Question 1

The two factors that must be added to the percent change in per capita real gross domestic product (GDP)  to yield the percent change in nominal GDP are the

Accepted Answer

A)   percent change in prices and the rate of investment.
B)   rate of investment and the rate of savings.
C)   percent change in prices and the rate of population growth.
D)   rate of population growth and the rate of savings.
E)   rate of investment and the rate of population growth.F) A) and B)
G) A) and D)

Question 2

From 2006 to 2010, per capita real gross domestic product (GDP)  in Ethiopia grew an average of 7.99 percent per year. At that rate, according to the Rule of 70, in roughly how many years will the Ethiopian economy double in size?

Accepted Answer

A)   6.2 years
B)   7.8 years
C)   8.8 years
D)   5.5 years
E)   10.1 yearsF) A) and D)
G) A) and C) C

Question 3

Between 2006 and 2010, per capita real gross domestic product (GDP)  in India grew at an average rate of 7.11 percent per year. Which of the following factors would have contributed most to this rapid escalation in growth?

Accepted Answer

A)   advances in technology
B)   increases in government regulations
C)   decreases in education standards
D)   a significant increase in taxes
E)   restrictions on immigrationF) B) and C)
G) A) and E)

Question 4

In 1800, the average income of U.S. citizens was, in inflation-adjusted terms, roughly

Accepted Answer

A)   $100.
B)   $400.
C)   $19,600.
D)   $2,000.
E)   $750.F) A) and D)
G) D) and E)

Question 5

Consider a country with a nominal gross domestic product (GDP)  of $10 billion in 2010 and $15 billion in 2015. In the same period the population increased by 2 percent and price levels decreased by 10 percent. What is the economic growth for this country?

Accepted Answer

A)   50 percent
B)   58 percent
C)   62 percent
D)   68 percent
E)   72 percentF) A) and E)
G) B) and C) B

Question 6

Annual real per capita gross domestic product (GDP)  in India was roughly $2,900 in 2000. If it grew by 8 percent the following year, by 2001 the annual real per capita GDP would be

Accepted Answer

A)   $3,132.
B)   $2,908.
C)   $5,220.
D)   $6,080.
E)   $4,760.F) C) and D)
G) B) and C)

Question 7

What is the relationship between enforcing a nation's laws and economic growth?

Accepted Answer

A)   Enforcing laws is bad for growth. It interferes with efficient markets.
B)   Enforcing laws is bad for growth. It creates too much red tape and reduces investment.
C)   Enforcing laws is good for growth. It creates stability and incentivizes investment.
D)   Enforcing laws is good for growth. The government is always more efficient at making market decisions than individuals.
E)   Enforcing laws is neither good nor bad for growth. It depends on the laws.F) A) and D)
G) C) and D)

Question 8

All countries have some resources and technology available to them. The ones that grow fastest are the ones that

Accepted Answer

A)   hoard their resources and never use them.
B)   invade other countries to capture their resources.
C)   have the institutions in place that allow those resources to be fully exploited.
D)   allow other countries to extract their resources for payment.
E)   require that all resources are collectively owned.F) A) and B)
G) A) and C)

Question 9

A firm's human capital would increase with

Accepted Answer

A)   a decrease in the number of employees.
B)   new and improved equipment and machinery.
C)   a larger facility.
D)   on-the-job training.
E)   fewer managers per worker.F) C) and D)
G) B) and D)

Question 10

What is the definition of "private property rights"?

Accepted Answer

A)   the rights of nongovernment entities to own property and the resulting output
B)   the rights of corporations to own property and the resulting output
C)   the rights of individuals to own property
D)   the rights of individuals to own property and to use it in production
E)   the rights of individuals to own property, to use it in production, and to own the resulting outputF) C) and D)
G) B) and D)

Question 11

Change in per capita real gross domestic product (GDP)  is the best measure of economic growth because it

Accepted Answer

A)   adjusts changes in nominal GDP for changes in the price level and population growth.
B)   ignores changes in the price level used to compute nominal GDP.
C)   includes government spending, whereas nominal GDP does not.
D)   includes all economic activity, including sales of illegal goods and services, which nominal GDP ignores.
E)   does not consider changes in the population, which are not relevant to GDP anyway.F) C) and E)
G) C) and D)

Question 12

How would an increase in capital goods, holding the size of the labor force constant, help to make workers more productive and increase economic growth?

Accepted Answer

An increase in capital resources, holdin...

Question 13

Japan is a nation of over 6,800 islands, none of which is very large. The largest island, Honshu, is roughly the same size as the state of Montana in the western United States. Does this mean that Japan is destined to have low economic growth and standards of living?

Accepted Answer

A)   Yes, if Japan cannot grow enough food, it will never prosper.
B)   No, as long as Japan keeps its taxes low, it will prosper.
C)   No, Japan is rich in other resources and has advanced levels of technology.
D)   Yes, because it lacks the space of richer countries.
E)   Yes, having so little land means there is no room to produce goods and services.F) A) and E)
G) C) and D) C

Question 14

In 2007, per capita real gross domestic product (GDP)  in Brazil was $9,893.92. By 2008, it had increased to $10,525.58. At what rate did Brazil's economy grow in that time?

Accepted Answer

A)   6.0 percent
B)   5.4 percent
C)   6.4 percent
D)   7.3 percent
E)   2.3 percentF) A) and B)
G) B) and E)

Question 15

List and explain the different institutions that are important for economic growth.

Accepted Answer

Private property rights are important be...

Question 16

A new politician promises to double the real gross domestic product GDP)  by the end of his four-year term. What would have to be the average annual economic growth rate for this to happen?

Accepted Answer

A)   11 percent
B)   12.5 percent
C)   14 percent
D)   15 percent
E)   17.5 percentF) A) and E)
G) C) and E)

Question 17

In 2011, per capita real gross domestic product (GDP)  in Mexico was roughly $10,100. If Mexico experienced economic growth of 4.8 percent in 2012, per capita real GDP would increase to

Accepted Answer

A)   $10,585.
B)   $10,148.
C)   $21,042.
D)   $485.
E)   $15,353.F) B) and E)
G) A) and D)

Question 18

Between 2006 and 2010, per capita real gross domestic product GDP)  in China grew at an average rate of 10.62 percent per year. In contrast, its economy only grew by an average rate of 0.25 percent from 1961 to 1965. Which of the following factors would have contributed most to this rapid escalation in growth?

Accepted Answer

A)   rapid population growth
B)   the establishment of pro-growth institutions
C)   large increases in average prices
D)   dramatic reductions in tax rates
E)   restrictions on imports and exportsF) C) and D)
G) A) and E)

Question 19

In 1950, South Korea was_____ Liberia. South Korea is now_____ than Liberia.

Accepted Answer

A)   poorer than; richer
B)   richer than; poorer
C)   poorer than; poorer
D)   as rich as; richer
E)   as rich as; poorerF) A) and D)
G) A) and C)

Question 20

Krista owns a hair salon. She wants to increase the number of clients she serves each month, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the physical capital resource at her hair salon?

Accepted Answer

A)   increasing the amount of training for her stylists
B)   hiring more stylists
C)   giving her stylists a raise
D)   purchasing better-quality shampoo
E)   buying more chairs and hair dryersF) B) and E)
G) None of the above

Exam 11: Economic Growth and the Wealth of Nations

The two factors that must be added to the percent change in per capita real gross domestic product (GDP) to yield the percent change in nominal GDP are the

Correct Answer
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From 2006 to 2010, per capita real gross domestic product (GDP) in Ethiopia grew an average of 7.99 percent per year. At that rate, according to the Rule of 70, in roughly how many years will the Ethiopian economy double in size?

Correct Answer
verified
C

Between 2006 and 2010, per capita real gross domestic product (GDP) in India grew at an average rate of 7.11 percent per year. Which of the following factors would have contributed most to this rapid escalation in growth?

Correct Answer
verified

In 1800, the average income of U.S. citizens was, in inflation-adjusted terms, roughly

Correct Answer
verified

Consider a country with a nominal gross domestic product (GDP) of $10 billion in 2010 and $15 billion in 2015. In the same period the population increased by 2 percent and price levels decreased by 10 percent. What is the economic growth for this country?

Correct Answer
verified
B

Annual real per capita gross domestic product (GDP) in India was roughly $2,900 in 2000. If it grew by 8 percent the following year, by 2001 the annual real per capita GDP would be

Correct Answer
verified

What is the relationship between enforcing a nation's laws and economic growth?

Correct Answer
verified

All countries have some resources and technology available to them. The ones that grow fastest are the ones that

Correct Answer
verified

A firm's human capital would increase with

Correct Answer
verified

What is the definition of "private property rights"?

Correct Answer
verified

Change in per capita real gross domestic product (GDP) is the best measure of economic growth because it

Correct Answer
verified

How would an increase in capital goods, holding the size of the labor force constant, help to make workers more productive and increase economic growth?

Correct Answer
verified
An increase in capital resources, holdin...
View Answer

Japan is a nation of over 6,800 islands, none of which is very large. The largest island, Honshu, is roughly the same size as the state of Montana in the western United States. Does this mean that Japan is destined to have low economic growth and standards of living?

Correct Answer
verified
C

In 2007, per capita real gross domestic product (GDP) in Brazil was $9,893.92. By 2008, it had increased to $10,525.58. At what rate did Brazil's economy grow in that time?

Correct Answer
verified

List and explain the different institutions that are important for economic growth.

Correct Answer
verified
Private property rights are important be...
View Answer

A new politician promises to double the real gross domestic product GDP) by the end of his four-year term. What would have to be the average annual economic growth rate for this to happen?

Correct Answer
verified

In 2011, per capita real gross domestic product (GDP) in Mexico was roughly $10,100. If Mexico experienced economic growth of 4.8 percent in 2012, per capita real GDP would increase to

Correct Answer
verified

Correct Answer
verified

In 1950, South Korea was_ Liberia. South Korea is now_ than Liberia.

Correct Answer
verified

Krista owns a hair salon. She wants to increase the number of clients she serves each month, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the physical capital resource at her hair salon?

Correct Answer
verified

Exam 11: Economic Growth and the Wealth of Nations

The two factors that must be added to the percent change in per capita real gross domestic product (GDP) to yield the percent change in nominal GDP are the

Correct AnswerverifiedShow Answer

From 2006 to 2010, per capita real gross domestic product (GDP) in Ethiopia grew an average of 7.99 percent per year. At that rate, according to the Rule of 70, in roughly how many years will the Ethiopian economy double in size?

Correct AnswerverifiedC

Between 2006 and 2010, per capita real gross domestic product (GDP) in India grew at an average rate of 7.11 percent per year. Which of the following factors would have contributed most to this rapid escalation in growth?

Correct AnswerverifiedShow Answer

In 1800, the average income of U.S. citizens was, in inflation-adjusted terms, roughly

Correct AnswerverifiedShow Answer

Consider a country with a nominal gross domestic product (GDP) of $10 billion in 2010 and $15 billion in 2015. In the same period the population increased by 2 percent and price levels decreased by 10 percent. What is the economic growth for this country?

Correct AnswerverifiedB

Annual real per capita gross domestic product (GDP) in India was roughly $2,900 in 2000. If it grew by 8 percent the following year, by 2001 the annual real per capita GDP would be

Correct AnswerverifiedShow Answer

What is the relationship between enforcing a nation's laws and economic growth?

Correct AnswerverifiedShow Answer

All countries have some resources and technology available to them. The ones that grow fastest are the ones that

Correct AnswerverifiedShow Answer

A firm's human capital would increase with

Correct AnswerverifiedShow Answer

What is the definition of "private property rights"?

Correct AnswerverifiedShow Answer

Change in per capita real gross domestic product (GDP) is the best measure of economic growth because it

Correct AnswerverifiedShow Answer

How would an increase in capital goods, holding the size of the labor force constant, help to make workers more productive and increase economic growth?

Correct AnswerverifiedAn increase in capital resources, holdin...View AnswerShow Answer

Japan is a nation of over 6,800 islands, none of which is very large. The largest island, Honshu, is roughly the same size as the state of Montana in the western United States. Does this mean that Japan is destined to have low economic growth and standards of living?

Correct AnswerverifiedC

In 2007, per capita real gross domestic product (GDP) in Brazil was $9,893.92. By 2008, it had increased to $10,525.58. At what rate did Brazil's economy grow in that time?

Correct AnswerverifiedShow Answer

List and explain the different institutions that are important for economic growth.

Correct AnswerverifiedPrivate property rights are important be...View AnswerShow Answer

A new politician promises to double the real gross domestic product GDP) by the end of his four-year term. What would have to be the average annual economic growth rate for this to happen?

Correct AnswerverifiedShow Answer

In 2011, per capita real gross domestic product (GDP) in Mexico was roughly $10,100. If Mexico experienced economic growth of 4.8 percent in 2012, per capita real GDP would increase to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In 1950, South Korea was_____ Liberia. South Korea is now_____ than Liberia.

Correct AnswerverifiedShow Answer

Krista owns a hair salon. She wants to increase the number of clients she serves each month, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the physical capital resource at her hair salon?

Correct AnswerverifiedShow Answer

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C

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B

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An increase in capital resources, holdin...
View Answer

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C

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Private property rights are important be...
View Answer

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In 1950, South Korea was_ Liberia. South Korea is now_ than Liberia.

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