Quiz2_With_Key

Quiz2_With_Key - Quiz 2 Econ 252 Spring 2011 1. If the...

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Quiz 2 Econ 252 Spring 2011 1. If the number of workers in an economy doubled, all other inputs stayed the same, and there were constant returns to scale, productivity would a. fall to less than one-half of its former value. b. fall, but it would still be greater than one-half of its former value. c. stay the same. d. rise but less than double. 2. The relationship between the quantity of output created and the quantity of inputs needed to create it is called a. the capital accumulation function. b. technological knowledge. c. the production function. d. productivity. 3. Over the period 1960-1991, a. South Korea had a higher growth rate than the United States because it had a higher ratio of investment to GDP. b. the United States had a higher growth rate than South Korea because it had a higher ratio of investment to GDP. c. South Korea had a higher growth rate than the United States even though it had a similar ratio of investment to GDP. d. the United States had a higher growth rate than South Korea even though it had a similar ratio of investment to real GDP. 4. When a society decides to increase its quantity of physical capital, the society a. can avoid the usual need to face trade-offs. b. is apparently not very concerned about its rate of economic growth in the future. c. is in effect deciding to consume fewer goods and services in the present. d. is in effect deciding to save less of its current income in the present. 5. In countries that experience political instability, standards of living tend to be low because of a. violations of diminishing returns. b.
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This note was uploaded on 08/02/2011 for the course ECON 252 taught by Professor Robertholand during the Spring '08 term at Purdue.

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Quiz2_With_Key - Quiz 2 Econ 252 Spring 2011 1. If the...

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