1. Country A has a lower stock of capital than Country B, but the supply of labor in both countries is equal.
A. An additional unit of capital will increase output in Country A only if there is an increase in the total efficiency units of labor.
B. The increase in output due to an additional unit of capital will be smaller in Country A than in Country B.
C. The increase in output due to an additional unit of capital will be larger in Country A than in Country B.
D. An additional unit of capital will increase output in Country B only if there is an increase in the total efficiency units of labor.
2. Which of the following is a valid shortcoming of the use of foreign aid to eradicate poverty?
A. It may not lead to a sizeable increase in physical capital in poorer countries.
B. It is difficult to transfer aid to poor countries.
C. It can lead to polarization of the world economy.
D. It mostly leads to the transfer of resources among rich countries.
3. The reason why the Industrial Revolution originated in Britain can be partly attributed to its:
A. A. opposition to creative destruction.
B. extractive institutions.
C. command economy.
D. wellminus developed a market system.
4. Ryan wants to rent an apartment. The following table shows the monthly rent of five apartments and the monthly commuting time to work from each apartment. Ryan's opportunity cost of time is $15 per hour. Apartment Commuting Time (hours/month) Rent ($/month)
1) 40; 1,500
2) 20; 1,750
3) 10; 2,000
4) 4; 2,210
5) 1; 2,250
Refer to the table above. What is the total cost incurred per month if Ryan rents apartment 3:
A. $2000
B. $2270
C. $2150
D. $2050
5. Ryan wants to rent an apartment. The following table shows the monthly rent of five apartments and the monthly commuting time to work from each apartment. Ryan's opportunity cost of time is $15 per hour.
1) 40 1,500
2) 20 1,750
3) 10 2,000
4) 4 2,210
5) 1 2,250
Refer to the table above.
The total cost per month is the highest if Apartment ________ is rented.
A. 2
B. 3
C. 4
D. 5
6. If GDP per capita in year T is represented by YT, and the GDP per capita in the following year is represented by YT+1, then the formula for calculating growth rate between these two years is ________.
A. (YT+1+ YT)/YT+1
B. (YT+1 minus YT)/YT
C. (YT+1/YT)/100
D. (YT+1+ YT)/YT
7. Which of the following statements is true?
A. As the rental prices of downtown apartments rise, only workers with the lowest opportunity cost of time will be willing to rent them.
B. Optimizers with the lowest opportunity cost of time push up the rental price of apartments with the lowest commute time.
C. Optimizers with the highest opportunity cost of time push up the rental price of apartments with the highest commute time.
D. As the rental prices of downtown apartments rise, only workers with the highest opportunity cost of time will be willing to rent them.
1. Country A has a lower stock of capital than Country B, but the supply of labor in both countries is equal.
A. An additional unit of capital will increase output in Country A only if there is an increase in the total efficiency units of labor.
B. The increase in output due to an additional unit of capital will be smaller in Country A than in Country B.
C. The increase in output due to an additional unit of capital will be larger in Country A than in Country B.
D. An additional unit of capital will increase output in Country B only if there is an increase in the total efficiency units of labor.
2. Which of the following is a valid shortcoming of the use of foreign aid to eradicate poverty?
A. It may not lead to a sizeable increase in physical capital in poorer countries.
B. It is difficult to transfer aid to poor countries.
C. It can lead to polarization of the world economy.
D. It mostly leads to the transfer of resources among rich countries.
3. The reason why the Industrial Revolution originated in Britain can be partly attributed to its:
A. A. opposition to creative destruction.
B. extractive institutions.
C. command economy.
D. wellminus developed a market system.
4. Ryan wants to rent an apartment. The following table shows the monthly rent of five apartments and the monthly commuting time to work from each apartment. Ryan's opportunity cost of time is $15 per hour. Apartment Commuting Time (hours/month) Rent ($/month)
1) 40; 1,500
2) 20; 1,750
3) 10; 2,000
4) 4; 2,210
5) 1; 2,250
Refer to the table above. What is the total cost incurred per month if Ryan rents apartment 3:
A. $2000
B. $2270
C. $2150
D. $2050
5. Ryan wants to rent an apartment. The following table shows the monthly rent of five apartments and the monthly commuting time to work from each apartment. Ryan's opportunity cost of time is $15 per hour.
1) 40 1,500
2) 20 1,750
3) 10 2,000
4) 4 2,210
5) 1 2,250
Refer to the table above.
The total cost per month is the highest if Apartment ________ is rented.
A. 2
B. 3
C. 4
D. 5
6. If GDP per capita in year T is represented by YT, and the GDP per capita in the following year is represented by YT+1, then the formula for calculating growth rate between these two years is ________.
A. (YT+1+ YT)/YT+1
B. (YT+1 minus YT)/YT
C. (YT+1/YT)/100
D. (YT+1+ YT)/YT
7. Which of the following statements is true?
A. As the rental prices of downtown apartments rise, only workers with the lowest opportunity cost of time will be willing to rent them.
B. Optimizers with the lowest opportunity cost of time push up the rental price of apartments with the lowest commute time.
C. Optimizers with the highest opportunity cost of time push up the rental price of apartments with the highest commute time.
D. As the rental prices of downtown apartments rise, only workers with the highest opportunity cost of time will be willing to rent them.
