Question 1

During which period was the growth of U.S.GDP per hour worked the greatest?

Accepted Answer

A)  The 1950s and 1960s 
B)  The 1970s and 1980s 
C)  The 1990s and 2000s 
D)  Growth was essentially equal during each of these periods 
A)  The 1950s and 1960s 
B)  The 1970s and 1980s 
C)  The 1990s and 2000s 
D)  Growth was essentially equal during each of these periods

Question 2

Scenario: In 2000, the GDP per capita in Ohio is $35,000. Ohio's GDP per capita is predicted to increase 3 percent per year for the next 5 years.
-Refer to the scenario above.If the prediction in the scenario is correct,by approximately what percentage will Ohio's GDP per capita rise in 2005?

Accepted Answer

A)  15 percent 
B)  16 percent 
C)  17 percent 
D)  18 percent 
A)  15 percent 
B)  16 percent 
C)  17 percent 
D)  18 percent

Question 3

By the end of the twentieth century,the share of U.S.income received by the top 10 percent of earners was about ________.

Accepted Answer

A)  90 percent 
B)  50 percent 
C)  30 percent 
D)  25 percent 
A)  90 percent 
B)  50 percent 
C)  30 percent 
D)  25 percent

Question 4

Economic growth refers to an increase in ________.

Accepted Answer

A)  prices 
B)  tax rates 
C)  population 
D)  GDP per capita 
A)  prices 
B)  tax rates 
C)  population 
D)  GDP per capita

Question 5

Which of the following statements is true?

Accepted Answer

A)  Using either the arithmetic or geometric average to compute average growth rates gives similar answers for long periods. 
B)  When the arithmetic average is used to calculate the growth rate, the exponential nature of growth is taken into consideration. 
C)  When the geometric average is used to calculate the growth rate, the exponential nature of growth is not taken into consideration. 
D)  Using either the arithmetic or geometric average to compute average growth rates gives similar answers for short periods. 
A)  Using either the arithmetic or geometric average to compute average growth rates gives similar answers for long periods. 
B)  When the arithmetic average is used to calculate the growth rate, the exponential nature of growth is taken into consideration. 
C)  When the geometric average is used to calculate the growth rate, the exponential nature of growth is not taken into consideration. 
D)  Using either the arithmetic or geometric average to compute average growth rates gives similar answers for short periods.

Question 6

Define subsistence level.What happens if the income in an economy exceeds the subsistence level according to the Malthusian cycle?

Accepted Answer

The subsistence level is the minimum lev

Question 7

According to Malthus,when the standard of living in any economy is above subsistence,________.

Accepted Answer

A)  couples tend to have more children 
B)  couples tend to have fewer children 
C)  consumption is more than saving 
D)  saving is more than consumption 
A)  couples tend to have more children 
B)  couples tend to have fewer children 
C)  consumption is more than saving 
D)  saving is more than consumption

Question 8

Approximately when did the Industrial Revolution begin?

Accepted Answer

A)  The end of the sixteenth century 
B)  The end of the seventeenth century 
C)  The end of the eighteenth century 
D)  The end of the nineteenth century 
A)  The end of the sixteenth century 
B)  The end of the seventeenth century 
C)  The end of the eighteenth century 
D)  The end of the nineteenth century

Question 9

________ imposed by wealthy nations is one way to increase gains in international trade for poorer nations.

Accepted Answer

A)  Increasing environmental standards 
B)  Increasing labor standards 
C)  Reducing tariffs 
D)  Increasing tariffs 
A)  Increasing environmental standards 
B)  Increasing labor standards 
C)  Reducing tariffs 
D)  Increasing tariffs

Question 10

The countries that have experienced fast growth in GDP per capita over the past 50 years are mostly located where?

Accepted Answer

A)  Central America 
B)  East Asia 
C)  West Africa 
D)  South America 
A)  Central America 
B)  East Asia 
C)  West Africa 
D)  South America

Question 11

Refer to the scenario above.What will be the GDP per capita of Country B at the beginning of year 3?

Accepted Answer

A)  $2,450.65 
B)  $2,555.15 
C)  $2,646.00 
D)  $2,882.85 
A)  $2,450.65 
B)  $2,555.15 
C)  $2,646.00 
D)  $2,882.85

Question 12

Country A's GDP per capita is 80 percent of Country B's GDP per capita.If both countries experience growth of 5 percent,Country A's GDP per capita will now be what percentage of Country B's GDP per capita?

Accepted Answer

A)  75 percent 
B)  80 percent 
C)  85 percent 
D)  90 percent 
A)  75 percent 
B)  80 percent 
C)  85 percent 
D)  90 percent

Question 13

If a country is growing at an annual rate of 5 percent,what will be its GDP after 5 years?

Accepted Answer

A)  1.8 times the current GDP 
B)  1.28 times the current GDP 
C)  3.21 times the current GDP 
D)  5 times the current GDP 
A)  1.8 times the current GDP 
B)  1.28 times the current GDP 
C)  3.21 times the current GDP 
D)  5 times the current GDP

Question 14

________ refers to the "wear and tear" that an equipment or structure goes through,eventually making it obsolete.

Accepted Answer

A)  Depreciation 
B)  Capital tear 
C)  Creative destruction 
D)  Intertemporal loss 
A)  Depreciation 
B)  Capital tear 
C)  Creative destruction 
D)  Intertemporal loss

Question 15

Scenario: In 2000, world GDP per capita was $5,500. In 2010, world GDP per capita was $9,500.
-Refer to the scenario above.What formula would you use to calculate the world average annual growth rate g?

Accepted Answer

A)  g = (9,500 - 5,500)/10 
B)  g¹⁰ = (9,500 - 5,500) 
C)  5,500 × (1 + g)¹⁰ = 9,500 
D)  9,500 × (1 + g)¹⁰ = 5,500 
A)  g = (9,500 - 5,500)/10 
B)  g¹⁰ = (9,500 - 5,500) 
C)  5,500 × (1 + g)¹⁰ = 9,500 
D)  9,500 × (1 + g)¹⁰ = 5,500

Question 16

Movements away from equilibrium in the Solow model ________.

Accepted Answer

A)  are automatically corrected 
B)  persist and cannot be corrected 
C)  are corrected only through government intervention 
D)  are corrected only when the country opens up to international trade 
A)  are automatically corrected 
B)  persist and cannot be corrected 
C)  are corrected only through government intervention 
D)  are corrected only when the country opens up to international trade

Question 17

Describe the Malthusian Cycle.

Accepted Answer

The Malthusian cycle refers to the pre-i

Question 18

"Catch-up growth" refers to a process where relatively poorer nations increase their incomes by ________.

Accepted Answer

A)  working harder than more advanced nations 
B)  extracting more natural resources than more advanced nations 
C)  having higher birthrates than more advanced nations 
D)  using technologies from more advanced nations 
A)  working harder than more advanced nations 
B)  extracting more natural resources than more advanced nations 
C)  having higher birthrates than more advanced nations 
D)  using technologies from more advanced nations

Question 19

California's GDP per capita is $60,000,while Nevada's GDP per capita is $40,000.If both grow at 2 percent per year,how long will it take for the two states to have the same GDP per capita?

Accepted Answer

A)  25 years 
B)  35 years 
C)  50 years 
D)  They will never have the same GDP per capita 
A)  25 years 
B)  35 years 
C)  50 years 
D)  They will never have the same GDP per capita

Question 20

Rapid population growth in Malthus's theory is constrained through ________.

Accepted Answer

A)  higher fertility and mortality 
B)  reduced fertility and mortality 
C)  higher fertility and reduced mortality 
D)  reduced fertility and higher mortality 
A)  higher fertility and mortality 
B)  reduced fertility and mortality 
C)  higher fertility and reduced mortality 
D)  reduced fertility and higher mortality

During which period was the growth of U.S.GDP per hour worked the greatest?

Scenario: In 2000, the GDP per capita in Ohio is $35,000. Ohio's GDP per capita is predicted to increase 3 percent per year for the next 5 years. -Refer to the scenario above.If the prediction in the scenario is correct,by approximately what percentage will Ohio's GDP per capita rise in 2005?

By the end of the twentieth century,the share of U.S.income received by the top 10 percent of earners was about ________.

Economic growth refers to an increase in ________.

Which of the following statements is true?

Define subsistence level.What happens if the income in an economy exceeds the subsistence level according to the Malthusian cycle?

According to Malthus,when the standard of living in any economy is above subsistence,________.

Approximately when did the Industrial Revolution begin?

________ imposed by wealthy nations is one way to increase gains in international trade for poorer nations.

The countries that have experienced fast growth in GDP per capita over the past 50 years are mostly located where?

Refer to the scenario above.What will be the GDP per capita of Country B at the beginning of year 3?

Country A's GDP per capita is 80 percent of Country B's GDP per capita.If both countries experience growth of 5 percent,Country A's GDP per capita will now be what percentage of Country B's GDP per capita?

If a country is growing at an annual rate of 5 percent,what will be its GDP after 5 years?

________ refers to the "wear and tear" that an equipment or structure goes through,eventually making it obsolete.

Scenario: In 2000, world GDP per capita was $5,500. In 2010, world GDP per capita was $9,500. -Refer to the scenario above.What formula would you use to calculate the world average annual growth rate g?

Movements away from equilibrium in the Solow model ________.

Describe the Malthusian Cycle.

"Catch-up growth" refers to a process where relatively poorer nations increase their incomes by ________.

California's GDP per capita is $60,000,while Nevada's GDP per capita is $40,000.If both grow at 2 percent per year,how long will it take for the two states to have the same GDP per capita?

Rapid population growth in Malthus's theory is constrained through ________.

The Principles and Practice of Economics

Economic Methods and Economic Questions

Optimization: Doing the Best You Can

Demand, Supply, and Equilibrium

The Wealth of Nations: Defining and Measuring Macroeconomic Aggregates

Aggregate Incomes

Why Isn't the Whole World Developed?

Employment and Unemployment

Credit Markets

The Monetary System

Short-Run Fluctuations

Countercyclical Macroeconomic Policy

Macroeconomics and International Trade

Open Economy Macroeconomics

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Exam 7: Economic Growth

During which period was the growth of U.S.GDP per hour worked the greatest?

Scenario: In 2000, the GDP per capita in Ohio is $35,000. Ohio's GDP per capita is predicted to increase 3 percent per year for the next 5 years. -Refer to the scenario above.If the prediction in the scenario is correct,by approximately what percentage will Ohio's GDP per capita rise in 2005?

By the end of the twentieth century,the share of U.S.income received by the top 10 percent of earners was about ________.

Economic growth refers to an increase in ________.

Which of the following statements is true?

Define subsistence level.What happens if the income in an economy exceeds the subsistence level according to the Malthusian cycle?

According to Malthus,when the standard of living in any economy is above subsistence,________.

Approximately when did the Industrial Revolution begin?

________ imposed by wealthy nations is one way to increase gains in international trade for poorer nations.

The countries that have experienced fast growth in GDP per capita over the past 50 years are mostly located where?

Refer to the scenario above.What will be the GDP per capita of Country B at the beginning of year 3?

Country A's GDP per capita is 80 percent of Country B's GDP per capita.If both countries experience growth of 5 percent,Country A's GDP per capita will now be what percentage of Country B's GDP per capita?

If a country is growing at an annual rate of 5 percent,what will be its GDP after 5 years?

________ refers to the "wear and tear" that an equipment or structure goes through,eventually making it obsolete.

Scenario: In 2000, world GDP per capita was $5,500. In 2010, world GDP per capita was $9,500. -Refer to the scenario above.What formula would you use to calculate the world average annual growth rate g?

Movements away from equilibrium in the Solow model ________.

Describe the Malthusian Cycle.

"Catch-up growth" refers to a process where relatively poorer nations increase their incomes by ________.

California's GDP per capita is $60,000,while Nevada's GDP per capita is $40,000.If both grow at 2 percent per year,how long will it take for the two states to have the same GDP per capita?

Rapid population growth in Malthus's theory is constrained through ________.

The Principles and Practice of Economics

Economic Methods and Economic Questions

Optimization: Doing the Best You Can

Demand, Supply, and Equilibrium

The Wealth of Nations: Defining and Measuring Macroeconomic Aggregates

Aggregate Incomes

Why Isn't the Whole World Developed?

Employment and Unemployment

Credit Markets

The Monetary System

Short-Run Fluctuations

Countercyclical Macroeconomic Policy

Macroeconomics and International Trade

Open Economy Macroeconomics

Filters