Question

1)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.

2) In a particular production process, if the quantities of all inputs used are increased by 60%, then the quantity of output increases by 60% as well. This means that

a.

no mathematical representation of the relevant production function can be formulated.

b.

the production process cannot be enhanced by technological advances.

c.

the relevant production function has constant-returns-to-scale.

d.

the relevant production function has the limits-to-growth property.

3) Which of the following correctly ranks the three countries, from highest to lowest, for percentage of college-age children in school?

a.

The United Kingdom, Mali, Mexico.

b.

United Kingdom, Mexico, Mali.

c.

Mali, Mexico, United Kingdom.

d.

Mexico, Mali, United Kingdom.

4) Which of the following would increase productivity?

	a.	an increase in the physical capital stock per worker
	b.	an increase in human capital per worker
	c.	an increase in natural resources per worker
	d.	All of the above are correct.

Answer 1

1. d. Both b and c are correct.
(Increased productivity means working hours remained same or they fell and even after that real output increased.)

2. c. the relevant production function has constant-returns-to-scale.
(If inputs and outputs increase in the same proportion then there are constant returns to scale.)

3. b. United Kingdom, Mexico, Mali.
(This is the correct sequence.)

4. d. All of the above are correct
(All the mentioned factors increase the productivity.)