econ 203 practice questions midterm 2 – Flashcards

physical capital

The relationship between the quantity of output created and the quantity of inputs needed to create it is called

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.

Which of the following would be considered physical capital? a. the available knowledge on how to make semiconductors b. a taxi-cab driver's knowledge of the fastest routes to take c. bulldozers, backhoes and other construction equipment d. All of the above are correct.

the ability of people to exercise authority over the resources they own

If a country's saving rate declined, then other things the same, in the long run the country would have

Investment from abroad a. is a way for poor countries to learn the state-of-the-art technologies developed and used in richer countries. b. is viewed by economists as a way to increase growth. c. often requires removing restrictions that governments have imposed on foreign ownership of domestic capital. d. All of the above are correct.

Which of the following statements is correct? a. In an economy-wide sense, property rights are an important prerequisite for the price system to work. b. Property rights give people the ability to exercise authority over the resources they own. c. Based on the available evidence, the existence of well-established and well-enforced property rights appears to be associated with an enhanced standard of living. d. All of the above are correct.

All else equal, which of the following would tend to cause real GDP per person to rise? a. a change from outward-oriented policies to inward-oriented policies b. an increase in investment in human capital c. a weakening of property rights d. All of the above are correct.

When opening a print shop you need to buy printers, computers, furniture, and similar items. Economists call these expenditures

Stock represents a. a claim to a share of the profits of a firm. b. ownership in a firm. c. equity finance. d. All of the above are correct

In a closed economy, what does (T - G) represent?

The slope of the demand for loanable funds curve represents the

Suppose a country had a smaller increase in debt in 2008 than it had in 2007. Then other things the same, we would expect