Question 1

On an average,growth in per capita income is associated with a ________.

Accepted Answer

A)  fall in poverty 
B)  rise in poverty 
C)  fall in inequality 
D)  rise in inequality 
A)  fall in poverty 
B)  rise in poverty 
C)  fall in inequality 
D)  rise in inequality

Question 2

Which of the following national priorities would be most likely to result in sustained growth?

Accepted Answer

A)  Building new factories and infrastructure 
B)  Encouraging a high birthrate 
C)  Increasing the age at which students may leave school 
D)  Encouraging new knowledge creation 
A)  Building new factories and infrastructure 
B)  Encouraging a high birthrate 
C)  Increasing the age at which students may leave school 
D)  Encouraging new knowledge creation

Question 3

The aggregate production function used in the Solow model expresses GDP as a function of ________.

Accepted Answer

A)  physical capital and level of technology only 
B)  physical capital and total efficiency units of labor only 
C)  level of technology and total efficiency units of labor only 
D)  physical capital, level of technology, and total efficiency units of labor 
A)  physical capital and level of technology only 
B)  physical capital and total efficiency units of labor only 
C)  level of technology and total efficiency units of labor only 
D)  physical capital, level of technology, and total efficiency units of labor

Question 4

Sustained growth refers to a growth process in which ________.

Accepted Answer

A)  GDP per capita grows at a positive and steady rate for long periods of time 
B)  GDP per capita grows at a rate of more than 20 percent per year for long periods of time 
C)  growth in GDP per capita is primarily attributed to public sector firms and enterprises 
D)  growth in GDP per capita is translated into an equal increase in welfare for all citizens in a country 
A)  GDP per capita grows at a positive and steady rate for long periods of time 
B)  GDP per capita grows at a rate of more than 20 percent per year for long periods of time 
C)  growth in GDP per capita is primarily attributed to public sector firms and enterprises 
D)  growth in GDP per capita is translated into an equal increase in welfare for all citizens in a country

Question 5

The subsistence level of income is the minimum level of income per person that is generally necessary to ________.

Accepted Answer

A)  obtain enough calories, shelter, and clothing to survive 
B)  save for retirement 
C)  contribute meaningfully to the advancement of society 
D)  obtain a middle-class lifestyle in whatever country they live in 
A)  obtain enough calories, shelter, and clothing to survive 
B)  save for retirement 
C)  contribute meaningfully to the advancement of society 
D)  obtain a middle-class lifestyle in whatever country they live in

Question 6

Scenario: In 2000, world GDP per capita was $5,500. In 2010, world GDP per capita was $9,500.
-Refer to the scenario above.If the world sustains this growth rate,approximately what will world GDP per capita be in 2030?

Accepted Answer

A)  $16,400 
B)  $17,500 
C)  $21,500 
D)  $28,300 
A)  $16,400 
B)  $17,500 
C)  $21,500 
D)  $28,300

Question 7

Which of the following statements is true?

Accepted Answer

A)  After the demographic transition in the nineteenth century, there were recurrent Malthusian cycles. 
B)  Until the demographic transition in the nineteenth century, there were recurrent Malthusian cycles. 
C)  The demographic transition of the nineteenth century led to an increase in fertility across the Western world. 
D)  The demographic transition of the nineteenth century led to a decrease in life expectancy across the Western world. 
A)  After the demographic transition in the nineteenth century, there were recurrent Malthusian cycles. 
B)  Until the demographic transition in the nineteenth century, there were recurrent Malthusian cycles. 
C)  The demographic transition of the nineteenth century led to an increase in fertility across the Western world. 
D)  The demographic transition of the nineteenth century led to a decrease in life expectancy across the Western world.

Question 8

China's GDP per capita is currently lower than that of Japan.If Japanese GDP per capita grows at 2 percent per year,how fast must Chinese GDP per capita grow to eventually catch up to Japanese GDP per capita?

Accepted Answer

A)  At least 5 percent per year 
B)  At least 3 percent per year 
C)  Any rate above 2 percent per year 
D)  Any positive rate 
A)  At least 5 percent per year 
B)  At least 3 percent per year 
C)  Any rate above 2 percent per year 
D)  Any positive rate

Question 9

Continuous increase in investment in ________ is most likely to cause sustained growth.

Accepted Answer

A)  land 
B)  labor 
C)  physical capital 
D)  technology 
A)  land 
B)  labor 
C)  physical capital 
D)  technology

Question 10

When current growth builds on past growth,growth is ________.

Accepted Answer

A)  exponential 
B)  linear 
C)  logarithmic 
D)  negative 
A)  exponential 
B)  linear 
C)  logarithmic 
D)  negative

Question 11

From the perspective of individual households,income can only be consumed or saved,the latter of which become ________ utilized by firms.

Accepted Answer

A)  investment 
B)  capital depreciation 
C)  intellectual property 
D)  interest rates 
A)  investment 
B)  capital depreciation 
C)  intellectual property 
D)  interest rates

Question 12

Sustained growth is best achieved through which of the following?

Accepted Answer

A)  Physical capital accumulation 
B)  Population increases 
C)  Increases in the quality and amount of education 
D)  Technological progress 
A)  Physical capital accumulation 
B)  Population increases 
C)  Increases in the quality and amount of education 
D)  Technological progress

Question 13

Scenario: In the fictional nation of Gallifrey, the subsistence level of income is $1,000 per year. Currently 3 million people live in Gallifrey, and GDP in Gallifrey is $2 billion.
-Refer to the scenario above.What does the Malthusian model suggest will happen in Gallifrey?

Accepted Answer

A)  The subsistence level of income in Gallifrey will rise. 
B)  The subsistence level of income in Gallifrey will fall. 
C)  The population in Gallifrey will rise. 
D)  The population in Gallifrey will fall. 
A)  The subsistence level of income in Gallifrey will rise. 
B)  The subsistence level of income in Gallifrey will fall. 
C)  The population in Gallifrey will rise. 
D)  The population in Gallifrey will fall.

Question 14

Which group of industries were first affected by the Industrial Revolution?

Accepted Answer

A)  Farming and fisheries 
B)  Mining and forestry 
C)  Manufacturing 
D)  Banking and financial services 
A)  Farming and fisheries 
B)  Mining and forestry 
C)  Manufacturing 
D)  Banking and financial services

Question 15

U.S.GDP per capita has increased approximately 2 percent per year over an extended period.This is a good example of what sort of growth?

Accepted Answer

A)  Catch-up growth 
B)  Power growth 
C)  Linear growth 
D)  Sustained growth 
A)  Catch-up growth 
B)  Power growth 
C)  Linear growth 
D)  Sustained growth

Question 16

Which of the following statements is true?

Accepted Answer

A)  The GDP per capita in most of the Western world has almost been constant since the beginning of the twentieth century. 
B)  The GDP per capita of a nation at a particular point of time is not the same as the income of all individuals in that nation. 
C)  GDP per capita is a useful tool to study the disparities in the standards of living in a country. 
D)  GDP per capita decreases with a decrease in population and increases with an increase in population, GDP remaining unchanged. 
A)  The GDP per capita in most of the Western world has almost been constant since the beginning of the twentieth century. 
B)  The GDP per capita of a nation at a particular point of time is not the same as the income of all individuals in that nation. 
C)  GDP per capita is a useful tool to study the disparities in the standards of living in a country. 
D)  GDP per capita decreases with a decrease in population and increases with an increase in population, GDP remaining unchanged.

Question 17

Scenario: In 2010, world GDP per capita was $9,500. In the same year, the Economist magazine forecast that in 2020, world GDP per capita would be $15,000
-Refer to the scenario above.If the Economist magazine's forecast is correct,then the growth rate per decade from 2010 to 2020 would be approximately ________.

Accepted Answer

A)  5 percent 
B)  6 percent 
C)  50 percent 
D)  60 percent 
A)  5 percent 
B)  6 percent 
C)  50 percent 
D)  60 percent

Question 18

In a closed economy,________ equal to zero.

Accepted Answer

A)  investment is 
B)  consumption is 
C)  net exports are 
D)  government spending is 
A)  investment is 
B)  consumption is 
C)  net exports are 
D)  government spending is

Question 19

The World Bank measure of absolute poverty,equivalent to about ________ per day,is a condition that leads to serious economic,health,and social problems.

Accepted Answer

A)  $5.85 
B)  $0.15 
C)  $6.20 
D)  $1.90 
A)  $5.85 
B)  $0.15 
C)  $6.20 
D)  $1.90

Question 20

Suppose that a nation's GDP per capita grows at a constant 4 percent per year.You graph the nation's GDP per capita on a graph with a linear time scale on the x-axis,and a proportional GDP per capita scale on the y-axis.What will the nation's GDP per capita look like on the graph?

Accepted Answer

A)  A horizontal line 
B)  A straight upward-sloping line 
C)  A curve that is sloped upward, and increasing in slope 
D)  A curve that is sloped upward, and decreasing in slope 
A)  A horizontal line 
B)  A straight upward-sloping line 
C)  A curve that is sloped upward, and increasing in slope 
D)  A curve that is sloped upward, and decreasing in slope

On an average,growth in per capita income is associated with a ________.

Which of the following national priorities would be most likely to result in sustained growth?

The aggregate production function used in the Solow model expresses GDP as a function of ________.

Sustained growth refers to a growth process in which ________.

The subsistence level of income is the minimum level of income per person that is generally necessary to ________.

Scenario: In 2000, world GDP per capita was $5,500. In 2010, world GDP per capita was $9,500. -Refer to the scenario above.If the world sustains this growth rate,approximately what will world GDP per capita be in 2030?

Which of the following statements is true?

China's GDP per capita is currently lower than that of Japan.If Japanese GDP per capita grows at 2 percent per year,how fast must Chinese GDP per capita grow to eventually catch up to Japanese GDP per capita?

Continuous increase in investment in ________ is most likely to cause sustained growth.

When current growth builds on past growth,growth is ________.

From the perspective of individual households,income can only be consumed or saved,the latter of which become ________ utilized by firms.

Sustained growth is best achieved through which of the following?

Scenario: In the fictional nation of Gallifrey, the subsistence level of income is $1,000 per year. Currently 3 million people live in Gallifrey, and GDP in Gallifrey is $2 billion. -Refer to the scenario above.What does the Malthusian model suggest will happen in Gallifrey?

Which group of industries were first affected by the Industrial Revolution?

U.S.GDP per capita has increased approximately 2 percent per year over an extended period.This is a good example of what sort of growth?

Which of the following statements is true?

In a closed economy,________ equal to zero.

The World Bank measure of absolute poverty,equivalent to about ________ per day,is a condition that leads to serious economic,health,and social problems.

Suppose that a nation's GDP per capita grows at a constant 4 percent per year.You graph the nation's GDP per capita on a graph with a linear time scale on the x-axis,and a proportional GDP per capita scale on the y-axis.What will the nation's GDP per capita look like on the graph?

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

On an average,growth in per capita income is associated with a ________.

Which of the following national priorities would be most likely to result in sustained growth?

The aggregate production function used in the Solow model expresses GDP as a function of ________.

Sustained growth refers to a growth process in which ________.

The subsistence level of income is the minimum level of income per person that is generally necessary to ________.

Scenario: In 2000, world GDP per capita was $5,500. In 2010, world GDP per capita was $9,500. -Refer to the scenario above.If the world sustains this growth rate,approximately what will world GDP per capita be in 2030?

Which of the following statements is true?

China's GDP per capita is currently lower than that of Japan.If Japanese GDP per capita grows at 2 percent per year,how fast must Chinese GDP per capita grow to eventually catch up to Japanese GDP per capita?

Continuous increase in investment in ________ is most likely to cause sustained growth.

When current growth builds on past growth,growth is ________.

From the perspective of individual households,income can only be consumed or saved,the latter of which become ________ utilized by firms.

Sustained growth is best achieved through which of the following?

Scenario: In the fictional nation of Gallifrey, the subsistence level of income is $1,000 per year. Currently 3 million people live in Gallifrey, and GDP in Gallifrey is $2 billion. -Refer to the scenario above.What does the Malthusian model suggest will happen in Gallifrey?

Which group of industries were first affected by the Industrial Revolution?

U.S.GDP per capita has increased approximately 2 percent per year over an extended period.This is a good example of what sort of growth?

Which of the following statements is true?

In a closed economy,________ equal to zero.

The World Bank measure of absolute poverty,equivalent to about ________ per day,is a condition that leads to serious economic,health,and social problems.

Suppose that a nation's GDP per capita grows at a constant 4 percent per year.You graph the nation's GDP per capita on a graph with a linear time scale on the x-axis,and a proportional GDP per capita scale on the y-axis.What will the nation's GDP per capita look like on the graph?

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