average income in a poor country, such as Indonesia or Nigeria.
c. 10 times, but less than 20 times, the average income in a poor country, such as Indonesia or Nigeria.
d. more than 20 times the average income in a poor country, such as Indonesia or Nigeria.
ANSWER: c
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Thinking Like an Economist Overview of World Economy
KEYWORDS: BLOOM'S: Knowledge
2. The average income in a rich country
a. is about 5 times that in a poor country. Further, people in rich countries have longer life expectancy.
b. is about 5 times that in a poor country. However, people in rich countries have about the same life expectancy as those in poor countries.
c. is more than ten times that in a poor country Further, people in rich countries have longer life expectancy.
d. is more than ten times that in poor country However, people in rich countries have about the
same life expectancy as those in poor countries.
ANSWER: c
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS:
DISC: Thinking Like an Economist Overview of World Economy
KEYWORDS: BLOOM'S: Knowledge
3. Which of the following are residents of rich countries likely to have in greater quantities, or better quality, than residents of poor countries?
a. housing
b. healthcare
c. life expectancy
d. All of the above.
ANSWER: d
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Thinking Like an Economist Overview of World Economy
KEYWORDS: BLOOM'S: Knowledge
4. Over the past century in the United States, real GDP per person has grown, on average, by about
a. 1 percent per year.
b. 2 percent per year.
c. 3 percent per year.
d. 5 percent per year.
ANSWER: b
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Thinking Like an Economist Overview of US Economy
KEYWORDS: BLOOM'S: Knowledge
5. During the past century the average growth rate of U.S. real GDP per person implies that it doubled, on average, about every
a. 100 years.
b. 70 years.
c. 35 years.
d. 25 years.
ANSWER: c
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Thinking Like an Economist Overview of US Economy
KEYWORDS: BLOOM'S: Comprehension
6. Over the last century, U.S real GDP per person grew at a rate of about
a. 2 percent per year, so that it is now 2 times as high as it was a century ago.
b. 2 percent per year, so that it is now 8 times as high as it was a century ago.
c. 4 percent per year, so that it is now 2 times as high as it was a century ago.
d. 4 percent per year, so that it is now 8 times as high as it was a century ago.
ANSWER: b
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Thinking Like an Economist Overview of US Economy
KEYWORDS: BLOOM'S: Knowledge
7. In some East Asian countries, average income, as measured by real GDP per person, has recently grown at an average annual rate that implies output will double about every
a. 10 years.
b. 15 years.
c. 20 years.
d. 25 years.
ANSWER: a
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Thinking Like an Economist Overview of World Economy
KEYWORDS: BLOOM'S: Knowledge
8. A country experiencing a growth rate of 12% per year can go from being one of the poorest to one of the richest in how many generations?
a. one
b. two
c. three
d. four
ANSWER: a
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC : Growth Theory Growth
KEYWORDS: BLOOM'S: Knowledge
9. A country experiencing a growth rate of 12% per year can go from being one of the poorest to one of the richest in
a. one generation In the last couple of decades China’s growth rate has been higher than 12%.
b. one generation. However, in the last couple of decades not even China’s growth rate has been this high.
c. three generations. In the last couple of decades China’s growth rate has been higher than 12%.
d. three generations. However, in the last couple of decades not even China’s growth rate has been this high.
ANSWER: a
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC : Growth Theory Growth
KEYWORDS: BLOOM'S: Knowledge
NOTES: r
10. In which of the following countries has economic growth been sufficiently high that income would double every ten years?
a. India
b. Mexico
c. South Korea
d. Zimbabwe
ANSWER: c
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Thinking Like an Economist Overview of World Economy
KEYWORDS: BLOOM'S: Knowledge
NOTES: r
11. In which of the following countries has economic growth been sufficiently high that income would double every ten years?
a. Singapore
b. Nigeria
c. India
d. Indonesia
ANSWER: a
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Thinking Like an Economist Overview of World Economy
KEYWORDS: BLOOM'S: Knowledge
NOTES: r
12. Average income has been stagnant for many years in
a. Western European counties.
b. some Asian countries like South Korea and Singapore.
c. some Sub-Saharan African countries.
d. All of the above are correct.
ANSWER: c
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Thinking Like an Economist Overview of World Economy
KEYWORDS: BLOOM'S: Knowledge
NOTES: r
13. Which of the following is a good gauge of economic progress?
a. the level of real GDP per person, but not the growth rate of real GDP per person
b. the level of real GDP per person and the growth rate of real GDP per person
c. the growth rate of real GDP per person, but not the level of real GDP per person
d. neither the level nor the growth rate of real GDP per person
ANSWER: c
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC : Measuring Output Growth
KEYWORDS: BLOOM'S: Comprehension
14. In which of the following countries did real GDP per person fall by about 38% from 1991 to 2011?
a. India
b. Singapore
c. Zimbabwe
d. None of the above are correct.
ANSWER: c
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Thinking Like an Economist Overview of World Economy
KEYWORDS: BLOOM'S: Comprehension
NOTES: n
15. Productivity is the amount of goods and services
a. an economy produces It is not linked to a nation’s economic policies.
b. an economy produces It is linked to a nation’s economic policies.
c. produced for each hour of a worker’s time It is not linked to a nation’s economic policies.
d. produced for each hour of a worker’s time. It is linked to a nation’s economic policies.
ANSWER: d
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Knowledge
16. A nation’s standard of living is determined by
a. the percentage of its GDP that is accounted for by government purchases.
b. the quantity of natural resources with which it is endowed.
c. the productivity of its workers.
d. factors and events that are beyond the nation’s control.
ANSWER: c
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Comprehension
Multiple Choice
Section 01: Economic Growth around the World
1. A nation's standard of living is best measured by its
a. real GDP.
b. real GDP per person.
c. nominal GDP.
d. nominal GDP per person.
ANSWER: b
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC : Mesuring Output GDP
KEYWORDS: BLOOM'S: Comprehension
2. Which of the following can be measured by the level of real GDP per person?
a. productivity and the standard of living
b. productivity but not the standard of living
c. the standard of living but not productivity
d. neither the standard of living nor productivity
ANSWER: c
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output GDP
KEYWORDS: BLOOM'S: Knowledge
3. The level of real GDP person
a. differs widely across countries, but the growth rate of real GDP per person is similar across countries.
b. is very similar across countries, but the growth rate of real GDP per person differs widely across countries.
c. and the growth rate of real GDP per person are similar across countries.
d. and the growth rate of real GDP per person vary widely across countries.
ANSWER: d
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output GDP
KEYWORDS: BLOOM'S: Comprehension
4. As of 2010, using real GDP per person as a measure, we would classify
a. the United States and Mexico as advanced economies and Bangladesh as a middle-income country.
b. Canada as an advanced economy, Mexico as a middle-income country, and Pakistan as a poor country.
c. Japan and India as advanced economies and Mexico as a poor country.
d. Japan as an advanced economy, the United Kingdom as a middle-income country, and Argentina as a poor country.
ANSWER: b
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output GDP
KEYWORDS: BLOOM'S: Comprehension
5. Measured in 2010 dollars, real GDP per person in the United States in 2010 was about 14 times that in
a. China.
b. India.
c. Indonesia.
d. Pakistan.
ANSWER: b
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output GDP
KEYWORDS: BLOOM'S: Knowledge
NOTES: r
6. Which of the following statements is correct? In 2010,
a. real income per person in the U.S. was about 6 times that in China.
b. real income per person in China was more than 2 times that in India.
c. the typical resident of India had less real income than the typical resident of England in 1870.
d. All of the above are correct.
ANSWER: d
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output GDP
KEYWORDS: BLOOM'S: Knowledge
NOTES: r
7. In 2010, real GDP per person in Bangladesh was
a. about 3 times as high as it was in the U.S. in 1870.
b. about twice as high as it was in the U.S. in 1870.
c. about the same as it was in the U.S. in 1870.
d. less than it was in the U.S in 1870.
ANSWER: d
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output GDP
KEYWORDS: BLOOM'S: Knowledge
8. In 2010, the typical Bangladeshi had about
a. less than half the real income of a typical American a century ago.
b. about the same real income of a typical American a century ago.
c. 2 times as much real income as that of a typical American a century ago.
d. 4 times as much real income as that of a typical American a century ago.
ANSWER: a
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output GDP
KEYWORDS: BLOOM'S: Knowledge
9. Measured in 2010 dollars, real GDP per person in the United States in 2010 was about
a. $37,000.
b. $47,000.
c. $57,000.
d. $67,000.
ANSWER: b
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output GDP
KEYWORDS: BLOOM'S: Knowledge
10. Which of the following countries had the highest level of real GDP per person in 2010?
a. Germany
b. Canada
c. United States
d. Japan
ANSWER: c
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output GDP
KEYWORDS: BLOOM'S: Knowledge
NOTES: r
11. Which of the following countries had the lowest level of real GDP per person in 2010?
a. Bangladesh
b. Indonesia
c. Mexico
d. China
ANSWER: a
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output GDP
KEYWORDS: BLOOM'S: Knowledge
12. Which of the following measures how the level of well-being in a country has changed over time?
a. level of nominal GDP per person.
b. growth rate of nominal GDP.
c. growth rate of real GDP.
d. growth rate of real GDP per person.
ANSWER: d
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Comprehension
13. Which of the following is correct?
a. Countries with the highest growth rates over the last 120 years are the ones that had the highest level of real GDP 120 years ago.
b. Most countries have had little fluctuation around their average growth rates during the past 120 years.
c. The ranking of countries by income changes little over time.
d. Even though Japan had a higher growth rate of real GDP per person than the U.S. over the last 120 years, it’s level of real GDP per person is less than that of the U.S.
ANSWER: d
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Comprehension
NOTES: r
14. Which of the following is not correct?
a. Across countries there are large differences in the average income per person. These differences are reflected in large differences in the quality of life.
b. With a growth rate of about 2 percent per year, average income per person doubles about every 60 years.
c. The ranking of countries by average income changes substantially over time.
d. In some countries real income per person has changed very little over many years.
ANSWER: b
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Comprehension
NOTES: r
15. Which of the following statements is correct?
a. In the late 1800s, real GDP per person was higher in the United Kingdom than in the United States.
b. In 2010, real GDP per person was higher in the United Kingdom than in the United States.
c. The average annual growth rate of real GDP was higher in the United Kingdom than in the United States between the late 1800s and 2010.
d. All of the above are correct.
ANSWER: a
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output GDP
KEYWORDS: BLOOM'S: Knowledge
16. Countries that have lower levels of real GDP per person than the United States
a. tend to have growth rates that are higher than that of the United States.
b. tend to have growth rates that are about the same as that of the United States.
c. tend to have growth rates that are lower than that of the United States.
d. in some cases have growth rates that are higher than that of the United States and in other cases lower than that of the United States.
ANSWER: d
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Comprehension
17. Country A experienced a growth rate of real GDP per person of 2.5 percent per year throughout the 1900’s. In view of other countries’ experiences during this time country A’s growth was
a. exceptionally high.
b. moderately high.
c. moderately low.
d. exceptionally low.
ANSWER: a
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Comprehension
18. Country A experienced a growth rate of real GDP per person of 0.5 percent per year throughout the 1900’s In view of other countries’ experiences, country A’s growth was
a. exceptionally high.
b. moderately high.
c. moderately low.
d. exceptionally low.
ANSWER: d
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Comprehension
19. Countries that grew the fastest over the last 100 or so years had average growth rates of real income per person of about
a. 1.5 percent per year.
b. 2.0 percent per year.
c. 2.5 percent per year.
d. 3.0 percent per year.
ANSWER: c
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Knowledge
NOTES: r
20. Among the following countries, which one has the highest level of real GDP per person but the lowest growth rate of real GDP per person over a very long period of time?
a. the United Kingdom
b. Mexico
c. Argentina
d. China
ANSWER: a
DIFFICULTY:
Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Knowledge
21. Which of the following nations experienced average rates of economic growth of less than 2 percent over the last 100 years or so?
a. Bangladesh
b. Pakistan
c. United Kingdom
d. All of the above are correct.
ANSWER: d
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Knowledge
22. Which of the following nations experienced average rates of economic growth of a bit under 2% over the last 100 years or so?
a. Mexico
b. Brazil
c. the United States
d. All of the above are correct.
ANSWER: c
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Knowledge
NOTES: r
23. Over the period 1900-2010, which of the following countries experienced the highest average annual growth rate of real GDP per person?
a. Brazil
b. China
c. India
d. Pakistan
ANSWER: a
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Knowledge
NOTES: n
24. Among the following countries, which one has the highest growth rate of real GDP per person over about the last 100 years?
a. Argentina
b. Mexico
c. the United Kingdom
d. the United States
ANSWER: b
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Knowledge
NOTES: r
25. Which of the following countries had the highest growth rate over about the last 100 years?
a. Japan
b. China
c. Germany
d. United States
ANSWER: a
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Knowledge
NOTES: r
26. Which country has had a higher growth rate than the US over about the last 120 years?
a. Argentina
b. Germany
c. the United Kingdom
d. None of the above is correct.
ANSWER: b
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Knowledge
27. Which country has had a higher growth rate than the U.S. over about the last 120 years?
a. India
b. Mexico
c. United Kingdom
d. Pakistan
ANSWER: b
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Knowledge
28. Which list contains, in this order, a country whose real GDP per person grew faster and one whose real GDP per person grew slower than real GDP per person in the U.S over about the last 100 years?
a. Bangladesh, India
b. China, United Kingdom
c. Japan, Brazil
d. Pakistan, Mexico
ANSWER: b
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Knowledge
NOTES: r
29. Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over about the last 120 years?
a. Germany and Japan
b. Indonesia and Bangladesh
c. the United States and Argentina
d. Mexico and Pakistan
ANSWER: c
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Knowledge
NOTES: r
30. Of the following countries, which grew most slowly, in terms of real GDP per person, over about the last 120 years?
a. Brazil
b. Mexico
c. China
d. United States
ANSWER: d
DIFFICULTY:
Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Knowledge
31. Which of these countries’ growth rates of real GDP per person have exceeded the United States’ growth rate of real GDP per person over the last century?
a. Canada and China
b. China and India
c. Germany and India
d. Germany and Pakistan
ANSWER: a
DIFFICULTY:
Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Knowledge
NOTES: r
32. Which of the following is indicated by the data on real income per person for various countries over the past 100 or so years?
a. If, in a relatively poor country, real income per person had grown by 3.5 percent per year for the last 100 years, it would be a relatively rich country today.
b. Rich countries became richer and poor countries became poorer.
c. In the United States, real income per person today is about four times as high as it was 120 years ago.
d. All of the above are correct.
ANSWER: a
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Comprehension
33. Japan is
a. an advanced economy, and over the past century its rate of economic growth has been higher than that of the United States.
b. an advanced economy, and over the past century its rate of economic growth has been lower than that of the United States.
c. a middle-income country, and over the past century its rate of economic growth has been higher than that of the United States.
d. a middle-income country, and over the past century its rate of economic growth has been lower than that of the United States.
ANSWER: a
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Knowledge
34. The United Kingdom is
a. an advanced economy, and over the past century its rate of economic growth has been higher than that of the United States.
b. an advanced economy, and over the past century its rate of economic growth has been lower than that of the United States.
c. a middle-income country, and over the past century its rate of economic growth has been higher than that of the United States.
d. a middle-income country, and over the past century its rate of economic growth has been lower than that of the United States.
ANSWER: b
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Knowledge
35. Mexico is
a. a poor country, and over the past century its rate of economic growth has been higher than that of the United States.
b. a poor country, and over the past century its rate of economic growth has been lower than that of the United States.
c. a middle-income country, and over the past century its rate of economic growth has been higher than that of the United States.
d. a middle-income country, and over the past century its rate of economic growth has been lower than that of the United States.
ANSWER: c
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Knowledge
36. In 1870, the richest country in the world was
a. Germany.
b. Japan
c. the United Kingdom.
d. the United States.
ANSWER: c
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Knowledge
NOTES: r
37. Which of the following statements is correct?
a. In 1870, real income per person was higher in the United States than in any other country at that time.
b. Over about the last 100 years India experienced significantly higher growth of real income per person than did the United States.
c. Over about the last 100 years the United States experienced significantly higher growth of real income per person than did Japan.
d. None of the above are correct.
ANSWER: d
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Knowledge
NOTES: r
38. Which of the following is correct?
a. Over the last 100 years Japan had a higher average growth rate than the United States. It follows that, today, the standard of living in Japan is higher than in the United States.
b. The typical person in Bangladesh today has about twice the real income of a typical American 100 years ago.
c. The typical citizen of China today has about one-half as much real income as the typical citizen of America today.
d. None of the above is correct.
ANSWER: d
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Knowledge
39. Which of the following correctly ranks the three countries, from highest to lowest, for percentage of high-school age children in school?
a. United Kingdom, Mali, Mexico.
b. Mexico, Mali, United Kingdom.
c. United Kingdom, Mexico, Mali.
d. Mali, Mexico, United Kingdom.
ANSWER: c
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC : Thinking Like an Economist Overview of World Economy
KEYWORDS: BLOOM'S: Knowledge
40. One can argue that the average American today is “richer” than the richest American 100 years ago, given that 100 years ago,
a. people’s nominal incomes were, on average, much lower than they are today.
b. personal fortunes were not accurately measured.
c. many of the goods and services that we now take for granted were not available.
d. international trade had not yet begun to flourish.
ANSWER: c
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC : Thinking Like an Economist Overview of US Economy
KEYWORDS: BLOOM'S: Comprehension
41. Last year real GDP per person in the imaginary nation of Olympus was 4,250. The year before it was 4,100. Byabout what percentage did Olympian real GDP per person grow during the period?
a. 1.6 percent
b. 2.5 percent
c. 3.7 percent
d. 6 percent
ANSWER: c
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Application
NOTES: r
42. Last year real GDP in the imaginary nation of Oceania was 561.0 billion and the population was 2.2 million The year before, real GDP was 500.0 billion and the population was 2.0 million What was the growth rate of real GDP per person during the year?
a. 12 percent
b. 10 percent
c. 4 percent
d. 2 percent
ANSWER: d
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Application
43. Last year real GDP in the imaginary nation of Populia was 907.5 billion and the population was 3.3 million The year before real GDP was 750 billion and the population was 3 million What was the growth rate of real GDP per person during the year?
a. 10 percent
b. 14 percent
c. 17 percent
d. 21 percent
ANSWER: a
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Application
44. Last year the imaginary nation of Freedonia had a population of 2,800 and real GDP of 16,800,000 This year it had a population of 2,700 and real GDP of 15,390,000 About what was the growth rate of real GDP per person between last year and this year?
a. -5.3 percent
b. -5 percent
c. 5 percent
d. 5.3 percent
ANSWER: b
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Application
NOTES: r
45. In 2012, the imaginary nation of Kanmiw had a population of 8,044 and real GDP of 36,198,000. In 2013 it had a population of 7,800 and real GDP of 35,880,000. What was the growth rate of real GDP per person in Kanmiw between 2012 and 2013?
a. -2.2 percent
b. -0.7 percent
c. 2.2 percent
d. 4.5 percent
ANSWER: c
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Application
NOTES: r
46. In 2011, the imaginary nation of Maconia had a population of 8,200 and real GDP of 210,500 Maconia had 5% growth in real GDP per person In 2012 it had a population of 8,400 To the nearest dollar what was real GDP in Maconia in 2012?
a. 216,815
b. 221,025
c. 226,416
d. None of the above is correct.
ANSWER: c
DIFFICULTY: Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Application
NOTES: r
47. In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 500,000. In 2011 it had a population of 5,100 and real GDP of 520,200. During 2011 real GDP per person in Bovina grew by
a. 2 percent, which is high compared to average U.S. growth over the last one-hundred years.
b. 2 percent, which is about the same as average U.S. growth over the last one-hundred years.
c. 4 percent, which is high compared to average U.S growth over the last one-hundred years.
d. 4 percent, which is about the same as average U.S growth over the last one-hundred years.
ANSWER: c
DIFFICULTY: Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Application
48. In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 600,000 In 2011 it had a population of 5,200 and real GDP of 636,480 During 2011 real GDP per person in Bovina grew by
a. 2 percent, which is high compared to average U.S. growth over the last one-hundred years.
b. 2 percent, which is about the same as average U.S. growth over the last one-hundred years.
c. 4 percent, which is high compared to average U.S. growth over the last one-hundred years.
d. 4 percent, which is about the same as average U.S growth over the last one-hundred years.
ANSWER: b
DIFFICULTY: Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Application
NOTES: n
49. In 2010, the imaginary nation of Mainland had a population of 6,000 and real GDP of 120,000 In 2011 the population was 6,200 and real GDP of 128,960 Over the year in question, real GDP per person in Mainland grew by
a. 2 percent, which is high compared to average U.S growth over the last one-hundred years.
b. 2 percent, which is about the same as average U.S growth over the last one-hundred years.
c. 4 percent, which is high compared to average U.S. growth over the last one-hundred years.
d. 4 percent, which is about the same as average U.S. growth over the last one-hundred years.
ANSWER: c
DIFFICULTY: Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Application
50. In 2009, the imaginary nation of Mainland had a population of 7,000 and real GDP of 210,000 In 2010 the population was 7,300 and real GDP of 223,380 Over the year in question, real GDP per person in Mainland grew by
a. 2 percent, which is high compared to average U.S. growth over the last one-hundred years.
b. 2 percent, which is about the same as average U.S. growth over the last one-hundred years.
c. 4 percent, which is high compared to average U.S. growth over the last one-hundred years.
d. 4 percent, which is about the same as average U.S growth over the last one-hundred years.
ANSWER: b
DIFFICULTY: Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Application
51. Last year the imaginary nation of Panglossia had real GDP of 400 billion. This year it had real GDP of 472.5 billion. Which of the following changes in population is consistent with a 5 percent growth rate of real GDP per person over the last year?
a. The population decreased from 75 million to 72 million.
b. The population decreased from 60 million to 50 million.
c. The population increased from 70 million to 80 million.
d. The population increased from 80 million to 90 million.
ANSWER: d
DIFFICULTY: Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Analysis
NOTES: r
52. In 2012, the imaginary nation of Dorados had a population of 8,000 and real GDP of 3,000,000 During the year its real GDP grew by about 2.9% Which of the following sets of growth rates is consistent with this growth in real GDP?
a. 2% population growth and 6% real GDP growth
b. 6% population growth and 2% real GDP growth
c. 4% population growth and 7% real GDP growth
d. 7% population growth and 4% real GDP growth
ANSWER: c
DIFFICULTY: Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Application
53. In 2012, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000 During the year its real GDP per person grew by about 1.94% Which of the following sets of growth rates is consistent with this growth in real GDP per person?
a. 3% population growth and 4% real GDP growth
b. 3% population growth and 5% real GDP growth
c. 6% population growth and 4% real GDP growth
d. 6% population growth and 5% real GDP growth
ANSWER: b
DIFFICULTY: Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Application
NOTES: r
54. Which of the following pairs of terms refer to the same thing?
a. “capital” and “physical capital”
b. “technological knowledge” and “human capital”
c. “standard of living” and “human capital”
d. “standard of living” and “productivity”
ANSWER: a
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.121 - LO: 25-1
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Knowledge
Multiple Choice – Section 02: Productivity: Its Role and Determinants
1. Which of the following is correct?
a. Although levels of real GDP per person vary substantially from country to country, the growth rate of real GDP per person is similar across countries.
b. Productivity is not closely linked to government policies.
c. The level of real GDP per person is a good gauge of economic prosperity, and the growth rate of real GDP per person is a good gauge of economic progress.
d. Productivity may be measured by the growth rate of real GDP per person.
ANSWER: c
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Comprehension
2. The one variable that stands out as the most significant explanation of large variations in living standards around the world is
a. productivity.
b. population.
c. preferences.
d. prices.
ANSWER: a
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Comprehension
3. Productivity is defined as the quantity of
a. labor required to produce a nation’s GDP.
b. labor required to produce one unit of goods and services.
c. goods and services produced from each unit of labor input.
d. goods and services produced per unit of time.
ANSWER: c
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Knowledge
4. Which of the following is a correct way to measure productivity?
a. Divide the number of hours worked by the quantity of output.
b. Divide the quantity of output by the number of hours worked.
c. Determine how much output is produced in a given time.
d. Determine how much time it takes to produce a unit of output.
ANSWER: b
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Knowledge
5. Which of the following statements is true?
a. Productivity is calculated as hours worked divided by output produced.
b. Americans have a higher standard of living than Indonesians because American workers are more productive than Indonesian workers.
c. Both A and B are correct.
d. None of the above are correct.
ANSWER: b
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Comprehension
6. Which of the following is not correct?
a. Countries that have had higher output growth per person have typically done so without higher productivity growth.
b. A country's standard of living and its productivity are closely related.
c. Productivity refers to output produced per hour of work.
d. Increases in productivity can be used to increase output or leisure.
ANSWER: a
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Comprehension
7. In determining living standards, productivity plays a key role
a. for individuals, but not for nations.
b. for nations, but not for individuals.
c. for both nations and individuals.
d. for neither nations nor individuals.
ANSWER: c
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Comprehension
8. The key determinant of the standard of living in a country is
a. the amount of goods and services produced from each hour of a worker's time.
b. the total amount of goods and services produced within the country.
c. the total amount of its physical capital.
d. its growth rate of real GDP.
ANSWER: a
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Comprehension
9. For a given year, productivity in a particular country is most closely matched with that country's
a. level of real GDP over that year.
b. level of real GDP divided by hours worked over that year.
c. growth rate of real GDP divided by hours worked over that year.
d. growth rate of real GDP per person over that year.
ANSWER: b
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Comprehension
10. Which of the following would, by itself, reveal the most about a country’s standard of living?
a. its level of capital
b. the number of hours worked
c. its availability of natural resources
d. its productivity
ANSWER: d
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Comprehension
11. Productivity
a. is nearly the same across countries, and so provides no help explaining differences in the standard of living across countries.
b. explains very little of the differences in the standard of living across countries.
c. explains some, but not most of the differences in the standard of living across countries.
d. explains most of the differences in the standard of living across countries.
ANSWER: d
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Comprehension
12. Productivity is the
a. key determinant of living standards, and growth in productivity is the key determinant of growth in livingstandards.
b. key determinant of living standards, but growth in productivity is not the key determinant of growth in livingstandards.
c. not the key determinant of living standards, but growth in productivity is the key determinant of growth in living standards.
d. not the key determinant of living standards, and growth in productivity is not the key determinant of growth in living standards.
ANSWER: a
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Comprehension
13. Over the last ten years productivity grew faster in Mapoli than in Romeria while the population and total hours worked remained the same in both countries It follows that
a. real GDP per person grew faster in Mapoli than in Romeria.
b. real GDP per person must be higher in Mapoli than in Romeria.
c. the standard of living must be higher in Mapoli than in Romeria.
d. All of the above are correct.
ANSWER: a
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Application
NOTES: r
14. Over the last ten years productivity grew more slowly in Iberia than in Aire while the population and total hours worked remained the same in both countries It follows that
a. real GDP per person must be lower in Iberia than in Aire.
b. real GDP per person grew more slowly in Iberia than in Aire.
c. the standard of living must be higher in Iberia than in Aire.
d. All of the above are correct.
ANSWER: b
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Application
NOTES: r
15. Which of the following can explain faster growth of real GDP in country A than in Country B?
a. both greater population growth and greater productivity growth in Country A
b. greater population growth in Country A, but not greater productivity growth in Country A
c. greater productivity growth in Country A, but not greater population growth in Country A
d. neither greater population growth nor greater productivity growth in Country A
ANSWER: a
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC; Measuring Output Growth
KEYWORDS: BLOOM'S: Application
NOTES: r
16. Suppose that real GDP grew more in Country A than in Country B last year.
a. Country A must have a higher standard of living than country B.
b. Country A's productivity must have grown faster than country B's.
c. Both of the above are correct.
d. None of the above are correct.
ANSWER: d
DIFFICULTY: Difficulty: Challenging
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Analysis
17. Given that a country’s real output has increased, in which of the following cases can we be sure that its productivity also has increased?
a. The total number of hours worked rose.
b. The total number of hours worked stayed the same.
c. The total number of hours worked fell.
d. Both b and c are correct.
ANSWER: d
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Comprehension
18. Phoenix furniture uses 12 workers, each working eight hours, to produce 192 rocking chairs. What is Phoenix’s productivity?
a. 192 rocking chairs
b. 24 rocking chairs per hour
c. 2 rocking chairs per hour
d. 2 hours per rocking chair
ANSWER: c
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Measuring Output Growth
KEYWORDS: BLOOM'S: Application
NOTES: r
19. Hit-It produces 320 baseball bats per day using 2 workers who each work 8 hours per day What is HitIt’s productivity?
a. 320 baseball bats
b. 160 baseball bats per hour
c. 20 baseball bats per hour
d. None of the above is correct.
ANSWER: c
DIFFICULTY:
Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Application
NOTES: r
20. In one day Alpha Cabinet Company made 40 cabinets with 320 hours of labor. What was Alpha Cabinet Company’s productivity?
a. 1/8 cabinet per hour
b. 8 hours per cabinet
c. 40 cabinets
d. None of the above is correct.
ANSWER: a
DIFFICULTY:
Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Application
21. In one day Madison Laundry washed 4,000 pounds of laundry with 5 workers who each worked 8 hours. What was its productivity?
a. 4000 pounds of laundry
b. 500 pounds of laundry per hour
c. 100 pounds of laundry per hour
d. None of the above is correct.
ANSWER: c
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Application
22. Allied Business Consultants employs five researchers that each work 8 hour days In one day the researchers prepared 10 reports for its 2 largest clients What was Allied Business Consultants’ productivity?
a. 10 reports
b. 5 reports per client
c. 1.25 reports per hour
d. 1/4 report per hour
ANSWER: d
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Application
NOTES: r
23. You and your friend work together for 4 hours to produce a total of 8 bookcases What is productivity?
a. 16 bookcases
b. 8 bookcases
c. 2 bookcases per hour
d. 1 bookcase per hour
ANSWER: d
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Application
NOTES: r
24. In one day Portal Computer Company made 400 laptops with 1200 hours of labor What was its productivity?
a. 1/3 laptop per hour
b. 3 hours per laptop
c. 1200 laptops
d. 400 laptops
ANSWER: a
DIFFICULTY:
Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Application
25. Mary looks over reports on four of her workers Jack made 30 baskets in 5 hours Rudy made 32 baskets in 8 hours Sam made 40 baskets in 12 hours Walter made 22 baskets in four hours
Who has the greatest productivity?
a. Jack
b. Rudy
c. Sam
d. Walter
ANSWER: a
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Application
NOTES: r
26. A barber shop produces 192 haircuts a day Each barber in the shop works 8 hours per day and produces the same number of haircuts per hour If the shop’s productivity is 2 haircuts per hour of labor, then how many barbers does the shop employ?
a. 8
b. 12
c. 16
d. None of the above is correct.
ANSWER: b
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Application
NOTES: r
27. Miller’s Dairy produces 960 gallons of milk per day Each milker at the dairy works 8 hours per day and produces the same number of gallons of milk per hour If the Dairy’s productivity is 12 gallons of milk per hour of labor, then how many milkers does the shop employ?
a. 8
b. 10
c. 80
d. 120
ANSWER: b
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Application
28. Gramp’s Potato Chips produces 2560 bags of potato chips a day Each employee at Gramp’s works 8 hours If the company’s productivity is 20 bags per hour, how many people does Gramp’s employ?
a. 8
b. 16
c. 24
d. None of the above is correct.
ANSWER: b
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Application
NOTES: r
29. Greg’s Ice Cream produces 1120 gallons of ice cream per day Each employed works seven hours and has productivity of 20 gallons an hour How many employees does Greg’s employ?
a. 160
b. 56
c. 8
d. None of the above is correct.
ANSWER: c
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Application
30. Adam and Doug both build birdhouses Adam works 30 hours a week and produces 15 bird houses Doug works 20 hours a week and produces 12 bird houses Which of the following is correct?
a. Adam’s production and productivity are higher than Doug’s.
b. Adam’s production is higher than Doug’s, but Doug’s productivity is higher than Adam’s.
c. Doug’s production is higher than Adam’s, but Adam’s productivity is higher than Doug’s.
d. Doug’s production and productivity are higher than Adam’s.
ANSWER: b
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Application
NOTES: r
31. Alexis and Tara both mine salt. Alexis mines 300 pounds in 20 hours. Tara mines 400 pounds in 40 hours. Which of the following is correct?
a. Alexis’s productivity is greater than Tara’s This difference could be explained by Alexis having more physical capital than Tara.
b. Alexis’s productivity is greater than Tara’s This difference cannot be explained by a difference in the physical capital each has.
c. Tara’s productivity is greater than Alexis’s This difference could be explained by Tara having more physical capital than Alexis.
d. Tara’s productivity is greater than Alexis’s This difference cannot be explained by a difference in the physical capital each has.
ANSWER: a
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.122 - LO: 25-2
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Growth Theory Productivity
KEYWORDS: BLOOM'S: Application
NOTES: r