Exercise Topic 4 - Topic 4 Production and Growth 1 If one...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Topic 4. 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. 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. 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. 4. Of the following, which country experienced the fastest growth rate for the period 1900–1998? a. United States b. Japan Topic 4 - 1 -
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
c. Canada d. Brazil 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 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. 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.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

Exercise Topic 4 - Topic 4 Production and Growth 1 If one...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online