CHAPTER 25 - Chapter25 Production andGrowth 1. Ifone wants...

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Chapter 25 Production and Growth 1. If one wants to know  how  the material well-being of the average person  has changed  over time the  appropriate measure  to look at is the growth a. rate of real GDP. b. rate of nominal GDP. c. rate of per capita real GDP. d. in the percentage of the labor force that is employed. ANSWER: c rate of per capita real GDP. SECTION: 1 OBJECTIVE: 1 2. Per capita real GDP differs from per capita nominal GDP in that real GDP a. measures the opportunity  cost of growth. b. has been adjusted  for the time value of money. c. has been adjusted  for inflation. d. has been discounted  to the present. ANSWER: c has been adjusted  for inflation. SECTION: 1 OBJECTIVE: 1 3. Poor countries are poor for all of the following  reasons  except a. their technology is less than modern. b. their labor productivity is low. c. foreign investment  funds are difficult to attract. d. their labor force is too small. ANSWER: d their labor force is too small. SECTION: 1 OBJECTIVE: 2 4. Of the following, which country experienced  the fastest growth  rate for the period  1900–1998? a. United  States b. Japan c. Canada d. Brazil ANSWER: b Japan SECTION: 1 OBJECTIVE: 2 5. Which of the following  represents a productivity-enhancing investment  in human  capital? a. a new  labor-saving technology b. a new  health clinic c. a new  factory that will employ 1,000 workers d. an increase in fringe benefits, such as paid  vacations and  overtime pay ANSWER: b a new  health clinic SECTION: 2 OBJECTIVE: 2 147
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148 Chapter 25/Production and Growth 6. If the capital stock increases faster than  employment, then we would  expect a. both output  and  labor productivity to rise. b. output  to rise but labor productivity to fall. c. both output  and  labor productivity to fall. d. output  to fall but labor productivity to rise. ANSWER: a both output  and  labor productivity to rise. SECTION: 2 OBJECTIVE: 2 7. As its capital stock increases, a nation will a. move to the right along a fixed production  function. b. move to the left along a fixed production  function. c.
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This note was uploaded on 10/22/2010 for the course BUSINESS BAIU09 taught by Professor Mr.ken during the Spring '10 term at American InterContinental University Dunwoody.

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CHAPTER 25 - Chapter25 Production andGrowth 1. Ifone wants...

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