Question 1

Which of the following correctly identifies a Malthusian cycle?

Accepted Answer

A)  An increase in GDP will increase GDP per capita above subsistence, which will cause a decrease in the size of the population, which will reduce pressure on resources and further increase GDP per capita. 
B)  An increase in GDP will increase GDP per capita above subsistence, which will cause an increase in the size of the population, which will increase pressure on resources and that will further increase GDP per capita. 
C)  An increase in GDP will increase GDP per capita above subsistence, which will cause an increase in the size of the population, which will increase pressure on resources and eventually reduce GDP per capita. 
D)  A decrease in GDP will decrease GDP per capita below subsistence, which will cause an increase in the size of the population, which will increase pressure on resources and eventually reduce GDP per capita. 
A)  An increase in GDP will increase GDP per capita above subsistence, which will cause a decrease in the size of the population, which will reduce pressure on resources and further increase GDP per capita. 
B)  An increase in GDP will increase GDP per capita above subsistence, which will cause an increase in the size of the population, which will increase pressure on resources and that will further increase GDP per capita. 
C)  An increase in GDP will increase GDP per capita above subsistence, which will cause an increase in the size of the population, which will increase pressure on resources and eventually reduce GDP per capita. 
D)  A decrease in GDP will decrease GDP per capita below subsistence, which will cause an increase in the size of the population, which will increase pressure on resources and eventually reduce GDP per capita.

Question 2

The minimum level of income per person that is generally necessary for the individual to obtain enough calories,shelter,and clothing to survive is referred to as the ________.

Accepted Answer

A)  safety level of income 
B)  minimum wage rate 
C)  survival wage rate 
D)  subsistence level of income 
A)  safety level of income 
B)  minimum wage rate 
C)  survival wage rate 
D)  subsistence level of income

Question 3

The process by which a quantity grows at a constant proportion in every time period is called ________ growth.

Accepted Answer

A)  linear 
B)  catch-up 
C)  exponential 
D)  logarithmic 
A)  linear 
B)  catch-up 
C)  exponential 
D)  logarithmic

Question 4

________ experiences a growth pattern similar to that of an economy.

Accepted Answer

A)  Savings rate 
B)  Consumption rate 
C)  Efficiency units of labor 
D)  Technology 
A)  Savings rate 
B)  Consumption rate 
C)  Efficiency units of labor 
D)  Technology

Question 5

In New Zealand,Total saving = $17 billion,while GDP = $150 billion.What is the New Zealand saving rate,to the nearest percentage point?

Accepted Answer

A)  10 percent 
B)  11 percent 
C)  12 percent 
D)  13 percent 
A)  10 percent 
B)  11 percent 
C)  12 percent 
D)  13 percent

Question 6

The ________ can be described as the arrival of new machines and methods of production in Britain,starting in textile manufacturing and thereafter spreading into other sectors.

Accepted Answer

A)  Colonial Period 
B)  Industrial Revolution 
C)  Urban Migration 
D)  Great Importation 
A)  Colonial Period 
B)  Industrial Revolution 
C)  Urban Migration 
D)  Great Importation

Question 7

Income inequality in the United States was not constant throughout the twentieth century.When was it lowest?

Accepted Answer

A)  From the 1940s to the 1970s 
B)  In the 1920s and 1930s 
C)  From the 1980s onward 
D)  From the 1900s to the 1930s 
A)  From the 1940s to the 1970s 
B)  In the 1920s and 1930s 
C)  From the 1980s onward 
D)  From the 1900s to the 1930s

Question 8

Consider two countries.In the first country,there are 1,000 individuals; among them,500 earn $20,000 per month and the remaining 500 earn $400 per month.In the second country,there are 1,000 people; among them,500 earn $12,000 per month and the remaining 500 people earn $600 per month.Which of the two countries has more inequality and which country is the poorer of the two?

Accepted Answer

The per capita income in the first count

Question 9

Scenario: Kenya's economy is in steady-state equilibrium. It has capital stock valued at $48 billion and GDP valued at $60 billion.
-Refer to the scenario above.If the depreciation rate in Kenya is 10 percent,what must be the saving rate in Kenya?

Accepted Answer

A)  8 percent 
B)  10 percent 
C)  12.5 percent 
D)  15 percent 
A)  8 percent 
B)  10 percent 
C)  12.5 percent 
D)  15 percent

Question 10

Which of labor and capital experiences diminishing marginal product?

Accepted Answer

A)  Neither labor nor capital 
B)  Labor, but not capital 
C)  Capital, but not labor 
D)  Both labor and capital 
A)  Neither labor nor capital 
B)  Labor, but not capital 
C)  Capital, but not labor 
D)  Both labor and capital

Question 11

For a given level of GDP,a decrease in the size of the population will cause ________.

Accepted Answer

A)  life expectancy to increase 
B)  life expectancy to decrease 
C)  GDP per capita to increase 
D)  GDP per capita to decrease 
A)  life expectancy to increase 
B)  life expectancy to decrease 
C)  GDP per capita to increase 
D)  GDP per capita to decrease

Question 12

Improvements in knowledge and technology in rich nations (such as the United States,Japan,and Germany)have helped reduce poverty.Which nations' people have benefited from this?

Accepted Answer

A)  Mostly the rich nations 
B)  Mostly the poor nations 
C)  Both rich and poor nations 
D)  Neither rich nor poor nations 
A)  Mostly the rich nations 
B)  Mostly the poor nations 
C)  Both rich and poor nations 
D)  Neither rich nor poor nations

Question 13

Which of the following statements is true of world GDP before 1800?

Accepted Answer

A)  Most of the countries were growing at a rate of more than 6 percent per year. 
B)  The GDP per capita in all nations across the world was less than $500. 
C)  The entire world population was living above the subsistence level of income. 
D)  An increase in GDP resulted in an increase in consumption but not investment. 
A)  Most of the countries were growing at a rate of more than 6 percent per year. 
B)  The GDP per capita in all nations across the world was less than $500. 
C)  The entire world population was living above the subsistence level of income. 
D)  An increase in GDP resulted in an increase in consumption but not investment.

Question 14

How does the concept of catch-up growth explain the diminishing income gap between developing economies and developed economies?

Accepted Answer

Catch-up growth refers to the process wh

Question 15

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

Accepted Answer

A)  $2,410.26 
B)  $2,546.16 
C)  $2,760.24 
D)  $2,800.00 
A)  $2,410.26 
B)  $2,546.16 
C)  $2,760.24 
D)  $2,800.00

Question 16

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 was the world average annual growth rate from 2000 to 2010?

Accepted Answer

A)  5.6 percent 
B)  6.0 percent 
C)  6.3 percent 
D)  7.3 percent 
A)  5.6 percent 
B)  6.0 percent 
C)  6.3 percent 
D)  7.3 percent

Question 17

Which of the following statements is true?

Accepted Answer

A)  To depict variables that have exponential growth, it is more convenient to use an axis with a linear scale. 
B)  To depict variables that have exponential growth, it is more convenient to use an axis with a proportional scale. 
C)  Exponential growth refers to growth by the same amount in every time period. 
D)  Linear growth refers to growth by the same proportion in every time period. 
A)  To depict variables that have exponential growth, it is more convenient to use an axis with a linear scale. 
B)  To depict variables that have exponential growth, it is more convenient to use an axis with a proportional scale. 
C)  Exponential growth refers to growth by the same amount in every time period. 
D)  Linear growth refers to growth by the same proportion in every time period.

Question 18

Scenario: Kenya's economy is in steady-state equilibrium. It has capital stock valued at $48 billion and GDP valued at $60 billion.
-Refer to the scenario above.If the saving rate in Kenya is 10 percent,what must be the depreciation rate in Kenya?

Accepted Answer

A)  8 percent 
B)  10 percent 
C)  12.5 percent 
D)  15 percent 
A)  8 percent 
B)  10 percent 
C)  12.5 percent 
D)  15 percent

Question 19

If the aggregate saving in an economy is $1,750 and the GDP of the economy is $55,000,then the saving rate in the economy is ________.

Accepted Answer

A)  1.8 percent 
B)  3.18 percent 
C)  8.96 percent 
D)  10 percent 
A)  1.8 percent 
B)  3.18 percent 
C)  8.96 percent 
D)  10 percent

Question 20

Which of the following statements is true?

Accepted Answer

A)  Higher interest rates typically encourage more savings. 
B)  The savings of households are independent of tax rates. 
C)  Households that expect an increase in future earnings are likely to save more. 
D)  An increase in the consumption of households increases the savings of the households. 
A)  Higher interest rates typically encourage more savings. 
B)  The savings of households are independent of tax rates. 
C)  Households that expect an increase in future earnings are likely to save more. 
D)  An increase in the consumption of households increases the savings of the households.

Which of the following correctly identifies a Malthusian cycle?

The minimum level of income per person that is generally necessary for the individual to obtain enough calories,shelter,and clothing to survive is referred to as the ________.

The process by which a quantity grows at a constant proportion in every time period is called ________ growth.

________ experiences a growth pattern similar to that of an economy.

In New Zealand,Total saving = $17 billion,while GDP = $150 billion.What is the New Zealand saving rate,to the nearest percentage point?

The ________ can be described as the arrival of new machines and methods of production in Britain,starting in textile manufacturing and thereafter spreading into other sectors.

Income inequality in the United States was not constant throughout the twentieth century.When was it lowest?

Scenario: Kenya's economy is in steady-state equilibrium. It has capital stock valued at $48 billion and GDP valued at $60 billion. -Refer to the scenario above.If the depreciation rate in Kenya is 10 percent,what must be the saving rate in Kenya?

Which of labor and capital experiences diminishing marginal product?

For a given level of GDP,a decrease in the size of the population will cause ________.

Improvements in knowledge and technology in rich nations (such as the United States,Japan,and Germany)have helped reduce poverty.Which nations' people have benefited from this?

Which of the following statements is true of world GDP before 1800?

How does the concept of catch-up growth explain the diminishing income gap between developing economies and developed economies?

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

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 was the world average annual growth rate from 2000 to 2010?

Which of the following statements is true?

Scenario: Kenya's economy is in steady-state equilibrium. It has capital stock valued at $48 billion and GDP valued at $60 billion. -Refer to the scenario above.If the saving rate in Kenya is 10 percent,what must be the depreciation rate in Kenya?

If the aggregate saving in an economy is $1,750 and the GDP of the economy is $55,000,then the saving rate in the economy is ________.

Which of the following statements is true?

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

Which of the following correctly identifies a Malthusian cycle?

The minimum level of income per person that is generally necessary for the individual to obtain enough calories,shelter,and clothing to survive is referred to as the ________.

The process by which a quantity grows at a constant proportion in every time period is called ________ growth.

________ experiences a growth pattern similar to that of an economy.

In New Zealand,Total saving = $17 billion,while GDP = $150 billion.What is the New Zealand saving rate,to the nearest percentage point?

The ________ can be described as the arrival of new machines and methods of production in Britain,starting in textile manufacturing and thereafter spreading into other sectors.

Income inequality in the United States was not constant throughout the twentieth century.When was it lowest?

Scenario: Kenya's economy is in steady-state equilibrium. It has capital stock valued at $48 billion and GDP valued at $60 billion. -Refer to the scenario above.If the depreciation rate in Kenya is 10 percent,what must be the saving rate in Kenya?

Which of labor and capital experiences diminishing marginal product?

For a given level of GDP,a decrease in the size of the population will cause ________.

Improvements in knowledge and technology in rich nations (such as the United States,Japan,and Germany)have helped reduce poverty.Which nations' people have benefited from this?

Which of the following statements is true of world GDP before 1800?

How does the concept of catch-up growth explain the diminishing income gap between developing economies and developed economies?

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

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 was the world average annual growth rate from 2000 to 2010?

Which of the following statements is true?

Scenario: Kenya's economy is in steady-state equilibrium. It has capital stock valued at $48 billion and GDP valued at $60 billion. -Refer to the scenario above.If the saving rate in Kenya is 10 percent,what must be the depreciation rate in Kenya?

If the aggregate saving in an economy is $1,750 and the GDP of the economy is $55,000,then the saving rate in the economy is ________.

Which of the following statements is true?

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