Question 1

A country will likely experience an increase in poverty if

Accepted Answer

A)  its population decreases over time. 
B)  its real GDP growth rate decreases or slows over time. 
C)  its inflation rate decreases or slows over time. 
D)  its real GDP per person growth rate increases over time. 
E)  it does not receive foreign aid. 
A)  its population decreases over time. 
B)  its real GDP growth rate decreases or slows over time. 
C)  its inflation rate decreases or slows over time. 
D)  its real GDP per person growth rate increases over time. 
E)  it does not receive foreign aid.

Question 2

$$\begin{array} { c c c } 
& \begin{array} { c } 
\text { Employment } \
\text { Year }
\end{array} & \begin{array} { c } 
\text { Real GDP } \
\text { (millions of people) (billions of 2005 francs) }
\end{array} \
\hline 1998 & 58.85 & 8,243.9 \
1997 & 58.61 & 7,992.2 \
\hline
\end{array}$$
-The table above gives information about the economy of France.The growth rate of real GDP per person in 1998 is ________ percent.

Accepted Answer

A)  3.1 
B)  0.4 
C)  2.7 
D)  4.0 
E)  1.9 
A)  3.1 
B)  0.4 
C)  2.7 
D)  4.0 
E)  1.9

Question 3

The following government policies will help achieve faster economic growth EXCEPT

Accepted Answer

A)  discouraging saving and encouraging spending. 
B)  encouraging research and development. 
C)  establishing and protecting property rights. 
D)  improving the quality of education. 
E)  increasing saving. 
A)  discouraging saving and encouraging spending. 
B)  encouraging research and development. 
C)  establishing and protecting property rights. 
D)  improving the quality of education. 
E)  increasing saving.

Question 4

What does the classical growth theory and the new growth theory predict for global growth amongst different nations?
 Comment on the accuracy of the predictions.

Accepted Answer

The classical growth theory predicts tha

Question 5

During 2005, real GDP in Ireland grew 9.8 percent.If Ireland maintains this level of growth in the future, real GDP will double in approximately how many years?

Accepted Answer

With an annual growth rate of

Question 6

The Rule of 70 states that the level of a variable will double in

Accepted Answer

A)  70 years. 
B)  the number of years equal to the variable's annual rate of growth divided by 70. 
C)  the number of years equal to 70 divided by the variable's annual growth rate. 
D)  the number of years equal to the variable's annual growth rate minus 70. 
E)  the number of years equal to 70 multiplied by the variable's annual growth rate expressed as a decimal. 
A)  70 years. 
B)  the number of years equal to the variable's annual rate of growth divided by 70. 
C)  the number of years equal to 70 divided by the variable's annual growth rate. 
D)  the number of years equal to the variable's annual growth rate minus 70. 
E)  the number of years equal to 70 multiplied by the variable's annual growth rate expressed as a decimal.

Question 7

The classical growth theory asserts that

Accepted Answer

A)  economic growth will continue indefinitely. 
B)  economic growth and population growth complement each other. 
C)  population growth increases a nation's economic growth. 
D)  population growth will lead to people earning only a subsistence level of income. 
E)  population growth leads to more growth in technology. 
A)  economic growth will continue indefinitely. 
B)  economic growth and population growth complement each other. 
C)  population growth increases a nation's economic growth. 
D)  population growth will lead to people earning only a subsistence level of income. 
E)  population growth leads to more growth in technology.

Question 8

If labor productivity is $30 per hour and there are 300 billion hours worked in a year's time, what is real GDP?

Accepted Answer

A)  300 billion ÷ $30 = $10 billion 
B)  $30 × 300 billion = $9,000 billion 
C)  ($30 ÷ 300 billion) × 100 = $10 billion 
D)  (300 billion ÷ $30) × 100 = $1 trillion 
E)  (300 billion ÷ $30) ÷ 100 = $100 million 
A)  300 billion ÷ $30 = $10 billion 
B)  $30 × 300 billion = $9,000 billion 
C)  ($30 ÷ 300 billion) × 100 = $10 billion 
D)  (300 billion ÷ $30) × 100 = $1 trillion 
E)  (300 billion ÷ $30) ÷ 100 = $100 million

Question 9

Human capital is defined as the

Accepted Answer

A)  amount of machinery human beings have. 
B)  number of factories built for human beings. 
C)  accumulated skill and knowledge of human beings. 
D)  accumulated amount of machinery and factories human beings own. 
E)  skills that people are born with. 
A)  amount of machinery human beings have. 
B)  number of factories built for human beings. 
C)  accumulated skill and knowledge of human beings. 
D)  accumulated amount of machinery and factories human beings own. 
E)  skills that people are born with.

Question 10

-In the figure above, productivity has increased.In which growth model can this type of change occur?
i. Classical growth model
ii. Neoclassical growth model
iii. New growth model

Accepted Answer

A)  i only 
B)  ii only 
C)  iii only 
D)  ii and iii 
E)  i, ii, and iii 
A)  i only 
B)  ii only 
C)  iii only 
D)  ii and iii 
E)  i, ii, and iii

Question 11

The neoclassical growth theory predicts that i) the subsistence real wage rate will increase over time.
Ii) real GDP per person will grow at a rate equal to the population growth rate.
Iii) real GDP per person will increase as long as technology also increases.

Accepted Answer

A)  i only. 
B)  ii and iii. 
C)  i and iii.. 
D)  iii only. 
E)  ii only. 
A)  i only. 
B)  ii and iii. 
C)  i and iii.. 
D)  iii only. 
E)  ii only.

Question 12

According to classical growth theory, economic growth occurs when ________ and economic growth ________.

Accepted Answer

A)  the population increases; does not last forever 
B)  technology advances; does not last forever 
C)  the population increases; lasts forever 
D)  technology advances; lasts forever 
E)  labor productivity increases; lasts forever 
A)  the population increases; does not last forever 
B)  technology advances; does not last forever 
C)  the population increases; lasts forever 
D)  technology advances; lasts forever 
E)  labor productivity increases; lasts forever

Question 13

In 2008, real GDP in the United States was $13,312 billion.In 2009, real GDP in the United States was $13,112 billion.What was the U.S.economic growth rate from 2008 to 2009?

Accepted Answer

A)  -1.5 percent 
B)  1.5 percent 
C)  0.98 percent 
D)  0.12 percent 
E)  $200 million 
A)  -1.5 percent 
B)  1.5 percent 
C)  0.98 percent 
D)  0.12 percent 
E)  $200 million

Question 14

The fastest growing nations today are those with

Accepted Answer

A)  barriers that significantly limit international trade. 
B)  the fastest growing exports and imports. 
C)  government intervention in markets to ensure high prices. 
D)  few funds spent on research and development. 
E)  the least saving. 
A)  barriers that significantly limit international trade. 
B)  the fastest growing exports and imports. 
C)  government intervention in markets to ensure high prices. 
D)  few funds spent on research and development. 
E)  the least saving.

Question 15

This year Iceland has a real GDP per person that is approximately 8 times greater than that of Cape Verde.Cape Verde's growth rate of real GDP per person was 5.2 percent.If Cape Verde maintains this current growth rate, approximately how many years will it take for Cape Verde's real GDP per person to reach the same level that Iceland has this year?

Accepted Answer

A)  13.5 years 
B)  20 years 
C)  27 years 
D)  40 years 
E)  54 years 
A)  13.5 years 
B)  20 years 
C)  27 years 
D)  40 years 
E)  54 years

Question 16

The Rule of 70, as applied to real GDP growth, can be used to find the

Accepted Answer

A)  real GDP growth rate necessary to double growth. 
B)  number of years it takes for the level of real GDP to double. 
C)  growth rate of real GDP. 
D)  number of years it takes for the growth rate of real GDP to double. 
E)  population growth rate necessary to double the GDP growth rate. 
A)  real GDP growth rate necessary to double growth. 
B)  number of years it takes for the level of real GDP to double. 
C)  growth rate of real GDP. 
D)  number of years it takes for the growth rate of real GDP to double. 
E)  population growth rate necessary to double the GDP growth rate.

Question 17

One possible way of achieving faster economic growth is to

Accepted Answer

A)  limit international trade. 
B)  encourage international trade. 
C)  limit research and development and concentrate on production of goods and services. 
D)  abolish the system of patents and copyrights so that everyone can use people's ideas. 
E)  let the government decide what research and development should be undertaken. 
A)  limit international trade. 
B)  encourage international trade. 
C)  limit research and development and concentrate on production of goods and services. 
D)  abolish the system of patents and copyrights so that everyone can use people's ideas. 
E)  let the government decide what research and development should be undertaken.

Question 18

Labor productivity increases if i. human capital decreases.
Ii) technology advances.
Iii) quality of education decreases.

Accepted Answer

A)  i only 
B)  ii only 
C)  iii only 
D)  Both i and ii 
E)  Both ii and iii 
A)  i only 
B)  ii only 
C)  iii only 
D)  Both i and ii 
E)  Both ii and iii

Question 19

Using the data in the table above, the growth rate of real GDP has

Accepted Answer

A)  increased from year to year. 
B)  increased more rapidly from year to year. 
C)  remained constant from year to year. 
D)  slowed from year to year. 
E)  probably changed, but more information is needed about the price level to determine by how much it has changed. 
A)  increased from year to year. 
B)  increased more rapidly from year to year. 
C)  remained constant from year to year. 
D)  slowed from year to year. 
E)  probably changed, but more information is needed about the price level to determine by how much it has changed.

Question 20

The neoclassical growth theory assumes that technological change i. is determined by economic growth.
Ii) is random and the result of chance.
Iii) results from people's choices.

Accepted Answer

A)  i only 
B)  ii only 
C)  iii only 
D)  Both ii and iii 
E)  Both i and iii 
A)  i only 
B)  ii only 
C)  iii only 
D)  Both ii and iii 
E)  Both i and iii

A country will likely experience an increase in poverty if

Employment Year Real GDP (millions of people) (billions of 2005 francs) 1998 58.85 8,243.9 1997 58.61 7,992.2 -The table above gives information about the economy of France.The growth rate of real GDP per person in 1998 is ________ percent.

The following government policies will help achieve faster economic growth EXCEPT

What does the classical growth theory and the new growth theory predict for global growth amongst different nations? Comment on the accuracy of the predictions.

During 2005, real GDP in Ireland grew 9.8 percent.If Ireland maintains this level of growth in the future, real GDP will double in approximately how many years?

The Rule of 70 states that the level of a variable will double in

The classical growth theory asserts that

If labor productivity is $30 per hour and there are 300 billion hours worked in a year's time, what is real GDP?

Human capital is defined as the

-In the figure above, productivity has increased.In which growth model can this type of change occur? i. Classical growth model ii. Neoclassical growth model iii. New growth model

The neoclassical growth theory predicts that i) the subsistence real wage rate will increase over time. Ii) real GDP per person will grow at a rate equal to the population growth rate. Iii) real GDP per person will increase as long as technology also increases.

According to classical growth theory, economic growth occurs when and economic growth .

In 2008, real GDP in the United States was $13,312 billion.In 2009, real GDP in the United States was $13,112 billion.What was the U.S.economic growth rate from 2008 to 2009?

The fastest growing nations today are those with

The Rule of 70, as applied to real GDP growth, can be used to find the

One possible way of achieving faster economic growth is to

Labor productivity increases if i. human capital decreases. Ii) technology advances. Iii) quality of education decreases.

Using the data in the table above, the growth rate of real GDP has

The neoclassical growth theory assumes that technological change i. is determined by economic growth. Ii) is random and the result of chance. Iii) results from people's choices.

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

Exam 9: Economic Growth

A country will likely experience an increase in poverty if

Employment Year Real GDP (millions of people) (billions of 2005 francs) 1998 58.85 8,243.9 1997 58.61 7,992.2 -The table above gives information about the economy of France.The growth rate of real GDP per person in 1998 is ________ percent.

The following government policies will help achieve faster economic growth EXCEPT

What does the classical growth theory and the new growth theory predict for global growth amongst different nations? Comment on the accuracy of the predictions.

During 2005, real GDP in Ireland grew 9.8 percent.If Ireland maintains this level of growth in the future, real GDP will double in approximately how many years?

The Rule of 70 states that the level of a variable will double in

The classical growth theory asserts that

If labor productivity is $30 per hour and there are 300 billion hours worked in a year's time, what is real GDP?

Human capital is defined as the

-In the figure above, productivity has increased.In which growth model can this type of change occur? i. Classical growth model ii. Neoclassical growth model iii. New growth model

The neoclassical growth theory predicts that i) the subsistence real wage rate will increase over time. Ii) real GDP per person will grow at a rate equal to the population growth rate. Iii) real GDP per person will increase as long as technology also increases.

According to classical growth theory, economic growth occurs when ________ and economic growth ________.

In 2008, real GDP in the United States was $13,312 billion.In 2009, real GDP in the United States was $13,112 billion.What was the U.S.economic growth rate from 2008 to 2009?

The fastest growing nations today are those with

The Rule of 70, as applied to real GDP growth, can be used to find the

One possible way of achieving faster economic growth is to

Labor productivity increases if i. human capital decreases. Ii) technology advances. Iii) quality of education decreases.

Using the data in the table above, the growth rate of real GDP has

The neoclassical growth theory assumes that technological change i. is determined by economic growth. Ii) is random and the result of chance. Iii) results from people's choices.

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

According to classical growth theory, economic growth occurs when and economic growth .