Question

1)If a nation has a higher level of technology than another nation it means that they will be able to produce:

Multiple Choice

• less with the same amount of physical capital.

• more outputs with the same inputs.

• more with no capital.

• the same output with the same level of inputs.

2)Accounting that relates how growth in inputs of production are related to growth in output is called:

Multiple Choice

• production accounting.

• input to output accounting.

• growth accounting.

• national income accounting.

3)

Exploiting a nonrenewable natural resource is likely to:

Multiple Choice

• lead to a higher level of income for a country.

• lead to a sustainable high rate of growth in income for a country.

• create more productive workers in all facets of the economy.

• All of these are true.

4)For a country to acquire more physical capital it:

Multiple Choice

• must forgo current consumption.

• faces the investment trade-off.

• must pay for the investment by reducing current consumption.

• All of these are true.

Answer 1

1) If a nation has a higher level of technology, then it will increase the productivity of all factors and so it will be able to produce more outputs with the same inputs.

2) Accounting that relates how growth in inputs of production are related to growth in output is called growth accounting. This is particularly true for income and output where it is produced by labor capital and technical factor

3) Exploiting a nonrenewable natural resource is likely to lead to a higher level of income for a country. This is perhaps because it is more valuable since it is nonrenewable and so it raises the relative prices of factor inputs

4)For a country to acquire more physical capital it All of these are true.