Chapter 10 PQ

Chapter 10 PQ - Exam Name_ MULTIPLE CHOICE. Choose the one...

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Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Suppose that an increase in capital per hour worked from $15,000 to $20,000 increases real GDP per hour worked by $500. If capital per hour worked increases further to $25,000, by how much would you expect real GDP per hour worked to increase if there are diminishing returns? 1) A) by more than $500 but less than $5,000 B) by exactly $500 C) by more than $5,000 but less than $20,000 D) by less than $500 Figure 10 - 1 2) Refer to Figure 10 - 1. Using the per - worker production function in the figure above, the largest changes in an economy's standard of living would be achieved by a movement from 2) A) D to C to B. B) C to B to A. C) A to B to C. D) B to C to D. 3) Refer to Figure 10 - 1. Many countries in Africa strongly discouraged and prohibited foreign direct investment in the 1950s and 1960s. By doing so, these countries were essentially preventing a moment from 3) A) D to C. B) A to B. C) B to C. D) B to A. 4) In a small European country, it is estimated that changing the level of capital from $8 million to $10 million will increase real GDP from $2 million to $3 million. What level of GDP would you expect the economy to be able to reach if spending on capital continued to rise to $12 million, assuming no technological change and no change in the hours of work? 4)
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Chapter 10 PQ - Exam Name_ MULTIPLE CHOICE. Choose the one...

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