Question 1

Which of the following best measures improvements in the standard of living of a nation?

Accepted Answer

A)   Growth of nominal GDP.
B)   Growth of real GDP.
C)   Growth of real GDP per capita.
D)   Growth of national income.E) A) and D)
F) None of the above

Question 2

An economy with an average growth rate of 10 percent can expect to see its real GDP double in approximately 7 years.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is the largest contributor to the growth of labor productivity in the United States?

Accepted Answer

A)   Technological advance.
B)   Education and training of labor.
C)   Economies of scale.
D)   Improved resource allocation.E) A) and B)
F) A) and C)

Question 4

Leader countries tend to have higher growth rates than follower countries.

Accepted Answer

A) True 
 B)False

Question 5

If the secular trend of labor productivity rises from 2 percent per year to 4 percent,the number of years that it will take for the standard of living to double will decline by about:

Accepted Answer

A)   5.2 years.
B)   10.1 years.
C)   17.5 years.
D)   23.8 years.E) A) and B)
F) B) and C)

Question 6

Modern economic growth since the 1820s has widened wealth and income disparities between richer and poorer nations.

Accepted Answer

A) True 
 B)False

Question 7

Real GDP per capita is found by:

Accepted Answer

A)   adding real GDP and population.
B)   subtracting population from real GDP.
C)   dividing real GDP by population.
D)   dividing population by real GDP.E) B) and C)
F) None of the above

Question 8

The inverse dependency ratio is defined as:

Accepted Answer

A)   the number of people of working age divided by the number of dependents.
B)   the number of dependents divided by the number of people of working age.
C)   the number of seniors over age 65 divided by the number of youths under age 20.
D)   the number of youths under age 20 divided by the number of seniors over age 65.E) A) and D)
F) B) and D)

Question 9

Which of the following is not a supply factor in economic growth?

Accepted Answer

A)   The stock of capital.
B)   Technological advance.
C)   The size and quality of the labor force.
D)   Aggregate expenditures of households,businesses,and government.E) C) and D)
F) A) and D)

Question 10

The rule of 70 is used to find how long it will take an economy to grow by 70 percent.

Accepted Answer

A) True 
 B)False

Question 11

Growth is a widely held economic goal primarily because it creates a more equal distribution of wealth and income.

Accepted Answer

A) True 
 B)False

Question 12

Growth is advantageous to a nation because it:

Accepted Answer

A)   promotes faster population growth.
B)   lessens the burden of scarcity.
C)   eliminates the economizing problem.
D)   slows the growth of wants.E) A) and B)
F) A) and C)

Question 13

Modern economic growth is defined as increases in real GDP over time.

Accepted Answer

A) True 
 B)False

Question 14

Growth in well-being tends to be understated by growth in real GDP because of increases in leisure time.

Accepted Answer

A) True 
 B)False

Question 15

The number of years required for real GDP to double can be found by:

Accepted Answer

A)   dividing the annual growth rate by .07.
B)   multiplying the annual growth rate by 70.
C)   dividing 70 by the annual growth rate.
D)   adding 14 to annual growth rate.E) A) and D)
F) None of the above

Question 16

The inverse dependency ratio is predicted to fall to about 1.16 by 2050.What is the most likely effect of this decline?

Accepted Answer

A)   It will likely cause worker productivity to decline.
B)   The Social Security system will be on stronger financial footing.
C)   Innovation will increase significantly as dependents take advantage of their otherwise idle time.
D)   Living standards will fall if productivity gains don't sufficiently offset the decline in the ratio.E) A) and B)
F) A) and C)

Question 17

Economic historians date the start of the Industrial Revolution around the year 1776,when James Watt:

Accepted Answer

A)   built the first factory for mass production.
B)   invented the steam locomotive.
C)   successfully lobbied British parliament for the enactment of patent legislation to protect new inventions.
D)   invented and built a more powerful and efficient steam engine.E) B) and C)
F) A) and C)

Question 18

Real GDP per capita is found by dividing real GDP by the size of the labor force.

Accepted Answer

A) True 
 B)False

Question 19

Because of the recent rise in the average rate of productivity growth,the business cycle is dead.

Accepted Answer

A) True 
 B)False

Question 20

Strong property rights are important for modern economic growth because:

Accepted Answer

A)   they allow governments to extract the gains from private citizens' investments.
B)   people are more likely to invest if they don't fear that others can take their returns on investment without compensation.
C)   they ensure an equitable distribution of income.
D)   business cycle fluctuations will be smaller and less likely to disrupt investment patterns.E) A) and B)
F) A) and C)

Exam 27: Economic Growth

An economy with an average growth rate of 10 percent can expect to see its real GDP double in approximately 7 years.

Correct AnswerverifiedShow Answer

Real GDP per capita is found by:

Correct AnswerverifiedShow Answer

Which of the following is the largest contributor to the growth of labor productivity in the United States?

Correct AnswerverifiedShow Answer

If the secular trend of labor productivity rises from 2 percent per year to 4 percent,the number of years that it will take for the standard of living to double will decline by about:

Correct AnswerverifiedShow Answer

The number of years required for real GDP to double can be found by:

Correct AnswerverifiedShow Answer

Modern economic growth since the 1820s has widened wealth and income disparities between richer and poorer nations.

Correct AnswerverifiedShow Answer

Growth is advantageous to a nation because it:

Correct AnswerverifiedShow Answer

Real GDP per capita is found by dividing real GDP by the size of the labor force.

Correct AnswerverifiedShow Answer

The inverse dependency ratio is predicted to fall to about 1.16 by 2050.What is the most likely effect of this decline?

Correct AnswerverifiedShow Answer

Which of the following best measures improvements in the standard of living of a nation?

Correct AnswerverifiedShow Answer

Because of the recent rise in the average rate of productivity growth,the business cycle is dead.

Correct AnswerverifiedShow Answer

Strong property rights are important for modern economic growth because:

Correct AnswerverifiedShow Answer

The rule of 70 is used to find how long it will take an economy to grow by 70 percent.

Correct AnswerverifiedShow Answer

Modern economic growth is defined as increases in real GDP over time.

Correct AnswerverifiedShow Answer

Which of the following is not a supply factor in economic growth?

Correct AnswerverifiedShow Answer

The inverse dependency ratio is defined as:

Correct AnswerverifiedShow Answer

Growth in well-being tends to be understated by growth in real GDP because of increases in leisure time.

Correct AnswerverifiedShow Answer

Leader countries tend to have higher growth rates than follower countries.

Correct AnswerverifiedShow Answer

Economic historians date the start of the Industrial Revolution around the year 1776,when James Watt:

Correct AnswerverifiedShow Answer

Growth is a widely held economic goal primarily because it creates a more equal distribution of wealth and income.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified