ECON 1002: MICROECONOMICS EXAM 2_LATEST SPRING 2025 COMPLETE A+ SOLUTIONS

ECON 1002: MICROECONOMICS EXAM
2_LATEST SPRING 2025 COMPLETE A+
SOLUTIONS
Question 1
What affects worker productivity?
Correct Answer
a worker's human capital and the amount of physical capital available to the worker


Question 2
In the united states over the last 50 years, the increase in output per worker and the increase
in the share of the population employed have corresponded to a what in output per person?
Correct Answer
an increase


Question 3
Examples of human capital
Correct Answer
education, training, experience, and initiative


Question 4
What increases people's incentive to accumulate wealth?
Correct Answer
economic profits and well-defined property rights


Question 5
Suppose a yogurt shop has 4 yogurt machines. The owner discovered that the first machine
added more to the total output than the second machine. The second machine added more
to total output than the third machine. And the third machine added more to total output
than the fourth. What is this an example of?
Correct Answer
diminishing returns to capital


Question 6
In the united states, real GDP per person has what over the last 100 years?
Correct Answer
increased


Question 7
In the united states, the government encourages human capital accumulation by providing
what
Correct Answer

,free public education thru high school,
financial aid to students who attend college, funding for Head Start programs


Question 8
Simple Interest
Correct Answer
the payment of interest only on the original deposit


Question 9
Diminishing Returns to Capital
Correct Answer
if the amount of labor and other inputs is held constant, then the greater the amount of
capital already in use, the less an additional unit of capital adds to total output


Question 10
What does the costs of increasing economic growth include?
Correct Answer
lower levels of current consumption and longer work hours


Question 11
All else equal, real GDP per person will go up if average labor productivity does what?
Correct Answer
increases


Question 12
Real GDP per Person
Correct Answer
tends to be highest in developed countries, indicates an increase in literacy rates, is positively
related to life expectancy and infant health


Question 13
In a country with an abundant supply of natural resources, average labor productivity is likely
to be what in a country with fewer natural resources?
Correct Answer
higher than


Question 14
The oven in a pizza restaurant or the computers used by college professors are considered
what?
Correct Answer
physical capital


Question 15
What policies promote investment and savings?

, Correct Answer
Individual Retirement Accounts (IRAs) and the investment tax credit


Question 16
A factor that can lead to an increase in real GDP per person is what
Correct Answer
an increase in the fraction of the population that is working


Question 17
Compound Interest
Correct Answer
the payment of interest not only on the original deposit but on all previously accumulated
interest


Question 18
Governments can encourage economic growth by promoting policies aimed at what?
Correct Answer
encouraging entrepreneurship, increasing workers' human capital, and encouraging
household saving


Question 19
Entrepreneur
Correct Answer
someone who creates new economic enterprises


Question 20
What are policies to increase human capital?
Correct Answer
the provision of public education and government funding of job training programs


Question 21
Economic growth is often measured as a change in what
Correct Answer
real GDP per person


Question 22
All else equal, the average productivity of a farmer in a region with arable land is likely to be
what then the average productivity of a farmer in a region poor quality land?
Correct Answer
higher than


Question 23
Peak
Correct Answer